Exploring The Mystery Of Luxury Goods: &Nbsp; &Nbsp; Undercover OEM Factory Survey

Luxury bags such as LACOSTE and COACH are shining brightly in the shop windows, and are highly sought after by the wealth class day and night. Recently, the reporter went deep into the era of Ying De county, Qingyuan City, Guangdong Province as a shearing worker. Leather goods Products Co., Ltd. (hereinafter referred to as "era") - the company mainly produces LACOSTE, COACH and other international first-class brands. Luxury goods Luggage and bags, detailed investigation of these luxury bags production process, revealing the mystery of high price.

　　 Blood and tears factory

"Leader, you let me go back, the child has not yet suck..." Around 0:00 in the morning, a woman who had just had a baby's face in the packaging department was tired, tears dripping from her face and crying for the leader. From 8 o'clock that morning to now, she has been standing for 13 hours except for eating, and a girl who is just sixteen years old next to her is bloodshot and tired on the table.

Like reporters, ah Chao's daily job is to cut the thread and pick up the thread, but no matter how hard he tries, his eyes are always full of dark packed bags waiting to be trimmed. "Hurry up, please." this is the group leader's most frequent words to him every day.

"Last week, we have just left a batch of goods, and the batch is coming again. Every day we rush to deliver goods, and we do not work overtime." A flat car operator, Ali, complained to reporters, "at least three to five hours a day, and twelve hours after work."

It is a true portrayal of this group of 80 and 90 after working overtime all day. After working overtime, back to the dormitory, we have not had much time and energy to communicate with each other. In the impression of employees' ajing, "everyone's eyes are always red, like waking up."

In addition to the tedious and monotonous life, employees in the production factories that rush to work day and night are subjected to the opposite treatment in the process of producing every "noble bag".

Old worker Tai Tai said, "in the era, the manager reprimand the senior director. The senior director reprimand the two directors and directors, who reprimand the team leader and the group leader to rebuke the staff, have formed the ethos."

Ah Chao recalled to reporters that once he accidentally broke his hand by the awl, the leader just glanced at him, and spit out three words "stupid".

In addition, "coming in is easy to get out" is a collective evaluation of employees in the era of "squeezing labor force in disguise".

It is understood that the factory will only distribute wages for second months, and the first month's wages will be mortgaged. Therefore, most employees who have resigned intentions are reluctant to accept the first month's wages and continue to live in the factory. But recruiters have never told the candidates the "overlord clause", nor did they write the contract.

　　 The production line is poor.

Beautifully designed and well craftsmanship is the general feeling of luxury bags such as COACH and LACOSTE to LV. But who can imagine that these expensive bags are made in a workshop less than 300 square meters and made up of 30 junior high school employees.

This reporter learned that these brand The production process of the bag is two different from that of the mold. From cutting cloth to finished product, a luxury package has to go through more than thirty processes, but there are only four items that are called "hand-made", which are shears, thread picking, burning line and embedded hardware. Moreover, the four "manual processes" have very low technical content, and new employees need not be trained. The so-called production line is no more than more than 20 sewing machines. In the era, there were 20 similar shops.

The quality of staff is low, the production line is poor, and quality problems also follow. In the era, a workshop leader said, "in the 200 bags I have produced, I can't pick out ten completely flawless ones." Subsequently, the group leader emphasized that the 6000 bags of the shipment should be completed within a month and will be sent to Japan after completion.

According to the normal production level, the average daily production is 200. According to the calculation of 12 hours per day, the consumption of an international luxury female bag is only 3.6 minutes.

　 Low cost

The production line is simple, so is the raw material exquisite?

"These materials are not the best, they are also medium." The reporter collected all the materials from the workshop that produced the COACH brand model for Ms. F77284's cloth bag, and then came to the largest three yuan Lippi wholesale market in Guangzhou, Southern China. Many experts in the industry made a detailed response to the materials provided by the journalists and made the same reply.

Among them, a so-called "Italy imports of advanced materials" after three practitioners engaged in 30 years old expert identification, was unanimously snap out "this is a very common PVC, referred to as plastic."

An old expert told reporters that the top cloth bags usually use Taiwan imported high-quality fabric, but the market price of this fabric is 100 yuan / yards, usually a medium-sized bag only needs 0.8 yards of cloth, "even if the best cloth, the best accessories made of women's bags, the cost price will be between 300 yuan and 400 yuan." However, reporters from Guangzhou's relevant luxury brands store found that the use of similar fabrics, similar styles of women's bags sold at 10 thousand to 16 thousand.

According to media reports, CEO of PRADA has said that he does not mind letting consumers know that their products are designed in Italy, while others are made in China.

It is reported that leather goods and many luxury customers have been working together for more than 10 years, and their relationship with the largest customer COACH has been 13 years. Today, the list of OEM customers also includes FOSSIL, MICHAEL KORS and LACOSTE, which already own 5 subsidiaries in Hongkong, Dongguan and three places in Britain and Germany. Their products are mainly used for export, of which 75% are exported to the US and Europe. {page_break}

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World luxury goods in China

PWC recently released the 2012 Asian retail and consumer goods industry outlook report. Luxury goods sales in China have reached a new high, and luxury goods sales in Greater China are expected to exceed Japan for the first time. The two or three tier cities in mainland China have become an important luxury market. Insiders predict that China will become the world's top buyer of luxury goods such as handbags, watches, shoes and clothes in 2015. People living in small cities are the driving force for the growth of luxury goods sales.

This year, China's luxury market sales are expected to increase to 11 billion 500 million euros ($15 billion 500 million), while luxury goods sales increase by 25%. China has become the largest country to contribute to the growth of global luxury goods market.

Lei Xiaoshan, founder of China market research group, has said that China's consumers will spend $15 billion 600 million on luxury goods this year, an increase of 20% over last year. "People do not know where to put their money, so they immediately get to the top end of the market." and "people earn more and more money, they want to show their success" and so on.

Luxury brands are constantly pulling gold from the Chinese market. Its PRADA group, which owns PRADA, MIUMIU, CHURCH 'S and CARSHOE brands, publicly stated that in the first quarter, the group's sales in the Asia Pacific market increased by 39% to 580 million euros, and the Asia Pacific market became an important piece in the business layout of PRADA group. "All geographical regions have recorded growth rates of more than two digits, and the dominance of the Asia Pacific market has once again been affirmed." The group said in a statement.

Luxury stores such as Europe and the United States are growing faster and faster in small and medium-sized cities, but their expansion plans are also hampered by the lack of hardware facilities that fit their brands. "They can't shop everywhere because there's a good shopping mall," said alon Fisher of clonon securities. "These European brands will not increase the number of stores from 10 to 150 in one year. They have to spend a lot of time choosing the right place. "