Nike Stopped Ordering Orders From 3 Chinese Factories And 1 Vietnamese Factories.

The world's largest economy is in the doldrums. Gym shoes Nike, the manufacturer, announced that it would stop placing orders with 3 Chinese factories and 1 Vietnamese factories, mainly due to the integration of Nike's global supply chain and cost reduction. Although Nike emphasized that China will remain its largest production base, the continued simplification of the supply chain is already in its plan. For many Chinese processing trade manufacturers, they once again encounter the bottleneck of the OEM mode. On the other hand, China is still a strategic market for many foreign enterprises. In clothing, footwear industry In addition to other industries, China's consumption potential is increasingly valued by foreign enterprises, especially in the global financial crisis, which is regarded as "straw" by the latter.

For brand enterprises pursuing low cost and cheap labor, the transfer of production is no longer a novelty. Under the background of the economic crisis, this trend has accelerated, and it is a more and more serious challenge for many Chinese enterprises engaged in processing trade.

Market participants pointed out that in the context of global consumer spending, global producers have closed down production plants in Asia, laying off employees and reducing orders, which has been a serious blow to Asian countries which have long been Western manufacturing bases. The main reason for Nike's hack order is that the global consumer demand has fallen sharply, forcing Nike to cut production and further integrate the product supply chain.

Although the status of Vietnam, India and other countries can completely replace China's "manufacturing plant" remains to be proved, many Chinese processing trade enterprises have to adjust their positioning and survival mode in an increasingly severe external environment.

Although Nike is constantly shifting its production in China, the huge Chinese consumer market has to let Nike "pay attention". Nike's quarterly earnings report showed that Nike realized sales revenue of $4 billion 400 million during the quarter, down 2% from the same period last year. Sales in the Asia Pacific region grew by 8% over the same period last year, reaching US $806 million.

The news about the transfer of sporting goods giant has always been a concern, but whether Nike or Adidas is making a strong stand, "the Chinese market is very important" and "China still occupies an important position in production". The pivotal consumer market in China is not only the production base of Nike and Adidas, but also to a greater extent, China is their strategic market. They do not want to influence the brand because of any news of "relocation".

It is undeniable that Nike and Adidas are indeed facing the pressure of rising costs in China. For this reason, their proportion of "China's production capacity will gradually decrease", but "absolute production value is increasing." In fact, in other industries other than clothing and footwear industry, China's consumption potential is increasingly valued by foreign companies, especially around the world. financial crisis Under the latter is regarded as "straws".