China'S Top Luxury Interests Chain

There is enough profit to entrust the product to the foundry factory.

A factory manager said: "the cost of producing a belt is only 9 euros. We sell it to stores at 39 euros, and they sell it to consumers at 750 Euros."

Because LV and Gucci have factories in China, raw materials are not hard to find.

Moreover, many shops claim that they specializes in the production of LV, Gucci, Chanel and Hermes. The products are directly supplied by the factories in Taiwan and Japan, and are manufactured in strict accordance with the standard of 1: 1.

All leather materials imported from Italy are made of leather, hardware is made of all copper, zippers are imported YKK zippers, and "all store accessories are: identity cards, manuals, dust-proof bags, counters, etc.".

Moreover, the products of these imitation shops are quite complete, and the new models are updated quickly, almost following the original shipment speed.

More embarrassment for luxury goods is that some of the high imitation products may come from their regular foundry production lines.

Many luxuries of 1: 1 goods are originated from the outflow of the original fabrics and metal parts, which originate from the same production line.

A tourist from Thailand has excitedly told times weekly reporter that she bought LV leather goods locally in Guangzhou, and no one found it true or false when she bought the store in Thailand.

Chain of OEM interests

In fact, China has had a history of over 20 years as a substitute for luxury goods.

An industry insider told times weekly reporter that at present, the international luxury brand has a foundry factory in China, which has long been an "open secret".

Prior to this, Wang Xinyuan, vice president of Shanghai International Fashion Association, told the media that in the 90s of last century, there had already been a factory for the world's luxury brands.

As early as 2010, there had been media reports that many European luxury brands including Prada (Prada) had set up production lines in Dongguan and Wenzhou to produce a certain process and even finished products, but Prada denied it.

It was not until 2011 that Prada went public in Hongkong that it had to disclose detailed information, revealing the secrets of Chinese enterprises' OEM.

Time group's prospectus shows that the company has always been

Foundry for more than ten years, long-term cooperative customers include Fossil, Prada, Coach, Lacoste and Michael Kors.

The revenue grew from HK $1 billion 349 million in 2009 and HK $1 billion 726 million in 2010 to HK $2 billion 493 million in 2011, with a compound annual growth rate of 35.9%.

In addition, net profit increased from about 70000000 yuan in 2009 to 100 million yuan in 2010, and exceeded 300 million yuan in 2011. The compound annual growth rate was astonishingly reaching 96.7%.

Prada is not only playing the role of the client, but also the shareholder of the times group.

Its subsidiary and Vc firm IDG invested 300 million yuan to subscribe to 41.6% of the times group.

In addition, thanks to the group's exquisite workmanship and handbag manufacturers' rich experience, the world luxury brand Coach group also chose it as the largest supplier of handbag products.

The actual profit of the foundry is low.

The British Burberry has closed its British main plant in the southern Welsh Rhonda Valley despite its multiple domestic resistance. In line with its "globalisation" plan, the UK has officially moved its production line to Shenzhen, Guangdong, and Coach, the market positioning middle end luxury brand, has openly admitted that its capacity in China accounts for 80% of the world's total capacity.

According to incomplete statistics, domestic work

The foundry factories are mainly concentrated in Dongguan, Shenzhen and Shandong Qingdao in Guangdong. Among them, there are the largest number of luxury handbags from Dongguan, such as Dongguan Huida handbag factory set up in 1989, Dongguan Li Qin leather goods group, Dongguan Weishi leather products Co., Ltd., Dongguan Xing Town Xing Hao handbag factory and so on.

"We have begun to shift production activities out of China to other Asian countries with less prosperity."

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.