The Secret Of Prada'S OEM In China

In January 11, 2016, the Dongguan Xing ang footwear industry announced the closure of the factory. The main products of the factory were women's shoes, including Nike, Prada and other famous brands.

According to the announcement issued by Dongguan Xing ang footwear industry, due to the impact of the economic situation, the company's customer orders have shrunk seriously, and it is difficult to continue to operate. Therefore, the decision to stop production and lay off workers has been made.

As an engine that has sped up China's economic development, processing and manufacturing industry has been brilliant in China. But since 2015, the collapse of manufacturing industry in the Pearl River Delta region has springing up. Among them, Dongguan, Wenzhou and other places are all the worst hit areas for the closure of foundries.

In Dongguan, there is a "Dongguan Prada Trade Co., Ltd.", which appears in Prada's earnings report. It is a subsidiary directly owned by Prada. It is responsible for supervising the operation of Prada Prada in the whole factory in Guangdong and producing handbags and shoes for Prada.

This is the public information disclosed by Prada on 2011 in Hongkong, which tells the secret of Prada's OEM in China.

Dongguan Xingang is a subsidiary of Xingan International Co., Ltd., and Xingang international is officially listed in Hongkong in 2007. The stock is called "nine Hing Holdings". It is currently one of the ten largest shoe manufacturers in the world.

Dongguan Xing ang shoes industry Co., Ltd. announced that "Dongguan has been through the wind and rain for 13 years, and now it is affected by the economic situation.

The company has to make a decision to end all the production and implementation of economic layoffs in Dongguan.

At the same time, the company also said that since the announcement date, Dongguan entered the end of production before the end of the production, the company will officially end production and business activities in February 10, 2016.

Last year, the continuous strike of Dongguan's footwear industry is facing a crisis. Due to the increase in labor costs, welfare gains and the serious loss of manufacturing personnel last year, the nine Xing holding group has begun to adjust the layout of the plant in the first half of 2015.

China's manufacturing industry has been faced with "attack before and after". Southeast Asian countries are exerting their strength in the low and middle manufacturing industry, attracting more foreign capital enterprises to pfer their production capacity with cheaper labor than China.

All the production units of Dongguan Xing ang footwear industry are closed, but the R & D and administrative departments are still retained. The layoffs involve more than 1900 employees, and the capacity to suspend production will be pferred to Southeast Asian countries because of the rise in labor costs.

In the past two or three years, the labor cost in Dongguan has increased by about 15% annually, and the increase in labor cost has a direct impact on the order volume of the company.

Last year, Dongguan's net profit fell sharply, with a drop of more than 50%.

In Dongguan, under the period of economic pformation.

In addition to the manufacturing of the middle and low end footwear industry, the footwear industry has been leaving in recent years.

At the same time, Zhong Weijie, vice president of Dongguan Da Ling Shan Association of Taiwanese businessmen, told the media that due to the increase in labor costs, Dongguan Daling mountain town last year "Taiwan enterprises" disappeared nearly 30.

Dongguan Xingang parent company nine Hing Holdings Limited has developed and manufactured footwear products for the global leisure and fashion footwear company, and has owned the Stella Luna, the brand of women's fashion shoes.

Nine Hing Holdings in the glorious era of Guangdong Province, there are four manufacturing plants, a total of 36 production lines for men's and women's shoes.

Another six plants are processed and contracted in China.

The annual production capacity of the product is about 45 million pairs.

Nine Hing Holdings announced today's latest quarterly earnings report. The group's unaudited gross income in the three months ended December 31, 2015 was $396 million 600 thousand, up by 0.8% from 2014.

In manufacturing, the average price fell by 4% as the cost of raw materials (especially leather) fell.

As for group retail business, same store sales fell 21.5%.

By the end of last year, its Stella Luna store was 177, an increase of 1 compared with the previous year, while the What For store decreased from 18 to 61.

The Group expects that the disappointing performance of many retail businesses this year will lower the confidence of certain customers, thereby affecting the performance of the group.