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Adidas Recently Announced Its Last Factory?s Closure in China Sports Articles | November 27, 2012
According to the latest reports, Adidas would shut down its last plant in China [url=http://www.cheapflyershockeyjerseys.com/Jordan-Weal/]Cheap Jordan Weal Hat[/url] , which was done by Nike few years ago. There are two reasons for this. First, Adidas's re-integration of global resources strategy, secondly, the labor costs keep rising these years. What ever the truth is, choosing an ideal place where the labor costs is relatively low seems reasonable.

Recently [url=http://www.cheapflyershockeyjerseys.com/Brian-Elliott/]Cheap Brian Elliott Hat[/url] , it was reported that the world's second largest sports company Adidas would shut down the only one of its own factory in Suzhou in October this year. Adidas officials confirmed this message to reporters yesterday, but it stressed that Adidas still have over 300 cooperation industries in China, the shutting down will not influence the production, closing factories is based on the consideration of the strategy of re-integrate global resources.

Nevertheless, business market is still inevitable to associate this action with the phenomenon that domestic manufacturing labor costs rises sharply [url=http://www.cheapflyershockeyjerseys.com/Brandon-Manning/]Cheap Brandon Manning Hat[/url] , recruitment is difficult. But it is not accidental, it's more like a trend. When the global economic crisis broke out three years ago, Nike shut down its last factory in China so as to deduce resources unavailable in China. If compare Nike and Adidas these multinational giants to "migratory birds", it's natural for them to leave, because now here is no longer lush trees [url=http://www.cheapflyershockeyjerseys.com/Scott-Laughton/]Cheap Scott Laughton Hat[/url] , the land is no longer fertile, either. However, in the eyes of some observers who focus on the transformation and upgrading on domestic intensive manufacturing industry, most of the "baits" in China which attracts these "migratory birds" are based on the cheap labor, and this situation will sooner or later change with the development of national economy and living standard.

According to the reply of Adidas headquarters [url=http://www.cheapflyershockeyjerseys.com/Sean-Couturier/]Cheap Sean Couturier Hat[/url] , "To close the factory is for the re-integration of global resources". This is the only reason. And as Xinhua reported, Suzhou Industrial Park Administrative Committee, said in a material to the media that it completely understood Adidas's plan of global resources re-integration, which also agrees with the trend that Suzhou Industrial Park Administrative Committee requires transformation at present.

It is worth noting that Adidas's so-called "integration strategy", also appeared in Nike's official statement in China. In March 2009 [url=http://www.cheapflyershockeyjerseys.com/Travis-Konecny/]Cheap Travis Konecny Hat[/url] , Nike announced the closure of its footwear production facility only owned by it - Taicang plant. At that time, Nike in China responded to South reporters that "The purpose is to further promote the long-term procurement integration strategies and streamline the supply chain.".

In fact, Adidas did not deny the correspondence between shutting down the factory and the rising costs, and it seems that there doesn't exist any conflict between "global resource integration" and "rising costs". Recalling the long-term history of sporting goods manufacturing industry, Adidas [url=http://www.cheapflyershockeyjerseys.com/Ivan-Provorov/]Cheap Ivan Provorov Hat[/url] , Nike and other multinational sports clothing brands has been always choosing the way "Where the cost is low, there is the way

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