Production Problems of Nike
In fact, it was just because the domestic enterprises played a foundry role for international brands, including Nike OEM, and enterprises can only get a small profit, so companies did not have enough profit margins to digest any cost pressures that were brought by wage growth. Conversely, the foundry business needed to lower the remuneration of workforces, and the rights and interests of workforces would be sacrificed as a cost if the enterprise wanted to maintain survival. The cost of environment was regarded as another price that you have to notice.
A virtual modality of pollutants transfer existed in the trade of foundry. During the procedure of producing OEM products, three industrial wastes were likely to be produced and omitted, and that was to say waste water, waste gas and solid waste, and these three wastes would result in this kind of pollutant with virtual form. These pollutants were shifted to the export country that manufactured the goods by the import country that enjoyed the goods, and then became a hidden cost behind the Chinese foundry trade.
Some scholars stated that through sacrificing workers’ low salary and environmental costs to exchange for the prosperity of both foundry trade and GDP can be described as a sort of “immiserizing growth” rather than the national wealth and economic prosperity in its true sense. This type of “sweatshops” mode did not have sustainability. When Vietnam was playing the role as Nike shoes’ foundry base, Chinese enterprises have headed for the stage of proprietary brand. There was no relationship with “Made in Vietnam”, although Vietnam has been the biggest production base for Nike shoes.
According to media reports, Nike global sports shoes had more than one hundred contract foundries, including Basoche, Winterthur, Ting Lu, Kong Wing and other Taiwanese businessmen. These foundries were spread in Asia areas, such as China, Vietnam, Indonesia and other places. Five point five percent production of Nike was grasped by Winterthur Group, and began from the year of 2005, the Company turned many Chinese orders to Vietnam. Meanwhile, the Group massively expanded the production line of its four processing plants in Vietnam. Furthermore, in order to set up a new factory in Vietnam, more than one thousand dollars were invested by the company.
In the year of 2005, Basoche Group, which was the largest OEM globally of Nike, and in Vietnam, its capacity got rapid enhancement as well. Within the years that followed, there was an increasing investment on Vietnam that was done by Winterthur and Basoche. It was thus clear that the the so-called Nike shoes were manufactured by Vietnamese was only the method that Nike’s foundry enterprises transferred its capacity to Vietnam for the sake of cheaper costs. There was no inevitable connection between this thing and Vietnam itself on how to improve its production ability. Chinese enterprises have changed from imitation to local brands, and the gap between Nike and other international brands was narrowing.
Enterprises in China have transferred to domestic brands from imitation, and there was narrower gap between themselves and other international brands, such as Nike. Shop the best Nike Free Run 3 or Nike Free Run 2 running shoes from Nike now!
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