YOUNGOR: The "5050" Principle Highlights Competitive Advantages

The YOUNGOR group was founded in 1979. After 30 years of development, it has gradually established the pattern of brand clothing, real estate development, equity investment and other industries as the main body.

"5050" principle to build the main garment industry

Brand clothing is the basic industry of YOUNGOR group. Since its beginning in 1979, it has been making continuous efforts.

YOUNGOR group's YOUNGOR apparel company owns more than 100 branches, more than 400 self operated stores and more than 1500 commercial outlets nationwide.

Its main product shirt is the first national export exemption product in the national shirt industry, ranking first in the market share for 13 years in a row. The western-style clothing keeps the market share in the first place for 8 years in a row.

YOUNGOR brand apparel has been ranked the top seven of the total sales and profits in China's apparel industry for the past two consecutive years, ranking the most popular brand among consumers.

The reason for YOUNGOR's success is that their strategic layout in the market, production and marketing has always been based on the "5050" principle, that is, 50% is the domestic market, and the 50% is the international market.

Despite the impact of mergers and acquisitions, the international market share has increased, but YOUNGOR has made timely adjustments to maintain the "5050" ratio.

Li Rucheng, chairman of YOUNGOR group, said: "clothing is the basic industry of YOUNGOR, real estate is the future growth industry, and equity investment is an exploratory industry.

We have been exploring other industries without giving up the development of the main industry, providing strong financial support for our clothing industry, and we are not going to invest much in clothing manufacturing in the future. We are more concerned about the input of channels, one of which is the input of R & D capability, and the other is the investment of brand acquisitions.

Three measures to break through export predicament

Thanks to the appreciation of the renminbi, the cost of labor and raw materials continues to rise, and the international market is weak.

Looking for a way out, YOUNGOR's first step was on the adjustment of marketing strategy. The main export market in the past was the United States. In order to reduce the adverse effects of the US market, the development of the European market and the Japanese market was intensified. After the market risk was dispersed, the second step of YOUNGOR's strategy was to tap the potential inside, to carry out meticulous management in every link of the production, to use the advanced suspension system, to achieve the automatic pfer of each process, and to increase the productivity of 15%, and even the meticulous management even reached every button. The third move was "grasping the chain". After five years of painstaking efforts, YOUNGOR went through a complete industrial chain from raw material to fabric to clothing to retail. Under difficult circumstances

Li said: "we have developed rapidly from the garment manufacturing industry, but the upstream industry is lagging behind, especially in the fabric industry.

Acquisition of new Malaysia and development of upstream to highlight competitive advantages

Since 2004, YOUNGOR group has extended its brand clothing to the upstream garment industry such as cotton planting and textile.

In 2008, the Hongkong new horse group, the core men's clothing business under the KELLWOOD company of the United States, has been greatly acquired. YOUNGOR has gained strong design and development ability, international management ability and distribution network throughout the United States, forming the largest textile and clothing industry chain in the world.

Because the internal systems and production processes of Singapore and Malaysia are based on the rules of the European and American markets, and YOUNGOR is a native mainland enterprise, integration is not easy.

In response, Li Rucheng felt deeply: "we should first integrate market channels and information technology, and the integration of industries may take longer.

The shirts we used to make are all formal. Now they are more popular in the world. This is our weakness. We take the new horses' leisure shirts here. Besides, we are forming a new company as a pilot to integrate new horses.

In addition, new Malaysia has many manufacturing enterprises in Sri Lanka and Southeast Asia. Later it can also be used as one of YOUNGOR's production bases to enhance YOUNGOR's ability to resist risks.

What YOUNGOR actually values most is not the 14 production bases distributed by Sri Lanka, Philippines and Mainland China and Hongkong, but its design capabilities and marketing channels.

These factories carry out ODM processing business for more than 20 international brands, and also have 5 licensing licenses, such as NAUTICA and PERRYELLIS. The international brand management and design team with decades of experience can achieve complete independent design. The sales network and powerful logistics system that reach dozens of department stores in the United States are cost-effective for YOUNGOR, which is eager to open the door to the international high-end market, and the competitive advantage brought by its integration is more immediate.

Li Rucheng believes that the new horse has more than 50 years of quality and sales system, pay attention to the process, and YOUNGOR's cost control system occupies an absolute advantage. The integration of the two different systems will take at least two years, because this is the first attempt to integrate, it is inevitable that there will be immature practices, but YOUNGOR will grow.

Pushing "GY" to promote diversified brand development

YOUNGOR clothing company has developed three brands of consumer goods, namely, international business, administration and business and leisure. It has developed the brand characteristics of mature self-confidence, steady introverted and advocating quality life. It has six Chinese famous brand products including shirts, Western-style clothes, trousers, jackets, neckties and T-shirts.

"Men's clothing and women's clothing must be integrated, but men's wear is not acceptable, but now we mainly do men's wear, because men's clothing has much room for improvement. Our men's casual wear is not enough. The shirts in the world are 3:2, that is, 3 are regular, 2 are idle, and 6 million of our domestic market is regular now. The matching should be 4 million leisure, but we have not yet achieved, we still need to continue to work hard."

Li Rucheng said.

The "GY" fashion apparel brand launched by YOUNGOR joint Japan W-GAME has opened the first direct store in Suzhou.

This brand has changed to the classic and steady image of YOUNGOR in the past. All of them adopted the internationally popular thin plate type, aiming at the positioning of young white-collar and entrepreneurs. The product added more leisure styles to make YOUNGOR brand "tide".

Speaking of the future vision of GY brand, Chen Zhigao director said, "YOUNGOR has been engaged in garment manufacturing for 30 years, and the brand has been born for 20 years. YOUNGOR's dream is to create an international brand and build a hundred years' enterprise. China's textile and garment industry has no own international fashion brand. Most young people like foreign brands. Our national costume enterprises have such a responsibility to create a fashion brand suitable for young people in China, and make GY a fashion brand representing the Chinese national industry, which is YOUNGOR's dream and responsibility."