Clothing Quality Problems Are Frequent: Are They Caused By OEM?

The reporter got a copy.

The blacklist of famous brands has been refreshing.

When I ask a professional, why?

Some people say that the OEM, which has expanded the brand influence of production mode, is constantly frustrated by its continuous appearance. It is also Xiao He, who has failed Xiao He.

Is this really the case?

OEM, let the brand go to light.

People who are familiar with brand operation will have the impression that "running a brand is really a job of burning money."

Yes, to create brand and maintain brand, you have to advertise.

Advertising requires burning money.

For example, with the current widespread concern, although it has avoided expensive television advertisements and chose relatively low priced portals and bus stops, the cost of advertising is also a day price.

Public information shows that in 2009, advertisers had 200 million yuan in advertising, while in 2011, they reached 1 billion yuan by leaps and bounds.

According to media analysis, every customer sells a product, which contains 10 yuan of advertising and marketing expenses. Compared with the tens of dollars of goods that can be seen everywhere on the website, the advertising fee is luxury.

Even so, customers do not dare to stop their advertising.

Brand is more than advertising.

Of course, in addition to advertising,

As for the "light asset operation" mode, the media has highly praised it. It is considered that it is the first hero of the sports apparel industry to become a global industry in 1990s.

No matter whether other brands have learned the knowledge of supply chain management, since then, almost all clothing brands have been looking for foundry factories like Nike to process their own brand products.

In fact, OEM also reduces the risk of brand operation in a certain sense.

Cotton prices soared in 2010, especially after entering September.

As of September 25th, China's cotton price index has risen from 18002 yuan / ton in early September to 20236 yuan / ton, or 12.41%, the highest in 10 years.

Compared with September 2009, a ton of standard cotton has surged from 8000 yuan to more than 20000 yuan in one year, and it has risen 1.5 times.

At that time, the survival state of the OEM enterprises and brand enterprises could be described as two days.

"The profit of the foundry enterprise is very low, and the cost of raw materials rises a little bit, which has a great impact on the profits of enterprises."

OEM said.

"For a well-known clothing brand, the retail price is at least 5 times that of all production costs; even for ordinary clothing brands, the retail price is more than 3-4 times the production cost.

For example, a three hundred or four hundred yuan jeans will cost more than ten yuan and will not have much impact on the enterprise.

Brand companies say so.

From this we can see that OEM enterprises share the risk of rising raw materials for brand enterprises.

In addition, brand enterprises give orders to OEM enterprises. If the test finds that they are not qualified, the order can be cancelled according to the contract.

In this sense, the quality risk of brand products is also shared by the foundry factories.