Do You Know The Current Situation of Chinese OEM Model

With the improvement of the comprehensive cost of the domestic, and taken the low cost as characteristics of cheap replacer of labor model has been vanishing, and therefore for Taiwan-owned enterprise transformation from foundry mainly into the large native market is a better method. In recent period, Adidas published the information that Suzhou factories would be closed and some foundries move to Southeast Asia, the theme of "made in China is faced with crisis" is being a hot point once again, which leads people to have a heated discussion on the employee working for the foundry. Outsiders are familiar with the Pou Chen Group, and it has attracted much attention for that many well-known sports brand of the world most famous sports brand like Nike, Adidas, Reebok and New Balance were from a long line of it.
On 4 September 1969, Pou Chen industrial Co., Ltd. was founded, and in 1979, it got the first order from Adidas, from then on it began from the prelude of the OEM. In the brand-name athletic footwear industry chain, the OEM-based Pou Chen Group is in the bottom of the industry chain. An unnamed industry source told reporters, such as Nike, Adidas and other multinational sports clothing brand has been always following the rule of where has low cost, where to go. It makes the manufacturing foundation of Pou Chen Group moved with continuous shift of Nike and Adidas. After the 1990s, Taiwan footwear manufacturing total costs have increased, Yu Yuan Group controlled by Pou Chen Group builds its primary manufacturing foundation in China mainland in Dong Guan and Gaobu of the Pearl River Delta region to maintain the strength of low-cost producing. In fact, the Pou Chen Group has been aware of the risk of a single OEM model for a long time, and at the same time, as foundry those at any time may face systemic risk of customer cancellation. Thus, while the other foundries business is not related to the end market, the Pou Chen Group firstly builds a retail outlet store in the exercising marketing channels called "Victory Road" mall.
 As a foundry, the Pou Chen Group of course is well versed in the principle of playing your own part, thus it has taken with international brand OEM win-win model. Pou Chen Group help international brands such as Nike, Adidas gain the success of layout of the mainland market, firstly through the Pou Chen Group being as the international brand OEM, then sold shoes to Nike, Adidas and other brands of shoes, and then buy from the brand pair of shoes and move to Victory Road store for sales.
By the native selling channels, they assist transnational trademarks selling goods, on the one hand, it assists  the transnational trademarks to expand domestic market fast. The other side, the Pou Chen Group shoe industry designs to provide new fashion information, making more popular products. Thus, Victory Road exploration realized the Pou Chen Group's OEM and famous brands win-win situation.