Ningbo YOUNGOR Li Rucheng: 5 To 10 Years To Achieve Internationalization

At the end of the recent China International Clothing and accessories fair, YOUNGOR unveiled its 6 brands. During this period, the reporter interviewed the YOUNGOR group Limited by Share Ltd on the issues of multi brands, internationalization, diversification and enterprise succession, etc., and interviewed the Limited by Share Ltd of YOUNGOR group. Chairman Li Rucheng.

　　 brand Dingxin

If I go to sea by boat, mine is mine, and yours can be mine.

On this year's CHIC, the 6 brands of YOUNGOR clothing, Mayor, Youngor, GY, HSM, CEO and HANP, are all appearing. In particular, the hemp brand HANP takes the "hemp day" as the theme to show the industrialization results of hemp, a leading global green environmental protection material.

Li Rucheng, chairman of YOUNGOR group Limited by Share Ltd, said that after the financial crisis in 2008, YOUNGOR began to consider the development of multi brands. YOUNGOR first started from OEM and did not start its own brand until the early 90s of last century. In the 10 years of 90s, it has achieved rapid growth and doubled its profits every year. In 2009, YOUNGOR put forward the creation and promotion of brand value in brand development. On this basis, a series of new brands have been launched. These brands have different positioning, such as MAYOR's main business men's wear, CEO's main business men's clothing, and GY's main attacking young fashion market.

At present, YOUNGOR has built a huge production base, and has production bases in Vietnam, Philippines, Sri Lanka and other places. In Xinjiang, Yunnan, Chongqing and Ningbo, there are large factories in the country, at the same time, they have operation teams and reserve talents. Li Rucheng believes that from the actual conditions, YOUNGOR has accumulated some experience in capital, team and cultural integration, and has more advantages in building international brands than domestic counterparts.

"If I go out by sea, mine is mine, and yours can be mine. "In Li Rucheng's view, this is an important way for YOUNGOR to move towards internationalization.

In recent years, YOUNGOR has acquired two major international companies, one is Smart and the other is new Ma, which is a typical international M & A case in China's textile industry.

"Through mergers and acquisitions, we have built YOUNGOR's platform abroad, taking the opportunity to understand the operation rules of overseas markets, with emphasis on channels and talents. Brands have no boundaries. M & A is not only an industry's M & A, but also a team's integration. "Li Rucheng said.

It takes a long time for a Chinese brand to be recognized by the international market. Li Rucheng knows clearly that although YOUNGOR has already had some influence internationally, it still has a long way to go before entering the list of first-line brands. "Not only enterprises are making efforts step by step, but also the state is spreading Chinese cultural industries to overseas. Only when our country is really strong can the brand be recognized gradually. "

It is a development goal set by Li Rucheng to build YOUNGOR into an international brand in 5 to 10 years.

Debate on "not doing business"

Clothing and real estate and financial investment are the three main businesses of YOUNGOR, which will not change in the next 20 years.

There are some criticisms about the development of YOUNGOR in recent years. YOUNGOR's main business is not clear enough, especially for YOUNGOR's operation of real estate and financial investment as main business.

"This is a misunderstanding. What is the main business? I used to be a farmer, farming was my career; TOYOTA's earliest career was also weaving. The main industry can not be in terms of profits. I think financial investment is the core of the modern economy. Enterprises like YOUNGOR must upgrade their industrial structure to the core. This is our strategy. "Li Rucheng explains.

Li Rucheng said: "clothing and real estate and financial investment are the three main businesses of YOUNGOR, which will not change in the next 20 years. But they are all handed over to professional teams to operate. Enterprises can diversify, but specific operations must be carried out by specialized teams. Now YOUNGOR clothing, real estate, financial investment have professional team to execute, group company will develop three main industries according to its own ability. "

In Li Rucheng's eyes, these three main businesses are very promising. The living standard of Chinese people is constantly improving, and the demand for clothing is becoming more and more diversified and personalized. The future clothing market will definitely develop greatly. The real estate market is also promising, but YOUNGOR is just making the best and not the biggest in the real estate market. Financial investment in the next 20 years is a fast developing industry with great room for growth.

Enterprise inheritance is very entangled.

I hope to explore a system of inheritance beyond state-owned enterprises and private enterprises. If the exploration is successful, it will bring a lot of lessons to similar enterprises in China.

"After 31 years of development, the first batch of entrepreneurs in YOUNGOR is basically approaching retirement age. It is time for the first generation of entrepreneurs to pass on to the second generation and the third generation. "As YOUNGOR's palm trustee, Li Rucheng has soberly realized the urgency of enterprise succession.

In fact, Li Rucheng expressed this hope very long ago. He retired at the age of 60, that is, in 2011. At present, it seems that his wish is not so easy to cash in.

In Li Rucheng's eyes, YOUNGOR's corporate heritage has great particularity: YOUNGOR is not a state-owned enterprise, nor a private enterprise, but a non-public, private and public listed company. YOUNGOR has about 300000 of its shareholders, and its share is very dispersed. As a founder, Li Rucheng has only a small share of stock and lacks a core shareholder with absolute voice. Therefore, the smooth succession of enterprises is quite difficult, neither can they be appointed by the state like the state-owned enterprises, nor can they appoint the next generation to take over as a family business.

"HUAWEI's shareholding is very similar to ours, and Ren Zhengfei also has concerns about this. In a few days, I will exchange views with Ren Zhengfei on this issue. "Li Rucheng said.

In Li Rucheng's view, the inheritance of YOUNGOR is not a successor problem, the key is a team. "We need to set up a supervision body to supervise the enterprises, and recruit creative shareholders to establish a" horse racing horse "mechanism. Put young people on their posts, exercise, compete, and cultivate a group of people in 5 years. An enterprise is a shareholder. It can only be managed and chosen by the founding shareholder to represent the social shareholders, so as to cultivate a new business team. "

Li Rucheng said frankly: "the inheritance of YOUNGOR enterprises is a big topic. I hope to explore a system of inheritance beyond state-owned enterprises and private enterprises. If it is successful, it will bring a lot of lessons to similar enterprises in China. "

dialogue

Reporter: will the main position of YOUNGOR's clothing plate be shaken?

Li Rucheng: China's urbanization is accelerating and its consumption structure is constantly upgrading. Many people have talked with me about investing in 3G phones, or even talking about making cars. But I think our main garment still has a lot of room. Beyond the ability to talk about transformation and unreality, first of all, we must do well in our industry. In the next 20 years, we hope to make the clothing bigger and make the real estate more refined. Of course, there is a lot of room for investment, but we must pay attention to risk control.

Reporter: clothing industry attaches importance to creativity. What is YOUNGOR's breakthrough in this respect?

Li Rucheng: in fact, YOUNGOR has been focusing on product upgrading. In the past 30 years, we have made many explorations in the field of creativity. I remember in 1994-1996 years, I spent three years in Japan and Europe and the United States clothing enterprises, and saw them slowly going downhill. At that time, we thought that we could surpass them in 10 years. Now it seems that the idea was wrong at that time, because European enterprises have transformed from manufacturing enterprises to focus on developing creative design and information technology. I have been to a clothing company in Nordic Europe, and found that it captured the world market with low price and quick response, and realized 13 billion 900 million euro sales and 1 billion 700 million euro profit. From this perspective, the gap between us and them is not narrowed but increased. In order to increase product innovation, YOUNGOR has invested heavily in inviting famous designers at home and abroad, but the effect is not obvious. Later, we changed our thinking. In 2008, we set up 6 brand studios to train our team. Now we have achieved results. This change shows that we are in the right direction. In the future, YOUNGOR will pay more attention to creative culture and develop its own team, increase investment in design and increase the cultural content of products in terms of channel construction and industrial chain building.

Reporter: do you usually visit some cities and visit your storefront?

Li Rucheng: Yes, of course. Of course, we will see some competitors' stores. However, in the specific management, more top executives are in charge. My work is more "coordination", and consider how to carry out institutional exploration, so that enterprises can be passed down from generation to generation.