Adidas responds: Put production in all parts of the world

Yesterday, in response to the report on Adidas withdrawing from China, Adidas Greater China responded that China will continue to be its most important place of production. The absolute value of production will not decline, but at the same time, it also said, “Maybe later”, made in China. The percentage will decrease.

Some industry analysts pointed out that for a multinational sports apparel brand manufacturer such as Adidas who focuses on the design field and the manufacturing sector is looking for a foundry on a global basis, the balance of costs and benefits has prompted its transfer to lower-cost regions. Choice, but it is a deadly blow for OEMs at the very end of this business model.

"China is still the most important place of production."

Although Adidas Greater China headquarters replied in an e-mail to reporters, “China will continue to be our most important place of production. Adidas China will still maintain a very high level of production.” But adidas also admitted that "is ready The production of the products will be distributed all over the world. For example, Russia, Western Europe, and other countries in Asia, like Cambodia, will increase their production.”

According to Adidas, 50% of its products are made in China, with 264 factories nationwide and 300,000 employees. Based on this analysis, if Adidas's orders shift to other regions, the livelihood of at least some of these 300,000 people will become a problem.

In January this year, an Adidas foundry in Dongguan went empty and locked the door. It was not until the media was exposed that the public knew the name of the company was Changde Shoe Industry. It is understood that this company was established in October 1995, covers an area of ​​more than 66,000 square meters and employs nearly 4,000 people.

AMT apparel industry senior consultant Ge Xing told reporters that adidas, Nike and other sports brands are mostly brand operating models, their own focus on the design field, they do not have a production plant, that is global design, global search for OEM companies, global sales.

Foundry is the weakest link

In Guangdong, Wanbang Shoes, which mainly produces sports shoes for big brands such as Adidas, moved its production line from Guangzhou to Qingyuan because of cost pressure. The reporter yesterday tried to contact the spokesman of Wanbang Shoes Industry Co., Ltd., who was Guo Weiwen, secretary general of the EU Anti-Dumping Federation of China Shoes Products. After understanding the reporter’s intention of interviewing, his assistant told reporters that Guo was not in the company. As of press release, Wanbang Shoes did not give a reply.

"The situation of foundry companies is very subtle, and the key is to look at the bargaining power between them and the OEM brands." A person in charge of an internationally renowned sports brand foundry company who did not want to be named told reporters that his company is also in Guangdong. The partners had asked them to go to India to jointly invest and build factories. However, after examining the resources in India, he found that the lack of supporting facilities and working hours of workers caused the production capacity to fail to meet the requirements, causing the cost to increase. Therefore, he is only taking a wait-and-see attitude.

Yang Yelin, deputy secretary-general of the Guangdong Provincial Footwear Manufacturers Association, said that the comprehensive competitive advantage of the Chinese footwear industry is still incomparable to other countries. However, he also pointed out that large companies such as Adidas have their own advantages. They set up factories outside China, and many supporting facilities can be built on their own.