The Test Of Jiangsu Industrial Order Outflow

"There are discussions within the company about moving the production base out of China in stages." A few days ago, an Adidas Chinese company told reporters that in view of the rising wage level in China, in order to reduce the production cost, Adidas company is ready to transfer the production and purchase of some products from China. Although Adidas Suzhou Co., Ltd. takes a cautious attitude towards this news, the reporter still understands from insiders that the implementation of this plan will affect nearly 300 OEM enterprises in the mainland. It is reported that the other two international sports brands Nike and puma have similar plans. At present, nearly 50% of Adidas products are made in China, and there are 264 OEM factories in China. However, in recent years, the cost of China's shoe industry has been rising, exceeding Adidas's expectation, becoming the direct cause of its "leaving". Li Peng, Secretary General of the Asia Footwear Association, told reporters that in recent years, the overall cost of China's footwear industry has increased by 25% - 30%, while the average profit margin of the footwear industry is 5% - 8%. In particular, the RMB exchange rate is unstable, which may engulf order profits and even make enterprises lose money. the reshuffle of China's shoe industry also makes Adidas difficult for orders on hand. "It's a game between the factory and the buyer." According to an analysis from a shoe company, at present, a large number of shoe-making enterprises and affiliated enterprises in mainland China have closed down or shrunk, and the bargaining power of large factories has been enhanced. There are a lot of orders in the hands of purchasers who are unwilling to increase the price, so the buyers and factories are in a stalemate. "In the process of this game, Chinese enterprises lost 10% - 15% of their orders, mainly to Southeast Asia." A long-term expert who has studied the management mode of clothing and shoes enterprises told reporters that while ADI and other multinational brands were "running away", some OEM factories were "hijacked" and went to "overseas" together. The general manager of a certain factory can only survive by transferring the raw materials to a certain area He said that ADI's direct supply of their final orders has been reduced, and the price of the general agent has also increased. "the situation of OEM enterprises is very delicate, the key is to see the bargaining power between OEM brands." A person in charge of a well-known international sports brand OEM enterprise, who did not want to be named, told the reporter that his company was also in Jiangsu, and the partner had asked them to invest in India to build a factory together. However, after examining India's resources, he found that the production capacity could not meet the requirements due to the lack of supporting facilities and the working hours of workers, which led to the increase of its cost. Therefore, he is only holding a wait-and-see attitude. industry insiders analysis: "if ADI and other enterprises reduce production lines on a large scale, it will have a great impact on OEM and supporting facilities, because many of these enterprises are difficult to survive independently and are only a part of the process flow. Relying on the orders of these enterprises such as ADI, the pressure of these enterprises increases sharply after the orders are transferred out." In fact, the regional transfer of OEM of international brands has already attracted the attention of textile and related industries. At the China Keqiao International Textile Expo held a few days ago, the relevant personage of China Textile Industry Association introduced to reporters that some of the businesses that used to look for China's OEM production have now been transferred to India, Vietnam, Bangladesh, Pakistan and other countries. the main reason for international brands to shift their attention is that under the dual pressure of rising labor costs and RMB appreciation, China's OEM products have partially lost their previous cost advantages. As a labor-intensive enterprise, textile processing enterprises often employ many employees. With the rise of labor costs, the burden of textile processing enterprises is significantly increased. Zong Guyin, chairman of Mona socks, the world's largest stockings company, said the average cost of its products has risen by 15% in the past year. "People in the industry must gradually get rid of the advantages of the company in terms of quality and cost. The reporter learned from an environmental protection color textile Co., Ltd., that since the new environmental protection textile production line was put into operation last year, the number of orders of the company has not been affected by the macro situation, but has increased rapidly. In the next few years or even decades, domestic enterprises should speed up the pace of establishing their own brands.