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Sports Brand OEM Trade Implies Many High Cost.

2012/3/12 12:42:00 28

In the foundry trade, there exists a virtual pfer of pollutants. The virtual form of pollutants comes from the waste water, waste gas and solid waste generated and produced in the process of foundry products, that is, industrial wastes.

The importing countries of these pollutants have been pferred to the exporting countries of manufactured goods, which has become a hidden cost behind China's OEM trade.

Some scholars pointed out that

Worker

The low wage and environmental costs at the expense of OEM trade prosperity and GDP prosperity are not real national wealth and economic prosperity, but a "impoverished growth", and this "sweatshop" model is not sustainable.

According to media reports, Nike's global sports shoe contract factory has more than 100 factories, including Baocheng, Fengtai, Qing Lu, Guang Rong and other Taiwanese businessmen. Korean businessmen have T2, SANYO and so on. These factories are scattered in China, Vietnam, Indonesia and other places in Asia.

Since 2005, Fengtai group, which controls Nike 5.5%, has pferred many Chinese orders to Vietnam. At the same time, it has expanded the production line of 4 processing plants in Vietnam and invested about ten million US dollars to build a new factory in Vietnam.

In 2005,

Nike

The world's largest OEM plant Baocheng group's capacity in Vietnam is also rapidly improving.

In the following years, Feng Tai and Baocheng increased investment in Vietnam.

It can be seen that the so-called Nike shoes made in Vietnam are just Nike's OEM enterprises that pfer their capacity to Vietnam, which costs less. It is not necessarily related to the upgrading of Vietnam's own manufacturing capability.

Chinese enterprises have gone from imitation to local brands, and the gap with international brands such as Nike is narrowing.

However, China is different. In the process of learning Nike and other international brands, China's local manufacturing enterprises have gone beyond the stage of foundry and imitation, and are moving towards the stage of creating brands.

In the 90s of last century, most Chinese sporting goods manufacturers were only an important foundry partner in Nike's "light assets operation" mode. In Jinjiang, Fujian, there were nearly 3000 footwear production enterprises, employing over 300 thousand employees and producing 650 million pairs of shoes annually.

But now, brands like Anta, PEAK, 361 degrees, Hyde, del Hui, Jordan, and golden lake from Jinjiang have developed rapidly into an important competitor in China's local sporting goods market by emulate Nike.

For example, PEAK, once Nike's "Dove" based on OEM, has become the leader of the domestic basketball brand.

China in 2009

Sports brand

Sales ranking shows that Nike is still in the top spot, but Chinese brand Lining surpassed Adidas in second place (in 2009, Lining ranked sixth in the world sports brand sales). Similarly, the local brand Anta (ranked eighth in the world) also ranked only fourth after becoming Adidas.

Nike shoe part of the foundry business to Vietnam is very normal, and the impact on domestic employment is also limited.

In the field of sports shoes, Chinese enterprises have gone beyond the subprime stage of small profit subsistence, and have successfully moved to the stage of independent brands. From this perspective, Vietnam's replacement of China as the largest foundry base for Nike shoes is not good news, but it is also not bad news.