Adidas Leads China Shoe Enterprises Pformation

Adidas's supplier in China is now struggling to overcome the bottleneck of China's economic development.

According to the insiders, the economic impact of the US and some European economies will continue for a year to a year and a half.

With the sharp rise of raw materials and the multiple appreciation of the renminbi, the state has imposed new regulations on export taxes, all of which have had a negative impact on the production costs of manufacturers.

But Adidas stressed that China will remain an important production base for the company in Asia.

Every factory in southern Guangdong province goes bankrupt every day.

Due to the huge increase in costs, they have been unable to complete the contract signed with a large chain store Carrefour and WAL-MART a year ago.

Soaring prices of raw materials, rising wages, appreciation of the renminbi and the implementation of new export tax regulations have made many enterprises unsustainable.

The "mature process" of the so-called "export economy" must be a disaster for business operators and workers.

Adida's supplier to the southern city of Qingyuan is now facing huge cost pressures.

As the shoemaking industry is still labor-intensive, about 17 thousand workers in the 10000 shoe industry have only 1 million 200 thousand pairs of sports shoes produced every day.

In order to keep profits, Wan Bang shoes industry has now pferred the sewing work to the surrounding areas of Qingyuan.

The wages of the factory workers there are relatively low.

Charles, manager of Wan Bang company, said: "the next step is to automate, if we can use the current 50% of the personnel to complete the current workload, then we can certainly continue to carry on.

"

The manager estimates that the slowdown in the pace of economic growth in the US and some European countries will continue to affect China for a year to a year and a half.

In this regard, Wan Bang shoe company has taken positive measures.

It now opens another factory in India.

The wages of workers in India are significantly lower than those of Chinese workers.

The average monthly wage of Chinese workers is equivalent to 130 euros, while India has only 30 to 65 euros.

Charles Jan said he estimated that before 2012, the WAN Bang shoe industry would place half of Adidas's orders in China, but the other half would be completed in India.

He also stressed that Chinese workers will not lose their jobs in the future, but that they need to complete more complex production processes.

"In the long run, China will still be the largest production base.

This is the reason many manufacturers understand.

Chinese workers are highly disciplined and skilled in technology.

India is now catching up.

But at present, India needs to complete the pition from casual shoes to sports shoes.

China will acquire more contracts for the production of high-tech end products in the future.

India will mainly produce economical and applicable products. "

In the past few months, the proportion of Adidas's production in China will be reduced, and some orders will be pferred from China to other Asian countries, which has attracted much public attention.

Although the trend of shifting production base is inevitable, Anderson, director of Adidas Asia Pacific, said he believes China will continue to be the largest production base in Asia.

"We have approved the production of 20 different countries in Asia for a long time.

But only China, Indonesia and Vietnam have become the most important production bases.

Not long ago, India joined in.

If I had to predict, I would say that China will still be our most important production base, and Indonesia will get more orders, but it is estimated that Vietnam's development will not be very fast.

Some new countries will also become important production bases, such as India.