Chinese Foundry Enterprises: Locking Up High-End Market For Pformation And Upgrading

Adidas announced in July that its factory directly withdrew from the mainland of China. After that, 10 manufacturers for Adidas OEM received a notice of termination of their cooperation.

According to the reporter's investigation, there are nearly 10 enterprises in Hunan doing foundry for Adidas, and they have not yet received notice to terminate the contract.

But the Adidas order shift has also triggered a bit of anxiety in Hunan's processing shoe enterprises.

In recent years, the footwear industry in Shandong Province has been developing rapidly by undertaking foreign shoe processing.

Adidas's decision to close its only factory in China is not related to Hunan.

ODI, someone is calm and worried.

According to the reporter's investigation, at present, Hunan has nearly 10 enterprises that have processed Adidas.

"Orders from this brand are decreasing. In the first half of this year, a total of 3 million pairs of two factories in Hengyang failed to achieve the desired results."

Hengyang Rong Yang Footwear Co., Ltd., responsible person Tang Zhenshan told reporters.

Hengyang Rongyang shoe industry is a subsidiary of Rongcheng group. Adidas accounts for about 90% of the OEM brand.

It is reported that Rongcheng shoe industry is a professional manufacturer of Adidas.

The factory has its own production base in Hengyang and Shuangfeng.

Rong Yang footwear industry related responsible person said that since last year, orders from Adidas were significantly reduced. In 2010, the Rong Yang footwear industry did not have a slack season throughout the whole year. When it was the best, it could produce 250 thousand -30 pairs of Adidas shoes in one month, but in the 8-10 month of last year, orders fell sharply, and processed only 150 thousand -20 ten thousand pairs per month.

In the first half of the year, Yueyang Wanfeng shoes, which also made Adidas shoes, felt good.

"This year is the Olympic Games, the first half of the order situation is OK."

The company's relevant person in charge said.

Hunan part of the processing shoe enterprises emotional "fluctuation"

At present, Hunan's processing shoe factory is mainly distributed in Hengyang, Yongzhou, Yueyang, Chenzhou, Shaoyang, Loudi and other places.

With the development of industrial pfer in recent years, other brands such as Adidas, Nike and Puma have begun sending orders to Hunan.

The steering of Adidas's orders has also aroused anxiety among these generation of processing shoe manufacturers.

In the first half of this year, $30 million was completed. "The order in the next three months is not ideal."

Chen Jingyi, the principal responsible for processing Puma brand Xiang Wei footwear industry, said, "the next step is to make a list of domestic brands.

Shuangfeng County Xing on behalf of the shoe processing Nike brand, Rong Cheng footwear processing 361 degrees, UA.

"The order is not good at the moment."

Shuangfeng County Business Bureau official revealed.

There is such a rule that the replacement of shoe factories to the central part of China is mainly aimed at getting rid of the shortage of labor shortage and rising cost in the Pearl River Delta and Yangtze River Delta.

At present, there are four main groups engaged in shoe processing in China, namely Baocheng group, Wan Bang Group, Rong Cheng group and Qing Lu group. Under these groups, factories are processing for Adidas.

"It is also prudent for employers to come here to build factories. They are mainly concerned about the proximity to Dongguan, as well as high-speed rail and labor cost advantages."

Ju Wang shoe Huang Huang Hong tells the reason for moving to Leiyang.

The most widely cited reason is that "internal mobility mainly focuses on the wage advantage of employees."

The lost comparative advantage

However, a set of data reflects the gradual weakening of labor cost advantage.

Tang Zhi Shan counted the accounts. The wages of Vietnamese workers were $200-250 per month, equivalent to 1200-1500 yuan, while the average salary of workers in the Pearl River Delta reached 2500-3000 yuan.

"After the pfer of the mainland, the situation is not as good as expected."

Xie Shuguang analysis, at present, labor costs and coastal areas are only a little bit, much less.

When the shoe industry in Nanyang came to Hunan, the average wage of the general worker was only 1100 yuan -1500 yuan, and now it is basically more than 2000.

Secondly, compared with coastal areas, the cost of pporting inland has also increased.

In addition, after the company moved to the mainland, the staff in the mainland were basically local and the management was not as convenient as before.

What is worth asking is that Adidas's order has moved to Southeast Asia, which means that the Chinese mainland has gone through the spring of processing.

According to the analysis of the industry, currently, Nike, Adidas and other high-end products layout in mainland China, and gradually pfer the middle and low orders to Indonesia, Vietnam and other Southeast Asian countries.

"At least 5-10 years, these high-end international brands will not withdraw all of these high-end orders from mainland China, so the mainland's processing shoe enterprises should seize this time, lock in the high-end market, and carry out pformation and upgrading ahead of schedule."