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    Haining Leather Industry Reverses Traditional OEM Mode

    2012/9/30 16:01:00 10

    HainingLeather IndustryHaining Leather Industry Reverse Traditional OEM Mode

     


    This autumn, consumers who want to go to leather city in Haining will see a batch of "special" in the newly opened leather city flagship store square.

    Leather clothing

    They are "authentic" European goods, but they all play the brand of Kaiyang from Haining.

    Xu Jianyang, general manager of Kaiyang Garments Co., Ltd., who introduced the "European products", said confidently: "the leather garments are supplied by European manufacturers for design and sample clothing.

    These manufacturers include companies specializing in luxury goods such as Herm s, Dolce&Gabbana and so on.

    In the traditional division of labor in the international industrial chain, it has always been the design of European businessmen and the OEM of Chinese enterprises. This traditional mode has been reversed in Haining.


    Continuously increasing investment in design and research, introducing international brand and chain operation, and trying to innovate business format and price management, Haining leather city is no longer satisfied with the traditional connotation of "professional market".

    In the traditional market province and manufacturing province Zhejiang, the emergence and development of various specialized markets have been the windows and weathervane of manufacturing industry.

    Now, the pformation of these markets is also leading the pformation and upgrading of their respective industries.


      

    European enterprises

    Haining

    Brand foundry


    This is an enterprise that has gone through every representative stage of the leather industry development in Haining. "We founded in 1989, at the very beginning, it can be said that it is also a family workshop, which is self produced and sold on a small scale."

    Xu Jianyang said, "in the 90s of last century, Haining's leather products simply couldn't get into the first tier cities, and couldn't get into the front-line shopping malls, so we chose to obtain the authorized production of foreign brands, until now, we have been the foundry of high-end brands at home and abroad."


    It can be said that the development process of Kaiyang has also been experienced by many traditional manufacturing enterprises in Zhejiang.

    It is not easy to build your own brand. When people are thinking about how to make their own brand from the "foundry", Xu Jianyang has another way of thinking.


    In April this year, a group of leather enterprises in Haining went to Turkey and Italy to study and inspect.

    "European clothing industry has a long history and is still leading the world trend. Italy and Turkey have maintained a leading position in the international leather industry for a long time."

    Xu Jianyang said.


    Visiting several local enterprises, Xu Jianyang saw the gap: in Turkey, the wage level of leather industry is very close to that of Haining, and Haining enterprises have no advantage in labor. The technology, design and raw materials of these European enterprises are totally different from Haining, and their workmanship is excellent and the price is high.


    "Moreover, their minds are very different from ours.

    One of the companies has passed on several generations, with more than 700 workers, and has been very specialized in doing OEM for Europe's first-rate luxury brands.


    Heartbeat Xu Jianyang asked the other party whether he could ask the other party to give his own brand OEM. I never expected the other side to be willing to negotiate in detail.

    "Some two or three line brands in Italy, Turkey and other European countries have also been looking for opportunities to expand the Chinese market. In fact, they will also make a breakthrough in their work."

    This allowed Xu Jianyang to make up his mind to allow European companies to work for themselves.


    Subsequently, Xu Jianyang went to Turkey, Italy and other places to investigate and ordered nearly 1000 leather goods orders to 4 Turkey leather garment enterprises and 3 Italy enterprises, and the design and production of fur coats remained the original flavor of Europe.


    Although imported from abroad, counting pportation and taxes, the cost is not low, but what Xu Jianyang values is, "through overseas OEM production, we can start our own brand with high quality products, and at the same time enhance ourselves through this cooperation. In the future, we also plan to gradually increase the proportion of foreign OEM in business.

    Our brand positioning is high-end clothing, hoping to provide "affordable luxury" for Chinese consumers.


    More than 100 enterprises converge on Haining


    In the nineteenth Haining China recently held

    Leather Fair

    On the above, Italy Florence Fur Loto fashion design company entered Haining design base.

    "We are here today because we understand that Haining, China's most professional leather and fur production base, has a real need for outstanding designers."

    Fur Loto designer Rossalba Valentino said that in the future, they will continue to seek the most close integration with enterprises, break through the differences of design in culture and way of thinking, and let Italy's advanced design concepts really melt into the needs of the market.


    At the same time, the Haining leather industry's provincial characteristic industrial design and demonstration base is also launched. The base will be guided by leather design research and development, encourage enterprises' innovation and development, improve their design strength, deepen the adjustment of industrial structure, and upgrade from "Haining manufacturing" to "Haining creation".


    How to improve and develop traditional industries is a problem that Zhejiang manufacturing industry has been exploring.

    And Haining found a way to increase investment in industrial design, leather city as a professional market is also expanding the connotation of leather industry has become a fashion center.

    "In addition to the original good investment environment and platform, as well as the perfect industrial chain, now Haining has Leather Research Institute, fashion trend center, leather fashion center, and grasps the important popular information of leather industry."

    Chagarin, deputy general manager of Limited by Share Ltd, China Leather City, Haining, said.


    "Nowadays, many traditional industries in coastal areas are gradually moving to the surrounding areas and to the mainland. However, in recent years, more than 100 enterprises have moved to Haining from all over the country to engage in leather industry and reverse industrial pfer."

    Chagarin said.


    Market changes drive industry changes


    In the Plaza of Haining China leather city flagship store, which was just opened in September 26th, customers found that authentic European goods came from the leather city. The Turkey leather garment manufacturers association and the Spanish leather association signed a relevant agreement with Haining to set up a special brand sales area in leather city.

    100% of these brands come from Turkey or Spain, and 100% of the products come from Turkey or Spain to ensure the original flavor of the brand.


    It is almost unthinkable in the past to sell it under the eyes of Chinese peers.

    This point, Xu Jianyang also deeply understand.

    "Before this cooperation, I proposed to go to the factory of the other side, and the other party hesitated for a while.

    In the past, they regarded Chinese enterprises as competitors, for fear that we would steal our teachers.

    But in the end, they not only opened the door, but also worked with us.


    This is closely related to the weakness of the international market at present. In contrast, Haining's China Leather City, which is mainly domestic, shows a good momentum of steady growth.

    According to statistics, 1-8 months of this year, Haining China Leather City headquarters and various chain market passenger traffic broke through the new high.

    "Now is the best time to promote cooperation between China and outer leather industry."

    The chairman of Limited by Share Ltd, China Leather City of Haining, has said that "over the years, the domestic and foreign economic environment of China's leather industry has undergone great changes. The desire of the international leather enterprises to enter the Chinese market has never been so strong. Chinese leather enterprises are also in urgent need of injection of international resources such as design, research and development, so as to complement each other, achieve faster improvement and gain greater competitive advantage."


    Leather city is no longer satisfied with positioning itself as "market".

    After the first phase of the market test, "Ming Ming Ming" and "unified cash register", in the newly opened brand flagship store square, the shopping mall only had some marked price, clear and clear deduction, unified cash register and unconditional return items. In terms of commodity structure, it also referred to shopping malls. Besides leather and leather goods, it also introduced fashion.


    "The market will become more and more like shopping malls.

    This innovation has made leather city more rich and full. Through price management innovation such as "bright and clear deduction", it can also satisfy consumers' new demand for the market.

    Chagarin said, "at the same time, it will also meet and promote the diversified development of some leather enterprises in Haining and the demand for developing various kinds of products."

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