Prada Acknowledges That The Chinese Generation'S Factory Is No Longer "Chinese Made".

How many international top brands are "Made in China"?

As early as the end of 2011, luxury brands in Italy

It has already been announced that it will share with another venture capital fund IDG, Prada's Chinese luggage manufacturer, "leather goods of the age", subscribed for about 20% of its proposed shares respectively.

This is equivalent to an indirect recognition of Prada in mainland China.

The fact is from "industry secret" to "no longer".

"Luxury goods" is playing a low head and trying to enter the Chinese market.

With the disclosure of prospectus materials, the Hongkong leather company, the first time, has emerged for the first time.

According to the prospectus, leather products in 1968 was founded in Hongkong, and has many 44 European and American luxury brand foundries. It has a low profile and is not known to the outside world.

According to the website of the company's enterprise group, the times (Hongkong) handbag factory Co., Ltd. was established in Hongkong in 1968. It is a large port leading enterprise specializing in the production of leather handbags, silver bags and other leather products of the world. Its main business is to provide OEM services for international brands. At present, there are 7 independent retail stores and 9 department store counters in many domestic cities.

Up to now, leather products already have 5 subsidiaries in Hongkong, Dongguan and Ying De three.

4 of them are in Dongguan and one is in Britain and Germany.

The company invested in Dongguan is Dongguan Houjie Qiaotou era handbag factory and Dongguan times leather products factory Co., Ltd.

An insider of the leather goods headquarters in Hongkong confirmed the news of Prada's stake.

A staff member of Dongguan branch said Prada and Coach are long-term customers of leather products.

Leather goods and many luxury customers have been working together for more than ten years.

Its cooperation with its largest customer Coach has been 13 years.

7 years ago, Prada began to subcontract some of its products to the leather products of the age.

Today, the list of OEM customers also includes Fossil, Michael Kors and Lacoste. There are 208 production lines with 14700 employees.

According to the news, leather products will be listed on the stock exchange of Hongkong in early December.

This time, the sponsors of leather products are Bank of America, Merrill Lynch, DBS bank, and International Bank of recruitment.

Nearly HK $1 billion is expected to be raised.

DBS bank believes that the valuation of time group is between 4 billion 200 million and 5 billion Hong Kong dollars, which is equivalent to 10 to 12 times of the forecast price earnings ratio in 2012. According to the international bank, the reasonable valuation of time group is 4 billion 762 million to 5 billion 940 million Hong Kong dollars, which is equivalent to 12.4 to 15.5 times of the forecast price earnings ratio in 2012.

Prada and IDG, the basic investors, subscribed 19.6% and 22% of their shares respectively, of which Prada's total investment amounted to HK $193 million.

In the era of leather goods disclosure, in the use of fund-raising funds, 35% of this fund-raising was used to expand production capacity; 20% for upgrading equipment; 35% for expansion of retail business; 10% for general working capital.

Over the years, the pfer of luxury goods to China is a gradual process of choice.

Many luxury brands usually have some "sub cards" which are relatively cheap and require less workmanship. These "sub cards" were first pferred to China.

Over the years, Prada has mainly put its low-end product line in China to produce foundry, which is commonly known as the "red label" product.

The material of the product is relatively cheap, and many high end product lines of leather material remain in Italy.

Prada is not at ease. In recent years, luxury goods are in trouble in China, and many brands are getting quality problems.

The most frequent occurrence is dyeing failure, such as fading and so on, which seriously affects reputation.

After the listing of Prada, the pressure of supervision and public opinion is even greater. The company has to pay more attention to the production process.

IDG, which is investing with Prada at the same time, is optimistic about this industry.

IDG partner Yan Chi Sheng has revealed that leather products are worth investing in luxury goods companies. He clearly put forward the intention of "looking upstream to the industrial chain".

As early as July 2011, IDG invested 10 million US dollars in the second place of the second-hand luxury goods consignment company.

Yan Cheng Sheng revealed that IDG's investment choices were more biased towards more mature luxury items.

In addition to the leather foundries of the times, the main investment direction also includes the European and American luxury brands and channel operators.

Prada is expected to open stores in China in 2011.

Prada's global executives have said that Prada will focus on developing retail sales.

At present, the representative factories in Europe and the United States are mainly concentrated in Dongguan and other places, but the scale is not large.

According to the analysis of the industry, with the increasing number of luxury brands choosing to go public, the financial pressure at each stage will become bigger and bigger. The company will try to expand sales terminals and increase output.

Because the cost of manufacturing in China is still relatively low, and the technology level has improved rapidly in recent years, luxury brands will increasingly choose the way of OEM to expand their output.

At the same time, cooperation with the foundries is not solid.

To further control brand quality, and to manage all aspects, to grasp the initiative of brand production, to buy or share the factory is a way to strengthen management and control.

On the high fence, the wire mesh is fine and sharp. Every entry and exit is guarded by security guards, and the number plates must be worn in and out. All suppliers are not allowed to enter after four p.m.

This is the three District of the overseas Chinese industrial town, Daling mountain town, Dongguan, Guangdong. This shoe factory called xingxiong is famous for its strict management.

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Few people know that the birth of more than 6000 workers from here is a series of upper class pronoun of Prada, Cole Haan and Camper.

In addition to Dongguan, there are many factories in Shenzhen, Wenzhou, Hangzhou and other places in China that are producing OEM for these international luxury brands.

They are large or small, or direct orders or "two orders", or produce finished products or only do a certain process.

But without doubt, they produce genuine products.

However, when people finally meet people who consume them, there will be no way to find out the relationship between them and Chinese working girls.

Under the cheap image of "Made in China", most of these products will eventually be labeled with "Made in Italy" or "Made in Paris".

These luxury brands, which still claim to use pure European handicrafts, have long been ashamed to mention the Chinese origin of some products, but this is no secret in the industry.

After the financial crisis in 2008, the number of luxury goods shifted to China's luxury goods and high-end brands in foreign countries is increasing.

"Under the premise that the technology is guaranteed, (Chinese factories) have absolute cost advantages, why not?" said the director of a factory in Hangzhou, Zhejiang.

According to the global luxury report, by 2009, 60% of the international luxury brand China has its own production line.

It is reported that New York's old luxury brand Ralph Lauren to Guangdong Dongguan Lutai group's POLO serial OEM orders can reach hundreds of millions of yuan a year, Lian Tai has branches in Dongguan, Qingyuan, Jiangsu and other places.

"There are many things that are inconvenient to say because there is no need to tear the paper.

It is a common fact that consumers should not be too concerned. "

On the phone, the factory director relaxed his voice.

Someone is more careful than he is.

Yang Huaguo, the only contact of Dongguan xingxiong shoe factory, who refused to be interviewed by the Internet, refused to disclose which brands were OEM for the factory.

He said.

In the view of supplier Zhang Ming, the factory is "very strict in management".

After four p.m., all of their suppliers are not allowed to enter the factory because the workers will be off duty after half past four, and the factory refuses all the workers outside the factory for safety reasons.

In the past 5 years, Zhang Ming has never received any sample of finished shoes from the factory.

Whenever Xing Xiong needs some kind of material, it always cuts off a piece and sends it to the same supply.

However, several times when he entered the factory, he saw some finished products.

"All the famous brands in the world!" he recalls.

This is similar to a place called Xingang Industrial Park about ten minutes from xingxiong plant.

At 5 p.m., a large number of blue and orange workers came out of the park during the factory hours.

It seemed that everyone was in a hurry to stop a woman worker when asked what brand shoes the factory was making.

"Do you have Prada?" "Prada, yes."

The answer is very simple, and blurred English is very smooth.

When asked, he began to be vigilant. "What do you ask?"

Another female worker and a male worker, respectively, said that the factory produced the finished shoes and all the exports; Prada was mainly produced in xingxiong factory.

Xingxiong and Xingang are affiliated to Hongkong Xingang International Co., Ltd., one of the ten largest manufacturers of shoes in the world. It is one of the eighteen factories in the mainland.

Xingang international was officially listed on the Hongkong stock market in 2007, with the name of nine Xing holdings.

Public information shows that the main products of nine Hing Holdings include Nike, Guess, LVMH, Prada, Timberland, Clarks, Rockport, Easy Spirit, Ecco, and many other world famous brands.

The Italy JINDA Garments Co., Ltd., which is jointly invested by three parties from China, Hongkong and Italy, is mainly composed of Pierre Cardin.

According to the company, every quarter, the company will introduce the highest level management and advanced technology of Italy's largest suit manufacturing and sales group.

The company's responsible person said in a telephone interview with reporters that "Pierre Cardan's craft is all done here."

In addition, most of the Ralph Lauren products are produced in China.

Hongkong based famous clothing manufacturer Lutai group and Yida group have undertaken most of the production of Ralph Lauren in the past few years.

It is reported that under the Ralph Lauren, the POLO order for Lian Tai can reach hundreds of millions of yuan a year, and there are branches in Dongguan, Qingyuan and Jiangsu.

In the past few years, POLO orders were mostly produced by Lutai's own factories. Recently, in order to control costs, Lian Tai began outsourcing to other factories.

In the first two years of Prada, a factory that met the requirements of technology was found in China, and it was produced in China.

Under the cheap image of "Made in China", their CEO proposed that the label of origin should be abolished and changed to "Made by Prada".

There are two kinds of agency processing in China: one is to produce finished products; the other is to participate in the process; perhaps the processing of embroidery is placed in China, and the cotton precursor may be processed in Malaysia, but the majority of the finished products are produced.

A staff member of the Dongguan plant of Luen Thai group revealed that luxury brands have general agents in the country. After receiving the orders of the brands, the general agent, according to the equipment of the processing factories that he can handle in foreign trade, carries out the contracting out of different styles of clothes, and each time chooses different factories according to different styles and other requirements.

Liu Wenxian, a fashion brand strategist, believes that high-end luxury brands should retain their origin even if they want to protect their historical and cultural values. What conditions do they need to stick to the label of "Made in Italy" is not an industrial standard or a unified international rigid regulation, but it should be a pursuit.

"Every country has different requirements from each country, but at least to ensure that the core technology of the product is made in Italy, and the main raw materials also come from Europe, so it can be labeled" Made in Italy ".

A foreign clause stipulates that the majority of the product (the part that determines its quality) must be manufactured and completed in that country, and the cost (labor, material, etc.) produced in the country will at least account for 50% of the total cost, and the above two items will be used to label the country.

According to this provision, the label of "Made in China, Designed in Italy" appears to be more reasonable for products processed in China.