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As China's manufacturing labor costs nike jordan heels rise, the foundry business to cheaper labor countries (including Vietnam) but the transfer appears to be normal. According to foreign media reports, in recent years, Vietnam is the tax-free, inexpensive land and cheaper labor, and other concessions to attract shoes, clothing and computer chip manufacturers. Vietnamese workers average monthly wages 50 to $ 60, only half of China's coastal manufacturing centers around. Vietnam's appeal is so great, and even Chinese companies are beginning to move to Vietnam.

Nike's annual report data show that over the years, in 2001, China produced 40% of its shoes, ranked first in the country, while Vietnam only to 13% of the share; to 2005, China's share fell to 36% was ranked first in Vietnam rose 26 percent, ranked second; in 2009, tied for first in China and Vietnam, are 36%; to 2010, Vietnam more than China, 37%, China relegated to the second, 34%.

However, the data can be seen from the above, jordan heels Nike foundry business is only part of the transfer to Vietnam, China still accounted for 34 percent ratio. Especially in China, "labor shortage" intensified the moment, this part of the relocation of low-cost foundry services have limited impact on domestic employment.

Nike shoes can do to earn a modest profit foundry, "sweatshop" model is not sustainable

Nike and other international brands to OEM, Chinese companies usually only make a small profit

Nike praised the industry is its "asset light operating" mode, that is, manufacturing and retail distribution outsourcing (OEM), its design is focused on developing and marketing business. This "asset-light operation" mode can reduce the company's capital investment, particularly in the production areas of large investment in fixed assets, thus improving return on capital. In this "asset light operating" mode, even the local Chinese jordan high heels manufacturing enterprises, from the production of Nike shoes, the profits are quite limited.