Nike'S Business In China Has Cut Dongguan Shoe Companies Unaffected

Recently, the world's largest sports product manufacturer

According to the earnings report, Nike's net profit for the quarter ended August 31st was 567 million US dollars, and its earnings per share were US $1.23, less than the same period last year.

Meanwhile, the number of new orders in China's key market is decreasing. The Morgan Stanley report shows that Nike's growth in orders in China in the fourth quarter of fiscal 2012 dropped from 20% to 2%.

Dongguan is one of the most important production bases of Nike sports shoes.

Whether the reduction of Nike's orders in China will affect the relevant industry and suppliers and suppliers in Dongguan? Reporters learned yesterday from various sources that the Nike generation business and suppliers such as Yuyuan group of Dongguan are stable and temporarily not affected.

These manufacturers and suppliers believe that Dongguan's Nike products are mainly for the international market and will not be affected in the future.

Production in Dongguan has not been affected.

In fact, Nike released the fourth quarter report (up to May 31, 2012), showing that in the fourth quarter, sales in the Greater China market, the second largest market in Nike, fell.

In the quarter, sales of products in Nike Greater China, including footwear, clothing and accessories, amounted to $667 million, down 3.89% from the third quarter.

Morgan Stanley report shows that in the fourth quarter of fiscal 2012, Nike's global orders growth slowed from 18% to 12%, and China's orders grew from 20% to 2%.

And the first quarter of fiscal year 2012, Nike's net.

For $645 million, earnings per share were $1.36.

Its gross profit margin was 43.5%, down from 44.3% in the same period last year, declining for the seventh consecutive quarter.

Nike recently said that the number of new orders in Greater China (including Taiwan and Hongkong) fell by 5% compared with the same period last year, confirming that the key market growth slowed down.

Yuyuan group is located in the factory of Gao Yuan, which is one of the main manufacturing bases of Nike. Yesterday, Liu Xingcai, associate director of Yuyuan group Gao Gao administrative center, told reporters that the reduction of Nike's orders in China did not affect the production of Dongguan. "We still make steady production according to the output of 1 million 200 thousand pairs per month."

Liu Xingcai believes that Yuyuan's Nike products are global and will not be affected by the slowdown in Nike's China market.

Similarly, a manager who supplies leather to Nike, who is in charge of leather, said that the supply of Nike's cowhide and other products is still relatively stable.

Part suppliers diversify

Although the cooperation with Nike is relatively smooth, Liu manager's factory is still planning to diversify new customers in order to receive Nike orders.

"We started by supplying international customers such as Nike and Adidas, but now we increase the number of domestic customers."

Liu said, in the long run, as the international economic situation is uncertain, and the potential of the domestic market is increasing, the focus will gradually shift to the domestic market.

To this end, Liu plans to reduce the market share of Nike, Adidas and other customers in order to increase the proportion of domestic customers.

Reporters learned that Liu's current customers include Nike, puma, STEVE-MADDEN, BELLE, Saturday, red dragonfly and other brands.

Similarly, Yuyuan group is more diversified in the customer field.

Reporters recently visited Yuyuan group's exhibition hall in Zhongshan. Reporters learned that Yuyuan group also provided OEM services to Lining and other domestic brands in addition to production of international brands such as Nike and Adidas.

In addition, Yuyuan group is also accelerating its own sports brand to attack mainland China market through its treasure company's shoe maker.

"In the past, our foundry was passive and blind. Now we must strive to stand at the two ends of the smile curve, create our own brand, and further enhance our core value."

Brand director Cai Qiongwen said.