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Vietnam Has Replaced China As The Largest Production Base For Nike Shoes.

2011/7/1 13:48:00 76

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In fiscal year 2010, Vietnam produced 37% of Nike.

Gym shoes

The share ranks first. China produced 34%, ending the 10 year old position and returning to second.

Is China's labor costs rising? Is the status of the world factory weakening? Read the annual reports of Nike, and you will get some inspiration.

Nike

Sports shoes are all outsourced.

The annual report shows that in 2001, China produced 40% of its shoes, ranking first in all countries, while Vietnam accounted for only 13% of the total. In 2005, China's share dropped to 36%, ranking first, Vietnam rose to 26%, and second; in 2009, China and Vietnam ranked first, 36%; in 2010, Vietnam exceeded China, accounting for 37%, and China retreated second, accounting for 34%.

According to the introduction of Nike website, sports shoes are more sensitive to labor costs. Enterprises must control labor costs within 24%, so that they can be competitive.

Therefore, over the past 30 years, Nike's production base has been migrating like a migratory bird, complying with the changes in its cost.

According to Nike website, the earliest Nike factory is located in Japan, along with Japan.

Labor cost

With the rise of the yen and the appreciation of the yen, the production base moved to South Korea and Taiwan, China.

Later, the cost of Korea and Taiwan came up, and Nike began to shift its production base to Philippines, Thailand, Malaysia and Hongkong of China. At the same time, it looked into the future long-term production base, and chose China after comparing China and India.

In 1981, Nike began to produce sports shoes in China.

In the next 30 years, China quickly became the largest producer of Nike sports shoes until Vietnam was over Vietnam in 2010.

As can be seen from the table below, the share of Indonesia has declined in the past 10 years, but it still maintains a considerable share.

By 2010, Indonesia accounted for 23%, and the first three had reached 94%.

The share of countries such as Thailand and India is negligible.

The year mentioned in this article refers to the financial year.

Nike's fiscal year ended in May 31st.

The fiscal year 2010 refers to June 1, 2009 to May 31, 2010.

Nike announced its fourth quarter of fiscal year 2011 in June 27th, but has yet to disclose data on the share of global production base.

So the data used in the 2010 fiscal year is a year ago, but it should not affect the conclusion.