From Adidas To Chinese Factories To See Where China'S Manufacturing Will Go.

Not long ago, sports

The giant Adidas has decided to close its only factory in China. Its staff members have disclosed their destinations or moved to Southeast Asia.

This factory is located in Suzhou Industrial Park, and is a wholly owned subsidiary of Adidas group 100%.

The news that the factory will be closed was first reported by the workers who were disbanded. In July 17th, the China headquarters of the company confirmed that "the only private factory to be closed in China later this year".

Although the company did not specify why the factory was closed, analysts said that under the backdrop of a sharp rise in China's sales volume, Adidas's action to close the factory was speculation. The only explanation is that the multinational company is going to move the production line to Southeast Asia where production costs are lower.

Sales in China have been rising sharply in recent years.

China is now the second largest market in the world, and may overtake the United States as the largest market.

As early as many years ago, Herbert Heiner, Adidas global CEO, told an interview with the German media that, as the wage standard set by the Chinese government has been getting too high, Adidas hopes to withdraw from China partially and move to cheaper labor areas.

This statement was immediately interpreted as Adidas will close the production line to evacuate China.

Although the company had to issue a statement at the end, it said, "Adidas has no intention of withdrawing any of China's production lines, but it will increase production in China."

But rumors about Adidas shutting down its production line are still circulating. Rumors were confirmed in 2012 when Adidas closed its only factory in China.

Whether the closure of Suzhou's factory is also based on labor costs and other considerations? Adidas's official statement is "a strategy to reintegrate global resources".

Workers in the factory revealed that the factory was ready to move to Burma.

In many developed countries, "made in China" has penetrated into all aspects of life in every big city, but it has always been at the bottom of the "Smiling Curve" of the industrial chain.

Although China is famous for manufacturing all over the world, consumers in the world actually don't care where products are made.

According to which standard is the most important thing to manufacture, because the brand output, quality acceptance, marketing channel and other links determine the product's "lineage" and "identity" on the shelf.

It is precisely because of the irreplaceable nature of manufacturing that there will be a continuous "migration" situation.

Garment processing is considered to be at the lowest end of the global apparel value chain.

Now, China's famous small commodity distributing center is changing quietly in Yiwu. Yiwu gradually changes from the global small commodity distribution center to the semi finished product distributing center.

It is understood that overseas businessmen gather in China Commodity City to purchase semi-finished products, and the merchants of developing countries such as Southeast Asian countries, "BRIC countries" and other developing countries are most obvious.

The person in charge of the Yiwu Toy Association believes that Yiwu has become a distributed Center for the export of semi-finished products around the world.

This shows that the cheap advantage made in China is gradually disappearing, just as 20 years ago China became a big exporter, and now the terminal factories are heading for cheaper areas.

Since 2011, due to the increasing trend of cost, the influence of a series of factors, such as macroeconomic policy adjustment, weak international demand, and domestic demand being restricted by inflation.

The clothing industry is facing more challenges.

Enterprises generally recognize that many factors are affecting the order volume and profitability of enterprises. Transformation and upgrading become the main theme for enterprises to find a way out for the future.

The Chinese clothing brand lacks the sense of value because of its lack of overall advantages compared with international brands, so it is easy to be affected when the environment changes.

China's clothing manufacturing enterprises must strive to improve production level, improve design standards and further improve management level.

If the manufacturing characteristics of China's garment industry in the past have been impressed by "cheap", and today, with the maturity of China's manufacturing industry, China's manufacturing will develop to the "made in China" brand.

As a major producer of clothing, 1/3 of the world's clothing products are produced in China, of which there are many world famous brand clothing.

Today, with the trend of brand consumption in the world, clothing enterprises should start to walk firmly from OEM to ODM to OBM, that is, to create manufacturing and create roads, to make China upgrade, and to make Chinese manufacturing gradually get rid of the low position in the industrial chain and become a high value-added link in the industrial chain.

Fierce competition in the clothing market is leading to the redistribution and combination of clothing worldwide. The new global fashion manufacturing model will continue to emerge. It emphasizes the quality, efficiency, low consumption, cleanliness, flexibility and customized production.

With the internationalization of clothing products and the establishment of global communication network and the formation of international competition and cooperation atmosphere, the internationalization of garment manufacturing in twenty-first Century is an inevitable trend of development.

It includes the reorganization and integration of garment enterprises worldwide, such as The Virtual Corporation, the coordination, cooperation and sharing of manufacturing technology information and knowledge, the architecture of global manufacturing, and the distribution and coordination of clothing products market.

Advanced garment manufacturing technology also plays a more and more important role in enterprise competition.

Nowadays, advanced garment manufacturing technology should be understood as a comprehensive system formed by the integration of traditional manufacturing technology, information technology, computer technology, automation technology and multi-disciplinary advanced technology of management science, and applied to garment manufacturing engineering.

The general trend of its development is to develop towards precision, flexibility, networking, virtualization, intellectualization, cleanliness, integration and information globalization.

In the new economic system based on knowledge and innovation, China's garment manufacturing industry is facing severe challenges, and it is also an opportunity to rise again.

Manufacturing industry faces two levels of differentiation: high end and low end.

Since the beginning of the new century, the labor cost of China has increased year by year, and its comparative advantage of low labor cost in China has begun to change.

However, there is no turning point in the complementary relationship between China's labor-intensive industries and developed countries.

China's average wage is still equivalent to the average wage of developed countries 1/10 to 1/12, and in terms of infrastructure conditions, industrial matching capabilities, industrial chain integrity, manufacturing workers' quality, production and operation scale and domestic market capacity, it is also a developing country with lower labor costs, such as Vietnam, Pakistan, India, Bangladesh and other countries do not have.

Therefore, the comparative advantage of China's labor-intensive industries will continue to exist at this stage, and China's manufacturing industry still has room for survival.

However, we can not rely on the comparative advantage of low labor costs for a long time, because the real wage level of workers will continue to rise, and the labor-intensive industries will also gradually weaken.

Therefore, promoting the upgrading of industrial structure is the future trend of China.

While many manufacturing industries are moving to low-cost regions in Southeast Asia, another trend in manufacturing is to develop towards high technology.

The first is robotics.

Taiwan Foxconn, one of China's largest manufacturers, announced in August last year that it plans to install 1 million robots in 3 years instead of what workers are currently doing.

According to Foxconn's plan, the number of robots on the production line will gradually increase in the next 3 years to complete simple and repetitive tasks.

In addition to the pformation of enterprises, in Terry Gou's view, for the growth of manufacturing industry in China and even in the world, Fuji Yasu's move is still profound.

"If China wants to become a manufacturing Kingdom, its success or failure is to turn the demographic dividend into a brain dividend."

He said.

The other aspect of manufacturing technology upgrading is artificial intelligence. Even if computers are not as intelligent as human beings, there are at least enough software to imitate human brain.

Artificial intelligence technology will find a place in the manufacturing industry and make the manufacturing industry "personalized": that is, with the help of AI design assistants, people will be able to design their products at home.

Some other technological advances in the next 10 years will also likely affect the manufacturing industry.

The challenge faced by Chinese manufacturing industry is not only the manufacturing pfer caused by the rising costs, but also in the long run, technological innovation will bring greater challenges to China's manufacturing industry.

There is no doubt that the pition from low-end manufacturing to high-tech manufacturing is the only way to upgrade China's economy.

In addition, it is a normal phenomenon for low-end labor-intensive industries to move to areas with more labor and resource advantages. This is the inevitable trend of industrial development. China's manufacturing needs to face up to this phenomenon.

However, in the context of economic slowdown, we should also see the impact of traditional manufacturing shrinkage on employment and so on.

Industrial pformation and manufacturing also need to expand to technology and cultural attachment. Although there are many difficulties in the process of pformation, especially in the context of insufficient innovation capability and low overall industrial efficiency.

However, it is certain that the upgrading pformation made in China is undoubtedly the general trend.

Although China's demographic dividend is gradually disappearing, China's manufacturing industry still has strong advantages. China's manufacturing advantage and labor quality in the process of reform and opening up in the 30 years are still in the leading position in the world.

Under the environment of global economic downturn, the world may enter a new wave of industrialization.

In the future, the developed countries will promote the development of high-end manufacturing, and Southeast Asian countries and Africa will take the lead in the early stage of industrialization.

In this situation, China's manufacturing industry is facing a double attack.

In the short term, we are worried about economic downturns, weak exports and rising labor costs. In the long run, we are faced with more foresight of low cost production advantages of developed countries occupying high-end industrial chain, advanced technology, and later Southeast Asian and African countries.

There is still a long way to go for the pformation and upgrading made in China.

On the one hand, China's manufacturing industry should return to the industry, improve labor productivity, do well in the industry, increase profits, seek specialization and deepen, enhance the core competitiveness of manufacturing industry. On the other hand, the application of new technology and high technology has also become an important direction of pformation and upgrading of China's manufacturing industry.