Recently, according to some media reports, fiscal year 2010,
Vietnam produced 37 percent of the Nike sports shoes, the share jumped
to first, ending 10 consecutive years of the boss position. Vietnam
replaced China has become the largest production base of the Nike shoes
is Joy and sorrow
Nike shoes OEM part turned to Vietnam is normal, also have limited impact on domestic employment
Consider for cost advantage, Nike shoes for 30 years continue to shift production base
Nike sports shoes are outsourcing production. According to the introduction of the Nike website, athletic shoes, the labor cost is more sensitive, companies must control labor costs less than 24%, can be competitive. In accordance with this principle of cost control, in the past 30 years, Nike's production base has been changes to conform around the costs, the ongoing migration.
Nike Web site, the first Nike's factories in Japan, with the rise in labor costs in Japan, as well as the appreciation of the yen, the production base moved to South Korea and Chinese Taiwan. Later, South Korea and Taiwan the cost up, Nike began production base moved to the Philippines, Thailand, Malaysia and Hong Kong, China, and research long-term production base where, in comparison to China and India, selected Chinese.
In 1981, Nike began production of sports shoes in China. The next 30 years, China will soon become the largest producer of Nike sports shoes, Vietnam more than until 2010.
China's manufacturing costs are rising, but part of the OEM transfer a limited impact on the employment
With the rise in China's manufacturing labor costs, such as the foundry business to cheaper labor countries (including Vietnam) transfer seems normal, however. According to foreign media reports in recent years, Vietnam is to tax exemptions, cheap land and cheaper labor, and other favorable terms to attract manufacturers of shoes, clothing and computer chips. The monthly average wage of Vietnamese workers in the 50-60 U.S. dollars, only about half of China's coastal manufacturing centers. Vietnam's appeal is so great that even Chinese companies are beginning to move to Vietnam.
Nike over the years the annual report data show that in 2001, China produced 40 percent of its shoes, ranked first in all countries, while Vietnam accounted for only 13% of the share; 2005, China's share fell to 36% ranked first, Vietnam rose to 26 percent, ranked second; in 2009, China and Vietnam are tied for first place, is 36%; to 2010, Vietnam has more than China, accounting for 37%, China was relegated to the second accounting for 34%.
However, from the above data we can see that Nike foundry business is only partially transferred to the Vietnamese, the Chinese still occupy 34% of the proportion. Limited impact on domestic employment in the growing Chinese labor shortage moment, this inexpensive part of the foundry business relocation.
Nike shoes do OEM can only earn meager profits, sweatshops model is not sustainable
Chinese enterprises usually only earn meager profits to the international brand of Nike OEM
Nike, the industry is commendable that its asset light operating mode, is the manufacturing and retail distribution outsourcing (OEMs), itself is focused on the design, development and marketing business. This asset light operating model to reduce the company's capital investment, in particular the areas of production, a lot of investment in fixed assets, thus improving return on capital. Asset light operating mode, even if China's domestic manufacturing enterprises, the profit gained from Nike shoes production is also quite limited.
Previously, the media reported that the material cost of one pair in the U.S. retail price of $ 100 Nike shoes only $ 15.67 factory in China ex-factory price of only $ 24.71, including $ 2.58 of direct labor costs, management fees of $ 4.56 and about $ 1.9 factory profits. When the dual ex-factory price of $ 24.71 Nike shoes shipped to the United States, the wholesale price of this pair of shoes of Nike, Inc. for $ 52.03, these shoes to reach the hands of consumers, the prices have been as high as $ 100.
It is estimated that the value chain, the costs and benefits of the premium brand of Nike shoes and sales channels accounted for 70% of the total price, the value added of the production of Nike shoes in China factory (including direct labor costs, management fees and factory profit) combined share of the proportion of about 9%.
Sweatshop model is not sustainable, at the cost of the expense of labor rights and the environment
In fact, precisely because of the domestic enterprises to international brands, including Nike, OEM business only meager profits that companies do not have enough profit margins to digest any wage increase cost pressures. The contrary, the foundry business in order to survive, you must depress the labor remuneration and the cost of the expense of the rights of workers.
There is another consideration is the environmental cost. A virtual form of transfer of pollutants in the foundry trade,Smith, the Jets' Mr. Everything, scored on an 89-yard kickoff return during which he lost his left Polo shirt and also had a 53-yard touchdown run in New York's 26-10 victory over Cincinnati on Thursday night. this virtual form of pollutants from the process of manufacture of foundry products and emissions of waste water emissions and solid waste, ie industrial waste. These pollutants are to enjoy the goods of the importing country shifted to the country of export of manufactured goods, to become a Chinese foundry trade behind a hidden cost.
Some scholars have pointed out that the prosperity and GDP of low-wage of workers and environmental costs in exchange for the cost of the foundry trade and prosperity, not the real national wealth and economic prosperity, but a kind of immiserizing growth, this sweatshop model unsustainable.
Nike shoes OEM part turned to Vietnam is normal, also have limited impact on domestic employment
Consider for cost advantage, Nike shoes for 30 years continue to shift production base
Nike sports shoes are outsourcing production. According to the introduction of the Nike website, athletic shoes, the labor cost is more sensitive, companies must control labor costs less than 24%, can be competitive. In accordance with this principle of cost control, in the past 30 years, Nike's production base has been changes to conform around the costs, the ongoing migration.
Nike Web site, the first Nike's factories in Japan, with the rise in labor costs in Japan, as well as the appreciation of the yen, the production base moved to South Korea and Chinese Taiwan. Later, South Korea and Taiwan the cost up, Nike began production base moved to the Philippines, Thailand, Malaysia and Hong Kong, China, and research long-term production base where, in comparison to China and India, selected Chinese.
In 1981, Nike began production of sports shoes in China. The next 30 years, China will soon become the largest producer of Nike sports shoes, Vietnam more than until 2010.
China's manufacturing costs are rising, but part of the OEM transfer a limited impact on the employment
With the rise in China's manufacturing labor costs, such as the foundry business to cheaper labor countries (including Vietnam) transfer seems normal, however. According to foreign media reports in recent years, Vietnam is to tax exemptions, cheap land and cheaper labor, and other favorable terms to attract manufacturers of shoes, clothing and computer chips. The monthly average wage of Vietnamese workers in the 50-60 U.S. dollars, only about half of China's coastal manufacturing centers. Vietnam's appeal is so great that even Chinese companies are beginning to move to Vietnam.
Nike over the years the annual report data show that in 2001, China produced 40 percent of its shoes, ranked first in all countries, while Vietnam accounted for only 13% of the share; 2005, China's share fell to 36% ranked first, Vietnam rose to 26 percent, ranked second; in 2009, China and Vietnam are tied for first place, is 36%; to 2010, Vietnam has more than China, accounting for 37%, China was relegated to the second accounting for 34%.
However, from the above data we can see that Nike foundry business is only partially transferred to the Vietnamese, the Chinese still occupy 34% of the proportion. Limited impact on domestic employment in the growing Chinese labor shortage moment, this inexpensive part of the foundry business relocation.
Nike shoes do OEM can only earn meager profits, sweatshops model is not sustainable
Chinese enterprises usually only earn meager profits to the international brand of Nike OEM
Nike, the industry is commendable that its asset light operating mode, is the manufacturing and retail distribution outsourcing (OEMs), itself is focused on the design, development and marketing business. This asset light operating model to reduce the company's capital investment, in particular the areas of production, a lot of investment in fixed assets, thus improving return on capital. Asset light operating mode, even if China's domestic manufacturing enterprises, the profit gained from Nike shoes production is also quite limited.
Previously, the media reported that the material cost of one pair in the U.S. retail price of $ 100 Nike shoes only $ 15.67 factory in China ex-factory price of only $ 24.71, including $ 2.58 of direct labor costs, management fees of $ 4.56 and about $ 1.9 factory profits. When the dual ex-factory price of $ 24.71 Nike shoes shipped to the United States, the wholesale price of this pair of shoes of Nike, Inc. for $ 52.03, these shoes to reach the hands of consumers, the prices have been as high as $ 100.
It is estimated that the value chain, the costs and benefits of the premium brand of Nike shoes and sales channels accounted for 70% of the total price, the value added of the production of Nike shoes in China factory (including direct labor costs, management fees and factory profit) combined share of the proportion of about 9%.
Sweatshop model is not sustainable, at the cost of the expense of labor rights and the environment
In fact, precisely because of the domestic enterprises to international brands, including Nike, OEM business only meager profits that companies do not have enough profit margins to digest any wage increase cost pressures. The contrary, the foundry business in order to survive, you must depress the labor remuneration and the cost of the expense of the rights of workers.
There is another consideration is the environmental cost. A virtual form of transfer of pollutants in the foundry trade,Smith, the Jets' Mr. Everything, scored on an 89-yard kickoff return during which he lost his left Polo shirt and also had a 53-yard touchdown run in New York's 26-10 victory over Cincinnati on Thursday night. this virtual form of pollutants from the process of manufacture of foundry products and emissions of waste water emissions and solid waste, ie industrial waste. These pollutants are to enjoy the goods of the importing country shifted to the country of export of manufactured goods, to become a Chinese foundry trade behind a hidden cost.
Some scholars have pointed out that the prosperity and GDP of low-wage of workers and environmental costs in exchange for the cost of the foundry trade and prosperity, not the real national wealth and economic prosperity, but a kind of immiserizing growth, this sweatshop model unsustainable.
