YOUNGOR Bosideng Jiangnan Buyi Strengthens Channels And Terminals

The industry has different opinions on YOUNGOR's vertical creation of industrial chain. However, its acquisition of us new Malaysia is unanimous.

It should be said that

In the global supply chain system, very few direct Chinese suppliers are involved, most of them are local suppliers who come through European and American countries or are pferred through suppliers in China's Hongkong and Taiwan regions.

"Although the processing system of Chinese textile and clothing has been quite complete, the lack of service system is its weakness.

Chinese suppliers may be very good at quality control and production, but they can not provide a one-stop solution for brands.

Sun Ruizhe, vice president of China Textile Industry Association, said.

This situation was finally broken in January 22, 2008.

On the same day, Li Rucheng, chairman and President of Ningbo YOUNGOR group, announced that YOUNGOR successfully completed the acquisition of the new Malaysia clothing group, which is the core business department of Kellwood, KWD, the famous clothing company of the United States for 120 million US dollars.

The merger has become one of the largest overseas mergers and acquisitions in China's apparel industry so far.

Before the completion of the merger, YOUNGOR's market was mainly concentrated in Japan without quota. 60% of the products produced annually were sold to Japan, and 20% were sold to Europe. Because of the quota restrictions, the products sold to the United States were very few.

But as the Japanese economy begins to shrink, the price of clothing in Japan is also getting lower and lower, and the profit space has been gradually reduced.

According to Li Rucheng's "half and half principle", YOUNGOR began to narrow the Japanese market and turn to the European and American markets.

This is not an easy goal to achieve.

The United States is a monopolistic market, and the market size is shrinking. "It is more difficult to squeeze in."

YOUNGOR once sent a team to the United States for 3 years and spent about 4000000 dollars, but the development process was not satisfactory.

So, YOUNGOR began to consider merging the US business to enter the US market, and finally chose the new horse, which opened the door to the US market.

According to Li Rucheng, the acquisition promoted the rapid growth of the company's shirts and dyed fabrics business.

"What YOUNGOR most values is not KWD's 14 production bases in Sri Lanka, Philippines and Mainland China and Hongkong, but its design capabilities and marketing channels."

Li Rucheng said that these factories carry out ODM processing business for more than 20 international brands, and also have 5 licensing licenses, such as NAUTICA, PERRY ELLIS and so on. The international brand management and design team with 10 years experience can achieve complete independent design, and the sales network and powerful logistics system reach 10 US Department stores.

For YOUNGOR, who is eager to open the door to the international high-end market, this is indeed a cost-effective business.

At the same time, YOUNGOR can make full use of Smart's existing global channels and customer resources, provide opportunities for companies to reach close contact with the international brand, expand and deepen the company's direct and international cooperation in depth and breadth, and gradually enhance the competitiveness and penetration of the company's clothing products in the international market.

Compared with the development of foreign channels, YOUNGOR also attaches importance to the construction and maintenance of domestic channels.

Li Cheng Cheng said, "the value of enterprises with channels is rising, so YOUNGOR has paid more attention to this aspect since 10 years ago. At present, we have invested hundreds of millions of dollars to build our channels. Of course, there have been some adjustments in the middle. We have made some adjustments in the location of some shopping malls we bought. From the beginning of this year, we proposed that we should make the channels bigger and stronger. I am not able to disclose the data for the time being, because we are listed companies, but we have to pay 100 billion to invest in the construction of channels in 5 years," he said. "We are a listed company," she said.

Because only when the channel is built, can the enterprise have the core competitiveness.

Li Ru Cheng said, "once we have our own channels, even if we make a mistake today, we can do it again next year. Our own destiny can be decided by ourselves.

Now YOUNGOR 80% is doing it through its own channels.

Shopping malls are also managed by ourselves, and the whole channel is built by ourselves.

"Therefore, YOUNGOR is different from other enterprises. We think that only by building this channel can we have the ability to resist risks and earthquake resistance, and we are not afraid of earthquakes."

Li Rucheng believes that as long as there are good channels, there is no need to worry about any changes in the domestic market. There will be no big fluctuations in the market and strong seismic capability.

"In particular, we have a quick response, because after we make our own channels, we are more sensitive to market demand.

In the next 5 or 10 years, we will combine market construction, channel construction and brand building as an important project.

Li Cheng Cheng said, "we originally had 4000 stores, and then integrated into 1600, at the current rate, one hundred or two hundred more open each year."

The same thing with YOUNGOR's acquisition of new horses is that Bosideng and Jiangnan Buyi directly opened the terminal store to London, New York, England.

In September 23, 2008, two Bosteng men's wear shops opened in England.

The two franchised stores are located in the busy streets of Suffolk County and Lincolnshire, England, which attract many British customers.

But for the future of Bosteng, there are more plans for Gao de Kang.

Starting in 2009, Bosideng completed a comprehensive acquisition of Bosteng men's clothing and made full efforts to layout the men's wear market.

Bosideng successfully acquired the exclusive sales agent of Rocawear, a famous American casual wear brand in Greater China.

The 15 year old Jiangnan cloth dress, the designer brand of Hangzhou, has opened stores to Japan and Europe, and now it has come to the United States.

Recently, Jiangnan Buyi opened a Pop-up temporary store in SOHO District of New York.

Jiangnan cloth clothing brand Jiangnan cloth brand new New York pop-upstore shop, located at 75 GREENST NEWYORK, from the current Pop-up shop 3 minutes journey, also in the SOHO area, the scale is roughly 200 square meters, SALEMAN is about 4-5 people, Jiangnan cloth brand will be in the opening period of the media guidance conference, in the first store opened smoothly, New York professional media has been to Jiangnan cloth shop with strong interest and hope.

The new shop is still designed by Li Ming, a Chinese designer with the background of architectural design. It should reflect the consistent design concept and new interest changes on the basis of pop-upstore and the special structure and environment of the new shop.

Guerrilla stores are temporary and often avoid conventional commercial blocks. The decoration is simple and simple, the cost of opening is low, and brand businesses can take fewer risks. Therefore, many brands promote brand image by promoting guerrilla stores to enhance brand awareness.

The new flagship store in Jiangnan Buyi brand will synchronously sell the theme series products consistent with the Chinese territory. It will serve as the main body of the Jiangnan cloth brand to highlight the concept of product design and enhance the brand interest. Although it has already displayed its brand and product value in such important international areas as New York, Tokyo and France, it also hopes to continuously gain the recognition and friendly help of these regional consumers.

At present, the women's clothing brand of Jiangnan Buyi brand, Jiangnan Buyi and men's clothing brand CROQUIS, has opened 19 stores and SHOWROOM overseas, distributing in Asia Japan, Singapore, Thailand, Korea, Europe, France, Spain, Russia, Georgia, Canada and the United States of North America.

As one of the most important Asian Fashion areas, Jiangnan Buyi brand opened 100 square meters of stores in Osaka in March 2010. It is expected that from the autumn and winter of 2010/2011, Jiangnan Buyi brand will gradually enter Japan's Kyushu and Guandong, Kansai area 8 stores and SHOPPINGMALL.

Although it is too early to talk about success, these are the useful attempts of China's clothing industry to try to move towards the high-end of the global industrial chain.