will shut down its own factories in China only, in fact, back in July, Adidas Greater China headquarters confirmed will close he is located in the Suzhou Industrial Park in China only a 100% wholly-owned subsidiary, was expected at is the end of October discontinued. The end of October to the Adidas admit Close affiliated factory and China domestic workers' wages rose about the human cost of the enterprises in China but in fact in the last few years is indeed a substantial increase. Buy low price of natural processing of the low price of natural entrust our people, the factory of the world is not our product design or quality into, but mainly because of our strong production capacity, our labor low cost, our profit margins, we are the ones who enjoy the space adidas wing shoes.
A smile curve theory in economics, the shape of our mouth smile is a curve shape, both ends facing up the middle low value-added production chain more reflected at both ends, and the middle of the manufacturing, the left is the research and development, and the right marketing. The main focus, including its profit margins at both ends, rather than in the middle, the global manufacturing oversupply, there are a lot of cheap labor in addition to China, Southeast Asia, Latin America, and Africa a lot more cheap labor awaits development. R & D and marketing of high value-added manufacturing relatively low profit margins, R & D and marketing of high value-added part of Europe, the U.S. and Japan and other developed countries to master the production of one million pairs of shoes so we have not produced a Boeing fan large profits, which is a living reality.
to leave the one hand, reflects China's industrial chain unwilling only low-end, but also unwilling to be controlled by others efforts. From this point of view, we sentence traditional saying called away sheets of butcher not eat with the pigs, and go no matter Adidas, we still will be good economic sustain development. On the one hand it also requires us to both ends of the chain in the industry, which is the R & D and marketing of this to have a stronger ability to occupy a more active position. Otherwise, we will inevitably lead to production declines, and even the loss of jobs, thereby affecting the situation of the Chinese economy as a whole. So let this go away, this is not terrible, but the premise is to let the must, or we will be facing a period of economic difficulties jeremy scott x adidas