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Prada Is Sold At A High Price And The Cost Is No More Than 100 Euro.

2011/6/9 15:18:00 92

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　　 Luxury goods Is the secret public of the "OEM" regarded as an idiot?

with Prada, Coach The leading luxury brands, while making money from Chinese consumers, are preparing to raise at least $10 billion to investors through the Hongkong capital market. Kill two birds with one stone, but they also have side effects. In Hongkong, we need to disclose detailed information on listing, and the secret that luxury brands can not say - OEM, I am afraid it will be uncovered one by one.

Chinese foundry to Chinese and foreign cooperation, made in China, but not cheap.

" Made in China "This label, once taboo by fashion labels, is now being recognized by more and more luxury brands. Many products sold by Armani in Europe and America will mark "Made inChina". Meanwhile, the US brand COACH (Coach), which is currently very hot in China and North America, has also honestly labeled the "Made in China" for its own bags produced in China.

Prada the truth of the OEM is hard to distinguish. Consumers are fascination with origin.

In the face of the huge Chinese market, the attitude of luxury goods manufacturers is very "ambiguous". On the one hand, some luxuries are actually produced in China; on the other hand, luxury goods refuse to acknowledge that they have been subcontracted in China in order to maintain an honorable image. {page_break}

Prada exposure costs not exceeding 100 euros

The listing of the international first-rate luxury brand Prada, which was established in 1913, is a bit bumpy. In the past ten years, the five launch of the listing plan has been stranded for four times due to the force majeure factors such as the 911 and the financial crisis. It is also scheduled for fifth times in June this year. For example, the image of Italy's pure lineage, once established on the altar, has been confirmed to have mixed more than half of the Guangdong gene. Already confirmed by many media, Zhongshan's leather goods factory, Mai Shi industry, is a factory for Prada handbags, but it was denied when the reporter called again.

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. Is it a seal issued by Prada headquarters?

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.

"Absurd" made in Italy

A Jiangsu insider who sells his own domestic brand as well as international luxury goods told reporters that the so-called "made in Italy" simply refers to a button or a zipper on the bag, and even these parts are made in China.

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.

Industry: like Coach in China, it is also 45 dollars, one package, 292, plus tariff, more than 350, 4500, the most 10 times the profit. The cost of Prada package is higher than that of Coach, which is 60 to 80 euro and 100 euro.

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".

Country of origin 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.

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. {page_break}

Luxury consumer Entanglement: brand outsourcing quietly

Luxury Outsourcing: knowing

As early as 2009, the global luxury report showed that 60% of the international luxury brands own their own production lines 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 points out: "in the luxury Kingdom, those ancient luxury brands, such as jewellery and watches, are rarely produced outside the country of origin, but those products with luxury as the first factor are likely to be outsourced, 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. "

Is Made in China also called luxury goods?

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."

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 obstacle 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.