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    YOUNGOR'S Success In Textile And Garment Industry?

    2008/7/4 12:26:00 46

    YOUNGOR'S Success In Textile And Garment Industry?

    What can be accomplished in martial arts?

    It is a matter of first class that strength is fought and killed.

    As the first brand of Chinese Menswear, YOUNGOR, as of 2007, the average relative market share of YOUNGOR shirts was 12.32%, ranking first in the same industry for 12 consecutive years, and 13.31% in the total market share of suits, ranking 7 in the same industry for 7 consecutive years.

    And what is YOUNGOR playing on the status quo?


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    "Although there are many unfavorable factors such as the appreciation of RMB and the rising cost of labor and raw materials, YOUNGOR's profitability will not be fundamentally affected."

    A few days ago, the Sohu 2008 "made in China" tour group went to YOUNGOR. Li Rucheng, chairman of YOUNGOR group, said to the China Economic Times reporter.

    At this time, the ecological map of the national textile and garment industry is 1 / 3 low profit, 2 / 3 loss.


    Vertical industry chain


    Entering YOUNGOR, she will be astonished by her large scale: upstream Textile City, middle reaches clothing city and downstream flagship store, like industrial aircraft carriers, build up a complete garment industry chain in the middle and lower reaches.

    At present, YOUNGOR has established "raw material fabric - clothing retailing", and its product quality and R & D capability has reached the international advanced level.


    Li Rucheng believes that bringing production links into the industrial chain is a trend of brand clothing enterprises.

    YOUNGOR and Japan joint venture water washing plant, involved in printing and dyeing and washing fields; spent $100 million to build Textile City, and jointly set up Sino Japanese textile printing and dyeing Co., Ltd. with NYC and Itou Tada to enter into dyeing, weaving, dyeing and printing business; invest in 1 billion 500 million construction of eco industrial excipient, provide auxiliary accessories for YOUNGOR; jointly set up woolen dyeing and finishing Co., Ltd. with Itou Tada and Hongkong Youth International Holdings Co., Ltd., to provide supporting woolen raw materials; invest in Textile City, purchase 112 thousand spindles of Xinjiang new cotton group's cotton yarn production capacity and so on.

    In addition, YOUNGOR is located in the South Branch of Chongqing tea garden clothing branch and southwest 10 provinces and cities warehousing and distribution center has also been put into use.


    Earlier this year, with about half a year ago, the Group acquired the core men's clothing business of the US KELLWOOD company, Hongkong Xin Ma group. YOUNGOR has gained strong design and development capabilities, international management capabilities and distribution network throughout the United States, forming one of the largest textile and garment industry chains in the world.


    Through the above series of projects investment, Li Rucheng has basically completed the vertical integration of upstream business.

    No matter how the industry converse to the YOUNGOR industry, how to reverse the integration of words, Li Rucheng throws the simple data as the answer: YOUNGOR sold 10 million 800 thousand items of clothing in China in 2007, sales increased by 19.56%, profits increased by 70%, and the capital return rate reached 18%.


    Channel marketing


    "I believe manufacturing is eternal. The key is what products to make and what products to make.

    Textile and garment industry is the most important brand and channel, because only when the channel is built, is the real core competitiveness of enterprises.

    Li said that the sales channels should be in the hands of YOUNGOR, which is an important part of the downstream industry chain of the garment industry.


    Li Rucheng firmly believed that only by mastering the terminal can we grasp our destiny.

    Now, basically, 80% of YOUNGOR is done through its own channels, and the whole channel is built by YOUNGOR itself.

    Based on this reality, Li Rucheng put forward that YOUNGOR's strategy in the next five years is to put 100 billion into the channel construction in five years, pform from production and management enterprises to commercial sales enterprises, and directly sell to the market by choosing different marketing combinations.


    "Commercial real estate" paving the way in the 80s of last century, YOUNGOR established a good cooperative relationship with more than 4000 state-owned commercial department stores in the planned system, but by the middle of 90s, these early sales terminals began to collapse.

    In desperation, YOUNGOR decided to open a large number of self owned stores to fill the vacuum of the channel.

    Today, YOUNGOR has invested 1 billion 700 million yuan in funds, and bought more than 100 properties located in the downtown area of the city as sales terminals.


    YOUNGOR actively introduced retail management talents, taking the retail link as the breakthrough point, thereby stimulating the overall sales promotion.

    Statistics related to "channel construction" show that in 2007, 50% of YOUNGOR's clothing revenue came from its own stores, and self operated stores have become an important marketing channel for YOUNGOR.

    At present, YOUNGOR has more than 350 self operated stores, about 900 shopping malls, and more than 200 franchised stores.


    In recent years, YOUNGOR has begun to substantially reduce the sales channels of clothing, reduce more than 3000 retail terminals to more than 1500 now, and achieve the concentration of channel stores to the core business circle in China.

    After clarified the brand positioning, YOUNGOR has "done something" and "does nothing" in the channel, focusing on the terminal system that runs in line with the brand.


    What is the two wings?


    Over the past few years, YOUNGOR, a garment manufacturer, has continued to buy 16 shares of listed companies.

    From 2006 to 2007, YOUNGOR's wealth at a very low cost was skyrocketing at an alarming rate.

    YOUNGOR's net profit in the same period in 2006 was 755 million yuan, and its net profit in 2007 was 2 billion 340 million yuan, an increase of 210%.

    But 68% of the 2 billion 340 million yuan comes from equity investment income, and the main business income is only 1/3.


    From the annual reports of YOUNGOR over the years, the contribution of clothing to YOUNGOR's profit is getting smaller and smaller.

    In YOUNGOR's annual report 2001, sales revenue was 1 billion 750 million, of which clothing sales accounted for 1 billion 670 million, accounting for more than 95% of revenue.

    The sales revenue in 2002 was 2 billion 400 million, of which the total income of shirts and Western-style clothes was 1 billion 300 million.

    Sales revenue in 2006 was 6 billion, an increase of 150%, while the total income of shirts and Western-style clothes was 1 billion 700 million, increasing by only 30%.


    Real estate revenue increased from 500 million in 2002 to 1 billion 900 million in 2006, an increase of 280%.

    The bull market in 2007 made the stock market script src=>?

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