The Good Effects of Adidas Migration

At the night of July 18, the Adidas headquarters in China responded formally, the production base in Suzhou will be closed in October and this is its only factory presence in China directly under the control of the company. The news does not come suddenly, since this year, Adidas Suzhou production base has ground to a halt to hire employers. Adidas CEO Hainer in the year of 2008, has expressed that more than fifty percent of the exercising shoes production of Adidas was produced in China, however, for the reasons of Chinese employees' wages demands increasing, rising manufacturing costs, the corporate plans to decrease the proportion of yield in China. Predictably, the plant which is directly under the control will be closed sooner or later. However, the Adidas emphasized that original equipment manufacturer is not in the closed factory list.
For dominating causes that the factory is closed actually is not complex, such as Adidas which is labor concentrated transnational enterprise, the labor costing explains the big portion of the reason, and Chinese recent labor salary has been increasing ceaselessly, in the contrast of southeast Asia, and the intermediate of the labor salary difference is large enough to make Adidas moving the Chinese factories to southeast Asia, for example, Thailand, Vietnam and so on. Adidas, Nike and other brands survival rule is to find the lowest labor costs and extend the broad market.
Based on the material, China eastern coastal average salary standard of the labor force is approximately two thousand five hundred Yuan to three thousand Yuan, but in Vietnam the manufacturing industry mean salary is approximately one thousand Yuan a month and India is approximately six hundred Yuan. It is visible that the labor costing in China has been greatly higher than the surrounding country.
In the labor-intensive textile factory it is also the same, according to a study published by the French Textile Association, it showed that China labor cost is twice as that of Southeast Asia. Such as China spinning enterprise staff mean level salary is 188-300 Euros, which is much more than the global spinning industry of the lowest wage countries-around 80 Euros in Bangladesh. It can account the reason that like Adidas and Nike such big transnational labor-intensive enterprises to act as the peacock flying southeast.
This argument has also been confirmed by the Adidas factory workers, from the end of last year, the average monthly income of an ordinary operator or a warehouse material member is over 3000 Yuan, and the basic salary is 1500 Yuan. Monthly they have another whole attendance bonus, allowance for turns and pay five risk shift a gold, factory car transport, free lunch and provide accommodation, so good treatment is also hard to keep people. The point can also been watched from increasingly serious shortage of employers and show that the first line of the workers is very lacking. And Adidas moved to southeast Asia Cambodia or Thailand to set their roots, the Adidas Cambodia "sweatshop" has been reported as a scandal, and we can see that the thing is under way.