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Cost Pressures Intensify Lining And Other Sports Brands To Accelerate The Pace Of "Enclosure" In Central And Western China

2011/5/18 8:47:00 49

Due to increased cost pressures, many sports have been launched since the beginning of this year.

brand

Accelerating the pace of "enclosure" in the central and western regions, the trend of industrial pfer is increasingly obvious.

In May 17th,

Peak

Hou Lidong, manager of sports public relations, said PEAK had planned to build a factory in Jiangxi to cope with the problem of rising prices of raw materials, thereby reducing labor costs.

In addition, PEAK will invest and build factories in Heze, Shandong, and share some logistics pressure while solving the pressure of employment in the northern region.

In addition to PEAK, Anta has also been making frequent moves recently.

In May 13th, during the Chengdu sports fair,

Anta

Zheng Jie, chief executive of the brand, told the media that Anta will shift production to lower cost areas.

On the same day, Lai Shixian, vice president of Anta group, visited Fengzhen, Anhui Province, to learn about Fengzhen's Industrial Park, and an Feng vocational secondary school.

In addition to Anhui, the areas Anta considered include Henan and other places.

In addition, in early May, Adidas announced the establishment of the West headquarters office in Chengdu.

Gao Jiali, managing director of Adidas Greater China Group (ColinCurrie), said that the market in Western China is the key area of group ambition.

As early as in the past few years, the local brand "boss" Lining has begun to layout in the Midwest.

In 2008, Lining invested in the construction of Lining Industrial Park in Jingmen, Hubei.

In December last year, an annual output of 10 million sets of sportswear processing projects was put into operation in Zhongxiang, Hubei, and the manufacturer was the core supplier of clothing for Li Ning Co.

Lining chief operating officer Guo Jianxin revealed that by the end of this year, 30% of Lining's production will be in Hubei.

Insiders revealed that apart from pferring to the central and western regions to save costs, some domestic brands also chose to raise prices.

It is understood that a number of brands have indicated that their products will increase in price, and the amplitude will exceed 10%.

However, for these domestic brands, frequent price increases undoubtedly mean the gradual loss of the three or four line market which was originally conquered by the low price strategy.

Commentator Ma Gang said that China's local brands now have 60% share from the three or four line market, and once these customers are out of the market, these enterprises will be dealt a fatal blow.

He also pointed out that, on the one hand, with the listing of enterprises, sufficient funds are sufficient to guarantee the expansion of local brands; on the other hand, under the current bargaining power is weak, optimizing the supply chain and cost management structure through industrial pfer is also a necessary choice to cope with increased cost pressures.