Introduction of The Exploration of Victory Road
Along with domestic cost increasing, characterized by low cost, the low-cost OEM model has come to an end, thus foundry based in Taiwan-funded enterprises transferred to the huge domestic market is a good path. Recently, Adidas announced the news of the Suzhou plant closures as well as a number of foundries transferred to Southeast Asia, it put again “Made in China is facing a crisis” topic to a peak, triggering a lively discussion of the OEM. Be known by outsider of Pou Chen group, it been concerned because the global most popular movement trademark such as Nike, Adidas, Reebok and New Balance and so on are all from its long streamline.
On 4 September 1969, Pou Chen industrial Co., Ltd. was founded, and in 1979, it got the first order from Adidas, from then on it began from the prelude of the OEM. In the famous brand sports shoes industry chain, based mainly on OEM, Pou Chen is in the low end of industrial chain. An anonymous industry insiders told journalist that like Nike and Adidas such transnational movement apparel trademarks have been listen to the words of where there is low cost and go there. It makes the manufacturing foundation of Pou Chen Group moved with continuous shift of Nike and Adidas. Since the 1990s, Taiwan shoes production of comprehensive cost rises, Pou Chen Group’s sub-group Yu Yuan Group establishes its main production base in mainland China in the pearl river delta region like Dong Guan establish its main production base in mainland China, in order to keep the advantages of low cost manufacturing. Actually, Pou Chen group had realized that just replace of work model is dangerous, and meanwhile as a foundry he can confront consumer order abolishing systemic risk all time. And so, as other OEM enterprise can’t involved in terminal market, Pou Chen group takes the lead in established engaged in sports marketing channel access the retail store way.
As a foundry, the Pou Chen Group of course is well versed in the principle of playing your own part, thus it has taken with international brand OEM win-win model. Pou Chen Group help international brands such as Nike, Adidas gain the success of layout of the mainland market, firstly through the Pou Chen Group being as the international brand OEM, then sold shoes to Nike, Adidas and other brands of shoes, and then buy from the brand pair of shoes and move to Victory Road store for sales.
By the native selling channels, they assist transnational trademarks selling goods, on the one hand, it assistsĀ the transnational trademarks to expand domestic market fast. The other side, the Pou Chen Group shoe industry designs to provide new fashion information, making more popular products. Thus, Victory Road exploration realized the Pou Chen Group’s OEM and famous brands win-win situation.
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