Even so, it's unavoidable for industry to bound the issues of the sharp increase of labor costs in domestic manufacturing and difficulties of employment together. 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. Comparing Nike and Adidas to "migratory birds", now that there have been no longer lush trees, no fertile land, nothing can impede them. However, in the eyes of some observers who focus on the transformation and upgrading on domestic intensive manufacturing industry, most of the "baits" in China which attracts these "migratory birds" are based on the cheap labor, and this situation will sooner or later change with the development of national economy and 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.
It is worth noting that Adidas's so-called "integration strategy", also appeared in Nike's official statement in China. In March 2009, Nike announced the closure of its footwear production facility only owned by it - Taicang plant. At that time, Nike in China responded to South reporters that "The purpose is to further promote the long-term procurement integration strategies and streamline the supply chain.".
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 way
In the earliest time, their producing bases were in the birthplace of brands - European America. For example, for cost savings, Nike built its first overseas producing lines in Japan. After several years, Japanese yen continued to appreciate, and the labor costs were also soaring, which pushed the cost of Nike in Japan was higher and higher. In 1975, Nike transferred its producing lines in Japan to Korea and Taiwan where the labor costs were relatively low, and then in the 1980s, the producing lines were transferred to Fujian and Guangdong for the same reason. And in recent years, as China's labor costs rise, it took aim at Southeast Asia where the labor costs are cheaper.
Independent analysts Liao Jierong believed that from the transaction structure of stakeholders, for Adidas and Nike, this kind of "rolling stone" is normal.On the other hand, they are facing the consumer market pressure. "Especially Adidas, as the first class sponsor for the Olympic Games, originally this year's London Olympics brings the inertia boom season of consumption, but European and American market demands downturned, wishful thinking is difficult to be fired." About Author
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