In addition to Dongguan, in China's Shenzhen, Wenzhou, Hangzhou and other regions, there are countless factories are processing for international luxury brands. In the view of the industry, it is no secret that luxury brands are processing agents in China. Many luxury brands, including clothing and leather bags, have set up production lines in China since the end of the last century, and signs of commissioning Chinese manufacturers have become more and more obvious since 2004. In the wake of the 2008 financial crisis, a growing number of luxury goods and high-end foreign brands are shifting their production focus to China in order to cut costs.

Tianjin Jinda Garment Co., LTD., which is jointly invested by China, Italy and Hong Kong, China, mainly includes Pierre Cardin. According to the company, every quarter, the company brings in a high level of management and advanced technology from Italy's largest suit manufacturing and sales group. The relevant person in charge of the company said in a telephone interview with reporters, "the process of Pierre Cardin men's formal wear is done here."

In addition, most RalphLauren products are made in China. Leading Hong Kong-based clothing manufacturers Liantai Group and Esquel Group have undertaken most of the production of RalphLau-ren in the past few years. It is reported that RalphLauren's POLO orders to Liantai can reach hundreds of millions of yuan a year, and Liantai has branches in Dongguan, Qingyuan, Jiangsu and other places. In the past few years, most POLO orders were produced by Liantai's own factories, and recently Liantai began to outsource to other factories in order to control costs.

OEM industry chain

There are two kinds of agent processing in China: one is the production of finished products; One is to participate in the process, perhaps the processing of embroidery in China, the cotton front and back may be processed in Malaysia, but the production of finished products.

A staff member of the Dongguan factory of Liantai Group revealed that luxury brands have general agents in China, and after receiving orders from brands, the general agent will contract different styles of clothing according to the equipment conditions of the processing plants that can carry out foreign trade production. Each time, different factories will be selected according to different styles and other requirements.

The same first-line brand may share a clothing processing plant with other first-line or second-line or even mass brands. At the same time, according to the different styles of each year, the processing plant that provides production is not fixed. The factory will receive a sample before production, and some foundries will outsource further if their business is too good, which is the so-called "second order". "Some first-line brands in order to be afraid of being known that it has a processing plant, and even find some remote processing plants to provide foundry services, and even find some family-based processing plants." "Factories in Guangdong have better production equipment, while Jiangsu and Zhejiang have more raw materials," she said.

In theory, the processed clothes would return to the company's headquarters in Hong Kong, where they would be assembled and shipped to fashion destinations such as Italy, France or Spain before being sold to various countries.

However, due to the high cost of transportation and tariffs, in the view of the industry, clothing or other products produced in various regions may not be sent to the headquarters. Some were made in China, labeled as Italian and never even made it out of customs, the official said. These finished products after a simple process, usually wholesale directly to agents, or directly into the store sales. This is despite the fact that the store's sales staff repeatedly insist that their products are handmade by European artisans and then exported to China.

China Clothing (8.730,0.06,0.69%) brand strategy development senior expert, China (Dalian) international brand introduction center Professor Liu Wenwen told reporters that high-end luxury brands should retain their origin even in order to protect their historical and cultural values. What conditions must be met to be labeled "Made in Italy" is not an industry standard, and there are no internationally uniform hard and fast rules, but it should be a pursuit. Each country has different requirements for each country, but at least to ensure that the core process of the product is Made in Italy, the main raw materials are also from Europe, you can mark "made in Italy".

A foreign provision stipulates that the majority of the product (the part that determines its quality) must be made in the country, and the cost (labor, materials, etc.) generated by the production part in the country must account for at least 50% of the total cost, meeting the above two points in order to be labeled as made in the country. Under this provision, for products manufactured inChina, the label "MadeinChina, DesignedinI-taly" seems more reasonable.