Luxury Brand &Nbsp After Foundry; Will The Value Change?

Spent tens of thousands of dollars to buy a luxury bag from Italy or France, but saw the word "Made in China", and many luxury consumers were entangled.

Luxury goods also have industry and commerce. European luxury brand Prada is about to raise up to $2 billion in Hongkong. Goldman Sachs, one of its sponsors, made public the secret that he could not say in a report issued.

Goldman Sachs disclosed that 11 of Prada's enterprises only produced 20% of manufactured goods and the rest were outsourced. At present, Prada has worked with 450 raw material suppliers and 480 manufacturing companies and employs 170 quality control personnel. Goldman Sachs also reported this as a quality risk factor for Prada.

People are worried that the value of the brand will not be destroyed when pursuing the economic interests and outsourcing more and more pure technology products.

　　 Luxury goods Outsourcing veil

As early as 2009, the global luxury report showed that 60% of the international Luxury goods Brand has its own production line in China. Although Goldman Sachs did not disclose the specific outsourcing sites of Prada, and Mai's industry, which provides outsourcing services to many luxury brands in Europe and America, it also kept tabs on the first Financial Daily reporters. But the secret of luxury outsourcing is already known in the industry.

In an interview with the newspaper, Francis Gouten, the chief executive of the Asia Pacific region and the founder of Gu Teng consultant, said: "there are different positions and ranks in the realm of luxury goods. In the past, luxury goods were also an ancient family workshops, which inherit decades of guaranteed quality. But with the rise of globalization 25~30 years ago, some fashion brands have come into the game. These brands have aggressive marketing strategies.

Francis Gouten pointed out: "in the luxury Kingdom, those ancient luxury brands such as jewelry and Wrist Watch They rarely produce countries outside their country of origin, but their products may be outsourced with the luxury brand of creativity as the first factor, and the responsibility of these brands is to control their quality. "

Compared with some luxury brands, Britain's Burberry and American Coach are much more generous. Burberry has shut down its main plant in the southern Wells Rhonda Valley, despite its multiple resistance in the UK, and has officially moved its production line to Shenzhen, Guangdong, in accordance with its "globalization" plan.

The Coach, which is positioned as a luxury brand in the middle end, admitted publicly that its capacity in China accounts for 80% of the world's total. But because of the increasingly expensive labor force in China, Coach said it wanted to shift half of China's capacity to other cheap labor countries, including India.

Li Yuan, who is responsible for the OEM production of a two or three line watch brand in Shenzhen, told the newspaper: "Shenzhen's factories also have OEM production for the first line European watches brand. Our industry knows that. But they are very secretive. It is impossible for us to buy a watch from their factory. "

Risk of value destruction

As is known to all, luxury brands highlight their dignity by their exquisite craft of origin, and many consumers use their origin as one of the criteria to judge the value of luxury goods. KPMG's latest China luxury experience report shows that Chinese consumers' brand awareness is rising. Chinese consumers' favorite brands come from France, followed by Italy. China's favorite consumer goods include cosmetics, perfume, clothing and handbags in France, shoes in Italy and watches in Switzerland, and when they choose alcoholic beverages, they will choose "domestic products".

The craftsmen who used to be pure craft need to polish their skills for decades, and pass on from generation to generation to achieve the luxury brand unique DNA. But nowadays, the young workers in the manufacturing plant repeat the same work day after day, and a large number of outsourcing production of luxury brands will not destroy their value.

Francis Gouten thinks: "those fashionable luxury brands that are outsourced, if not strictly controlled, will really damage the value of luxury brands."

Francis Gouten emphasizes that the impact of luxury outsourcing on consumers at different levels is different. "Remember that many consumers buy luxury goods because of brand names. We usually see two levels of consumers, the highest level of luxury consumers pursue exclusiveness, while consumers at second levels are just collecting trademarks." {page_break}

But for the psychology of Chinese consumers, foreign luxury brands should be proficient in mastering.

Mark Ritson, an associate professor of marketing at Melbourne business school, said in an interview with the newspaper: "one of the obstacles to the growth of luxury brands in the Chinese market is the fact that Chinese consumers do not like luxury brands made in their own country. So Coach's transfer of capacity to other countries may be an attempt to increase sales in China, because the brand regards China as the most important market outside the United States and Japan.

In view of the increasing outsourcing phenomenon of luxury brands, Francis Gouten put forward a proposal: "do not chase only short-term interests, but real luxury brands are not young brands. Respect your customers, which will benefit your brand. (A06)

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