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With The Increase Of Comprehensive Cost, The Advantage Of Accelerating The Generation Of Factory To Move Out Of Overseas Factories Is Becoming More And More Obvious.

2013/5/21 21:07:00 21

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Set Up Factories Overseas Set Up Factories Overseas

with the increase of China's manpower costs and other comprehensive costs, domestic luxury foundry enterprises have been forced to move out of China or set up factories overseas. This trend is showing an increasing trend. Industry experts believe that this will cause some challenges to China's employment situation in the coming period. However, it is the fundamental way to leave luxury goods in China and develop its own brand. However, the brand of luxury goods in China has not yet become a climate in terms of corporate strength and market environment. 
 the increase of comprehensive cost speeds up the shift of the factory from /p >
 Dongguan Huida handbag factory is a well-known foundry enterprise of global luxury handbags. Its COACH brand handbags account for about 80% of the world's output. After 23 years of setting up a factory in Dongguan, the handbag factory set up the foundry enterprise in Philippines in 2012. 
 Zhang Jieda, chief executive officer of the company, told reporters that the establishment of overseas factories is not the expansion plan that the enterprise originally planned, but the brand owners forced. "If you do not set up factories in Philippines, brand manufacturers will continue to reduce the order in Chinese factories." 
After the global financial crisis in 2008, due to cost advantages, many luxury brands in the world have moved to China to set up factories. However, a recent survey by reporters found that this situation has changed significantly. Many luxury goods have been accelerated to move out of China's factories. China's most direct and important factor is the rising cost of human resources and other comprehensive costs, leading to a growing advantage of the original P in China. 
 Huida handbag factory needs 2000-2500 employees daily to complete the luxury brand's OEM. However, in the past one or two years, recruitment has become a major obstacle to the normal operation of enterprises, and labor wages have also risen steadily. "10 years ago, the monthly salary was six yuan and seven hundred yuan, and the workers were still queuing up to find work. But now two or three thousand yuan may not be able to recruit stable cooked hands. The increase of manual wages directly leads to a sharp rise in the cost of products, but the brand owners refuse to raise the wholesale price and profit margins are getting thinner. In addition to the issue of Sino US relations, brands such as COACH have been trying to reduce orders in Chinese factories this year, forcing us to set up factories overseas to give orders to Chinese factories. Zhang Jieda said. 
"P > Professor Ho Yun, a professor of luxury research at the Zhongshan University School of management, points out that market pressure has forced luxury brands to look for new market growth around the world. Luxury brands entrust other countries to localize production and look forward to reducing not only production costs but also tariffs, freight, insurance and other comprehensive costs. 
 the advantages of overseas factories are less than /strong > /p >
 although it was forced to open a factory in Philippines, but for the Huida handbag factory, it really felt relieved. According to Li Yimin, chief financial officer of Huida handbag factory, in Philippines, there is no shortage of workers, workers have a high level of English, and the cost of wages per worker is half less than that of China, which is less than 1000 yuan, but the factory needs to spend more than a few months to train workers to become proficient. More importantly, tariffs and other comprehensive costs have also decreased significantly. The local government's preferential tax exemption policy for foreign enterprises can at least exempt from 8 years of income tax and value-added tax, and also save a lot of cost in tariff. 
 Li Yimin, for example, such as a 3000 yuan COACH brand handbag, the wholesale price is 1800 yuan, each package less than China 6 points tariffs, it also saved 108 yuan, the average output of one month is 100 thousand handbags, only customs duties saved about 10000000 yuan, very impressive. Therefore, luxury brands are actively looking for the next investment destination outside China. 
 reporter learned in the survey that not only is the Huida handbag factory, but also some other luxury brand foundry enterprises have also set up factories abroad or even moved out of China. And the trend of Huida handbag factory also confirms the COACH and other high-level statements. 
 due to the rising labor costs, COACH CEO Lou Frank Ford said in a public meeting last year that in the next 5 years, the company will go to factories with lower wages in India, Vietnam and Philippines. At present, 85% of COACH's global production capacity is in China, and this proportion will fall to 40%-50% in the future. He has made it clear that "we have begun to shift production activities out of China to other Asian countries with less prosperity." It is disclosed that COACH's sales revenue in China has reached $100 million, and it plans to raise its revenue to $500 million by 2014, gaining 10% of China's luxury goods market and plans to list in Hongkong. 
 the luxury brand foundry factory has accelerated to move out of China. Besides the factors of rising domestic production costs, another important reason is that when China's cost advantage is weakening, brand names are more willing to choose the place outside China as the origin of products because of the maintenance of brand dignity. 
 Zhang Jieda bluntly, luxury consumers have a serious dependence on the place of origin, like a COACH package. Consumers, especially Chinese consumers, prefer to spend more than 100 yuan to buy the products produced in Philippines. Some consumers even give up the purchase of "MADE IN CHINA" at the first sight. This is why the luxury goods manufacturers in China have been secretive about the origin issue for a long time: on the one hand, they are actually produced in China; on the other hand, they often refuse to admit that they are subcontracting in China because consumers do not buy it. 
One of the most extreme cases of P is: last year, Shanghai businessman Lu Qiangyu bought PRADA, while PRADA refused the purchase request of Shanghai businessman Lu Qiang on the grounds that "the Chinese takeover might change the brand style". In an interview with the media, Lu Qiang said he had bought a small part of PRADA shares in a Italy consulting company which had bought 20 million euros. When he wanted to buy shares to become the controlling shareholder of PRADA, PRADA learned that the consulting company was behind the Chinese, so he suddenly raised the price and raised the stock price of the creditor bank, which could only buy 450 million euros, to 700 million euros. 
 PRADA even published a notice in the form of mail that no one of the PRADA family members would sell it to Lu Qiang, a Chinese businessman. 
 the two characteristics of the factory spanfer are .
"P" Ho Yun and other industry experts pointed out that when labor cost, China's biggest attraction to luxury foundry, gradually disappeared, the OEM factory moved out of China became an inevitable trend. At present, the trend of spanfer shows gradual and hierarchical characteristics. 
 on the one hand, gradual spanfer. According to Ho Yun analysis, for a long time, the domestic industry cluster effect and the large scale supply chain are still unmatched by other regions such as Southeast Asia. For example, < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > within 50 kilometers of the industrial circle can be purchased to fabrics, accessories and other products, and after receiving a luggage order, OEM enterprises can in half an hour with a target= "_blank" href= "http://www.91se91.com/" > leather "less than" such basic materials, an hour will be able to match all the hardware accessories. The supporting advantages of these industries are that other undertaking countries can only be nurturing and perfecting in time. 
 on the other hand, hierarchical spanfer. According to the insiders, luxury production is based on the Pyramid line. The top products in Pyramid are high-end, but the production is small. Luxury brands will also develop some low-end products that the public can afford. The shift from China to the foundry enterprises, high-end products spanfer production is difficult to form a general trend, the spanfer is mostly low-end products. For the high-end product manufacturers, the central and western parts of the country can undertake, and luxury brand OEM enterprises still have room for development within the next 10 years. 
 industry experts believe that the trend of the spanfer of OEM enterprises from China will pose some challenges to China's employment situation in the coming period, but it will play a positive role in adjusting the industrial structure, expanding the domestic demand market and creating its own brand. 
 Zhang Jieda said that the quality requirements for luxury products are very high, which is a good experience for Chinese manufacturing capability. For example, a luxury brand package needs 150-200 processes, and also has to do friction testing, dehydration testing, damage testing, tensile testing, etc., but some domestic brand packages only need 50 processes, and there are no such tests with gold content, which are quite different for workers' technical improvement and factory management requirements. 
 "at present, the luxury brand of our country has not yet become a climate in terms of enterprise strength and market environment. However, Chinese enterprises have exercised strong production technology capabilities from the experience of luxury foundry, laying a solid foundation for the development of their own brands. Li Youhuan, Institute of industrial economics, Guangdong Academy of Social Sciences pointed out.