Li Rucheng: Establish A Complete Garment Industry Chain &Nbsp; Do Not Take The Processing Route.

Nike can make the foundry products in the form of global sourcing, and other companies can also.

After entering the brand era, production becomes unimportant and becomes the industry at the end of value chain, which means high labor density and low technology content.

YOUNGOR did not do this. It built an area of 370 Mu and the largest garment manufacturing base in China.

Some people do not think so, that this is not keeping up with the spirit of the times.

Li Rucheng insisted that he said that manufacturing is eternal.

For core industrial manufacturing, YOUNGOR will not give up.

Li Rucheng refutes the argument that production is out of date in the brand age.

Taking a look at the famous clothing brands in the world, no matter whether the industrial brand or the commercial brand, without the support of production, it can not be bigger and stronger.

Even the designer brand has the core manufacturing base, or the production group that works with the brand.

Like Hermes, there are not only garment manufacturing lines, but also upstream industries such as fabric manufacturing.

There are two main reasons for famous brands to do so. One is to ensure the synergy of raw material supply, production and sales, and to form a competitive advantage. Two, it is not easy to abandon the brand standard and ensure product quality.

From this we can see that manufacturing is still an important part of the success of clothing brand.

Nike made a success through commissioned processing, which has attracted the imitation of other enterprises.

The benefits of commission processing are obvious, first of all, it can lighten the burden of enterprises; second, we can make clear the key points and deploy limited resources to key areas; third, we can make use of the manufacturing advantages of foundries.

However, there are risks in commission processing. Brand control ability and price negotiation ability are all tested. If the management is not good, the OEM will restrict the operation of the enterprise.

Nike purchases a lot every year. It has a strong voice. Other brands can not afford to control and coordinate the industrial chain.

Therefore, Nike's commission processing can be successful, and other brands will not necessarily succeed.

Li Rucheng analysis, compared with Nike, YOUNGOR purchase quantity is small, and do not have the corresponding management and control of the capacity of the foundries, therefore, large-scale commissioned processing will not become YOUNGOR's direction.

There will be some considerations in the development of enterprises.

Li Rucheng analyzed the future competition trend of the clothing industry: "I think the future competition is the competition of the industrial chain, not the competition of a single company.

Why some brands can't always do it is because there is no support from the industrial chain.

There are some brands in Europe that are very strong because they attach great importance to the construction of the industrial chain, not only to do it themselves, but also to control the industry very well, and it is very difficult for us to control an industrial chain in China, because our purchasing volume can not control an industry, so we can only think of our own way to build an industrial chain.

In order to control the industrial chain, YOUNGOR not only owns the largest garment manufacturing base in China, but also enters the field of cotton cultivation and hemp cultivation, forming a complete industrial chain for raw material planting, weaving, clothing design and manufacturing. "YOUNGOR clothing starts from the raw materials such as planting cotton and hemp, and these things can strengthen our brand after planting."