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The labor costing explains the adidas superstars 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 adidas boost 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 adidas spezial Textile Association.
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.
Back to this year's London adidas los angeles Olympics, the situation was so similar. Adidas still chooses the official channels, according to its responsible officers introduced to the reporters of the Investors, not only does Adidas provides equipments for all of the British's, but also it is the official partner of another 10 countries' Olympic committees including Australia, France, Germany, it totally sponsors 25 for all of the 26 sports items in the Olympic Games.
But Nike is still "too stingy to pull out a hair" on the International Olympic Committee and the London Olympic Organizing Committee, which focuses more on the Olympic stars and advertisement."In 2008, Adidas is going to become the largest sports brand in China; in 2010, Adidas is going to become Asia's largest sports brand." We still remember the release of heroic adidas eqt utterance by Herbert Heiner, the chief and CEO of Adidas Group said in an interview the night before 2008 Beijing Olympic GamesHowever.
Situation in this year is different from that of the Beijing Olympic Games, but Adidas still face risk in the London Olympic Games since it has been growing at the single digit and the European audiences don't hold a higher passion than 2008 Beijing Olympic Games, it's difficult to summon up their enthusiasm in such competition permanently towards purchasing; what's more, the European economic is at a slump, the Olympic marketing may bring lower profits for Adidas than before."