Chinese Foundry Value

Shi Jihong likes to wear ECCO shoes, which is due to a friend's recommendation. His friend in is doing OEM in China.

Some new shoes need two weeks of running in time, or even wear a heel, but Shi Jihong first found on ECCO and found it too fit, though the label was written "Made in China".

Shi Jihong said, is there any doubt about the quality of China made?

Shi Jihong is chairman of Zhejiang rookie group.

The answer is, of course, yes.

Almost every product sold, Fifth Avenue luxury network CEO Sun Yafei will encounter an embarrassment.

Almost every time, the order customers will repeatedly confirm whether the package originated from the country of origin of the brand.

The fact is that the products originating from the country of origin are few and far between.

Take SWAROVSKI as an example, its brand comes from a small town called Wartens (Wattens) in Austria, but there are not many SWAROVSKI products from there.

A woman insisted on returning her product when she saw that the product she bought from Fifth Avenue was made in China.

Sun Yafei explained to her that a large proportion of SWAROVSKI is produced in Southeast Asia, including China.

But the customer said it would rather be made in Thailand than in China, on the grounds that those produced abroad are always better than those produced in China.

Sun Yafei laughed and said it was a big misunderstanding.

"Made in Italy by Chinese"

Miuccia Prada, Prada's family heir and chief designer, said she likes Chinese shoes best.

This is always justified. It can not be fully interpreted as justification for Prada's work in China.

Since the 80s of last century, international brands have begun to look for production bases in China's coastal areas. Globalization has allocated manufacturing and processing links to China.

So far, the area represented by Jiangsu, Zhejiang and Guangdong has formed a very mature and complete manufacturing system.

Sun Yafei does not understand that Prada, which is highly rigorous in technology, can be recognized as made in China. Why can't Chinese people be able to do it themselves?

In order to create their own clothing brand, Sun Yafei and his team spent quite a long time looking for suitable foundries in various parts of China.

When he moved to Jiangsu, Zhejiang and Guangdong, he went to many factories that made OEM for Burberry, Armani and other top international brands. Some were good at leather foundry, and some also made ready-made clothes.

The criteria of Sun Yafei selection are: what brand experience, overall standard, advanced level of equipment, delivery execution ability, clothing manufacturing ability, and a very important price.

Sun Yafei visited a dozen factories with both production and design capabilities, and learned that the scale of garments manufactured by ordinary sized enterprises could reach several million to tens of millions each year.

In Xiamen, China, there is a factory which is not even large in scale, with more than 100 employees, but over 20 international famous brands do OEM, including Armani.

In leather goods, Sun Yafei saw every worker wearing gloves, masks and so on, where the dust-free management is carried out.

From the designer, the cutting center, the mold to the final product, each process has a self checking checkpoint to check the quality and even its minor scratch.

Finally, there is a general self checking procedure waiting for the finished product.

A factory with a scale of more than 100 people like this is no longer normal in the Chinese manufacturing industry.

International brands are very strict with the quality requirements of the foundries.

For example, Prada will assign quality control teams and inspectors to strictly inspect the whole production process.

The foundries even design their own products.

Seeing the products designed by the foundries, Sun Yafei thought he was fully qualified to compete for international awards.

With the worship mentality of "pure Italy hand crafted the crystallization of human wisdom", Sun Yafei has visited many Italy production factories.

The first impression is that people are so few.

In the workshop, only 35 people can be seen sitting at the edge of a table with several tables together.

Beside the workers' seats, sewing machines were stacked together, and cloth was stacked.

Even with such slash and burn production, their customers still include top brands like Gucci.

Unlike ordinary people's imagination, the Italy factory is not sewn by hand.

At least Sun Yafei saw this. They used sewing machines very much. After all, the stitches made by hand were difficult to guarantee the thickness and size.

Yang Yelin also visited Asian and European foundries frequently. In his view, the so-called pure manual level in Europe can be achieved in many factories in Guangdong, even better than that of European workers.

Yang Yelin is vice chairman of Guangdong footwear Federation of leather industry.

The US brand Coach has 85% of its production in China, and its Victor Luis, President of the international retail business, said in an interview this June that although the production area is in China, the bags and other products on the assembly line are different. Each package has steps to be manually completed, including leather cutting, handlebar handling, and even the package inside the bag.

In Italy or France, such a step is needed in China.

So in the bag of Coach, there is always a sign that the bag is made in China by the best craftsmen of craftsmanship.

Sun Yafei said that the factory that walked into Italy is like a Chinese Workshop in the 50s and 60s of last century, when you can think of the professionalism and standardization of factories made in China.

In fact, in Italy, because of not being listed as anti-dumping objects by the United States and Europe, the enterprises in Wenzhou of China are coming from many factories.

The workers in Italy are very expensive. The average 20 euro -25 euro per hour is 30 euro -35 euro per hour, and once the employment is life long, the benefits and even the wages are doubled. Italy's factories can not afford to hire too many workers, which is why there are few people in the workshop.

As a result, they will be outsourcing their orders, including the owners from Wenzhou, China.

This also belongs to the "Made in Italy", but the more accurate description is "Made in Italy by Chinese".

Yang Yelin said that the gap between Chinese brands and international brands is actually the problem of sedimentation of culture and historical connotation. Chinese brands are generally relatively young, while international brands have a history of over 100 years, and have their own cultural and historical accumulation. Apart from these soft power, the products made in China are no different from those of international brands.

China's advantage

Shi Jihong likes to do market research very much.

He estimates with certainty that over 95% of the international brands are in China.

In his dealings with Chinese foundry owners, Sun Yafei was surprised by their qualities.

Just like Shi Jihong from Pinghu, Zhejiang, they speak fluent foreign languages, deal with international brands for many years, have international taste and vision, and are well versed in international business rules.

But the mainstream view is that China's luggage manufacturing industry is still at the bottom of the smile curve.

This is changing.

At present, the research and development staff of the new talent group accounts for 10% of the total number of employees, which is unthinkable before.

Shi Jihong said that before the financial crisis, an export-oriented manufacturing R & D department could have five or six people.

In the rookie group, the 5%-10% workers on the production line get 5000 yuan -6000 yuan monthly salary, and the high can get 8000 yuan.

The R & D department has a higher salary.

In 2001, when I was working with Samsonite, Shi Jihong, who started from 30 sewing machines, constantly adjusted her management style in order to meet the stringent requirements of Samsonite for production.

For example, an international brand requires that all pactions must be carried out and the flow charts for each step should be clearly drawn.

In order to ensure the quality, samples should be tested according to the requirements of the other party.

Shi Jihong said that it is precisely in the continuous demand to meet the stringent requirements of international customers, OEM enterprises continue to grow up.

For example, in order to produce a plastic handlebar that is not easy to break for a German brand, Xin Su Cai began to study handheld molds, and so far, it has formed a plastic manufacturing plant.

The two roles of team leader and technical director are considered by Shi Jihong to be OEM.

In addition to its own brand, the rookie bought the 20 year franchise of the US brand HOBI in 2009, from research and design, production to retail.

Shi Jihong said that they are also learning how to make brands, and international brands are stepping stones to their senior department stores, hoping to protect their growing national brands with international brands.

Paul Melkebeke, vice president of Samsonite Asia, said in an interview that Chinese suppliers' response to the market was very fast, and delivery in a few weeks would not be possible in other countries.

Paul Melkebeke said: "all the technologies and links we need can be found in China."

Compared with Vietnam, India and Brazil, the three newly growing manufacturing countries, China's industrial chain is undoubtedly the most complete, Yang Yelin said, China's materials, R & D, design, technology, and even other parts of the logistics can not be compared.

In his view, Vietnam has a general technical level and Brazil is not in the best position, while India is China's most powerful opponent, but there are also great weaknesses: India's religion and culture.

In addition, China's strong internal and external market is also an important factor in China's leading position in the world.

"China's products can not only be exported, but also can be sold domestically. China's mainland market is also very strong, which means that when the external environment of manufacturing industry is bad, it can also rely on the mainland market.

The mainland market in other places can't compare with China, their

General trend

Shi Jihong believes that China's manufacturing industry is too dependent on the international market.

"If the international market sneezes, we will definitely catch a cold," he said.

When foreigners are busy, they will force us to work overtime. If foreigners do not have business, they will tell us sorry.

Although the situation in the first half is very good, many manufacturing enterprises in Pinghu feel that orders are not very good in the second half of the year, because the consumption in the international market is not very strong.

"Year after year, we worry about where we will be tomorrow."

Shi Jihong said.

The profit margin of export enterprises is too low, and the net profit margin of some enterprises is only 3% to 5%.

At this time, many local governments will take a passive way, "cage changing birds", directly drive manufacturing enterprises out, and introduce high-tech enterprises.

But the problem is: many high-tech enterprises are actually doing a very low margin for the global technology industry.

Shi Jihong praised himself for being a teacher because he admired him for his future.

In June 26th, as the president of Pinghu luggage Association, Shi Jihong proposed that the more than 500 generation of luggage enterprises in Pinghu should work together to create the "fifth generation market": not the wholesale and retail market of the traditional market, but the entire industrial chain, so that all pactions from upstream raw materials to downstream products can be completed without the market.

In addition to Pinghu, Zhejiang, China also has two large bags, Guangdong four souls and Hebei Baigou.

Shi Jihong firmly believes that if he insists on making his own brand, he may be able to produce a Prada tomorrow.

In the near future, China will also run its own high-end brands and luxury.

Yang Yelin also believes that there is no difference between China's quality and the international brand, but China still lacks international brands, and China still needs to work hard in this regard.

If it goes smoothly, in the second half of next year, the luggage and suitcase of the rookie group will go to Hongkong IPO.

Because the brand of its luggage has been promoted, the relationship between Zhejiang's rookie and the Samsonite of the United States has become a competitive relationship.

After 10 years of cooperation, Shi Jihong, chairman of Zhejiang's rookie group, became friends with Samsonite's Chinese executives and learned fluent English.

Shi Jihong said, even friends, but never to ask them (Samsonite) to seek operational experience, which is not in line with commercial rules, but when our team cooperates with them, we will observe, learn, and consciously look at the situation of their stores, and the situation of their products.

We all know that.