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    Zhou Shaoxiong: Seven Wolves' Business Innovation Of "Killing The Bones"

    2010/12/21 17:54:00 83

    Zhou Shaoxiong'S Seven Wolves "Business Revolution"


    Zhou Shaoxiong, the family leader of the seven wolves


    If the 3478 point of the Shanghai Composite Index in August 4, 2009 was the highest since the current round of financial crisis in 2008, this time node would be Fujian with a total market value of only about 4000000000 yuan.

    Seven wolves

    Industrial Limited by Share Ltd, however, is nothing. The total market value of the latter is approaching 9 billion yuan.


    "Seven wolves" is a pure domestic fast selling industry leading enterprise. The financial crisis has severely hit China's export driven economic and social development. Meanwhile, China's domestic market has also been opened to the public, and the seven wolves have been ushered in the fastest development cycle in the past two years.

    Xiamen is still hot in August, and the family members of the seven wolves are still hot.

    Zhou Shaoxiong

    Facing reporters, frankly, "brutal growth" is a pleasant thing, but it is precisely because of the "barbarous period", seven wolves will continue to expand in the future.

    "Scratch the bones"

    Of

    Business innovation


    In July 2010, seven brands of wolves, JEANSWEST, Scarecrow and other brands were attacked by the Beijing industrial and commercial bureau.

    Subsequently, the seven wolves said that the products being inspected were produced by the seven wolf authorized operator Quanzhou seven wolf sporting goods Co., Ltd., which was strictly implemented according to the relevant execution standards at that time and was qualified products.

    The controversy caused by the old and new national standards shows that the seven wolves are still very young, and the way to innovate their business models is more deserving of attention.


    Chinese style proposition of American style POLO


    The seven wolves who advocate "men are more than one side" have never taboo that others say they are an imitation show.


    "Our goal is to make the POLO of the United States, but now we are too small, just an American type of Chinese POLO," Zhou Shaoxiong told reporters without regret. Why does the seven wolves become the meaning and importance of China's POLO?

    He thinks that POLO is not only an excellent clothing enterprise, but also represents a mature business mode and development path. Its products have been popular all over the world, so the seven wolves are willing to become POLO's followers and followers.


    In 2009, the global sales revenue of POLO was more than 11 billion US dollars. It was this huge financial data that made the seven wolves covet.


    In August 17th, seven wolves released the interim results report in 2010: operating income in the first half was 973 million, an increase of 10.67% over the same period; net profit attributable to shareholders of listed companies was 123 million, an increase of 31.12% over the same period last year.


    Obviously, in front of US $about 10000000000 in the US $POLO, the biggest problem for the seven wolves in China that has just erupted "toxic clothing" is how to make sales revenue bigger and stronger quickly.


    "There is no denying that the domestic garment industry has gone through the era of horse race enclosure. The seven wolves have more than 3000 stores nationwide, but we believe that if we want to achieve the POLO performance, we need to pay more attention to the internal management and internal brand building in the future. We also realize that the possibility of relying solely on men's clothing to make a bigger scale of performance is not without, but rather difficult."

    Zhou Shaoxiong said that learning the US POLO does not mean that the seven wolves will completely model POLO, and from time to time innovation and change will become the core task of the wolf wolf for a long time in the future.


    POLO's image of men's overlord in the international market has been deeply rooted. In fact, the seven wolves are absolutely the men's wear leaders in China.

    But on the path of innovation, Zhou Shaoxiong has clearly put forward the industrial layout of "diversification, diversification and brand diversification" since 2010. It is not only the integration of men's suits for suits, jackets, shirts, trousers and socks, but also extends to lovers' costumes and children's wear.


    "We are still exploring a series of special topics such as youth culture, such as the post-90s consumption crowd. We may design very exaggerated costumes to reflect their individuality."

    Zhou Shaoxiong said that the whole industry chain is the biggest interpretation of POLO's landing on China, and is also the biggest scale innovation.


    On the other hand, the seven wolf's way to diversify investment in clothing industry is also in the process of Zhou Shaoxiong's operation.

    "Many problems can only be assured if we have ideas and put them into practice."

    He said there were no definite targets for takeover at present, but the seven wolves were willing to make an attempt in the future.


    Zhou Shaoxiong did not shy away from the "toxic clothing" incident in late July.

    "We believe that this is actually a more positive and healthy public opinion environment for the creation of seven wolves. By taking advantage of the misunderstanding and interpretation of the new and old national standards, the seven wolves have once again popularized clothing safety education for the whole nation."

    Zhou Shaoxiong said that the products being tested were produced in July 2007, so all the indicators except the spandex component and the current new standard (which was modified at the end of 2007) were not consistent. All the other indicators were qualified, but spandex fiber materials were relatively good fiber materials, and there were no toxic and harmful substances, which had no harmful effects on the human body.

    {page_break}


    A new round of price hike or industry differentiation


    If the topic is only limited to a seven wolf attack after a "toxic clothing" incident, it is obvious that Zhou Shaoxiong has little judgement on the whole Chinese clothing industry.


    "Seven wolves" as a public company, represents the interests and development direction of the vast majority of garment industry.

    With the continuous start of the domestic market, the apparel retailing industry is in the high tide of the industry.

    But at the same time, the soaring property rental costs and labor costs are obviously affecting the industry profits, and the garment industry will probably usher in a new round of shuffling process.

    Zhou Shaoxiong claims that the seven wolves are trapped in the dream of selling billions of dollars annually like POLO, and even more numerous small and medium-sized clothing enterprises.


    First is the continuous high rent.

    As the real estate market has risen steadily in recent years, the cost of property leasing has been soaring.

    Zhou Shaoxiong said that the overall rental cost of the seven wolf pack is more than 30% higher than that before 2008, and even the first tier area of the first tier cities is close to 50%.


    The pressure of rent is not the most important factor that will lead to the rising price of clothing enterprises.

    "Whether Foxconn or Guangdong's labor intensive industrial agglomeration is labor shortage is related to China's overall improvement of the minimum income level and the psychological expectations of ordinary people, which means that human resources expenditure is becoming a new problem."

    Although most of the seven wolves are outsourced, the company is definitely a light asset, but Zhou Shaoxiong still worries about the increase in wages or will lead to a wider wave of clothing industry differentiation.


    Zhou Shaoxiong believes that the key to the success of the seven wolves business model is that he can always sell the most advantageous world-class clothing products at the most appropriate price.

    "I believe this is a model that most garment enterprises do not have. In fact, they are more focused on building the business chain of fast selling products. Further speaking, the fast consumption chain is mainly based on the cheap, with the main path of making money and sales. Obviously, the strength and value of the brand almost disappear in the fast selling products, which is also the tide that I worry or will appear in the clothing industry to raise prices, which will destroy more industry enterprises."


    Zhou Shaoxiong expects that the overall price increase of leading enterprises in clothing industry will exceed 10% before the Spring Festival of 2010.

    "It is completely passive, especially labor and rent, which no enterprise can avoid." Zhou Shaoxiong said that this situation will eventually lead to more large-scale industrial reshuffle, and those enterprises whose profit margins are small and their style is not obvious, especially those with weak capital chain and poor strength, will die in large numbers.

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