Why Is Brand Shoe Enterprise "Foundry Mode" Repeatedly Questioned?

A few days ago, a sampling survey of the quality of domestic sports shoes and clothing showed that CONVERSE, Columbia, Lotto and Austria's famous outdoor sports brand, Northland, were on the "black list" because of their poor pH and color fastness.

It is understood that these substandard products are OEM products.

In fact, it is not only the international brands such as CONVERSE, but also a lot of Quanzhou brand shoe companies.

Quality of OEM products

As early as CONVERSE and other four well-known sports brand's OEM products were found problems before, the OEM mode brought about.

A few months ago, the German SIEMENS has always been a high-end, professional image.

The problem of frequent brand quality of foreign household appliances is also related to outsourcing of production links.

It is understood that "at the outset, foreign-funded enterprises have control over R & D, production, sales and brand aspects, and later found that in the production process, Chinese enterprises are simply outsourced, relying on R & D and brand profitability."

Lack of supervision in production line

The advantage of the OEM mode is to reduce production costs, and at the same time, make rational use of idle capacity to reduce the repeated input of enterprises in the production process.

Professor Su Zhaohui, director of marketing management research center of Huaqiao University, told reporters that the "foundry mode" has always been accompanied by the development of Quanzhou brand enterprises. In the early days of reform and opening up, most of Quanzhou enterprises relied on international brands to develop and grow. When the enterprises developed to a certain stage, they built their own brands, and began to follow the international brand practice, looking for enterprises to give their own OEM.

However, while enjoying the mode of OEM and reducing the production cost, many brand enterprises now have to face the risks caused by the OEM mode.

"The risk is that when the product line is outsourced, the quality of the product will start to slide."

Hou Lidong, an industry insider who has worked in a number of brand enterprises in Quanzhou, told reporters that after the production link was outsourced, the most likely problem was the production line.

If a brand enterprise produces on its own production line, the problem products can be found in the production process.

After adopting the mode of subcontracting, brand enterprises usually conduct spot checks only after the products are produced, so that the supervision of production links is missing.

It is reported that Japanese enterprises attach great importance to the supervision of the production line of OEM enterprises.

"They will be stationed in the factory for a long time and check the production process of the factory every day.

If there is a problem, it can be found on the same day, and will be returned to work in time. If the product is rejected, it will not be rejected until the product is put on the market. This will basically eliminate the emergence of unqualified products.

Enhance process control

"In fact, the foundry mode itself is not right and wrong, the key is how to control."

Su Zhaohui told reporters that Nike is outsourcing production, distribution, retail and other business links to third party professional companies, only to retain product development and brand integrated marketing.

In order to ensure the quality of the foundry products, Nike has a set of perfect management process, mainly through the process and system design, OEM terms design, supplier selection, production process follow-up and product quality inspection, etc., to strictly monitor product quality, production schedule and production cost.

"To avoid outsourcing quality problems, the key is to enhance the process control and management capabilities of enterprises."

Hou Lidong said, on the one hand, we must strictly select the foundry factory, not only to inspect the production capacity of the factory, but also to inspect the credibility of the factory; secondly, we should strengthen the source control and check the raw materials; thirdly, we should strengthen the control and audit of the foundry manufacturers, establish the screening machine system, and find that the unqualified manufacturers should be replaced in time.

In addition, the way of subcontracting enterprises is also adopted by some international brands.

Recently, it was reported that PRADA, a luxury brand in China, is going to be listed in Hongkong on December in Hongkong, and PRADA and venture capital fund IDG have subscribed for about 20% of its shares.

In this regard, the enterprise side disclosed that "the first to control the production process is to ensure the quality of the products."

Production outsourcing does not lose quality.

Manufacturing outsourcing can greatly reduce costs and gain huge profits for enterprises, but high profits always coexist with high risks. The biggest risk lies in the uncontrollable production process.

As the originator of online direct selling in clothing industry, PPG has made remarkable achievements.

The PPG's mode is not to invest in manufacturing plants, but to outsource production and logistics links.

This typical asset operation results in strong price competitiveness.

However, the uncontrollable production process has made complaints about the quality of PPG shirts in the terminal market. When consumers' attention shifted from "buying mode" to "buying products", PPG disappeared in the industry.

In fact, the so-called brand, first, after the product has a brand, if the quality of the product can not be consistent with the brand, will eventually cause damage to the brand.

While pursuing light assets, we must not neglect product quality, production outsourcing and quality.