Chinese Brands Fly To Southeast Asia

Southeast Asia is another option for capital.

Receive a notice from Adidas to terminate the contract. Sun Ying Li Some are unprepared. The contract period agreed between the two parties will not be completed until 2015.

Sun's company has started OEM for Adidas since 1996, and the two sides signed a long-term cooperation agreement in 2006.

It happened just then. Adidas The golden age of China's production. In 2007, half of the footwear products of Adidas group were produced in China. But then Adidas began implementing strategies to increase supplier diversity. The 2011 Annual report mentions that some Latin American countries impose a high import tax on China's exported footwear products, which is why Adidas will further decentralize its production base.

By 2011, the proportion of footwear products of Adidas group from China is still the largest, but has dropped to 35%. The growth rate of Southeast Asian countries such as Indonesia and Kampuchea is obvious. The share of the latter has doubled.

"Closing the Adidas Suzhou plant is a strategic consideration of reintegrating global resources. This strategy will help Adidas better play our scale effect and reduce complexity." The official response provided by Adidas to the Southern Weekend reporter was unflawed, trying to cool down the shutdown. "Closing the factory has nothing to do with raising salaries, and it has nothing to do with our stock situation. At present, Adidas has a good inventory in China".

But in fact, the secret of factory transfer is the cost. In July 2008, Adidas global CEO Herbert Heiner told German media that wage standards made by the government were becoming too high in China, and the company hoped to partially withdraw from China and move to cheaper labor areas. Just four years ago, Haina's statement triggered the speculation that Adidas would shift the production line.

Compared with four years ago, China's labor costs are rising. "If we add social insurance, the average monthly salary of our workers here is more than 3000 yuan. This is doubled compared with two years ago, but we are also worried that we can not recruit workers. The workers who have been recruited have a high job hopping rate. Li Xin (a pseudonym) is a middle-level Adidas foundry in Fujian. In order to recruit workers, he looks for help everywhere.

Li Xin said that the proportion of human cost expenditure in his business accounted for 12% of the turnover from 30% a year ago.

One side is China's rising labor costs. On the other hand, the adult labor force in Indonesia, Vietnam and other Southeast Asian countries earn more than one thousand yuan per month. Li Xin's company has begun to expand overseas branches, and three factories have landed in Vietnam and Indonesia.

Compared with Adidas, the old rival Nike has made greater progress in shifting production base. Since 2005, Nike has increased the proportion of Vietnamese factories in its manufacturing industry every year. By 2009, the proportion of Vietnam and China's orders was 36%. After two years of anti - overrun, Vietnam's share rose to 39% in 2011, while China dropped to 33%.

This is not the first factory migration of Nike and Adidas. Two brands, originated in Europe and America, are very sensitive to costs. In the 70s of last century, its main production base was in Japan. Due to the appreciation of the Japanese yen and the rising labor costs in Japan, they shifted their production base to South Korea and Taiwan. In 1990s, they shifted orders to mainland China for cost reasons. Today, Southeast Asian countries such as Vietnam and Indonesia are new places of interest.

The migration of Nike and Adidas also promoted the transfer of Taiwanese foundry factories. In early 2012, the nine Xing holding company listed in Hongkong closed a processing plant in Dongguan and continued to improve its production capacity in Indonesia. UNIQLO, a casual clothing chain from Japan, also takes Southeast Asia as its next destination.

In 1999, UNIQLO established production departments in Shanghai and Shenzhen. By 2007, 90% of UNIQLO products were made in China. But after 2008, UNIQLO gradually reduced its reliance on China's manufacturing and reduced its share to 80% in 2011. This year's annual report shows that the company plans to actively expand production in other Asian countries in order to reduce costs, "the goal is to transfer 1/3 of the production outside China".

except clothing Sellers and food enterprises are also sensitive to price.

Not long ago, the China EU Chamber of Commerce conducted a survey on EU enterprises in China. According to the survey, 22% of respondents said they were considering investing in other markets outside China. When asked about motivation, one of the main factors is the rising cost.

The survey data show that consumer goods enterprises are more inclined to withdraw than industrial enterprises, which is related to the former's more sensitive to price.

"Compared with industrial enterprises, the production and transfer of consumer goods enterprises are faster," Li said. "5 years can basically be completed."