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Adidas: Closing Logistics Warehousing In Chinese Factories

2012/7/20 17:07:00 13

AdidasSports BrandInventory Pressure

 

Two days ago, Adidas, which will shut down China's capacity, broke out. Its new storage center project in China's supply chain is in full swing.


China's strategic adjustment of "one opening and one customs" reflects the trend of change in the movement of foreign capital sports brands, namely, "reducing the production of OEM and increasing sales expansion".


The reporter recently learned from Adidas sports supply chain director Xie Qian exclusively that Adidas will be in the second half of this year.

Suzhou

A new Northern storage center is set up outside the storage center. The location is located in Tianjin.

"This is a decision made by the company after studying the market demand in northern China. Now it is basically renovated."


New logistics center to increase radiation coverage


On the 19 day, Zhang Ting, director of corporate communications at Adidas Greater China, said that despite closing the Suzhou plant, China will continue to maintain Adidas's position as the global core resource market.


For the previous market rumors, Zhang Ting affirmed that "Suzhou factory officially closed in October", "160 employees in sufficient time to get the factory closure notice, and get far higher than the relevant national standard compensation."


While frankly speaking, the production cost of Chinese market is rising.

Sportswear

The big international brand has never stopped the market "Nuggets".


Take Adidas as an example, although the United States is still its largest market, the profit contribution of China and Russia is the biggest.

Gao Jiali, managing director of Adidas Greater China (Colin Currie), said: "in the next five years, Adidas's annual sales in China will grow at a speed of 15% to 20%."


Although Adidas Suzhou factory has been called "stop", Adidas's only logistics storage center in China will continue to be retained in Suzhou.

In view of the growing demand of the entire Chinese market, the radiation capability of the logistics center in East China has begun to appear somewhat limited.


Adidas has announced that it will open 2500 new stores in China before 2015, hoping to further expand its coverage of the Chinese market, while the number of new stores in 2011 is only 1175.

Adidas chief operating officer Erick Haskell once said, "usually our pportation time is usually within 2 to 3 days, but how to pport the products to Urumqi quickly is the biggest problem we have now encountered."


As a result, the idea of the northern logistics center was formed, and the site was not market speculation Beijing and other places, eventually settled in Tianjin.


For the needs of the northern market, Xie Qian said: "macroscopically,

Garment industry

The first tier cities in China are basically saturated, but China has a large population and a large population. From the overall development, insiders are still very optimistic about the growth of China's market scale, and believe that the next growth rate will still maintain two figures.

In order to keep abreast of market demand in a timely and accurate manner, the logistics and inventory management of the apparel retailing industry largely determines the enterprise's "life and death".


Domestic logistics situation is not qualified.


Xie Qian pointed out that compared with the more mature markets abroad, the overall situation of domestic logistics has not yet passed.

Some major sportswear brands have long been relying on their brand strength, pressing franchisees, allowing customers to take risks.

This is also due to past historical reasons. It seems that when we first opened stores in China, we could make money, and basically opened up single brand stores.

"When such a situation comes to the six thousand or seven thousand stores, it begins to encounter enormous inventory pressure. At this time, the high inventory of logistics is very important."


"From our Adidas side, frankly speaking, the company is still leading in China.

Judging from the recent order meeting of the company in Xiamen in the first quarter of next year, we have more orders than Nike, "Xie Qian said." we are now basically linking logistics and sales.

We can't sell the goods to light and put the goods to customers.

Now the bonus in the supply chain will be linked to the final sales of the customers.

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