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Shoe Clothing Brand Flees Chinese Foundries Or "Other Owners."

2012/9/15 21:26:00 9

NikeShoes And Clothing BrandAdidas

In recent years, many people in the industry have expressed anger at the practice of unilaterally terminating the OEM contract in international brands, but for OEM companies, the days will go on. The best choice in the future may be to search for famous brands in China and work for them.


Light assets are the trend of the times.


Why is the international first-line brand?

Nike

Can complete OEM be achieved in China with Adidas?


Experts analyzed that the strategic adjustment of Adidas mainly stems from its long-term implementation of the "light assets strategy".

At present, China, no matter from the national policy to the cost of raw materials, to the labor cost, makes them feel that China's manufacturing is not as cheap and good as it used to be.


The strategy of light assets refers to the business models of mature enterprises, especially multinational corporations, which only invest a small amount of hard assets, gain profits through output management, technology and brand, and focus on product research and development, sales, service and brand promotion.

Many years ago, TNCs developed a large number of "OEM" enterprises in China.


At present, most of the international brands such as Nike and Adidas are mainly based on OEM and adopt the strategic mode of light assets.

In the local sports brand, Lining is also mainly foundry, and more than half of Anta and PEAK factories are also foundries.


In the apparel industry, most of the world's large chain apparel enterprises such as ZARA and H&M have implemented the mode of foundry. One of the leading companies of Fujian clothing is 80% of the capacity of the seven wolves.

"In fact, seven wolves have basically quit the manufacturing industry!" said a top wolf of seven wolves. At present, the company has shifted from traditional manufacturing enterprises to marketing service enterprises, with the focus on product R & D and brand promotion.


While looking at the domestic garment industry, there are also Metersbonwe, Semir, etc., which started with light assets strategy. These enterprises do not produce or even sell themselves. Metersbonwe is connected with thousands of OEM enterprises and retail networks in China. Through the light asset strategy, the annual sales volume exceeds 2 billion yuan.


 

Substitute customer base to domestic market


Although the international front line

Shoes and clothing brand

Is gradually away from China's manufacturing, but for a large number of foundries, the future is not without a way out.


It is understood that at present, some of the shoe factories that have worked for foreign brands as foundries, because of their safeguards in the production process and management process, have been seen by famous brands such as Lining and Anta, and have become their foundry factories.

Although Lining and Anta have adopted similar "light asset mode" in order to expand production scale and sales network, their products are mainly used for domestic sales. Therefore, domestic production still has cost advantages, and the market situation is relatively good.


According to industry sources, there are already some

Adidas

The foundry enterprises consider moving the factory to Southeast Asia and other countries. "After all, the production cost is lower, and Adidas has hinted that we should go to Southeast Asia and other countries."


However, not all OEM enterprises have the ability to follow these big enterprises to pfer to Southeast Asian countries.

"For example, affected by many factors such as capital, scale, production equipment and so on, the more than 300 Adidas foundries have the ability to follow Adidas to less than 10% of Southeast Asia, and other enterprises will face the result of ending cooperation."

Therefore, it is probably the best strategic choice for the foundry enterprises to "switch to the owners".

In addition, Yang Shuqing, a professor at the school of Business Administration of Huaqiao University, believes that OEM enterprises can also pform their own brands. Although they are hard to start, they can gradually accumulate experience and make progress.

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