The Rise Of Kang Yihua And Hua Rui

10 years ago, we traveled to Southeast Asia, competing for Europe and America 7 years ago.

In July 2008, when the global economy was clouded, the apparel company of Jiangsu Huarui international group was listed on the main board of the American Stock Exchange and became the first Chinese clothing enterprise to list in the US.

"This is a successful listing. Through listing, Huarui has found a better partner in the world."

Two years later, in June 3, 2010, the chairman of the group of integrity Avenue, Jiangning District, Nanjing, Jiangsu, Kang Hua, chairman of Hua Rui, told the author calmly.

Kang Yihua's life is quite dramatic.

In 1980, he was admitted to Nanjing aeronautical College (now Nanjing University of Aeronautics & Astronautics) in mechanical manufacture.

After graduating from University, he remained in school for teaching.

But one day, he submitted his resignation to the school, which made the school leaders and mentors stunned.

Faced with the ideal of life, Kang Yihua resolutely decided to run away after a year with his alma mater.

Breakthrough limit

Who knows, more than 20 years later, Kang Yihua vertical and horizontal business circles, in charge of 12 import and export companies, 3 overseas companies, 6 industrial bases, a total of 19 directly affiliated factories, with an annual export volume of 140 million US dollars, and the global employees exceeded

Ten thousand people's large investment holding pnational private enterprises, including clothing shares, needle textile technology, real estate, precision electrical and mechanical, automobile sales and service of the five core business systems.

When Kang Yihua came out of the country, China's opening to the outside world was in full swing.

He has been to Hainan and has been to Shenzhen, though it has only been more than a year, which has made him indissoluble with foreign trade and clothing.

In Shenzhen, he sold the Jiangsu fabric to the bonded warehouse, and the "Arabia gown" material of a car made him earn money.

But at that time, the money earned was not entirely in their pockets.

At that time, Kang Yihua was only a foreign trade worker of a company.

"Although experience has been accumulating, it is always not a matter of selling fabrics, and we must have our own company."

After Deng Xiaoping's speech in 1992, the idea became more and more firm in Kang Yihua's mind.

With wings in mind, ideals can be realized.

In 1993, Kang Yihua hired a factory to recruit troops and set up his own trading company.

He organized fabrics and clothing in China, and then exported by exporters to earn the difference.

Like many private enterprises' initial practices, Jiangsu Huarui was not a smooth road at the beginning.

In the spring of 1994, a large Jewish order resulted in a loss of hundreds of thousands of dollars to Hua Rui.

When a large number of finished garments and fabrics were produced, the first batch of inspection reports on the color fastness of garments were sent out.

The backlog of products is like a mountain, the goods shipped out are swallowed up, and the money is not returned.

At first, Hua Rui once struggled on the brink of life and death.

This storm baptism, let Kang Yihua bitter thoughts, but also strengthened his trade and manufacturing "Legs Walking" determination.

In June 1994, he set up his first factory in the rented workshop.

Until the end of next year, the deficit was filled.

In the mid 90s of last century, Hua Rui cautiously and resolutely started the road of change.

At that time, China's private enterprises face a huge obstacle to clothing export quota restrictions.

Many private companies have to buy quotas at high prices to win orders from European and American customers.

One day in 1999, there was a black cannon in the Kampuchea International Airport. The civil war in this country was not over yet.

Kang Yihua carried a box of foreign exchange and stepped cautiously down the gangway.

The purpose of his trip is to "ship out of the sea" to circumvent quota restrictions and to open up trade channels between Europe and the United States.

Soon, Kang Yihua bought a local business here.

Hua Rui's career map has opened up a new page.

Later, Kang Yihua appeared in Vietnam, Germany, Britain and the United States.

It was not until several years later that the overseas factory building mode was adopted by domestic garment enterprises.

Nowadays, Kang Yihua's first step not only proves the fact that China's foreign trade quota restriction lags behind the reality of enterprise practice, but also highlights the adventurous spirit of a Jiangsu entrepreneur.

By 2002, the iron gate with quota restrictions was finally opened to private enterprises.

At that time, the Kampuchea garment factory of Huarui had more than 500 professional clothing production equipment, and 700 local employees in Kampuchea. In that time, the annual production capacity of 1 million 500 thousand units was achieved.

Not taking the unusual way, to a great extent, it became a magic weapon for Hua Rui.

"Huarui benefited from one early departure, and the two was more successful.

It was also forced by survival that coincided with the "going out strategy" advocated by the later countries.

Kang Yihua felt deeply about this.

Mode evolution

In 2001, Hua Rui chose a completely different road from other garment enterprises to directly enter Anhui's hinterland.

This is the migration of Huarui employees called "advancing into the Dabie Mountains", which is actually the 1+N mode of Hua Rui.

Over the past few years, the domestic industry of Huarui has achieved a gradient pfer, and has built several garment production factories in the surrounding areas of Nanjing.

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According to Kang Yihua's design, Hua Rui chose some small towns and cities and towns in Anhui, Chuzhou and Fengyang to set up factories, and several processing points formed cluster effect, which turned into the production base of Huarui.

"1" is the main factory, and "N" is the garment sewing processing team.

This miniature factory is different from the general concept processing plant. Huarui exports management, equipment and talents, and its business is contracted by local farmers, because sewing workers are the most difficult for Huarui.

This is a very interesting arrangement, reflecting the different orientation of Hua Rui in the pformation and upgrading of industry.

From then on, Huarui stepped into other fields. This flexible and pragmatic layout strategy foreshadowed policy support for Hua Rui.

Of course, Kang Yihua is determined to go back to the rear. It comes from the adjustment of the future pattern of Huari, and the second is the consideration of its own cost.

However, at the beginning of the launch of the model, some people in the industry doubted the actual operation and possible problems.

In fact, at that time, there was no lack of such voices in Hua Rui.

However, under the basic principles of market self responsibility, with the launch of the pilot, the valuation system, incentive mechanism, quality risk and so on have been fully guaranteed, the 1+N mode has been vigorously implemented by the group.

The last answer gave Kang Yihua confidence that "production organization should not be simply done by pipelines.

The production of the front and rear roads are in the Nanjing general plant. There is no quality problem. "

The 1+N mode quickly realized the "three benefits" of the government, enterprises and farmers.

First, farmers in the "working villages" can take care of their families while making money; secondly, Huarui has solved the problem of employment very well; thirdly, the local government has also solved the problem of no taxation.

On the other hand, the Nanjing headquarters of Hua Rui has become a center and window for design, R & D, management and image display.

Value service

Although making clothes is a layman, Kang Yihua feels that he has always been very interesting.

In recent years, the traditional clothing export enterprises in China are mainly OEM processing.

After the appreciation of the renminbi, the increase in labor costs, the rise in prices of raw materials, the adjustment of the export tax rebate rate and the economic downturn in Europe and the United States, the profit margins of enterprises have been reduced to only a gap.

Huarui clothing exports accounted for 50% of its own design, and 1/3 of export garments were independent brands.

During the past few years of acquisition and integration, Hua Rui has started the road of domestic retail sales and foreign wholesale (export).

Today, Huarui's stores in China have expanded to 44 cities.

As the strategy of going global continues to deepen, it has its own design companies and logistics companies in Asia, Europe and North America, forming the basic framework of domestic overseas marketing companies and production bases.

At the other end of the market, Hua Rui has been trying to find the path of differential development.

According to Sun Jiajun, chairman of Jiangsu Huarui Garments Co., Ltd., the group, the production cycle of Huarui new clothes has been reduced to 1-2 weeks, and the number of new varieties has also increased greatly.

This is equivalent to providing a larger choice for foreign customers, while new products can also get higher profits, reducing the market risk of customers.

When Hua Rui set the group headquarters as a design and research and management center, excellent European and American fashion designers were also attracted to Nanjing.

This is because Huarui has adopted a "one-stop service" mode, through the employment of creative clothing park to track the trend of foreign fashion.

After analyzing the cost, take the initiative to explore possible styles with foreign designers.

"Most of the world's top fashion designers live in Europe and the United States. Before they go there, proofing and sending samples often take 2-3 months, which costs both time and money.

Earlier, Hua Rui had suffered such a bottleneck.

Today, there is a sample library on the 4 floor of the Huarui group building.

The design elements of fabrics, accessories, new printing and embroidery are gathered around the world every year.

Designers in Europe and the United States have been able to complete the design process only two weeks after leaving the plane to leave Nanjing.

Once the bottleneck is opened, all subsequent links will soon develop.

Kang Yihua said, "to invite European and American designers to the company, not just for design and development, but to link up every link of the apparel industry chain, provide close service for the customers, and the ultimate goal is to serve the terminal market."

Under the advocacy of the high level, Huarui clothing is committed to the pformation of the mode of service enterprises through the use of scientific and technological means, and the effective integration and utilization of various international resources.

At the end of 2008, in an interview with CCTV financial channel, Kang Yihua introduced Huarui's experience of using modern technology to pform traditional industries.

"Although many enterprises are learning, many of our links are all data based management, which can not be digested in a short time."

In this regard, Huarui does not seem to worry about competitors' follow up.

Us listing

Besides the main business, Hua Rui also has real estate, automobile sales and aircraft, auto parts manufacturing industry.

In this regard, some people in the industry have analyzed, Huarui's pessimistic anticipation of the future development of textile and clothing, or the important reason for its launch.

But Kang Yihua did not think so.

"Only sunset enterprises, there is no sunset industry."

He believes that China has a complete garment manufacturing industry system, and the huge manufacturing and processing capacity is not acceptable in other parts of the world.

"Vietnam has a population of 80 million, too little, and Africans have bigger hands, and embroidery and nail buttons can not be done. The clothing industry is always a sunrise industry.

After the financial crisis, the double pressure of foreign trade and clothing industry has made many foreign trade enterprises enter a stagnation stage, but at the same time many people have ignored that this is a good time for industrial pformation and upgrading.

Kang Yihua emphasized that for other investments, such as real estate and car sales, it is only "using some spare cash to make an attempt".

"He studied hard and acted decisively. He was able to see his leadership in the Department as chairman of the student union."

Recalling the past, Kang Pei Hua, a classmate at the University of Hong Kong, is now appraise by Lou Pei Huang, vice president of the school of electrical and mechanical engineering of Nanjing University of Aeronautics & Astronautics.

In contrast, the development track of Huarui has provided a striking footnote for China's export clothing industry, but Kang Yihua's personal brand is obvious.

Kang Yihua has been widely regarded as a strong leader both in and outside the clothing industry and foreign trade industry for many years, but he still maintains a true temperament.

20 years ago, Kang Yihua submitted his resignation resolutely to Southern Airlines.

20 years later, he understated his own "debt" and made a financial contribution to the scholarship scheme.

After the success of the business,

Under the strong leadership of Kang Yihua, in 2008, Hua Rui clothing shares chose the US market.

This means that Huarui wants to gain more initiative and has made the Chinese private garment manufacturers speed up the pace of self adjustment.

Under the searchlight of the "capital market", we have to look at Huarui. It has been analyzed that Hua Rui is the key period for the group to complete the third five year plan in the turbulent period of the industry reshuffle. The real intention of choosing the US listing is to abandon the tedious rules and system constraints, so as to attract the attention of international capital.

At the same time, leveraging the US listing to enhance brand value.

"The choice of the US listing is mainly due to the considerations of financing, standardized management and increasing popularity." the answer given by Kang Yihua seems to partly confirm the above view. "We believe that potential customers and potential partners will be more. After all, the capital market of the United States is large.

Comparatively speaking, when listed in China, the queuing time may be longer.

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