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Intl shoe companies move production lines to South Asia
Aug '08
Factors like RMB appreciation, rising raw-material and labour costs has raised production cost in China significantly.

Thus, many foreign-funded shoes enterprises are shifting their production lines to other countries, mainly South Asian nations.

Recently, Adidas announced its plans to move a few of their factories from China to India and other countries.

Company informed that almost 50 percent of their sports shoes were to be made in China. However, now they have been forced to reduce this proportion, because the labour cost was going up.

Reportedly, Adidas has set up its first shoe manufacturing plant in India, and has planned several production lines in Laos, Cambodia, and Vietnam.

Company official said that Adidas is also working on recovering production in the original CIS and East European countries.

Other global shoes manufacturing magnates like Clacks, K-Swiss and Bakers are also increasing production lines in Vietnam, Indonesia and India.

Infact, sources report that Nike has collaborated with 50 factories in Vietnam and these together make up for one-third of Company's shoe production.

Fibre2fashion News Desk - China

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