Why Do Chinese Made High-End Stores See "Fake Foreign Devil"?

When we discuss IPAD, the "made in China" International

Market visit

High-end shopping malls

More "fake foreign devil"

Reporters recently visited some high-end shopping malls in Guangzhou. In the clothing area of many department stores, reporters found that more than 80% of the clothing stores were named in English, such as "Sky&Sea", "Mervyns" and "Marisfrolg".

Some of the clothes that mark the western language are designed by Germany, Britain and so on, and are marked "the general agent of a company in Guangzhou" and "the agent of Shanghai * *". The price is not bad, thousands of thousands of yuan.

"The clothing industry and the cosmetics industry are the hardest hit areas of fake foreign devils."

According to industry insiders, there are three kinds of foreign brands appearing in the high-end shopping malls in China: the first is the real international brand, such as LV, CARTIER and so on.

The second is domestic enterprises or the acquisition of foreign clothing brands, or with the development of international business, opening up Brand Company abroad, design, research and development, sales are overseas, these foreign brand clothing in the domestic market and foreign markets have sales.

The third is the complete "fake foreign devil", that is, the foreign brand is a domestic enterprise registered trademark or shell company abroad, and then authorized in the name of the domestic use, the brand product from R & D, design, production, sale is completely domestic, also only face the domestic market.

Production enterprise

10 times from factory price to retail price.

"Fake foreign devil" is popular in many consumer categories in China.

"On the one hand, it caters to the psychology of domestic consumers to worship foreigners.

Many consumers feel that foreign brands are good, high quality and good quality.

Zhang Ming, a person in charge of a brand clothing company in Guangzhou, told reporters that "on the other hand, it is to sell goods at a high price".

Zhang Ming said that a garment with a high-end positioning line would normally turn 10 times from the factory price to the retail price, for example, a shirt sold at a high-end store priced at 1000 yuan, and its actual factory price may be only 100 yuan.

Why do we have to bid such a high price? "After the production of the product comes to the retail terminal, there are too many programs in the middle, which do not sell high prices and can not cope with the cost of so many links.

But the price tag of domestic brands is too high for consumers to accept, so we have to make an article on the source of the brand to find a pretext for the high price tag.

Zhang Ming said helplessly.

Li Kailuo, President of Guangdong Institute of fashion industry economics, also pointed out that in sales channels, department stores also give foreign brands broad space.

According to the insiders, in the field of circulation, the cost of commodity production includes shopping malls, tax, pportation, production costs, labor (including warehousing, office rentals).

Among them, shopping malls are 30% points of sales, and shopping malls also require suppliers to receive annual renovation fees, about 100 thousand of each cabinet, and 17% of tax revenue. "Two of these fees accounted for 47%".

In addition, there are other miscellaneous expenses, such as "shopping malls, promotions, holidays and other benefits."

A department store supplier said.

"Retailers' profits from suppliers have become one of their profitable ways."

China supplier research center, Chinese Academy of Agricultural Sciences, international action assistance organization and other units have jointly issued the "China supplier survival status survey" report.

According to the survey, 77.67% of the surveyed suppliers indicated that retailers were absolutely dominant and suppliers had no bargaining power.

"Gross profit margin should be the main body of profit for retailers, and should also be the main source of profits for suppliers."

Yang Qian, director of the Beijing business management academy and director of the China supplier research center, said, but the survey shows that the cost of retailers pferring to suppliers is 7% of the total sales of suppliers. The average value accounts for about 10% of the total sales volume, that is, the majority of the gross profit margin of the supplier is mainly taken away by retailers.

The above report also takes Gome's financial statement disclosure data as an example: in 2007, the profit of Gome's operating activities was 1 billion 803 million yuan, compared with the 1 billion 843 million yuan from the supplier's fees during the same period.

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Reason: why is "fake foreign devil" selling at a high price?

Analysis 1. Circulation is complicated and complicated.

"The whole circulation industry in China is not perfect, and the development of circulation industry is lagging behind, which is the internal cause of the high price of" made in China ".

Professor Wang Xianqing, director of the Institute of circulation economics, Guangdong University of Business pointed out that China's circulation industry is out of line with the international circulation industry. There are many blind spots in the process of channel circulation. For example, the backward technology and facilities of the construction and purchase channels, and the lack of network construction, lead to the waste of more time, money and resources in the flow of goods, thus exacerbating the cost of products and raising a very efficient circulation.

There are many links in the production of Chinese goods from circulation to consumers, such as from manufacturers to wholesale markets, to two batches and three batches. The distribution system has many layers and complicated processes, and in the process of pferring, warehousing, pportation and stacking are mostly done manually, which not only wastes manpower, financial resources, but also is inefficient. "On average, the cost of domestic circulation is at least three times higher than that of foreign countries."

"Secondly, China's circulation industry has not assumed the responsibility of cultivating manufacturing brand."

Wang Xianqing said that the value of the manufacturing industry often needs to be realized through circulation enterprises.

However, most domestic stores operate on the basis of letting shops and collecting rents, which makes manufacturers spend a lot of money and energy to cultivate brands and marketing.

"Manufacturing enterprises are not efficient in making brands."

In the end, these costs will eventually spread to commodity prices, and then directly push up commodity prices. "The problem is that the high price is not a high value added by quality and brand, so the market will not buy it."

According to the introduction, the circulation industry in foreign countries has a professional distribution system, has the ability of professional marketing and planning commodities, and can produce stable and efficient circulation between circulation enterprises and production enterprises.

In addition, the domestic market economy is not perfect, the circulation of each link, the consumption process, the link of industrial chain and other consumption of time, a lot of resources occupied.

All of these aggravate the cost of products.

Analysis 2. Logistics costs remain high.

In the circulation industry, the high cost of logistics in China has also boosted the cost of products.

"Why are Chinese enterprises keen on exports? Why are the" made in China "in foreign supermarkets cheaper than in China? In addition to China's export oriented monetary and taxation policies, we must not neglect that the domestic segmentation market, the high middle cost and the distorted pricing mechanism have obvious institutional disadvantages compared with the foreign efficient pricing mechanism and low logistics cost.

Senior financial commentator Ye Tan believes that China's logistics costs remain high. "20% to 40% of the prices of all kinds of products in China belong to logistics costs, while the proportion of us logistics costs to GDP has dropped to 8.7% in 2002".

She believes that in order to lower prices, what our country needs to do is to establish a low-cost and efficient logistics network.

Data show that as of the first half of this year, China's road freight enterprises as high as more than 780 thousand, but the degree of organization and degree of reduction is very low, the top 20 enterprises accounted for less than 2% of the market share.

This state led to the total logistics cost of the whole society accounting for 18.3% of GDP in the whole country last year, while the United States accounted for only 7.9% of the total logistics cost.

The daily business consumption pattern is also regarded as a major factor affecting the logistics cost of the society.

The Secretary of the China Communications and Transportation Association, Mr Suo Hu Sheng, believes that supermarkets in the United States are mainly concentrated in areas with convenient pportation, though far away from home, but "clever enough to add the last mile logistics cost to consumers." this way of excluding social costs is also a means of reducing consumption.

Analysis of 3 domestic brand scarcity

"The scarcity of the domestic consumer market leads to the high price of domestic and international brands."

Xu Yinzhou, President of the Economic Association of Guangdong University of Business, said.

According to the introduction, in developed countries, the market competition is intense. The brands in Europe, the United States and Japan are all sold in the United States. There are only more than 20 sports brands that American teenagers can choose.

In China, market competition is insufficient, domestic brands have not been set up, few international brands have taken the lead, and gradually formed oligopoly market. "Oligopoly market has high pricing power."

"With the development of the economy, the demand for branded goods has increased in the domestic consumer market. However, the lack of brand in the Chinese market, the domestic first-line brand is still scarce, and at the same time, domestic consumers have a high awareness of the first-line clothing brands abroad, so they raise the price of foreign brands."

Chen Haiquan, director of modern circulation research center of Jinan University, said.

Niu Hong, an associate professor at south of the Five Ridges College of Zhongshan University, thinks that many domestic products have not lost to similar products abroad, but the brand is still losing.

Domestic brands have not been set up, which directly results in the popularity of foreign brands. "This is the most critical and structural reason."