Does Sports Brand Return To The US, Saving Money Or Burning Money?

According to the world clothing shoes and hats net, recently, the American sports giant Under Armour CEO Kevin Plank said on CES that in the past few years, many footwear manufacturers have moved factories from Europe and the United States to Asia with low labor costs, but the relocation of manufacturing to cheap labor is not sustainable for an enterprise. Many American consumers are more inclined to produce locally made products, and American manufacturers are more attractive to them. UA will not only bring jobs back to the United States, but also shrink the supply chain globally and bring more industries back to the United States. Plank seems to be eager to show that as a Native American company, it must respond to the president's call and never impose tariffs on me.

When Trump threatens TOYOTA, if TOYOTA does not set up factories in the United States and chooses Mexico, it will be heavily taxed. The executives of American manufacturing enterprises are a bit panicky. UA is holding his thigh this time. He plans to invest more in Baltimore, which is expected to add 100 jobs.

　 　 Sports brand Back to the US, is it saving money or burning money?

Trump has not formally come to power. He has begun to preach the US manufacturing on Twitter, and many companies have succumbed to Trump.

Many of the big businesses, including apple, Softbank, Fiat and Renault, have said they will abide by the new rules of the Trump administration and bring some industries back to the United States. UA is the first sports apparel company to respond to this call. Are these enterprises returning to the us to save money or burn money?

We take Adidas Footwear products, for example, Adidas footwear products are still being manufactured overseas. According to the calculation of love burning, a pair of Adidas shoes manufactured in Asia cost about $21 in Asia, and 18 dollars are spent on some other items, such as tax and insurance, and so on. The profit from selling a pair of shoes Adidas is about 2 dollars. Adidas

Picture data comes from love.

In fact, it is not difficult to see from the diagram that the cost of factory is only the first step in the journey of finished products. Because these enterprises put their production areas in Asia, the extra cost of the products from leaving the factory continues to accumulate, resulting in the cost of landing, and there is a complex tariff system when it reaches the other shore. At this point, the cost of overseas production can no longer be classified as labor cost. The cost of factory has already been = cost + insurance + freight + import tariff. In fact, the cost of factory has changed from 21 US dollars to 39 US dollars.

Although the price of labor is low, the efficiency of workers is far less than that of the United States. According to a set of data from Sohu, the United States has left several streets in developing countries in terms of efficiency. If wages are simply lower than wages, the wages of those developing countries are lower. It seems that companies need to pay less. But if we add the corresponding output and adjust the wage, we can conclude that our production cost is almost the same as that of the Americans. Other developing countries, such as India, have an advantage, but not much. Whether cheap labor can fill other costs is still unknown.

In addition, for the manufacturing industry, labor costs are only part of the overall manufacturing cost. The quality of products in foreign factories is not satisfactory. Adidas has admitted that more than 30% of its factories have compliance problems. Nike is also in the same position. 32% of their factories are below Nike's Bronze standard. If there is quality problem, it is also a headache for brand PR.

After moving back to the United States, enterprises can be more high-tech.

Returning to the United States has given some thoughts to the enterprises. UA actually hopes to take this opportunity to bring new atmosphere to the company. UA invested in establishing data analysis center, and even introduced some high-tech hardware to use in products. Just imagine, if Apple and Samsung started to make sportswear and sports shoes one day, what should these traditional sports clothing enterprises do? UA's foresight is reasonable. After all, in this age of technology, whatever technology we need to do, we must have some technological thinking or simply regard ourselves as technology companies. This is probably why UA has participated in the last two CES.

In last year's CES, UA worked with IBM to develop a app that integrates exercise and health management. It also worked with HTC to launch a UA Band, UAScale weight scale, and UA HeartRate heart rate record chest band.

On this year's CES, UA and Samsung cooperate, Samsung has Gear series wearable devices, and UA has sports community and professional sports data processing capability. The two sides have put forward their respective resources to cooperate, hoping to take a place in this year's sports trend.

For Samsung's products, UA's application offers many unique functions, such as providing maps and route display functions in UA Record. My Fitness Pal provides drinking water volume records, quickly adding calorie records, and includes Map MyRun and Endomondo will provide a challenge mode, and more for the latter to join the function of no connection tracking. In addition, users can also communicate in the online community of UA.

From entry-level users (to software records) to heavy users (software and hardware), from front-end hardware support to back-end software analysis, from sports, fitness to health management, UA already has full strength, perhaps to return to the United States, for them is an outbreak.

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