OEM business way out.doc

 PAGE \* MERGEFORMAT 10 OEM business way out Processing, three to a fill, low-cost labor-intensive, the rapid development of the mainland coastal areas, the early years the way up, but also to limit its development in the past two years, one of the main factors, many OEM (OEM) business survival became more difficult. Why does this happen? There are five reasons: First, labor costs increase. After years of development, coastal resources, the demand for labor expanded, the relative lack of the formation of the status of human resources; without the adverse effects of labor standards, so that more migrant workers from moving forward so as to prevent labor-intensive characterized OEM business situation of enterprises even worse; Second, intensified competition among the same industry, leading to competition, increased costs, less profitable; Third, local governments, the strategic adjustment of industrial upgrading. Increased competition between regions, environmental pressure, forcing local governments stepped up industrial upgrading efforts. Virtually increase the survival of OEM business costs; Fourth, the international economic competition and trade between the rampant protectionism, export directly increase the risks and costs; Fifth, international and domestic raw materials, rising land prices, corporate profits OEM thinning. The author three years ago as a shoe company in Huizhou has done consulting, their main business is to get orders, called for people to order the production of leather shoes, and then paste someone else’s brand, exported to the United States. According to cost accounting, previously Waist pair of beautiful women’s boots, the production cost is 5 dollars, ex-factory price of 6 dollars, manufacturers can earn 1 dollar. However, in recent years due to increase in number of local factories, increasingly difficult to hire skilled workers, coupled with the wages of workers are in the soaring, at the end, one U.S. dollars of profits are