Prada Exposure Costs Not Exceeding 100 Euros

According to voice of the economy, Prada's public offering in Hongkong is tentatively scheduled for June 14th to 17, offering $2 billion worth of shares, the first international luxury brand to list in Hong Kong.

According to the report of Goldman Sachs, one of its sponsors, Prada has outsourced 80% of its products, and China has its OEM manufacturers. According to industry sources, the cost of Prada handbags after outsourcing is not more than 100 euros.

International frontline set up in 1913

Reporter: many reports say that Mae's company is a foundry for Prada.

Maxwell front desk: No, none.

The Secretary General of Mai's enterprise manager, however, did not deny that he avoided the problem.

Secretary Yang: I can't answer your question.

Prada's public relations department in Shanghai, China, answers the same question.

Prada: we don't answer anything in China.

Just as Mai's leather goods and Prada were keeping tabs on the OEM, a website selling all kinds of famous brand bags and shoes on the Internet told reporters that they were all from the foundry factory, and then sold with these big imitation products.

High imitation business: we do high imitation, we are all from the factory to get goods.

Reporter: from what factory to take goods?

High imitation business: Prada ah, LV ah, there are these.

One is in Jiangsu doing both domestic and international brands.

Industry: Prada semi finished products in China, probably 70%, 80% in China, and then go abroad to install, made in Italy, Prada in China did not make the whole package, deceiving our common people.

The industry also revealed that the international luxury subcontract can be said to be an open secret. Coach has simply printed the "Made in China". Although Prada is unwilling to admit it, the cost of the foundry has been greatly reduced. The price of a Prada bag with a price of two yuan or thirty thousand yuan is not more than 1000 yuan, and the profit rate even reaches 10 times and 20 times.

Insiders: like

Zhu Mingxia, director of the Xiang Qian luxury research center of the University of foreign trade and economics, believes that many people buy international labels for the label "Made in Italy" or "Made in France" in the bag, which is called the "place effect".

Zhu Mingxia: luxury goods, many consumers pursue the most important thing is that there is a place of origin effect, where manufacturing is a selling point for enterprises to create luxury goods.

{page_break}

As of January 31st this year, Prada's net profit reached 251 million euros, but it carried 4 billion 86 million euros in debt. Goldman Sachs believes that about 30% of Prada's global sales are realized by Chinese buyers, and the Prada Hongkong listed selling point is also able to meet China's demand for luxury goods.

But the existence of the foundries shows the fact that Prada can use China's cheap labor force to earn Chinese money and then repay the debts of Chinese people.

But more realistically, Zhu Mingxia believes that even if there is a foundry factory, it will not affect the fifth listing of Prada.

Zhu Mingxia: raw materials are unified control and unified quality control. Some brands are not only in China but also in other developing countries.

The bag is just an industry intensive product, and the enterprise is only a brand effect.