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Vietnam manufacturing jumped the "boss" Nike foundry relocation wave of renewed
Blog Submitted by xiangpupup on 05/25/2012 at 11:31 PM Report Blog

Hu Jun Hua Jiliang the transnational
asics online giant Nike company does not have its own factory. It sold all of the footwear, apparel and sports equipment products from the foundry, the biggest one is China Taiwan Thailand Feng Enterprise Co., Ltd. (hereinafter referred to as the "Taifeng Enterprise").
6 pairs of Nike sports shoes, about one pairs Taifeng enterprises.
now, if you happen to buy one pairs Taifeng production of Nike shoes, these shoes have half of the Tai Fung Enterprise Vietnam factory.
the past few years, Nike foundries geographical distribution has been quietly undergoing a huge change: Vietnam has become the largest source of Nike footwear products made in China relegated to second; apparel products, China is still the largest source of Nike's.
However, this pattern may be great changes, market watchers Magang said: "If the logistics costs of a city in Shanghai in southern China than to the New York high, coupled with continuous rising labor costs and other factors, clothing 'Made in China' advantage will be quickly lost. "
made in China by the Vietnamese manufacturing beyond
pursue asset light model Nike about 600 foundries in the world, the number of workers employed in these foundries over 80 million people, distributed in 46 countries onitsuka tiger and regions, China is the center of the distribution of its foundries.
2007 fiscal year, the foundry in China for Nike produced 35 percent of the Nike brand footwear products, Vietnam, Indonesia, Thailand, the foundries were 31% for Nike production. 21% and 12% of the Nike brand footwear products.
to fiscal year 2010, Vietnam foundries proportion rose to 37 percent, became the "boss", China ranked second with 34% share, Indonesia and Thailand, the proportion of, respectively, 23% and 2% of India's 1% share of fifth place.
reason for the garment and shoe factories origin Vietnam come from behind, Magang with Nike's largest foundry company Taifeng enterprise the Taifeng enterprises in Vietnam in recent years opened a lot of sports shoes foundries .
Taifeng Enterprise 2010 finished shoes shipments exceed 60 million pairs of the Taifeng enterprise shipments accounted for about one sixth of the shipments to Nike.
Magang said that as early as 1996, Taifeng enterprises has begun to set up factories in Vietnam. In the second half of 2005, the Taifeng companies of footwear production in Vietnam, the number of products has more than its foundries in China, with the the Taifeng enterprises in Vietnam Dong Nai province and Vung Tau asics tiger province and other areas foundries have been put into operation in 2007, capacity of the Vietnam Datai Feng 51% of the enterprises, the company's main source of revenue and profit; mainland China production capacity accounted for approximately 32% of the Tai Fung enterprises, the Taifeng companies specifically pointed out: "With other parts of the new capacity out, the share of (Mainland) ratio will be declining. "
As the Taifeng companies had expected, in 2010, mainland China's foundries accounted for the Taifeng enterprise shipments to further reduce to 23 Vietnam to maintain a 51% share of Indonesia accounted for 18% share, India accounted for 8% share.
actually is not just one of Taifeng enterprises in the space distribution of the change foundries. Nike another important manufacturing enterprises, also from Taiwan, China's Yue Yuen Group has also undergone a similar change. the
"First Financial Daily reporter statistics, fiscal year 2003, Yue Yuen Group has production lines in mainland China, Vietnam and Indonesia, respectively 161,78 and 51; fiscal year 2010, Yue Yuen Group respectively in the three production lines number is 226,120,114, the production line, the number of year-on-year increase of 40.4%, 53.8% and 123.5%, the production line in Vietnam and Indonesia, asics shoes the rate of increase is much higher than in mainland China.
replica of the relocation of the tide once again staged
foundries "relocation tide" reasons, The Taifeng enterprises admits: "mainland China in recent years, rising labor costs and appreciation of the renminbi is indeed improved operating difficulty, payment of staff salaries and related benefits based on the Group's long-standing plants begin with the labor laws regulate the high standards, these costs increase more than has been gradually to reflect the operating costs of the last few years. "Yue Yuen Group, pointed out that with enhance the living standards of the Pearl River Delta region, the Government set a minimum wage requirements, the mainland's labor costs will rise, and thus continue to develop its production base in Vietnam.
to the border with Vietnam, Thailand, for example, the project manager of the Thai-Chinese Rayong Industrial Park Development Co., Ltd. Wu Guangyun the wages of labor in Thailand from 1200 to 1500 yuan per month on average, Hangzhou, a nearby factory wages are generally monthly from 2000 to 3000 yuan, the wage level is not necessarily able to hire workers; Thailand plant rental cost is only 1/5 ~ 1/4 of the region near Hangzhou, the other water, electricity, gas and other costs are also lower asics australia than the domestic , on behalf of Nike factory moved to foreign countries is not surprising.
Chinese mainland labor costs, plant rental cost factors such as rising profit margins for the Taifeng companies and the Yue Yuen Group has a more significant impact.
Yue Yuen Group earnings data show that the fiscal years 2008, 2009, Yue Yuen Group's turnover was 4.92 billion, 5.02 billion $ 5.79 billion, profit before tax was 515 million 470 million, $ 531 million, profit before tax rate from 10.5 percent in fiscal year 2008 all the way down to 9.4% in 2009 and 2010 fiscal year, 9.2 percent. The Taifeng enterprises in 2009, 2010 and March 31, 2011, three months pre-tax margins were 33.33%, 31.12% and 25.35%.
Magang said, not just on behalf of Nike factories feel the pressure of cost, in fact, the continent's sporting goods business and footwear manufacturers also intend to transfer to the central and western China with its own manufacturing plant, which Anta intends to Henan to the opening of a new production plant, Belle is going to plant in Anhui.
Nike foundries "relocation tide" is actually in the same year Taiwan has staged one. The last century in the late 1980s, due to the lack of labor force in China's Taiwan region and the rise in wage costs, more labor-intensive shoe industry, most shoe factories Onitsuka Tiger Mexico 66 began to move to mainland China and Southeast Asia, including Tai Fung Enterprise at that time, the Taiwan company is actively expanding overseas production bases, only part of the high-end production and design, R & D department in Taiwan.
Taifeng predict, out with the new capacity in other areas outside the Chinese mainland, the proportion of mainland China foundry also declining in mainland China in addition to continuing the production of various kinds of high value-added of footwear outside, The Taifeng companies will focus on the Chinese mainland domestic market is huge growth opportunities, while the share of Vietnamese foundries expected to be up to 55% of the company's production capacity in the next few years.
India more the Taifeng enterprises as the new focus of future business, Taifeng companies publicly stated that India has a reasonable labor costs, abundant labor source close to the geographical position of the EU market will be the company create another competitive production base in mainland China, Indonesia, Vietnam, India, four shoe factories and related plants in the fully developed, can Zhangaigongsi production capacity of more than 25%.
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