YOUNGOR Chairman Li Rucheng: Review 2010&Nbsp; &Nbsp; Outlook 2011

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Transforming development mode: upgrading brand by "three changes and one new"

In 1995, YOUNGOR began deploying the first "Five Year Plan" to third "Five Year Plan" last year. After some adjustment and trade-off, the main business focused on three industries of clothing, real estate and financial investment.

Today, the independent innovation clothing brand has set up five workshops, and the profit is 1 billion 200 million. The real estate industry with a certain brand effect has created hundreds of millions of profits for the group in one year by five hundred people's team, and the Kay stone investment company, which has just set up two years, has brought billions of benefits to YOUNGOR in one year.

This is a surprise to many people, but how to grasp the development of the next five years will be the biggest challenge for YOUNGOR.

In response, Li Rucheng said YOUNGOR will further enhance its brand value through "three changes and one new".

The first is to pform marketing methods from production to brand development.

In the next five years, YOUNGOR will focus on the pformation from labor-intensive to brand operation, further upgrading and making big brands.

The second is to pform the industrial layout. On the one hand, pfer part of the labor-intensive enterprises to the central and western regions. On the other hand, the real estate industry will be positioned in Ningbo and radiated in the Yangtze River Delta.

Finally, the management team replacement mode of grope.

After 31 years of development, YOUNGOR's first batch of entrepreneurial teams are almost retired. It is time for the first generation of entrepreneurs to pass on to the second generation and the third generation.

At the same time, YOUNGOR is still exploring the innovation of enterprise system reform. "YOUNGOR is a special enterprise, neither state-owned enterprise nor private enterprise. As the largest shareholder, I have only 5% stake."

Li Rucheng said frankly, such a social enterprise with 30 trillion shareholders, how to innovate the management system, how to inherit will be a big contradiction.

He said that in the next five years, they will adopt the "horse racing horse breeding" mechanism to cultivate new people and explore the way for enterprises to inherit.

Strong main business clothing: create world brand, hemp expects all the people to participate.

Due to historical reasons, the development of China's garment industry basically stems from processing enterprises, and YOUNGOR is no exception.

It is not easy for an enterprise starting from garment processing to stage an international brand. Li Rucheng is very clear about this: "the environment of China's retail structure does not have the creative environment to create luxury goods.

It is still very difficult for YOUNGOR's garment industry to produce a luxury brand.

In the future development strategy of YOUNGOR, it is still an important item to continue to build a strong base brand channel and technology industry.

But this alone is obviously unable to satisfy YOUNGOR's "appetite". According to Li Rucheng's statement, it is "not satisfied with working for others".

Facts have proved that over the years YOUNGOR has made a good reputation on the road of brand building, and the marketing network across the country has laid the foundation for its pformation from production to marketing.

Li Rucheng said that the marketing mode does not follow the way of operation of the international brand, and does not abandon the development of physical stores and direct selling stores.

As for the popular online marketing, YOUNGOR is also actively exploring Li Rucheng's bold opening of its hemp products to do experiments, hoping that the two can complement each other and promote this healthy and unique brand with Chinese flavor.

Li Rucheng believes that a Chinese brand must undergo a long process if it wants to be recognized by the international market.

"Now YOUNGOR has already had some influence in the world, but the first-line brand is still very difficult to enter."

Now, not only the enterprises are making efforts step by step, but also the state is spreading the Chinese cultural industry to the overseas. "Only when our country is really strong, will the brand be recognized gradually."

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Deep excavation of real estate: Based on Ningbo, the Yangtze River Delta

18 years ago, in order to meet the needs of further expansion, YOUNGOR first set foot in the real estate industry. At that time, they probably did not expect that the industry would contribute more than a billion profit to YOUNGOR and become one of its main businesses.

At the beginning of the development, YOUNGOR positioned the real estate layout in Ningbo, and then gradually extended to Suzhou, Taizhou, Shaoxing and Hangzhou.

Over the past 10 years, we have accumulated successful experience and gained many lessons from failure.

Li Rucheng said frankly that he is not an expert in real estate, but he is also an expert. "This industry is more understanding and more confident."

Last year, YOUNGOR set up a real estate holding company to pform the originally scattered Real Estate Company from "Brotherhood" into "mother child relationship".

Now, the four cities of Ningbo, Hangzhou, Shanghai and Suzhou have basically been arranged. In Li Rucheng's eyes, this is the four richest city in China.

In fact, before that, YOUNGOR visited many places, including Beijing, Chongqing, Hainan and so on, but eventually targeted the Yangtze River Delta.

Li Rucheng's explanation is that real estate is not their main industry. "We have limited resources and can not develop blindly and indefinitely.

Our main business is always YOUNGOR brand, so we must focus our limited resources on the Yangtze River Delta.

In the face of the interview, Li Rucheng did not hide the expectations of the industry: "real estate still has a larger space."

Do not rule out the possibility of taking the real estate as one of the leading industries while doing well the clothing brand.

Expanding equity investment: layout finance to create new profit model

In recent years, considerable profits from financial investment have proved that YOUNGOR's choice is right.

According to Li Rucheng, they are also making appropriate attempts to invest in long-term PE and venture capital. "In the next ten years, we will regard financial investment as a long-term industry."

In Li Rucheng's eyes, financial investment is very similar to the two real estate industries, which are the two supporting industries of YOUNGOR.

As the real estate profits tend to be weak and populist, YOUNGOR may shrink its scale and increase the intensity of financial investment.

But for YOUNGOR, financial investment is a new industry. Both short-term investment and medium term issuance will limit risks as far as possible.

Chen Jiwu, general manager of Kai Shi investment, who is responsible for YOUNGOR's financial investment, also said that the current economic restructuring of the country is a challenge as well as an opportunity for business investment.

He believes that in this process, the test is the vision of investors, namely, the ability to analyze and predict the economy, enterprises and industries.

In this regard, Chen Jiwu is more optimistic about traditional industries, "the gap between traditional industries and foreign countries, especially the gap between high-end manufacturing industry is significant, the space is very big."

He said, "structural adjustment and industrial upgrading should be carried out in the international comparison of industries within the global scope, and finding out China's truly internationally competitive industries will be rewarded for long-term investment."

Speech management inheritance: explore innovation and strive for smooth management pfer

Facing the YOUNGOR group, which is working hard for a hundred years, if there is anything that Li Rucheng does not have, it is the problem of the development and inheritance of the enterprise.

Li Rucheng once said that he must retire at the age of 60, but now it seems that it is unrealistic.

How is YOUNGOR going to be passed down? Is it to follow the Lenovo's "separation mode" or to find suitable successors? In the view of Li Cheng Cheng, the non-public and private enterprises like YOUNGOR want to solve the problem of development and inheritance, "it is not a successor problem, the key is a team."

Now Li Rucheng wants to be out of the woods at the age of 65, and in the remaining five years, he hopes to be a smooth pition period. "We need to set up a supervisory body to supervise the enterprises, and recruit the creative shareholders to create a" horse race "mechanism.

Put young people on the job, exercise and compete.

Five years to cultivate a group of people.

Li Rucheng believes that the best solution is to combine the owner with the operator.

But in the face of more than 30 million shareholders, such a large enterprise can not be managed by them. What should we do? Li said: "this requires us to have an integrated incentive relationship.

Our enterprises are shareholders, and we can only manage and choose from the founding shareholders to represent the social shareholders, and cultivate new business teams.

Li Rucheng admitted that the size of enterprises like YOUNGOR is a relatively difficult topic for new leaders to lead, whether external or internal.

He believes that the future development of Chinese enterprises is not only a social issue, but also a political and economic issue. To enable the first generation of entrepreneurs to enjoy their old age smoothly and at the same time the successors will do better, Chinese enterprises will have hope.

"So we need to work out step by step."

He said, "the inheritance of YOUNGOR enterprises is a big topic. If it is successful, it will bring a lot of lessons to similar enterprises in China.

We are exploring whether we can succeed or not. Please wait and see.