Nike Adds 5 Production Lines In Fujian Province

Nike will add some production lines to Quanzhou by the end of the year, people familiar with the matter said.

Facing the economic cold winter, some large enterprises abroad or outside the province have to "lose weight". Why does Nike expand the scale of foundry in Fujian?

Reporter understands, it is precisely because of the complete foundry production chain in Fujian province that some international big enterprises have pferred the production line to Fujian province.

In the province, the foundry chain will lead Nike to increase production line. Nike will add 5 production lines in Quanzhou by the end of this year.

The demand for shoes in the US and Europe has shrunk. Why has Nike added production lines in the province?

It is understood that, due to the closure of some factories in Thailand, some orders were pferred to the domestic market, so Nike decided to add some production lines in Quanzhou.

According to our understanding, now Nike has many foundry enterprises in Fuzhou, Quanzhou and Putian. This time, we choose new production line OEM enterprises to engage in shoe foundry for many years, acting as agents of many foreign brands.

This year, due to the introduction of the new labor contract law, resulting in the rise of labor costs, coupled with the rising cost of raw materials and the appreciation of the renminbi, the low cost competitive advantage of Fujian OEM enterprises has gradually decreased.

The pfer of subcontracting enterprises to Southeast Asia has made the OEM business quite difficult.

In the second half of the year, the financial crisis caused the demand in the US and Europe to shrink, and the OEM orders in the province declined.

But, insiders say, similar brands such as Adidas and Nike will not rush out the entire OEM, because domestic OEM enterprises have built up a complete production chain with complete hardware facilities and a large number of skilled workers in China.

The person said that compared with Southeast Asian countries and regions, Chinese workers are more industrious, and the quality of personnel is relatively high and easy to manage.

A shoe industry staff told reporters that the foundry enterprises in the province still have their own technical advantages. If we can make good use of this advantage, "when others fail, it is the opportunity for Fujian's OEM enterprises to continue to expand their scale."

It is understood that unlike Southeast Asia, Nike and Adidas have higher requirements for the process of inland OEM.

To develop new markets to cope with "cold winter", reporters learned in the interview that some of the enterprises that were primarily domestic sales also developed part of the foundry production line.

"One of the three largest enterprises in Quanzhou children's shoes," said the company's staff, this year they began to pick up some OEM orders in the UK.

It is understood that the demand for adult shoes dropped nearly 30% this year, but the impact on children's shoes is relatively small. Some children's shoes enterprises began to use this time point to add production lines to improve the quality of products.

It is understood that now many independent brand shoes industry is working hard to improve the quality of products.

It is understood that Anta is actively working with internationally renowned design and R & D institutions such as Japan, the United States, Italy and Hongkong, and is committed to developing advanced sports science and technology to enhance product functionality and design.

And benefiting from the promotion and consolidation of Anta's brand in recent years, as of June 30th, Anta's turnover increased by more than 50% in the first half of last year, breaking through 2 billion 200 million yuan.

Pan Yangzheng, Deputy Secretary General of the import and Export Chamber of shoes and footwear, said that in the long term development, the OEM enterprises in the province should actively "go out" and consider pferring the enterprises to some cheaper areas such as the West.

At the same time, some enterprises can make use of the experience accumulated in the foundry industry to create their own brands and improve the added value and competitiveness of the products.