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Lack Of Independent Brand Luxury OEM Enterprises Have No Choice But To Move Out
< p > with the increasing consumption of luxury goods in China, the luxury of "MADE IN CHINA" is less and less. < /p >
< p > "we have begun to turn production activities out of China and to other Asian countries whose prosperity is not so high." In a public meeting last year, Lou Frankfurter, chief executive of COACH, said that in the next 5 years, the company would go to factories with lower wages in India, Vietnam and Philippines. At present, 85% of COACH's global capacity is in China, and this proportion will fall to 40%-50% in the future. < /p >
At the same time, the sales revenue of COACH in China has reached US $100 million. We plan to raise our revenue to US $500 million by 2014 and get a 10% share of China's luxury goods market, and plan to go public in Hongkong. < /p >
< p > this is a somewhat awkward logic, because Chinese buyers are getting more and more, so these luxury products begin to move their products out of China, and the logic is that "foreign monks will chant scriptures". Similarly, luxury goods processed abroad are more honorable or mysterious. "MADE IN CHINA" has become the reason why some Chinese buyers give up the same goods. < /p >
< p >, then, in 2012, after 23 years of development in Dongguan, the COACH handbag generation plant set up the foundry enterprise to Philippines again. < /p >
Less than P, of course, this is not the only reason for the extravagant relocation of luxury goods factories. < /p >
"P >" China's increase in human cost in recent years has made many generations of factories "difficult to breathe". < /p >
More than 10 years ago, the wages of workers were only a few hundred yuan, and the supply was enough. Nowadays, two thousand or three thousand yuan per month is still difficult to recruit enough skilled workers, P said. Labor costs in Philippines and other places are about 1/3 lower. < /p >
< p > "I have changed two jobs in the past two years, because the wages of the latter are higher." Xiao Wang, who has worked in Guangdong for 5 years, told the "China made news" reporter, like them, who had worked for several years in the "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a "factory. Indeed, it is quite popular. Especially in the second half of the year, every processing factory is short of people, which is a good opportunity to raise salaries and job hopping. < /p >
< p > in addition, the continuous appreciation of RMB in recent years has made it difficult for these factories to digest. < /p >
< p > take the order of US $10 million, for example, the exchange rate of RMB against the US dollar changes by more than 0.01, and the profit evaporates by 100 thousand yuan. According to industry sources, a value of 3000 yuan package, processing factory profit only 5-20 yuan net profit. < /p >
< p > "at present, because of the lack of brand in China's luxury foundry enterprises, with the increase of labor costs and other production costs in mainland China, the profits of OEM enterprises are less and less, mainly relying on quantity to maintain business. The rising cost of business will be a trend, which is inevitable for Chinese enterprises. " A researcher at Peking University's market economy research center and a partner of Peking University vertical and horizontal management consulting group, Kai bid, told reporters that lack of brand is the fatal pain of these enterprises. < /p >
< p > < strong > how to treat this kind of labor pain? < /strong > /p >
< p > Xiang Kaibiao believes that this change should be understood from a positive perspective. With the economic development in the mainland of China, the return of labor costs and the past neglected environmental and social security costs is a normal phenomenon, coupled with the appreciation of the renminbi, the rising cost of enterprises is a trend, which requires us to consider the problem from its own development. < /p >
< p > first, enterprises must continue to carry out technological innovation and management innovation, create their own core competitiveness and take the industrial upgrading route; < /p >
< p > secondly, brand building and building is one of the prerequisites for making more money in the future. Otherwise, it is difficult to make big fortune only by "working". Brand building has to be avoided sooner or later. "/p".
< p > finally, although industrial upgrading and brand building are enterprise behaviors, the government can act in the meantime, which can provide more convenience and preferential measures for the development of enterprises. At the same time, financial institutions need more enthusiasm in financing SMEs. SMEs need to have the same "national treatment" with state-owned enterprises and large enterprises, which requires more policy tilt by the state. < /p >
< p > "we have begun to turn production activities out of China and to other Asian countries whose prosperity is not so high." In a public meeting last year, Lou Frankfurter, chief executive of COACH, said that in the next 5 years, the company would go to factories with lower wages in India, Vietnam and Philippines. At present, 85% of COACH's global capacity is in China, and this proportion will fall to 40%-50% in the future. < /p >
At the same time, the sales revenue of COACH in China has reached US $100 million. We plan to raise our revenue to US $500 million by 2014 and get a 10% share of China's luxury goods market, and plan to go public in Hongkong. < /p >
< p > this is a somewhat awkward logic, because Chinese buyers are getting more and more, so these luxury products begin to move their products out of China, and the logic is that "foreign monks will chant scriptures". Similarly, luxury goods processed abroad are more honorable or mysterious. "MADE IN CHINA" has become the reason why some Chinese buyers give up the same goods. < /p >
< p >, then, in 2012, after 23 years of development in Dongguan, the COACH handbag generation plant set up the foundry enterprise to Philippines again. < /p >
Less than P, of course, this is not the only reason for the extravagant relocation of luxury goods factories. < /p >
"P >" China's increase in human cost in recent years has made many generations of factories "difficult to breathe". < /p >
More than 10 years ago, the wages of workers were only a few hundred yuan, and the supply was enough. Nowadays, two thousand or three thousand yuan per month is still difficult to recruit enough skilled workers, P said. Labor costs in Philippines and other places are about 1/3 lower. < /p >
< p > "I have changed two jobs in the past two years, because the wages of the latter are higher." Xiao Wang, who has worked in Guangdong for 5 years, told the "China made news" reporter, like them, who had worked for several years in the "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a "factory. Indeed, it is quite popular. Especially in the second half of the year, every processing factory is short of people, which is a good opportunity to raise salaries and job hopping. < /p >
< p > in addition, the continuous appreciation of RMB in recent years has made it difficult for these factories to digest. < /p >
< p > take the order of US $10 million, for example, the exchange rate of RMB against the US dollar changes by more than 0.01, and the profit evaporates by 100 thousand yuan. According to industry sources, a value of 3000 yuan package, processing factory profit only 5-20 yuan net profit. < /p >
< p > "at present, because of the lack of brand in China's luxury foundry enterprises, with the increase of labor costs and other production costs in mainland China, the profits of OEM enterprises are less and less, mainly relying on quantity to maintain business. The rising cost of business will be a trend, which is inevitable for Chinese enterprises. " A researcher at Peking University's market economy research center and a partner of Peking University vertical and horizontal management consulting group, Kai bid, told reporters that lack of brand is the fatal pain of these enterprises. < /p >
< p > < strong > how to treat this kind of labor pain? < /strong > /p >
< p > Xiang Kaibiao believes that this change should be understood from a positive perspective. With the economic development in the mainland of China, the return of labor costs and the past neglected environmental and social security costs is a normal phenomenon, coupled with the appreciation of the renminbi, the rising cost of enterprises is a trend, which requires us to consider the problem from its own development. < /p >
< p > first, enterprises must continue to carry out technological innovation and management innovation, create their own core competitiveness and take the industrial upgrading route; < /p >
< p > secondly, brand building and building is one of the prerequisites for making more money in the future. Otherwise, it is difficult to make big fortune only by "working". Brand building has to be avoided sooner or later. "/p".
< p > finally, although industrial upgrading and brand building are enterprise behaviors, the government can act in the meantime, which can provide more convenience and preferential measures for the development of enterprises. At the same time, financial institutions need more enthusiasm in financing SMEs. SMEs need to have the same "national treatment" with state-owned enterprises and large enterprises, which requires more policy tilt by the state. < /p >
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