2012 Adidas Follows Nike's Production Shift Out of China

The latest news revealed that Adidas, which ranks the second in sporting goods companies in global market would close its only factory in Suzhou in domestic market. And Adidas official admitted that was true to reporters, but it stressed Adidas in China still has more than 300 cooperation on behalf of business, to shut down the company is out of the consideration of integration of the global resources, which will not bring bad effects on the production.Nevertheless, business market is still inevitable to associate this action with the phenomenon that domestic manufacturing labor costs rises sharply, recruitment is difficult. However, it's not an incident but more of a trend. As early as three years ago when the global economic crisis broke out, Nike closed its last factory in China to reduce the "luggage" in China. If compare Nike and Adidas these multinational giants to "migratory birds", it's natural for them to leave, because now here is no longer lush trees, the land is no longer fertile, either. Nevertheless, for those who pay attention to the transformation and upgrading of domestic intensive manufacturing industry, China could attract these "migratory birds" due to its advantage in cheap labor, but this kind of situation will gradually change as the improvement of national economy and people's living standard.As is replied in the e-mail by Adidas headquarters, "Shutting down the factory in China is out of the strategic consideration to re-integrate global resources". Except for this reason, no other else. What's more, according to Xinhua, Suzhou Industrial Park Administrative Committee said that it understood Adidas's need for adjustment of its global resources re-integration; it's also consistent with the trend of restructuring and development of Suzhou Industrial Park, said in the material to the media.Notably, the "integration strategy" Adidas referred to also appeared in Nike's official statement in China. Nike once announced the closure of the only footwear production facility owned by it in March 2009: Taicang factory when Nike claimed in the interview of South reporters that its purpose was to promote the long-term purchasing conformity strategy and streamline supply chain at a further step.In fact, Adidas did not deny the correspondence between shutting down the factory and the rising costs, and it seems that there doesn't exist any conflict between "global resource integration" and "rising costs". Recalling the long-term history of sporting goods manufacturing industry, Adidas, Nike and other multinational sports clothing brands has been always choosing the way "Where the cost is low, there is the wayIn the beginning, they established producing bases in European America which is regarded as the birthplace of brands. To take the example of Nike, for the sake of saving costs, it built its own overseas production line in Japan as a start. In the later few years, Japanese Yen had been constantly rising as well as the labor costs, which made Nike's producing costs upper and upper and upper. In 1975, Nike's producing lines in Japan were transferred to the relatively low-labor -costs places in Korea and Taiwan. In the 1980 s, and for the same reason, Nike's main producing lines were transferred to Fujian and Guangdong. In recent years, with the rising of Chinese labor costs, it targets at the lower labor costs in Southeast Asia.The apparel industry independent analysts Liao Jierong thought that from the transaction structure of stakeholders, this "fickle" of Nike and Adidas was normal.However, they are faced with the pressure from consumption market. "Particularly for Adidas, which should be the "fuses" of London Olympics as the first class sponsor, but surprisingly, the reaction of consumers has been under the bottom, it is difficult to start shooting reckon without one's host." Normal 0 7.8 Å 0 2 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:nh<; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

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