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Labor cost advantage is the main cause of loss "because the architecture is optimized global sourcing, there are 10 vendor partners have received on our Legal notice to terminate the contract." Adidas Chinese delegate Ogilvy PR yesterday in reply to reporters, said the case . As for why so abolished its suppliers to grow together, Adidas said yesterday that only will this part of the supplier to provide the appropriate counseling to help in the communication plan and transition work. Recently, the news also from Shanghai garment processing enterprises have been partially confirmed. "May this year, including our company, including 10 Adidas Chinese foundries had received a notice of the same content. Notification display, terminate cooperation with these foundries between October to April next year will be the year Adidas . "Shanghai Textile Co. Ltd, diffuse waves frustration. Shanghai Tung Lung Down Products Co., Ltd. as one of this cooperation was terminated foundry, the relevant person in charge also admitted to reporters, including East Long foundries, including four Adidas has indeed received will be terminated in October this year notification of the contract. "Adidas has long been in preparation for gradual transfer of production capacity." Tung Lung responsible person, Adidas has been part of the current production capacity is transferred to Southeast Asian countries. It is understood that the Adidas factory workers in Cambodia was traced to a minimum monthly salary of U.S. $ 130, equivalent to less than 900 yuan RMB. Adidas orders accounted for about 30 percent of total capacity on Haishengfeida Garments Co., Ltd. also suffered "was parked alone" in a responsible person Lily told reporters, "Adi certainly will gradually move production overseas because of Chinas labor costs each year to improve. "she said at the companys annual Adidas orders of about 500,000 -60 million pieces, workers wages have now risen to around 3,000 yuan. Close to Adidas Industry insiders said garment processing has always been extremely sensitive to the price of the industry, along with China factories processing experience and scale up together, as well as all aspects of cost. In contrast, some Southeast Asian countries in terms of production costs have more impact. "With the Chinese production costs, especially labor costs rise, Adidas made in China will be able to transfer out of the trend is inevitable." Transformation and upgrading of processing enterprises are facing Adidas can find lower-cost foundries and withdraw away, but was forced to. " without food, "the Chinese foundry was caught in a quandary. It is reported that the contract was terminated at the foundry, some plants are dependent on 100% capacity Adidas, basically no contact with other customers, new orders can not be found if the short term, only the relevant plant road. In fact, since the financial crisis, Chinas manufacturing industry has been gradually moving out. Previously cheap HOT sale Under Armour UA Curry MVP Mens Basketball Shoes Gold black there are involved in home appliances, electronics, building materials, toys, food and other industries shut down or the number of 10 multinationals shift in Chinas factories. As a result, the cost advantage in the increasingly faint background, Chinese foundry business is also facing unprecedented challenges. The industry believes that, along with the sustained economic development, population, resources and environment have undergone significant changes, low cost advantage can no longer continue. If you are unable domestic foundries opportunity restructuring is successful, it will inevitably be faced ferocious collapse crisis. "There are more and more into question the survival of the foundry business, was forced to seek transformation, especially the transition to the production of its own brand." Vice president of the Shanghai Garment Trade Association, said Li Yifeng, allocated from the clothing brand and processing efficiency point of view, the brand side at least more than 60%. In China, OEM and brand profits in general can be the difference between a 5-fold or more. "However, although the profits to build their own clothing brand is very impressive, but some international brands for many years to do OEM business, create their own brand is not easy." Li Yifeng also said that at present Chinas market and financial services sector matching is not standardized, and it is difficult to follow the social capital of these enterprises effectively docking. Shanghai Adidas head of a foundry in an interview with reporters yesterday, also admitted that the creation of their own brand not only have production capabilities, but also on economic strength, this can not be an overnight thing. "A brand is not the same with the factory to build, it may take 3-5 years, or even longer, but as a business in the transition process often encounter various problems, such as my capital chain enough, maybe my money can support two and a half, or even years, but it may have sent the last few months, this time there will be concerns. ",