The Quality Of Clothing Is Frequent: Are They Caused By OEM?

In December 7th, people obtained a comparative test result of sports clothes jointly issued by the Consumer Council and the Consumer Protection Committee of 21 cities such as Beijing, Tianjin, Shanghai, Chongqing, Hongkong and Macao. Although the results showed that the overall quality of sportswear in the domestic market was better.

But surprisingly, it is.

The blacklist of famous brands has long been refreshing.

When I ask a professional, why?

Some people say that the OEM, which has expanded the brand influence of production mode, is constantly frustrated by its continuous appearance. It is also Xiao He, who has failed Xiao He.

Is this really the case?

OEM, let the brand go to light.

People who are familiar with brand operation will have the impression that "running a brand is really a job of burning money."

Yes, to create brand and maintain brand, you have to advertise.

Advertising requires burning money.

For example, with the current widespread concern, although it has avoided expensive television advertisements and chose relatively low priced portals and bus stops, the cost of advertising is also a day price.

Public information shows that in 2009, advertisers had 200 million yuan in advertising, while in 2011, they reached 1 billion yuan by leaps and bounds.

According to media analysis, every customer sells a product, which contains 10 yuan of advertising and marketing expenses. Compared with the tens of dollars of goods that can be seen everywhere on the website, the advertising fee is luxury.

Even so, customers do not dare to stop their advertising.

Brand is more than advertising.

Of course, in addition to advertising, clothing brand operation in the design, production, channels, terminals, logistics, which need to spend money, which can not be saved.

It's hard work to make a brand.

Reducing yourself is a matter of brand anxiety.

Nike has implemented the "light assets operation" mode since 1980s.

The so-called "light asset operation" mode is outsourcing the product manufacturing and retail distribution business, and concentrating on the business of design development and marketing.

This mode reduces the capital investment of companies, especially the large amount of fixed assets in the production field, so as to increase the rate of return on assets.

Nike's "light asset operation" mode will bring the "horizontal integration" and "supply chain management" to the extreme.

In 1990s, the "light asset operation" mode was adopted in many industries, and Nike's competitors also chose Nike's "survival" mode.

As for the "light asset operation" mode, the media has highly praised it. It is considered that it is the first hero of the sports apparel industry to become a global industry in 1990s.

No matter whether other brands have learned the knowledge of supply chain management, since then, almost all clothing brands have been looking for foundry factories like Nike to process their own brand products.

In fact, OEM also reduces the risk of brand operation in a certain sense.

Cotton prices soared in 2010, especially after entering September.

As of September 25th, China's cotton price index has risen from 18002 yuan / ton in early September to 20236 yuan / ton, or 12.41%, the highest in 10 years.

Compared with September 2009, a ton of standard cotton has surged from 8000 yuan to more than 20000 yuan in one year, and it has risen 1.5 times.

At that time, the survival state of the OEM enterprises and brand enterprises could be described as two days.

"The profit of the foundry enterprise is very low, and the cost of raw materials rises a little bit, which has a great impact on the profits of enterprises."

OEM said.

"For a well-known clothing brand, the retail price is at least 5 times that of all production costs; even for ordinary clothing brands, the retail price is more than 3-4 times the production cost.

For example, a three hundred or four hundred yuan jeans will cost more than ten yuan and will not have much impact on the enterprise.

Brand companies say so.

From this we can see that OEM enterprises share the risk of rising raw materials for brand enterprises.

In addition, brand enterprises give orders to OEM enterprises. If the test finds that they are not qualified, the order can be cancelled according to the contract.

In this sense, the quality risk of brand products is also shared by the foundry factories.

Unequal division of profits

The profits of brand enterprises and OEM enterprises are quite different.

According to the "financial weekly" report, the international big Armani's foundry cost is not high.

Take garment as an example. The material of intermediate or above is about 70 yuan / meter, and the middle range is about 30 yuan to 40 yuan / meter, and a suit is produced, which is about 3 meters, that is to say, the material cost of a suit is between 90 yuan and 210 yuan.

The profits of OEM enterprises and brand profits are not the same.

Although we can interpret these as the power of brand, we need time to precipitate it and get it.

But in detail, those profit margins are still hard for people to replace the industrial enterprises.

Industry experts believe that ten years after joining the WTO, the profits of OEM enterprises are becoming less and less. The profit of a shirt's OEM has been reduced from 10 yuan to 1 yuan, and the changing exchange rate and inflation have made it difficult to survive.

If we look at the brand enterprises that are developed by the foundry enterprises, we can also guess the difficult situation of the OEM enterprises.

The so-called "how much money" and "much responsibility", then, for the subcontract enterprises with only small profits, they should not bear the full responsibility for the quality problems of the products.

Quality can be controlled from source.

Why do foundry workers often have problems? Is it a problem of their own mode?

OEM is a brand operation mode, which in fact contains a principle that enables enterprises to do what they are good at.

Garment processing enterprises do their own good processing, brand enterprises do their own good design and publicity.

This is a win-win model.

We should re-examine the brands that have problems in OEM and explore the causes of their problems. "Because the order is urgent, we often lose the price monitoring link, which is an important reason for the problem."

Insiders say.

According to the contract, the product is unqualified, the order can be cancelled, and the brand can choose another foundry factory.

In the current situation of serious oversupply of Chinese garment enterprises, I believe that replacing a foundry factory is not a difficult task.

The above analysis shows that the production of the OEM factory is completely controllable.

The reason for the problem of brand products is not the mode of OEM, but the problem of its brand in the inspection and acceptance of OEM products.

We also see instances of avoiding OEM problems.

According to economic voice commentator and crisis management expert Kuang Jie, he used to work in a Japanese trading company. At that time, we sent people to be stationed in the factory for a long time and checked the production process of the foundries every day. If there were any problems, we could find them on the same day. We must ask him to rework in time. If the products fail, we will refuse to accept them, so we do not wait for the products to go to the market to check again, so that we can basically eliminate the appearance of unqualified products.

In recent sports and leisure clothing inspection, the problems are concentrated on color fastness and pH value.

These two indicators are not qualified, and the damage to the brand is very large.

In particular, as sportswear, poor color fastness to water, sweat or saliva, pigments are easy to fall off and fade, not only affect the beauty, and dye molecules and heavy metal ions in the pigment may be absorbed by the skin, endangering the health.

Unfortunately, the explanation of famous brand clothing is shifting the problem to the OEM enterprises. In order to reduce the cost and let the consumers benefit, the apparel product OEM has become a common phenomenon in the industry.

It is very unwise for a brand enterprise to kick the problem to the foundry enterprise at this time.

Theoretically, outsourcing the production process is not conducive to the quality control of brand enterprises.

As a matter of fact, outsourcing is also a psychological problem for consumers: I want to wear brand clothes, but the clothes are made by foundries, so what I wear is not the clothes of the Communist Party. If at this time, the brand enterprises are no longer good enough to let the unqualified clothes reach the consumers' hands, consumers can not help but ask: what is the relationship between the clothes and the brand on their clothes? Especially when the brand clothes are in trouble, the consumers' doubts are more prominent.

OEM, this mode has made great contributions to the development of the brand, and will also be the best choice for the future development of the brand.

As for product problems, it is the problem of brand operation.

Although the OEM mode can not be tied up, it should never assume full responsibility.