Simply Reducing Costs Is Not A Long-Term Policy. The Italy Brand Has Finally Begun To Reflect On It.

People buy luxury goods and their origin is one of the most important questions. "Is it made in China" or perhaps the most tangled consumer? In fact, the situation is quite different in recent years. WWD pointed out that because of the soaring labor costs in China's processing industry, many brands that built factories in China began to move out of China. The fastest response is fast fashion brands. They will move more of their production to Southeast Asia. Now even European handbags and accessories brands are moving to Italy.

For a long time, "Made in China" has been regarded as a product label of "low cost, low quality and high output" in fashion retailing industry. Since 1990s, European luxury brands have been low-key outsourcing factories, which accelerated the growth of Chinese manufacturing industry in the luxury industry.

However, in the past five years, China and the past can not be the same. With the rapid development of economy and the change of social structure, the labor force of China's processing industry is no longer cheap.

Last year, Tsinghua University and Fudan University jointly completed and issued a "

The survey of market skill gap research shows that "China's macroeconomic structure and industrial upgrading process is deepening, and China is pferring to the upstream of the value chain". These terms mean that China's survival industry has been shrinking rapidly, and fewer and fewer people are willing to enter the industry.

Euromonitor, the market research firm, gave specific figures: the average hourly wage in 2016 reached $3.6, up 64% from 2011, which is five times the hourly wage in India, and is comparable to those in Portugal and South Africa.

This situation has made Italy brand reconsider the choice of its site.

Italy designer Enrico Lucich told WWD that his brand production moved back to Tuscany in Italy as early as 2015. "In Tuscany, you can find a complete supply chain, from raw materials to printing and dyeing to manufacturing, and more importantly, Tuscany's labor force is at the same level as China, but it can make the product a real" Italy manufacturing ". Why not?

And Lucich's consideration is actually the same

In recent years, the problem of reflection is that pure Italy gene should be the most proud thing of Italy brand, and should not be gradually diluted because of profit making.

Italy media fashion magazine has reported the discussion on labor cost at the meeting of Micam (Italy Milan International Footwear Exhibition): "we have never been afraid of competition brought about by rising labor costs, but are afraid that products with low raw materials will be sold in society and take advantage of low prices to seize the market."

Gonews took the Italy leather shoes brand Fratelli Soldini as an example. The brand established in 1945 is still a family enterprise that insists on Italy's hand-made production. Tuscany has never changed its origin, but this has not affected the development of the brand. Instead, Soldini has already won a 190 thousand euro project recently.

Meanwhile, Italy La repubblica also pointed out that the relocation of production sites was not only for cost considerations, but also for protection of Italy's local production system. In 2004, the leather manufacturing industry in Italy had lost more than 8000 people, and 860 companies closed down.

Even if these are not discussed, the EU's increasingly stringent certification provisions for "Made in Italy" are enough to force them to move back.

"We must defend," Soldini told the media.

To make products truly produced in Italy, those mercenary businessmen are destroying the industry and are making Italy no longer Italy. "

Italy's positive attitude and pursuit is good, but so far it is only applicable to small and medium-sized enterprises. For large brands, they do not seem to be affected too much.

Carla Giusti is a "made in China" old customer: "obviously, the big brands in Italy will remain in China. Moving back to Italy is only a trend of small brands."

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