Made in China is down "shrines" contract performance decline
Multiple regions in the world economy continues to slow in 2013, the United States and Europe slow economic recovery, the future development is unclear. Although domestic consumption growth in China last year, but the domestic economic growth is slowing, growth continued to fall, GDP growth in 2013 is low in recent ten years, the overall retail market still squeeze.
At the same time, the hawk beauty annual reports pointed out that lead to the decline of the profit directly the main reason is that labor costs have risen sharply, China and Indonesia government efforts to improve people‘s living standards, many times in recent years to double-digit percentage increase domestic legal minimum wage. In addition, the eagle beauty company have adjust the worker‘s wages and the increase of rewards, in order to improve workers‘ morale.
In addition, the Chinese government in recent years to promote transformation and upgrading of domestic industries, and the goal is to become a high-end products manufacturing base, as a research and development and marketing center. Originally for increasing production flexibility, the group will do processing mode of domestic affiliated company to feed processing mode. Although group company no longer enjoy raw materials shall be exempted from VAT preferential, but after transformation of subsidiary company was able to exploit domestic and overseas market, looking for more cost effective partner, is good for company development.
High-end brand such as ADIDAS, NIKE, Coach, the factory moved to Vietnam, Bangladesh and other Asian countries with lower wages, H&M even put the spotlight in sub-saharan Africa. The personage inside course of study thinks, "made in China" demographic dividend and dividend policy is weakened gradually, the brand will become the target in the transformation of a large number of OEM.
