Competitive Advantage Of Garment Enterprises Viewed From The Growth History Of Clothing Brand Leader

clothing

YOUNGOR: the integration of big industry chain

From the beginning of twenty-first Century to the present, every subdivision

From upstream fabric to retail terminal, it is a tight rope for garment enterprises with insufficient strength and limited resources.

But with the enhancement of the strength of enterprises, this is the last choice in the process of scale expansion.

YOUNGOR is such a practitioner.

Through the integration of resources in the middle and lower reaches, YOUNGOR has a large number of raw materials production base, printing and dyeing, cotton spinning, garment manufacturing, logistics center and sales entity shop. By controlling the industrial chain, it has obtained the absolute competitive advantage in the two clothing categories of shirts and Western-style clothes.

In the view of Li Rucheng, the big boss of YOUNGOR, the competition of the world economy is not the competition between products, nor the competition among enterprises, but the competition among industrial chains. YOUNGOR must develop its own industrial system and sales system in a coordinated way.

YOUNGOR's positioning has also changed from a production enterprise to an industrial chain integrator in the upper, middle and lower reaches.

In the upstream, fabric production has been a weak link for YOUNGOR. Many of the top grade fabrics that YOUNGOR needs are not produced by many domestic enterprises, so it has to rely on imports. This undoubtedly increases its procurement cost and procurement and production cycle.

In October 2001, YOUNGOR and Japan's "plant" joint venture washing plant began to set foot in the fields of printing, dyeing, washing, designing, manufacturing and processing, and announced the construction of its vertical industrial chain. In 2002, YOUNGOR invested in textile city to upgrade its fabric quality through self-produced high-tech and functional high-grade fabrics, and subsequently invested in YOUNGOR dyed weaving, knitting, wool spinning and other projects.

With the power of foreign technology and capital, YOUNGOR gradually controls the upstream. The advantages of procurement are highlighted, not only to control quality, but also to respond immediately to the middle and lower reaches of the market, and to reduce costs.

{page_break}

In the middle reaches, YOUNGOR spent $100 million in 1999 to build a YOUNGOR International Garment City integrating design, textile, clothing, sales, trade, exhibition and business. In 2004, it invested 500 million Yuan Xingjian YOUNGOR's western production base in the south shore tea garden area in Chongqing, and further segments the market.

And the downstream sales channels in the hands of enterprises, become a circulation enterprise, is an important part of YOUNGOR's continued integration of the industrial chain.

Although Chinese clothing enterprises have their own marketing system, most of them are small in scale, low in level and not strong in terminal control.

YOUNGOR started building sales channels in 1995, taking self marketing, franchising and joint marketing with large shopping malls to market terminals.

However, when most of the domestic counterparts were franchising, YOUNGOR bought a large number of stores to expand its own channels after 1997, and sold the marketing channels firmly in its own hands. 1 billion 100 million

This led directly to YOUNGOR's sales. Data show that YOUNGOR's sales of more than 35% benefited from self operated channels.

However, self built channels mean the increase in channel construction and maintenance costs, as well as the pressure on actual inventory.

In 2002, YOUNGOR invested 10 million yuan to cooperate with axon consulting to restructure its marketing network system.

Finally, we choose different marketing mix to directly sell to the market.

In key cities, self built channels are the main channel, franchising and shopping malls are subsidiary.

Close some profitable stores and franchise stores, and turn into 1000-2000 square meters of large stores.

In the two or three tier market, it is appropriate to find some distributors to cooperate.

In the terminal system, through information pformation, YOUNGOR can understand the product sales, inventory and other information every day in the market, and then make statistics by the head office to the latest system data, and analyze the report forms, so as to adjust the corresponding links.

In this way, the most accurate prediction and coordination can be carried out to maximize the flexibility and speed of the supply chain, so as to achieve the greatest degree of convergence between production and market changes.