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Nike Factory Workers Reduced 7 To 5 Times China's Wages 2 Times Vietnam.

2013/2/26 9:00:00 11

after the Spring Festival, it reached the peak of recruitment in the Pearl River Delta. However, Wu, the head of a Nike plant in Guangdong, told reporters that in the near future there was basically no plan to recruit people. After the a href= "//www.sjfzxm.com/news/index_cj.asp" > financial /a > crisis, the workers in the factory dropped from more than 13000 to more than 4000 now. 
"P", "we moved all factories from Taiwan to Guangdong in 1990. At that time, the workers in the Pearl River Delta paid only about 200 yuan per month, and now they have turned over 10 times. Especially after the financial crisis, the cost of labor has risen more rapidly. The monthly salary of our workers is far behind that of Southeast Asia. The gap has widened from US $50 in previous years to more than US $200." At present, the monthly salary of factory workers is about 500 dollars, compared with about 300 dollars in Indonesia, and about 250 dollars in Vietnam, Wu said. 
 "if Nike's purchasers can buy a pair of" a href= "//www.sjfzxm.com/" target= "_blank" shoes "/a" 10 dollars ", they will never pay 11 dollars to buy, so the factory has lost some low order. In fact, if it is not to avoid operational risks, the factory can also expand the scale of 10000 people, but the pressure will be very great. Only a month, the cost of labor will be 2 million more than that of Indonesia, and the competitive advantage will be significantly lost. Mr. Wu explained so. 
 sports brand market competition intensifies and labor cost keeps rising. Sacrificing profits or sacrificing orders is the hard choice faced by many generations of factories such as Nike and Adidas. 
 Nike pressure /p >
 with the increasingly fierce competition in sports brands, foreign brands such as Nike and Adidas have been involved in the promotional war and frequently discounted products. In the past two years, in order to clear inventory, even a small number of 88% off a href= "//www.sjfzxm.com/" target= "_blank" > clothing < /a > and shoes, dozens of yuan short of T, one hundred or two hundred yuan a pair of shoes, occasionally appear in Nike, Adidas and other foreign brand discount stores. 
On the one hand, P is calling for raise prices on behalf of the factory. On the other hand, it is sports a href= "//www.sjfzxm.com/" target= "_blank" > dress < /a > competition in the supplies industry, and the Chinese consumer market is not expected to be good. Nike is under no less pressure than its foundries. 
P, Nike's other plant leader, told our correspondent that the Pearl River Delta has been raising the minimum wage in recent years. The company is re calculating its cost and preparing to increase its quotations, which may lead to a decline in some orders. 
, however, the person in charge said, "at present, the processing fees of a pair of sports shoes in our factory are generally one or two dollars higher than those in Southeast Asian factories. However, customers will still give us part of the order. On the one hand, we have been working with Nike for many years. Our efficiency and technology are slightly better than that of Southeast Asia. On the other hand, the cost of employment in Southeast Asia is also rising rapidly. Customers will not put eggs in one basket, but will consider the whole situation. These customers are still optimistic about the prospects of China's domestic market to a large extent. 
 the market is constantly changing and is washing Nike's performance. Nike's net profit fell by 12% in the first quarter of fiscal year 2013. The net profit in the second quarter (up to November 30, 2012) dropped 18% to 384 million US dollars from last year's 469 million US dollars. The main reason is a loss of $137 million in Umbro and ColeHaan two businesses. 
 Nike's second quarter revenue increased 7% to 5 billion 960 million US dollars from last year's US $5 billion 550 million. However, its sales performance in China is weaker than that in North America, Japan and other emerging markets. Sales from the Chinese market fell 11% to $577 million. 
At the same time, last December to April this year, the delivery orders for Nike shoes and clothing increased by 6% to 9 billion 300 million US dollars, down from 13% in the previous year. P The order from China has dropped by 6%, and some analysts believe that Nike's sales in China will not improve at least six months in the future. 
 strong > spanfer, promotion > /strong > /p >
"P", since the outbreak of the financial crisis in 2008, Nike has obviously accelerated the adjustment of the global production layout. According to the annual report data of Nike, in 2001, China produced 40% of its shoes, ranking first in the countries and regions, while Vietnam accounted for only 13% of the total. In 2005, China's share dropped to 36%, or ranked first, Vietnam rose to 26%, ranked second. In 2009, China and Vietnam tied for the first place, all were 36%; in 2010, Vietnam exceeded China, accounting for 37%, and China retreated second, accounting for 34%. 
Li Peng, Secretary General of the Asia Footwear Association, said yesterday in an interview with our reporter that in order to control costs, Nike's spanfer from Pearl River Delta to Southeast Asia and central and Western China has accelerated significantly in recent years. The purchase and production of raw materials for sportswear shoes are easier to standardize, and the pace of spanfer is faster than other industries. P In just a few years, output in Vietnam has surpassed that in China. In addition, Nike's spanfer to the central and western regions is accelerating. At present, only five production sites have been set up in Jiangxi, reaching tens of thousands of people. 
During the Spring Festival this year, Adidas launched 2 series of special buying sessions in Guangzhou's world square. Some products sold for only 99 yuan, while a href= "//www.sjfzxm.com/news/index_f.asp" > Nike also had many products selling 3~5 discount, while KAPPA was also promoting 80 percent off promotions. Compared with the popularity of these foreign brand stores, domestic sports brands such as Lining, Anta, PEAK and other domestic sports brands in Haizhuqu District, Guangzhou seem to be a lot of cool, although these shops are also launching 50 percent off activities. Foreign brands have cleared up their stocks and prices have directly eroded the market of domestic sports brands.