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How Can The Closure Of Adidas Factory In China Embarrass Small And Medium-Sized Shoe And Hat Enterprises

2012/7/20 11:55:00 27

AdidasEconomic TransformationReform And Opening Up

World sporting goods giant Adidas The company announced on the 18th that it would close its only factory in China in Suzhou later this year, or settle down in Southeast Asia, for the strategic consideration of "re integrating global resources". This is another international garment manufacturing giant that announced the closure of Nike's only shoe factory in China in 2009.


   clothing The production of shoes and hats, sporting goods, etc. are labor-intensive industries. The logic behind Adidas moving its factories out of China is not difficult to understand. It is to reduce labor costs. The labor cost in Southeast Asia is only 1/3 of that in China. This can also be seen from the road map of Adidas factories moving from Europe to Japan, Taiwan, then to the mainland of China, and then to Vietnam and other Southeast Asian countries.


China has a large number of cheap labor, which is China's comparative advantage at the beginning of reform and opening up. The continuous supply of labor and low labor costs have attracted a large number of enterprises, especially labor-intensive enterprises, to deploy in China, which has promoted the development of China's economy for a long time and created the status of "the world factory". As time goes by, China's labor costs are gradually increasing, and traditional manufacturing enterprises or labor-intensive enterprises that are more sensitive to labor costs will naturally respond accordingly.


Some people believe that China's demographic dividend is disappearing. Although this judgment is still controversial economic transition The problem really needs to be faced squarely. It is impossible for labor force to be supplied indefinitely, and the rising labor cost is a trend. China cannot always be the "world factory", but must change from "Made in China" to "Created in China", which is the key to the healthy and sustainable development of China's economy. That is to say, no matter whether there are enterprises that will choose to move out of China like Adidas, the necessity and urgency of economic transformation must be firm.


The problem of enterprise relocation needs to be faced, but for China, this move has not reached the level of crisis. On the one hand, although Vietnam, Cambodia and other countries have low labor costs, the quality of their labor force and infrastructure construction are far inferior to China, and they cannot meet the overall requirements of large-scale enterprises for investment and production. On the other hand, the labor population size of these countries is also smaller than that of China. The labor demand of some manufacturing enterprises is generally tens of thousands or even hundreds of thousands of people. The population capacity of these countries is obviously limited, which cannot meet the huge demand of the international market. In other words, some countries may become competitors of "Made in China", but it is not enough to pose a great challenge at present. "Made in China" will not be greatly impacted in a short time, and its advantages will remain.


We should also see that, as opposed to the move out of China of a small number of labor-intensive factories, more and more multinational companies have moved their regional headquarters, technology research and development centers, marketing centers and other high-end institutions to China with the continuous improvement of the quality of China's working population, the continuous progress of social construction, and the continuous improvement of policies and systems, There are also more and more capital intensive and technology intensive enterprises entering China. Adidas, Nike and other enterprises will move their factories out of China, which can be viewed objectively, and its effects need not be exaggerated.

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