YOUNGOR'S Self-Knowledge

The hat of "doing nothing" has been fasten on one of the largest private enterprises in Ningbo, Zhejiang.

In April 19th, the annual report released by YOUNGOR in 2010 showed that its total profit amounted to 3 billion 660 million yuan and its investment income was as high as 2 billion 58 million yuan.

During the year, more than 10 listed companies were engaged in private placement.

The small factory which is on the verge of collapse has developed into a large comprehensive enterprise with a total assets of 48 billion 300 million yuan.

Although the two businesses of equity investment and real estate development have contributed a lot to YOUNGOR, the chairman of the board of directors, Li Cheng Cheng, said: "clothing is always the main business and it will continue to grow in the next 20 years."

Indeed, YOUNGOR clothing production workshop gives the best answer.

YOUNGOR clothing city was built in the late 90s of last century.

In April 13th, hundreds of workers worked in different factories, and garment workers cut their jobs from tailoring to sewing.

Tens of thousands of shirts, suits and other kinds of clothing are produced here every day.

On the other side of YOUNGOR clothing city is YOUNGOR Textile City, which covers hundreds of acres.

From spinning to color mixing and weaving, modern textile factories are running in the roar of machines.

"Only 15% of the fabric is used, others are basically exported, and some are supplied to other domestic manufacturers."

YOUNGOR Textile City staff told reporters that at present, YOUNGOR's fabrics are mainly high-end products.

Such a complete industrial chain can make garment manufacturing easy to surpass competitors, but YOUNGOR has a "self-knowledge": for enterprises to grow, seek stability rather than speed.

"Every year 15% (10% sales +10% price -5% input) growth is OK."

Li Rucheng told reporters.

"Remember YOUNGOR, forget Li Rucheng."

"Remember YOUNGOR, forget Li Rucheng."

Li Rucheng said very seriously that the YOUNGOR brand is a pillar, the brand is clothing.

For YOUNGOR,

Li Rucheng, a tailor, has deep feelings for clothes.

In the past few years, Li Rucheng once asked little about clothes, and YOUNGOR's clothing industry had some problems.

But now, Li Rucheng has come back again.

Despite many "accusations", the data obtained from IBM prove that the supply chain management and operation efficiency of the apparel business in recent years have been greatly improved.

YOUNGOR's ability to respond to orders has greatly accelerated and production cycle has shortened by 50%.

Inventory turnover increased by more than 1 times, saving 250 million inventory cost.

The shortage loss is reduced by more than 30%, and the on time delivery rate of the factory is more than 99%.

In fact, as early as 2008, YOUNGOR bought the international men's clothing enterprise Xin Ma group at a price of 120 million US dollars.

The largest overseas merger and acquisition case in the domestic textile and garment industry has opened the way for YOUNGOR's overseas expansion.

Li Rucheng began to use foreign Centennial brand as an example of YOUNGOR's development. "The gross margin of foreign enterprises' brands is between 50%~60%, with a profit margin of about 15%."

Even so, during the pformation from production oriented enterprises to brand oriented enterprises, YOUNGOR is still stepping on its own steps while referring to the foreign modern enterprise system.

Li Cheng Cheng said: "for every enterprise, there are some strengths and some deficiencies, so long as they are right for themselves, they are right."

As early as 2009, YOUNGOR subdivided the product market according to the characteristics of consumer groups and established "

In view of the different concepts and connotations of the five brands, the corresponding brand studio was set up, and the Shanghai hemp family jewelry Co., Ltd. was established to operate the HANP brand.

Through the practice of multi brand operation, we can effectively integrate resources such as internal production, purchase, logistics, channel, marketing and so on to cover and excavate more potential consumers in the market.

At the same time, brand building is very important.

Liu Xinyu, deputy director of YOUNGOR, said: "the focus of brand building is channel construction.

In 2010, the company's business outlets reached 2145, a net increase of 187.

The average performance of stores increased from 14 thousand and 600 yuan per square meter in 2009 to 16 thousand yuan per square meter.

In the next few years, YOUNGOR's business outlets will grow at a rate of about 200 per year.

"To enhance brand value added, we must continue to research and develop products."

Liu Xinyu thinks.

It is reported that in 2010, YOUNGOR's newly developed cotton and CVC lined new shirts completely replaced VP shirts, and DP shirts accounted for over 40% of the sales of shirts sold domestically.

Through the upgrading and structural optimization of the products, the sales revenue of the domestic shirts reached 1 billion 90 million yuan, an increase of 20.65% over the same period last year and a gross profit margin of 66.36%.

A relatively new situation is, because the gross profit margin of shirts sold in China is relatively high, YOUNGOR has been slowly reducing the proportion of exports.