International Luxury Outsourcing Has Become An "Open Secret"?

　 　 Prada The accused only produced 20% of the finished products.

Industry calls international big brand It's also global sourcing.

Recently, some media quoted the report of Goldman Sachs, the IPO sponsor of Prada company, who was the first to visit Hong Kong stocks at the end of next month. Goldman Sachs reported that the 80% step of Prada is outsourcing. It is reported that these international brand's industrial chain footprints all over the world have been known for a long time, though luxury enterprises emphasize that they value the design more, but many domestic consumers still care about the place of origin.

Italy luxury Prada will be landing at Hong Kong at the end of next month. The Prada prospectus, which we read yesterday, shows that Prada plans to issue more than 423 million shares publicly, and Goldman Sachs and CLSA are the sponsors.

Sponsor: Prada produces only 20% manufactured products.

However, yesterday, Hongkong's local media quoted Goldman Sachs as saying that 11 of Prada's enterprises only produced 20% of the finished products, and the rest were outsourcing. Prada is currently working with 450 raw material suppliers and 480 manufacturing enterprises, and employs 170 quality monitors. The report described the move as monitoring quality and ensured adequate production capacity, but Goldman Sachs also regarded it as a quality risk factor, but it did not mention any outsourcing areas in the report.

In fact, earlier, the domestic media (Economic Observer) quoted the news that Prada found a factory that met the requirements of technology in China in the first two years, and then produced it in China. Under the cheap image of "Made in China", its CEO proposed that the label of origin should be abolished and changed to "Made by Prada". Yesterday, the Japanese daily called the Prada China Public Relations Manager several times, but as of press time, the person had not answered the phone.

Reporters found that Prada global chief operating officer Sebastian Suhl in November last year in CCTV exclusive interview only denied that Chinese businessmen hold their shares, but he said that luxury goods not only depend on the quality of products, but also from the "design inspiration trigger", the space between the design inspiration and cost is very large.

　 Industry: international brand China OEM Not rare

Many people in the field of luxury goods industry say that the international big brands Chinese foundry is not uncommon, but most of the international first-line brands are currently produced in Europe, such as LV, and some of the finished products are made in Spain and marked on labels.

"These big brands are very strict about producing areas. Because Made in China is a synonym for popular products, luxury brands are worried about lowering their identity by labeling such labels. " One industry insider said.

Insiders also said that even if the origin of the product label is a European country, it does not mean that the whole industry chain of the product is in the country. The raw material of a big brand is global sourcing, and the last place of origin may be the location of the last procedure of the product. Nine annual Holdings (1836.HK) annual report that it has produced Celine, Loewe and Marc by Marc Jacobs and other brand shoes.

Analysis: Why are Chinese consumers more realistic?

Chen told reporters that if it becomes a Chinese OEM, it will affect its decision to buy foreign luxury brands.

There are many factors behind the seriousness of Chinese consumers. First of all, the "value" represented by other consumer goods helps them to enhance their social status. KPMG points out that luxury goods with prominent LOGO will often sell better in China. Secondly, Chinese consumers' cognition of luxury goods seems to be somewhat smattering. They also need to create a product quality map based on geography rather than design.