Nike And Adi Began To Move Away From More And More Enterprises, Leaving China At Higher Cost.

Yesterday, the United States "marketing network" May 22nd article, the original question: Nike and Adidas began moving out of China, which can explain the problem. Nike and Adidas are moving more Asian manufacturing businesses from China to Vietnam, thus continuing a new trend: more and more enterprises leave China at higher cost.

ADI reported that 44% of the company last year.

The products were produced in Vietnam, up 13% over the same period last year.

Over the same period, the "made in China" ratio of Nike shoes dropped from 32% to 19%.

China has been the cornerstone of manufacturing industry for many years, but now the shoe industry seems to have acquired a new identity: a country with rich experience and more skills to build high-end products than its competitors.

For example, recently, luxury brands such as parischischus, Prada and Boboli have been doing business in China, and announced that China has the "extraordinary skills to produce more elegant and unique footwear products."

In the eyes of these high-end brands, China is no longer a low cost manufacturing country that can only engage in mass production.

This reputation improvement is also paying some price to China: attracting the driving force of some brands, prompting some enterprises to move to China's neighbours.

It is reported that the layout of global sports shoes is different from before, and this situation may not change very quickly.

CNN (CNN) said in 2016 that China's labor cost was only 4% lower than that of the us when the enterprises considered productivity.

In addition, China's wages are rising faster than productivity, and the renminbi is gradually rising. "In a word: (turning) Chinese manufacturing is no longer a universal way to save costs."

Two years later, the speculation of CNN basically came true.

Nike and Adi are giants of the global footwear and apparel market, and are often the leaders of their peers.

Coupled with the luxury brands such as Armani and Boboli, which are proud of using the Chinese manufacturing industry as a quality symbol, they now regard China as a day of producing reliable products at a low price and maximizing profits, or will soon be gone.

Germany's old brand Puma, which runs more than half a century in sports products, was forced into the Bureau in 2018 when the United States waving its trade bar in the United States.

Although Puma has followed the firm, rigid, and not easily shaken tenacity of Germany's manufacturing industry, it has changed its mind in the Sino US trade turmoil that has not yet subsided.

The way the us wantonly swears the trade bar is so rude that any company that has something to do with the world is trembling with fear.

In addition to the bruisant aircraft, soybeans and other products suffer, the international brand of clothing and footwear industry is sitting on a difficult time, and it is hard to ensure that they will not be named in the next wave of sanctions.

For example, Puma, a German veteran who is committed to building high quality sports products, even though he has 70 years of experience, faced with Trump's radical move, he also had to consider how to "walk away" quickly.

It is reported that Puma is stepping up its research on contingency plans. If the United States formally announces tariffs on footwear products, it will shift all Chinese production activities to other Asian countries.

Since Trump announced that it would levy tariffs on Chinese products of 100 billion dollars a year ago, Puma's sense of crisis has come to the surface: once the United States brings the fashionable products such as footwear into the list of tax increases, the price of "made in China" Puma products entering the US market will also rapidly rise, and the competitiveness will be greatly weakened.

Therefore, Puma has to run to a place that neither attracts American hatred nor produces efficiently. Vietnam, Indonesia, Kampuchea, Bangladesh and so on will all be candidates.

1/3 of the products are "Made in China" Puma, and it is understandable to move the factory away from China. First of all, the United States is really scary; secondly, the rising labor cost in China has brought great pressure to it. Puma has made some changes in the past few years.

Compared with the bigger competitors such as Nike and Adidas, Puma's "move" is more flexible and lightweight. While the US has not yet released the next sanctions policy, Puma wants to take the lead in other parts of Asia.

But then, Puma can't bear to bear with China. After all, China's demand for fashion products is booming. In the new quarter's earnings report, Puma won the proud result of its boost from the Chinese market.

It is gratifying to note that a strong desire for survival has not yet obliterated the rationality of Puma. It says that in addition to "escaping", it may not be impossible to stay in China. The price is to increase the price of products in the United States, and to bet on the future of Puma in the Sino US market.

But with so much talk, Puma can't wait to see Trump's next move. After all, China and the United States can only choose one, which is very fatal for any enterprise.