Million spent on the purchase of an Italian or French luxury brand bags

Million spent on the purchase of an Italian or French luxury brand bags, but you see section labeled "Made in China" the words, many luxury consumers into a entangled. Tissot Watch

Also on behalf of the luxury business. European luxury brand Prada in Hong Kong is about to raise up to 20 billion dollars. As one of its sponsors in a report issued by Goldman Sachs can not be said that the secret will be made public.

Goldman Sachs disclosed, Prada's 11 companies, only two percent of manufactured goods production, the rest are outsourcing production. Currently Prada and 450 suppliers of raw materials and 480 manufacturing enterprises, and quality control employed 170 workers, but the Goldman Sachs report this as Prada is also a major risk factor for the quality.

There is concern that economic interests in the pursuit of pure craftsmanship to the past, more and more outsourcing of production, brand value is not be destroyed.

Luxury mortgage outsourcing veil

Back in 2009, "Global Luxury Report" to show that 60% of international luxury brands in China have their own production lines. Although Goldman did not disclose the specific outsourced to Prada, the United States and Europe to provide outsourcing services to many luxury brand's wheat industry is also on the "Business News" reporter's question closely guarded secret, but a luxury that can not be said outsourcing in the industry has long been the secret is well aware.

Asia Pacific, the former chief executive of Richemont, Gu WT Francis Gouten founder, said in an interview: "In the realm of luxury goods have a different location and grade. The past is also an old family luxury small business workshops, passing decades have guaranteed quality. But 25 to 30 years ago, the rise of globalization, a number of fashion brands to join the game, these brands with aggressive marketing strategy. "

Francis Gouten said: "In the realm of luxury goods, luxury brands such as those ancient jewelry and watches, very few of their production to countries other than the country of origin; but those creative as the first element of the luxury fashion brand, their products may be outsourced, the responsibility of these brands is to control the quality. "

Some luxury brands compared to secrecy, the United Kingdom and the United States Coach Burberry will have much more generous. Burberry has multiple resistance despite Britain closed its Valley in British South wales lang of the main plant, in accordance with its "globalization" of the plan, the production line was moved to Shenzhen, Guangdong China.

The mid-market positioning as a luxury brand Coach openly admitted that this year's production in China accounts for 80% of the world, but China has become increasingly expensive labor factor, Coach said that half of China's production capacity to transfer to other elements of the cheap labor countries, including India.

Shenzhen, a second and third line watch brands in Europe OEM factory manager Li Yuan (a pseudonym) told this reporter: "Shenzhen's factories were for the OEM production line watch brands in Europe, and we all know the industry. But they are very secretive We would like to buy a watch from their factory is impossible. "

The risk of value destruction

As we all know, the luxury brand for its fine craftsmanship highlight the origin of their honor, and many consumers are luxury goods in its country of origin as a judge the value of one of the criteria. KPMG recently released "Chinese luxury experience" The report shows that Chinese consumers are brand awareness is improving, China's most popular consumer brands from France, followed by Italy. Wealthy consumers in China goods, including the most beloved France, cosmetics, perfume, clothing and hand bags, Italian shoes, and Swiss watches, and in the choice of alcoholic beverages, they will choose to "domestics."

Pure craft of artisans who need to polish their skills for decades, before the transmission from generation to generation luxury brands a unique achievement DNA, but now the factory assembly line manufacturing employees in the young repeat the same work day after day, a large number of luxury brands outsourcing production will not destroy its value?

Francis Gouten said: "Those who outsource the production of luxury fashion brands, if not strictly controlled, it will certainly undermine the value of luxury brands."

Francis Gouten stressed that outsourcing of different levels of luxury consumers differently. "Remember that many consumers purchase luxury goods because of the brand's trademark, usually we see two-class consumers, the highest level of luxury-class consumers seeking exclusive, while the second level of the consumer they just mark it in the collection . "

However, consumer psychology in China, foreign luxury brands should be skilled in their grasp.

Melbourne Business School associate professor Mark Ritson marketing interview, said: "luxury brand's growth in the Chinese market is one of the obstacles in the Chinese market to the fact that Chinese consumers do not like in your country manufacturing of luxury brand. So, like before the Coach will be transferred to other state-owned capacity is to be an attempt to increase sales in China, as the brand of the United States and China as the most important market outside of Japan. "

For luxury brands outsource production of the phenomenon of more and more, Francis Gouten suggestions: "Do not just chase short-term interests, the real luxury brand is not a young brand. Respect your customers, this will benefit your brand."