The Truth Of "Made In China" OEM

In fact, Luxury goods The licensing mode of producing foreign products in foreign countries and parts of overseas enterprises is already a "code of practice" in the industry.

　 " Made in China The truth of the OEM is:

　　 1. which country completes the final processing which country is the "country of origin"?

In accordance with the provisions of various countries, the product in which country completed the last processing steps, eventually become finished products, which country is the "country of origin". Therefore, the "big" people will drill this loophole. They will deliver the materials to the OEM country, complete the most steps of the product processing, and then transport the "semi-finished products" to the country, and complete the last part of the processing steps in their own country. The origin of such products is the country where the "big name" is located.

For example, a Italy. Brand clothing It can complete most of the processing steps in Bulgaria, and the remaining buttons are not fasten. The zipper is not installed. After that, the "semi-finished products" are shipped back to Italy, so that the workers can fasten the buttons on the zippers, and the place of origin can be labeled as "Italy."

　 2. made in China or country of origin?

Although it is a product OEM, because of the continuous improvement of production technology and workers' skills in every country at present, it is difficult for consumers to see the difference between a garment produced by Italy workers and a garment manufacturer from China and Vietnam. This has also led many brands to take the opportunity to transfer the assembly and assembly of spare parts to other countries.

　　 3. sub line brands are manufactured by OEM countries.

Over the years, the transfer of luxury goods to China is a gradual process of choice. Many luxury brands usually have some "sub cards" which are relatively cheap and require less workmanship. These "sub cards" were first transferred to China. Taking PRADA as an example, they mainly put the low-end product line in China to produce foundry, which is commonly known as the "red label" product (red label product). The material of the product is relatively cheap, and many high end product lines of leather material remain in Italy.

　　 4. high volume sales force the brand to seek more OEM countries.

At present, the representative factories in Europe and the United States are mainly concentrated in Dongguan and other places, but the scale is not large. According to the analysis of the industry, with the increasing number of luxury brands choosing to go public, the financial pressure at each stage will become bigger and bigger. The company will try to expand sales terminals and increase output. Because the cost of manufacturing in China is still relatively low, and the technology level has improved rapidly in recent years, luxury brands will increasingly choose the way of OEM to expand their output.

　 Large scale OEM:

There are several forms of general luxury goods abroad: one is to produce finished products abroad, such as Armani has seven production lines, the top GiorgioArmani is produced in Italy, and EmporioArmani is made in China.

The other is part of the process of subcontracting by foreign enterprises, and finally fully authorized operation. For example, Pierre Cardan authorized many Chinese enterprises to produce some low-end products, such as down garments and socks.