Adidas'S "Strategic Shift" Is A Foregone Conclusion.

Loss of labor cost advantage is the main cause.

"Because the global procurement structure is being optimized, there are 10.

The partners have received legal notice of our termination of the contract. "

Adidas's China Public Relations Department said yesterday in a reply to Ogilvy public relations reporter.

As for why it will be so removed from its growing suppliers, Adidas said yesterday that it would provide corresponding consultation and assistance to some suppliers in communication planning and pition work.

Yesterday, the news has also been confirmed from some of the clothing processing enterprises in Shanghai.

"In May of this year, 10 Adidas factories in China, including our company, had received the same notice.

Notification shows

The cooperation with these factories will be terminated between October and April next year. "

Shanghai man Lang Textile Co., Ltd., the person concerned reluctantly said.

Shanghai Dong Long down products Co., Ltd., as one of the foundry companies to be terminated, also admitted to reporters yesterday that the 4 foundries, including Dong Long, had received the notice that Adidas would terminate the contract in October this year.

"ADI is already preparing for the gradual pfer of capacity."

Dong Long responsible person said that at present, Adidas has pferred some of its capacity to Southeast Asian countries.

It is understood that the monthly salary of Adidas's factory workers in Kampuchea has been exposed to a minimum of about 130 US dollars, which is less than 900 yuan.

Shanghai's Santa Fe apparel Co., Ltd., which accounts for about 30% of the total capacity of Adidas, is also a member of the "suspended list". Lily, the head of the company, told reporters that "ADI will gradually shift production to overseas."

Because labor costs in China are increasing year by year.

She said Adidas's annual orders for the company were about 500 thousand -60, and the wages of the workers have now risen to around 3000 yuan.

Close to Adidas's industry analysis, clothing processing has always been very sensitive to the price of the industry, as China's factory processing experience and scale together, there are all aspects of the cost.

By contrast, some countries in Southeast Asia have more impact on production costs.

"With the rise of China's production costs, especially the cost of labor, Adidas's shift of China's capacity is inevitable."

Generation processing enterprises are facing pformation and upgrading

Adidas can get rid of the cheaper foundries, but the Chinese foundry, which is forced to "cut grain", is in a dilemma.

It is reported that in the contract factory which was terminated, some factories attached to the 100% capacity of Adidas, and basically had no contact with other customers. If there is no new order in the short term, there is only one way to close the factory.

In fact, since the financial crisis,

Manufacturing industry has been moving out one after another.

Previously, 10 multinational companies involving household appliances, electronics, building materials, toys, food and other industries have shut down or pferred Chinese factories.

Thus, under the background that the cost advantage is getting weaker and weaker, the Chinese foundry enterprises are also facing unprecedented challenges.

The industry believes that with the sustained economic development, population, resources, environment and so on have undergone major changes, and can no longer continue the advantages of low cost.

And if the domestic foundries fail to take this opportunity to pform successfully, they will inevitably face the crisis of fierce collapse.

"Now more and more foundry enterprises have become problems, and are forced to seek pformation, especially to pform their own brands into production."

Li Yifeng, vice president of Shanghai garment industry association, said that brand names should account for at least 60% of the profits from the distribution of clothing brands and processing.

In China, the profit between general OEM and brand can be 5 times or even more.

"Although it is very profitable to create its own clothing brand, it is not easy to create its own brand for some companies that have made international brands for many years."

Li Yifeng also said that at present, the supporting services and financial industry in China's market are not standardized, and social capital is difficult to effectively link with these enterprises.

In an interview with reporters yesterday, the person in charge of a foundry enterprise in Shanghai, Adidas, also admitted that the creation of its own brand should not only produce productive strength, but also have economic strength, which can not be overnight.

"A brand building is different from a factory. It may take 3-5 years or even longer. As a company, it often meets problems in the process of pformation.

For example, my capital chain is not enough, my funds may support two and a half years, or even three years, but it may be worse for the last few months, this time there will be concerns. "