The Balanced Development Of Direct OEM Is Conducive To Cost Control.

Recently, as the front-line sports brand Nike and Adidas have gradually abandoned their direct factories in China, a dispute over whether the OEM and the direct operation are better or worse has also started in the manufacturing industry of Quanzhou.

The side who supports the OEM believes that the division of labor in the future internationalized industry will inevitably lead to the widespread implementation of the complete OEM mode in the brand enterprises. The party in favor of the direct camp believes that if we want to base ourselves on the domestic market and respond to the changing world competition, we must maintain a certain proportion of the direct factories. Only in this way, can the enterprises have greater flexibility and initiative in the competition.

Most brands require OEM.

The industry has told reporters that at present, Nike, Adidas and other international sports brands are mainly OEM; in the local sports brand, Lining is also mainly based on OEM.

Brands such as Anta, PEAK and so on, in addition to the OEM, and a part of the direct factory production, but accounted for less than half of the total factory volume.

Hou Lidong, an industry insider who once worked in Jordan sports, analyzed that every brand enterprise needed foundry.

At least in the zipper and other accessories, most of them need foundry, and the production of accessories generally accounts for 5% to 7% of the total production volume of the whole enterprise.

In addition, sports related socks, backpacks, hats, balls and so on because of the small quantity, and some other products because of the particularity, such as vulcanized shoes, usually also through the form of subcontracting to complete.

In addition to sports brand,

OEM is also a fairly common mode of production.

For example, Fujian style menswear is the leading brand.

The proportion of OEM is as high as 80%.

According to Shi Zhengzhi, Secretary General of textile and garment industry in Quanzhou, taking the clothing industry as an example, for a long time, the mode of "Quanzhou manufacturing + Wenzhou brand" or "Wenzhou manufacturing + Quanzhou brand" has existed for a long time, in other words, in this field, mutual OEM has become one of the modes of regional cooperation.

Balanced development to enhance resilience

Liu Xiang, deputy director of PEAK sports and public relations, said: "acting factories can reduce costs, while direct factories are flexible in production, so both sides have their own advantages and disadvantages.

The ideal ratio of direct factories and foundries is 1: 1. Balanced development is more conducive to cost control and response to market changes. "

Liu Xiang believes that for the brand enterprises, the operation of direct factories is more flexible and initiative is in the hands of the enterprises themselves. Once the economic situation is bad, enterprises can quickly reduce production and thus reduce inventory. Instead of signing orders in advance, the factory will have less inventory.

In this regard, seven wolves, a responsible person also said that through the form of subcontracting, enterprises can save costs, but we must ensure and control the output of OEM products.