Foreign Brands Made In China Have A Clear Mind&Nbsp; Prada'S Exposed Cost Does Not Exceed 100 Euro

The international front line established in 1913 luxury goods The listing of the brand Prada is a bit bumpy. It has launched the listing plan five times in ten years. Four times before, it was stranded due to force majeure factors such as September 11, the financial crisis, etc. The fifth time scheduled for June this year also encountered setbacks. For example, the Italian pure blood image once built on the altar was proved to be mixed with more than half of Guangdong genes. The Zhongshan Hong Kong funded leather goods factory Mashi Industry, which has been confirmed by many media, is one of Prada handbag The factory was a OEM factory, but it was denied when the reporter called again for confirmation.

Reporter: Many reports say that MacDow is a contract manufacturer for Prada?

Mai's front desk: None.

However, the secretary of Mai Zhiye, the boss of Mai's enterprise, did not deny it and instead avoided the problem.

Secretary Yang: I can't answer your question.

The PR Department of Prada's Chinese company in Shanghai also answered the same question. Could it be that Prada's headquarters issued a password?

Prada: We in China do not give any answers.

When both McDonnell's leather goods and Prada were very secretive about OEM, a website selling all kinds of famous brand bags and shoes on the Internet said to reporters that they took the goods from the OEM factory and then sold them with these big brand high imitation products.

Gao Fangshang: We do Gao Fangshang. We all take goods from the factory.

Reporter: From what factory?

Gao Fangshang: Prada, LV, these.

"Absurd" made in Italy

An insider who is not only a domestic brand in Jiangsu, but also a OEM for international luxury goods told reporters that the so-called "Made in Italy" only refers to a button or a zipper on the bag, and even these parts are made in China.

Industry insiders: Prada semi-finished products are manufactured in China, perhaps 70% and 80% of them are manufactured in China, and then installed abroad. Prada has not made a whole package in China, which fools us.

The insider also revealed that the international luxury goods contract manufacturing can be said to be an open secret. Coach has simply printed "Made in China". Although Prada is unwilling to admit it, the contract manufacturing has indeed reduced its cost a lot. A Prada bag priced at 20000 to 30000 yuan costs no more than 1000 yuan, and its profit margin even reaches 10 times 20 times.

Industry insiders: Coach, for example, is made in China for only 45 dollars, 292 dollars for a bag, and more than 350 dollars for tariff. When it is sold to 4500 dollars, the maximum profit is 10 times. The cost of Prada bags is more expensive than that of Coaches in leather materials, ranging from 60 to 80 Euros, up to 100 Euros.

Zhu Mingxia, director of the Xiangqi Luxury Research Center of the University of International Business and Economics, believes that many people buy international brands for the "Made in Italy" or "Made in France" label inside the bag, which is the so-called "origin effect".

Origin effect

Zhu Mingxia: For luxury goods, the most important thing that many consumers pursue is the country of origin effect. Where to manufacture is a selling point for enterprises to create luxury goods.

As of January 31 this year, Prada's net profit had reached 251 million euros, but it was burdened with 4.086 billion euros of debt. Goldman Sachs Group believes that about 30% of Prada's global sales are realized by Chinese buyers, and the promotional selling points of Prada's listing in Hong Kong can also meet China's demand for luxury goods. However, the existence of the OEM factory makes it clear that Prada can use Chinese cheap labor, earn Chinese money, and then finance Chinese money to repay debts. But more realistically, Zhu Mingxia believes that even if there are OEM factories, Prada's fifth listing will not be affected.

Zhu Mingxia: The raw materials are under unified control and the quality is under unified control. Some brands are not only OEM in China, but also in other developing countries. In terms of package, it is only an industry intensive product, and in terms of enterprises, it is only a brand effect.

Making in China is also called luxury goods?

As we all know, luxury brands highlight their dignity with the exquisite craftsmanship of their country of origin, and many consumers also take their country of origin as one of the criteria to judge the value of luxury goods. KPMG's latest report, "Luxury Experience in China", shows that the brand awareness of Chinese consumers is improving, and their favorite brands are from France, followed by Italy. The favorite products of wealthy Chinese consumers include cosmetics, perfume, clothing and handbags from France, shoes from Italy, and watches from Switzerland. When choosing alcoholic drinks, they will choose "domestic products".

It took decades for craftsmen who used to be pure craftsmen to polish their skills, and the inheritance from generation to generation has made the unique DNA of luxury brands. But now, young employees on the assembly line in the manufacturing factory repeat the same work day after day. Will the massive outsourcing production of luxury brands destroy their value?

Francis Gouten believes that "the value of luxury fashion brands produced by outsourcing will indeed be damaged if they are not strictly controlled."

Francis Gouten emphasized that luxury outsourcing has different impacts on consumers at different levels. "Keep in mind that many consumers buy luxury goods because of brand trademarks. Usually we see two levels of consumers, the highest level of luxury goods consumers pursue exclusivity, while the second level of consumers are just collecting trademarks."

However, foreign luxury brands should master the psychology of Chinese consumers.

Mark Ritson, an associate professor of marketing at Melbourne Business School, pointed out in an interview with this newspaper: "One of the obstacles to the growth of luxury brands in the Chinese market is the fact that Chinese consumers do not like luxury brands manufactured and produced in their own countries. Therefore, Coach's attempt to transfer production capacity to other countries may be an attempt to increase sales in China, because the brand regards China as the most important market outside the United States and Japan Field. "

In view of the increasing outsourcing production of luxury brands, Francis Gouten proposed: "Don't just pursue short-term interests. The real luxury brand is not a young brand. Respect your customers, which will benefit your brand."