Regaining competitiveness in the Chinese footwear market
Brands and retailers expressed their concerns over the rising production cost in China. A number of brands have migrated their footwear production facilities out of the country. 42% of VF shoes are manufactured in Vietnam. Lacoste uses Vietnam as the main manufacturing hub currently. Sportswear giant Nike, Adidas and New Balance also moved production for highly functional shoes back to their home countries supported by automation. On the surface, China seems losing her competitive advantage. However, what are the key criterion that drive buyers’ decision? This paper would provide the insight on how buyers make sourcing decision. As change agents with manufacturers, we will provide practical tips to allow Chinese manufacturers to stay ahead of the competition.