Li Rucheng: Reasonable And Immediate Adjustment Of The Industrial Chain

First value chain

In the domestic garment enterprises, Li Rucheng's preference for the whole industry chain is well known.

As early as before the financial crisis, YOUNGOR built a complete industrial chain from cotton planting to spinning, weaving, printing and dyeing, fabrics, garment manufacturing, design and retail through joint ventures or sole proprietorship.

There is such a clause.

First of all, the quality of clothes is controllable.

The downstream enterprises require the upstream enterprises with specific technical indicators: the processing factories require the fabric factories and the fabric factories to require the upstream mills to be linked up.

The attraction of foreign orders is also strong enough. The "one-stop" service ensures the quality and delivery date of the products.

At present, YOUNGOR is a foundry for many international first-line brands, and 85% of its self produced fabrics supply foreign trade.

But for the whole industry chain of YOUNGOR, the industry's views vary from generation to generation.

Those who do not believe that Li Rucheng's practice is out of date, the way out for clothing manufacturers is brand, and entangled in the complete industrial chain, it is better to put more energy into building brands, and some industrial chain links can be outsourced.

These voices,

As a result, before we interviewed Li Rucheng, we urgently wanted to know whether YOUNGOR's persistence in the whole industrial chain after the financial crisis is still the same.

"Great adjustments were made last year."

Li Rucheng said frankly.

But he immediately let us understand that this adjustment is not a self denial.

The adjustment is divided into two aspects, one is the integration of the industrial chain itself, further enhancing the synergy between the upstream and downstream industries.

What is more important is to integrate the industrial chain with the value chain and set up five brand studios, not only responsible for brand promotion, but also responsible for design, development, manufacturing, logistics and other links.

Obviously, this adjustment is of far-reaching significance.

It means that the brand will become the strategic center of YOUNGOR in the future.

The era of all brands is coming.

In the eyes of Li Rucheng, who is familiar with the development of garment industry, this is a "just in time" adjustment. "At present, China's clothing industry has gone through the industrialization stage and entered the brand era from the quality era."

In the era of brand, in addition to the precise integration of industrial chain, it is more important to create brand.

The effect seems to be immediate.

Last year, the cold spell was at the height of the financial crisis.

One and five

In March 28th, Beijing, China International Clothing and accessories fair, Li Rucheng chose to launch YOUNGOR's new brand strategy on this day.

Du Yuzhou, President of the China Textile Industry Association, commented: "the Chinese garment industry represented by YOUNGOR is moving from" manufacturer "to" brand creator ".

It is no exaggeration to say so.

As far as brand operation level is concerned, the whole Chinese garment industry is still in its primary stage, including YOUNGOR.

As the leader of the domestic garment industry, YOUNGOR is also facing an embarrassment: the brand is single.

This strategy has also restricted its own efforts while forming a large number of loyal fans.

Zhang Hongru, YOUNGOR's design director, is the analysis: the market share of YOUNGOR's single product has reached 13% before subdividing the brand.

But a brand with a limited population is always needed.

Only in this way can we express the product demand more clearly and accept it more easily.

Li Rucheng obviously saw this.

"Nowadays, the secondary brand and second line of the major brands have become new growth points, and also bring new opportunities to the main brands."

He appealed to his management team, "YOUNGOR needs the courage to brand rebuilding."

How to rebuild? Since last year, the existing YOUNGOR brand has been subdivided into Mayor Youngor, CEO Youngor and Green Youngor.

Their positioning is that "golden standard" is the chief executive of the 40 to 55 age group; the "blue label" is for business people ranging from 35 to 40 years old; the green label is located in the young and fashionable consumer group.

Together with the "hemp family" and the agent's international brand Hartmarx.

YOUNGOR's brand library now has five subdivision brands.

From one to five, Li Rucheng is confident in the prospect of brand pformation.

His reason is very good. In the past ten years, YOUNGOR has an overwhelming advantage in the industry, whether it is garment manufacturing or high-end fabric development and design talents.

But weaknesses are also clear at the same time.

Brand operation is in pursuit of small batch, multi style and multiple batches. The benign interaction between YOUNGOR's huge production and processing system is still unknown.

Li Rucheng has repeatedly stressed that after brand diversification, rich clothing styles will inevitably increase the difficulty of goods distribution and production difficulties of production enterprises, and have fast distribution capabilities and information feedback capabilities as soon as possible.

Shock wave of hemp

Unlike many garment enterprises, fabrics have always been the strength of YOUNGOR.

In the past 3 years, YOUNGOR has declared 30 patents, among which there are many new fabric patents, such as "Shui Mo cotton" and "Xin Hao cotton". Many customers, including ordinary consumers, often choose YOUNGOR with a fabric.

However, there was never a piece of fabric that allowed Li Rucheng to praise so much. "It's not only a big breakthrough for YOUNGOR, but also for the whole industry."

This fabric is called hemp.

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In April last year, YOUNGOR built the world's first hemp fiber processing line, and the FAO issued a special contribution award to YOUNGOR in recognition of its contribution to the development of natural fibers.

In October of the same year, at the Ningbo Clothing Fair, YOUNGOR exhibited a full range of hemp garments and home textile products, and for the first time showed the new fabric to the world.

"Hemp" is actually hemp, but after detoxification treatment, it has a unique "antibacterial, anti ultraviolet, comfortable, breathable properties", known as the "second layer skin" of human beings.

In Xishuangbanna, Yunnan, YOUNGOR and the General Logistics Department Quartermaster Equipment Research Institute jointly developed "hemp" for six or seven years, and YOUNGOR invested more than 300 million yuan before and after.

Now, YOUNGOR's Polytron Technologies Inc is responsible for the research and development of the hemp project. The annual output of Yunnan's planting base is 5000 tons of hemp fiber.

According to Li Rucheng's vision plan, the planting area will reach 1 million acres in the future.

"Hemp" is worthy of Li Rucheng's long-term plan.

In the European and American markets, the price of hemp is two times the price of cotton, and the demand is increasing at an annual rate of 30%.

In the global clothing enterprises, the "hemp" fabric is exclusive to YOUNGOR.

Therefore, the logical conclusion is that relying on this fabric to develop clothing, congenital will have higher added value and exclusive competitive advantage.

Li Rucheng's "hemp" strategy has already had the carrier of the "Han Ma Shi Jia" brand studio.

In the exhibition hall of YOUNGOR headquarters, the high-end brand of "hemp family" has been dazzling, including bedding, household products, pajamas, underwear, shirts, suits and so on. The price of a shirt is sold to more than 2000 yuan.

At the end of last year, "hemp family" opened its first store in Ningbo. It will open to about 10 nationwide this year.

"The appearance and color are easy to copy, but the fabric is our core competitiveness, it is difficult for others to copy it."

Wang Qingmiao, director of YOUNGOR technology research and development center, said.

Both brand strategy and technological advantage.

Perhaps this is the reason for Li Rucheng and his YOUNGOR to look forward to.