Adidas shuts down its logistics and storage center

While the cost of production in the Chinese market has risen, the international giants of sportswear have never stopped the market "Nuggets."
Two days ago, Adidas broke China's production capacity, and its new warehouse center project in China supply chain was in full swing.

In the “One Open and One Off” Chinese strategic adjustment, the trend of thought of the foreign sports brand “reducing OEM production and increasing sales expansion” is reflected.

The reporter recently learned from Adidas Sports Supply Chain Director Xie Tao that in the second half of this year, Adidas will build a new northern storage center outside the current Suzhou Warehouse Center. The site will be located in Tianjin. "This is a decision made after the company studied the market demand in northern China. Now it is basically completed."

New logistics center increases radiation range

On the 19th, Zhang Ting, director of corporate communications at Adidas Greater China, said that despite the closure of the Suzhou plant, China will continue to maintain Adidas' global core resource market position.

Regarding the rumors of the previous market, Zhang Ting affirmed that the “Suzhou Plant was officially closed in October” and “160 employees had received notification of the closure of the factory in sufficient time and received compensation far higher than the relevant national standards”.

While admitting that the cost of production in the Chinese market has risen, the international big name of sportswear has never stopped the market "Nuggets."

Take Adidas as an example. Although the United States is still its largest market, the profits of China and Russia are currently the most significant. Colin Currie, managing director of Adidas Greater China, once remarked: “In the next five years, Adidas will increase its annual sales in China by 15% to 20%.”

Although the Adidas Suzhou plant was "stopped," the only Adidas logistics warehousing center in China will continue to be retained in Suzhou. In order to meet the growing demand of the entire Chinese market, the logistics center in the East of the region has begun to appear limited.

Adidas had previously announced that it would open 2,500 new stores in China by 2015, hoping to further expand its coverage of the Chinese market. In 2011, the number of new stores was only 1,175. Adidas Chief Operating Officer Erick Haskell once stated to the public that “Our usual transportation time is usually within 2 to 3 days, but how to quickly transport products to Urumqi is the biggest problem we have encountered so far.”

As a result, the idea of ​​the logistics center in the north formed, and the site selection was not market speculation in Beijing and other places, and eventually settled in Tianjin.

For the demand of the northern market, Xie Tao said: “Macro, the apparel industry is basically saturated in China's first-tier cities, but China has a large local area and a large population. From the overall development, the industry is still very optimistic about the growth of the Chinese market size. , I believe the next increase will still maintain double digits." In order to be able to keep up with the needs of the market in a timely and accurate manner, the logistics and inventory management of the apparel retail industry will largely determine the “life and death” of the company.

Failure of domestic logistics

Xie Tao pointed out that comparing with the more mature markets in foreign countries, the overall situation of domestic logistics has not yet reached the pass line. Some of the big names in sportswear have long been under their own brand power, pressing on franchisees and allowing customers to take risks. This is also due to previous historical reasons. It seems that when you opened a store in China, you can make money. Basically, it is mainly single-brand stores. "And such a situation waited until it opened up to the number of 6,000 stores, it began to encounter a huge inventory pressure, this time the high logistics inventory capacity is very important."

“From our adidas point of view, we candidly say that the company has done a relatively good job in China. Judging from the situation of the company’s first quarter of next year in Xiamen, we received more orders than Nike,” said Xie Yu. “We are now basically linking logistics and sales to a certain extent. We can't put sales into the light and send the goods to our customers. Now the bonuses in the supply chain will be linked to the final store sales rate of customers.”

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