Transformation And Transformation: The Diversification Risk Of Garment Enterprises

200 million pieces

The secret of many domestic garment enterprises to start up is to achieve rapid growth through simple competition such as "heavy products, large quantities, big circulation, low price".

This creates a false impression of them, as if they could expand more quickly if they persisted in the past.

The problem is that the market has never been static. The past successful mode is likely to become the cause of today's failure.

The lesson of March's two unqualified test is that.

Facing the sea, with spring blossoms.

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Despite relying on excellent domestic sales, Qipai group successfully escaped the financial tsunami and defeated economic inflation. Hong Zhaoshe, 67, decided to take a risk and set foot in the field of e-commerce.

In the past 30 years, as the chairman of Qipai group, Hong Zhao has been very cautious. "There is no loan in the bank so far."

Since the founding of the new beauty garment factory in 1979 (the predecessor of the Qipai group), Hong Zhao has never deviated from the garment route and has no intention to concentrate on it.

In the 30 years from the new beauty clothing factory to the Qipai group, the company's economic growth has continued to go up like that of China's GDP, and there has been no loss in 1 years.

"In 2010, sales of Qipai clothing were close to 2 billion yuan, an increase of 30% over 2009."

Hong Zhao set out in February 10th in an interview with our reporter.

"I have done 31 years of clothing, never encountered such a cost increase in 2010, some fabrics from 1 yuan to 8 yuan to 17 yuan, workers' wages rose to 50% to 60%."

Hong Zhaoshe said.

The electronic commerce project of Qipai group is estimated to be RMB 100 million yuan, which is scheduled to be launched in May of this year and will eventually operate independently.

Garment enterprises that do not work properly

Either pformation or pformation, this is the path choice before the clothing enterprises, which is related to life and death.

"What kind of men's clothing enterprises are doing well in pformation and upgrading?" YOUNGOR chairman Li Rucheng has been more annoyed about the outside world's doubts about YOUNGOR's diversification.

Zheng Yonggang, chairman of Shanshan Group, said on different occasions: "I don't care about clothes now. I invest."

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As the two sides of the Chinese clothing industry, the performance of YOUNGOR and Shanshan Group is quite disruptive.

A well-known business magazine once criticized YOUNGOR in the article for "not doing the right thing".

In 2010, YOUNGOR offered 5 billion 500 million yuan to subscribe for up to 10 listed companies' non-public offering shares.

At a land sale meeting held in Hangzhou, YOUNGOR sold two plots of Hangzhou Shenhua area with a total price of 2 billion 421 million yuan, and refreshed the record.

At present, YOUNGOR is the largest real estate developer in Ningbo, and also has the largest import and export trading company in Ningbo, or the largest shareholder of Ningbo bank.

YOUNGOR's actions in clothing, real estate and equity investment have led it to be seen as a model of Chinese company's "main business + investment" mode for a period of time.

Data show that the operating profit margin of YOUNGOR's main product shirts has dropped from 50.23% in 2006 to 29.37% in 2009.

Of the main business revenue of YOUNGOR in 2009, 6 billion 900 million yuan came from textiles and clothing, with a net profit of 440 million yuan; 5 billion 200 million yuan from real estate, and net profit of 2 billion 800 million yuan.

YOUNGOR's 2009 annual report shows that about 86% of net profit in that year came from equity investment and real estate.

Among them, equity investment achieved net profit of about 1 billion 625 million yuan, accounting for nearly half of the company's annual net profit of 3 billion 264 million yuan.

Shan Shan is even more.

It is easy to see that the "Shan Shan" suit store has gradually disappeared in the shopping mall of the first and second tier cities, which is closely related to the fact that Shanshan has invested too much enterprise resources in new materials, investment and other fields.

Shanshan is currently the largest supplier of lithium battery materials in the country, and has been involved in 4 core areas of power batteries that are difficult to overcome: cathode materials, negative materials, electrolytes and separators.

Zheng Yonggang predicted that the future will be the era of new energy: "Shanshan will be from small capacity battery materials to the field of automotive batteries. If the scale of industry grows, the accumulation of fir in the past 20 years will be nothing more than that."

Prior to this, Zheng Yonggang has repeatedly expressed interest in the game industry in public, and the game industry as another growth point of Shan Shan.

Prior to that, Zheng Yonggang and Shanshan Group had held about 29.89% of the Sino British branch, and later reduced substantially. At present, Zheng Yonggang accounted for 8.77% of the shares, and is still the largest shareholder.

Data show that in 2010, China's textile and apparel exports totaled $206 billion 530 million, an increase of 23.6% over the same period last year.

Last year, the retail sales of clothing, shoes and hats and needle textiles reached 587 billion 400 million yuan in the domestic market, up 24.8% over the same period last year.

200 million shirts can only bring in 1 Boeing airliners.

"China is a large garment country, but not a strong garment country" has become the consensus of all walks of life.

Wang Qian, editor in chief of China's first textile network, said that the reason for the expected increase in exports was mainly the result of the western stock going out after the outbreak of the financial crisis, as well as the explosive increase in demand in the late replenishment stage.

"But this is only short-term behavior. There is a lack of support for consumers' purchasing power.

In the coming year, the share of China's textile and garment market will be limited, and exports will no longer be the main source of profits for large enterprises. Some SMEs will face severe challenges.

Wang Qian said.

Statistics from China Cotton Association show that in November 2010, the price of domestic standard cotton has set a historical high price of 33 thousand yuan per ton, which has risen by more than 50% compared with October. Due to declining production and strong demand, the industry forecasts that cotton prices will remain high in 2011.

Shanshan underwear March two inspection unqualified behind

In the field of clothing, Zheng Yonggang has divested about 70% of the production capacity, instead of outsourcing production, and has disbanded all the 35 branches and 3600 salesmen of Shan Shan.

Unexpectedly, from November last year to February this year, in just 3 months, the underwear of Shanshan stock has been unqualified in Henan and Tianjin.

Media asked: "is it a coincidence or a loophole in quality control?" Zheng Yonggang, chairman of Shanshan Group, is committed to diversified development strategy, and has entered the gaming industry and has gamble gambling on the new lithium battery industry.

Cui Tao, a clothing consultant, said that the secret of many domestic garment enterprises to start up is to achieve rapid growth through simple competition such as heavy products, mass production, large circulation and low price.

This creates a false impression of them, as if they could expand more quickly if they persisted in the past.

The problem is that the market has never been static. The past successful mode is likely to become the cause of today's failure.

The lesson of March's two unqualified test is that.

"More than 90% of garment enterprises are driven by product and business integration.

It is precisely because of the deep structural defects of the Chinese garment industry that many garment enterprises can grow rapidly through simple competition in the early stage of development, but then suddenly encounter the doom of homogenization competition.

Cui Tao said.

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Others wrote that "it is better to say that I am an investor."

But in fact, they are eager to re-establish their leadership in the men's clothing industry.

The multi brand strategy of YOUNGOR and the multi brand internationalization route of Shan Shan are all because of this.

And YOUNGOR has repeatedly stressed, "we have been working hard in the field of clothing.

Clothing is the foundation of other industries. "

Unlike Li Rucheng and Zheng Yonggang, Hong Zhao set up 200 million yuan to set up "Hong men Tong Investment Limited". He also set foot in some financial and insurance industries, but not with real estate, equity subscription and other capital operations.

"Overseas expansion business" and "e-commerce project" are the main moves of 2011.

"The current plan is mainly based on the promotion of brand image, not the establishment of sales agencies overseas, nor the setting of specific sales targets for e-commerce. We are looking at the future market and potential consumer groups."

Hong Zhaoshe said.

Insiders pointed out that not only the seven cards are faced with the network cautiously, but in fact clothing enterprises are few in their own capacity to do e-commerce.

Including seven wolves and nine herd Kings also set up an official flagship store on Taobao mall. Only the wedding birds operate BONO website, but sales are not ideal.

According to the data, the 2009 report of seven wolves showed that Internet sales amounted to 3 million yuan, accounting for only 1.5% of total sales.

Facing the "new inflation" in 2011, it is very important for enterprises to find the advantages that match their resources.

Not being greedy is a kind of enterprise positioning, but at the present stage, we must fully recognize the danger.

China Apparel Association recently released the men's clothing industry analysis and market report, pointing out that capital helps enterprises achieve a new round of explosive development.

The era of capital being king has arrived. It is probably not the brand war, the price war or the channel war, but the capital war that will start in the men's clothing industry.