YOUNGOR'S "Heavy Company" Mode: PK&Nbsp; ZARA "Fast Fashion" Mode.

ZARA adopts the "value chain model" to effectively integrate the value chain of garment industry and reduce the value chain of garment industry.

ZARA, Spain, which is "fast fashion" in the world garment industry.

ZARA "fast fashion mode" is a miracle in the field of clothing. Some people call it "DELL computer in fashion industry" and "Swatch watch in fashion industry".

"Fast fashion" ZARA is essentially a typical "light company". ZARA outsourced garment production, strengthened clothing design and market development, and won competition with rapid market response and efficient system.

Behind ZARA's "fast fashion" is the short lead time, which is actually the efficient integration of value chain.

Fashion is the fashion of the time.

Fashion has a high rate of depreciation, and the rate of depreciation from design to sale is higher than that of general clothing.

Therefore, if we shorten the lead time of design and sales, reduce the inventory and sell the clothes at the fastest time, that means reducing the depreciation and earning profits.

The leading time of China's clothing industry is usually 6~9 months. Even though the Chinese clothing has been sold out, it has greatly depreciated.

ZARA is only 7 days short, the depreciation rate of its clothing has been greatly reduced, and other clothing brands have yet to be listed and lost to ZARA.

The fast supply chain system has achieved the ZARA efficient value stream, and has also achieved the myth of the rapid rise of ZARA.

What's more, ZARA also creates a shortage through "multi style and small batch", which prompts customers to buy quickly.

We know that business mode is to integrate favorable resources and form an organic system to realize customer value and enterprise value.

Every enterprise should have a clear idea of the core value of its target customers.

Both ZARA and YOUNGOR have realized customer core values.

ZARA has achieved the value of "catching up with fashion" for customers, so that customers can catch up with fashion trends. Wearing ZARA means leading global fashion.

We call ZARA the "fast fashion" business model that integrates the value chain as the "value chain model".

In the clothing industry, the "brisk company" model, represented by ZARA, is highly sought after. The essence of the garment industry has therefore been identified as "fast" by some people.

However, the "alternative" YOUNGOR in the clothing industry insists on the "heavy company" mode, and involves three major industries, namely, brand clothing, real estate development and equity investment, and continues to expand to hotels, tourism and textiles. It seems to deliberately make the company "heavy".

Many people think that YOUNGOR is blind diversification and expressed concern about its financial position and strategic intent.

However, YOUNGOR has become the leading enterprise in China's apparel industry.

At present, YOUNGOR group has a net asset of about 5000000000 yuan, ranking the top four in China's apparel industry sales and profits in the past two consecutive years.

YOUNGOR shirts, the main product, have been ranked first in market share for nine consecutive years, and Western clothing has also maintained the first market share in five years.

From the establishment of YOUNGOR youth garment factory (YOUNGOR group) in 1990 to 1990, YOUNGOR group is making efforts to manage garment manufacturing.

However, in 1990, YOUNGOR officially launched the YOUNGOR brand, which meant that YOUNGOR was pformed from a garment manufacturer to a garment retailer, and YOUNGOR entered the apparel retail industry from the apparel industry.

This requires YOUNGOR to spend a lot of money on building terminal stores like ZARA (ZARA self owned stores account for 90%) or, like later Metersbonwe, use franchising to build terminal networks (Metersbonwe's franchised chain stores account for 80%).

However, YOUNGOR is not as rich and generous as ZARA in building a self operated online store. Instead, it uses the traditional self run + franchise mode to open up the terminal network.

Unlike other brands of clothing companies, which concentrate on managing their clothing, YOUNGOR began to "go out of business". In 1992, it began to get involved in real estate development, and began to intervene in equity investment in 1993. In 1998, it was listed on the Shanghai stock exchange.

After the listing, YOUNGOR group is involved in real estate and equity investment in a large scale.

YOUNGOR group has developed East Lake gardens, East Lake Xinyuan, urban forest, Suzhou future city, Seaview Garden, Qian Lake Beverly and other large flats. The total development of residential, villas, business buildings and other properties amounted to 3 million square meters.

YOUNGOR group subscribed 106 million shares of Shanghai Pudong Development Bank in 2009 for 1 billion 759 million yuan.

YOUNGOR group has invested in many companies such as Guang Bo group, yeco technology, CITIC Securities, Ningbo bank, Haitong Securities and so on.

What does YOUNGOR group want to do?

Gross profit of YOUNGOR real estate and garment business in 2002 -2006 (unit / billion yuan)

Equity investment, in 2006, through the split share structure reform, YOUNGOR held CITIC Securities, yi Ke Technology and other equity investment value gradually reflected, the level of net assets has been significantly improved, equity investment will gain huge value-added space, and achieved good investment returns.

In 2008, YOUNGOR founded Kay stone investment management company, mainly engaged in investment management and consulting, and investment industry gradually developed towards specialization and deepening.

The benefits from equity investment and real estate investment provide financial support for YOUNGOR to purchase a large number of stores.

From 2001 to 2005, YOUNGOR bought and managed stores for 4 years in a row. The number of stores was reduced from more than 3000 to nearly 2000, but half of them were stores directly controlled by YOUNGOR.

At present, 50% of YOUNGOR's proprietary stores account for 36%, while self owned stores only account for 36% in 2002.

ZARA adopts the "value chain model" to effectively integrate the value chain of garment industry, reduce the depreciation rate of clothing, enhance the value of clothing, and realize "fast fashion".

YOUNGOR uses the value net mode to jump out of the clothing industry and build a diversified business with clothing as the core to enhance the resultant force of the overall competition.

ZARA, the Spanish brand, which is "fast fashion" galloping around the world apparel industry, has been commended and sought by the industry.

ZARA, founded in 1975, now has 917 stores in 62 countries, of which 90% are self owned stores and the rest are joint ventures and franchised stores.

Although ZARA brand stores account for only 1/3 of all Inditex group's stores, sales account for about 70% of total sales.

This prompted the Inditex group to surpass the US GAP and Sweden's H&M to become the world's top apparel retail group. In 2005, its global sales amounted to 6 billion 741 million euros, with sales amounting to 429 million, with net profit of 803 million euros.

ZARA "fast fashion mode" is a miracle in the field of clothing. Some people call it "DELL computer in fashion industry" and "Swatch watch in fashion industry".

"Fast fashion" ZARA is essentially a typical "light company". ZARA outsourced garment production, strengthened clothing design and market development, and won competition with rapid market response and efficient system.

ZARA "fast fashion" is behind the short leading time, in fact the efficient integration of the value chain.

Fashion is the fashion of the time.

Fashion has a high rate of depreciation, and the rate of depreciation from design to sale is higher than that of general clothing.

Therefore, if we shorten the lead time of design and sales, reduce the inventory and sell the clothes at the fastest time, that means reducing the depreciation and earning profits.

The leading time of China's clothing industry is usually 6~9 months. Even though the Chinese clothing has been sold out, it has greatly depreciated.

ZARA is only 7 days short, the depreciation rate of its clothing has been greatly reduced, and other clothing brands have yet to be listed and lost to ZARA.

The fast supply chain system has achieved the ZARA efficient value stream, and has also achieved the myth of the rapid rise of ZARA.

What's more, ZARA also creates a shortage through "multi style and small batch", which prompts customers to buy quickly.

We know that business mode is to integrate favorable resources and form an organic system to realize customer value and enterprise value.

Every enterprise should have a clear idea of the core value of its target customers.

Both ZARA and YOUNGOR have realized customer core values.

ZARA has achieved the value of "catching up with fashion" for customers, so that customers can catch up with fashion trends. Wearing ZARA means leading global fashion.

We call ZARA the "fast fashion" business model that integrates the value chain as the "value chain model".

In the clothing industry, the "brisk company" model, represented by ZARA, is highly sought after. The essence of the garment industry has therefore been identified as "fast" by some people.

However, the "alternative" YOUNGOR in the clothing industry insists on the "heavy company" mode, and involves three major industries, namely, brand clothing, real estate development and equity investment, and continues to expand to hotels, tourism and textiles. It seems to deliberately make the company "heavy".

Many people think that YOUNGOR is blind diversification and expressed concern about its financial position and strategic intent.

However, YOUNGOR has become the leading enterprise in China's apparel industry.

At present, YOUNGOR group has a net asset of about 5000000000 yuan, ranking the top four in China's apparel industry sales and profits in the past two consecutive years.

YOUNGOR shirts, the main product, have been ranked first in market share for nine consecutive years, and Western clothing has also maintained the first market share in five years.

From the establishment of YOUNGOR youth garment factory (YOUNGOR group) in 1990 to 1990, YOUNGOR group is making efforts to manage garment manufacturing.

However, in 1990, YOUNGOR officially launched the YOUNGOR brand, which meant that YOUNGOR was pformed from a garment manufacturer to a garment retailer, and YOUNGOR entered the apparel retail industry from the apparel industry.

This requires YOUNGOR to spend a lot of money on building terminal stores like ZARA (ZARA self owned stores account for 90%) or, like later Metersbonwe, use franchising to build terminal networks (Metersbonwe's franchised chain stores account for 80%).

However, YOUNGOR is not as rich and generous as ZARA in building a self operated online store. Instead, it uses the traditional self run + franchise mode to open up the terminal network.

Unlike other brands of clothing companies, which concentrate on managing their clothing, YOUNGOR began to "go out of business". In 1992, it began to get involved in real estate development, and began to intervene in equity investment in 1993. In 1998, it was listed on the Shanghai stock exchange.

After the listing, YOUNGOR group is involved in real estate and equity investment in a large scale.

YOUNGOR group has developed East Lake gardens, East Lake Xinyuan, urban forest, Suzhou future city, Seaview Garden, Qian Lake Beverly and other large flats. The total development of residential, villas, business buildings and other properties amounted to 3 million square meters.

YOUNGOR group subscribed 106 million shares of Shanghai Pudong Development Bank in 2009 for 1 billion 759 million yuan.

YOUNGOR group has invested in many companies such as Guang Bo group, yeco technology, CITIC Securities, Ningbo bank, Haitong Securities and so on.

What does YOUNGOR group want to do?

Gross profit of YOUNGOR real estate and garment business in 2002 -2006 (unit / billion yuan)

Equity investment, in 2006, through the split share structure reform, YOUNGOR held CITIC Securities, yi Ke Technology and other equity investment value gradually reflected, the level of net assets has been significantly improved, equity investment will gain huge value-added space, and achieved good investment returns.

In 2008, YOUNGOR founded Kay stone investment management company, mainly engaged in investment management and consulting, and investment industry gradually developed towards specialization and deepening.

The benefits from equity investment and real estate investment provide financial support for YOUNGOR to purchase a large number of stores.

From 2001 to 2005, YOUNGOR bought and managed stores for 4 years in a row. The number of stores was reduced from more than 3000 to nearly 2000, but half of them were stores directly controlled by YOUNGOR.

At present, 50% of YOUNGOR's proprietary stores account for 36%, while self owned stores only account for 36% in 2002.

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Why does YOUNGOR need to spend a lot of money on acquiring stores?

The key to the success of brand retailing is to firmly control the quality chain stores. Compared with franchised stores, self operated stores are not only directly controlled by the company, but also bring high returns to the company.

So far, YOUNGOR has established 156 marketing branches and 20 regional centers in China, and has opened 356 self operated stores (including more than 30 flagship stores of 500~3000 square meters) and 2853 commercial outlets, thus forming a strong sales ability.

YOUNGOR 80% sales are completed through its own marketing channels.

In addition, huge financial capital also provides financial support for YOUNGOR's integration of the apparel industry chain and the acquisition of garment enterprises.

In 2008, the textile and garment industry was generally short of funds and squeezed the cost for the winter. But in the cold winter, YOUNGOR went to the bottom of the market, and successfully purchased the international men's clothing enterprise Xin Ma group for 120 million US dollars, further expanding the company's assets and further improving its position in the international garment industry.

YOUNGOR's 2009 semi annual report showed that the apparel sector achieved 2 billion 720 million yuan in operating income, operating profit of around 1 billion yuan, 2 billion 310 million yuan in real estate revenue, 750 million yuan in operating profit, and 983 million yuan in equity income from other listed companies.

From the comparison of the income of three industries, we can see that YOUNGOR clothing is still the main force in terms of revenue and profit. YOUNGOR is still a garment oriented enterprise, and it only supports the development of brand clothing business through equity investment and real estate investment.

YOUNGOR takes the brand clothing industry as the core, constructs the brand clothing, the real estate, the financial industry network, and through the customer resources pfer, the financial capital highly effective pfer and the cross subsidy way, realizes the overall competitive power promotion, we call YOUNGOR "the heavy company" the business pattern to call it the "value net pattern".

After 2004, on the one hand, China's real estate industry has seen explosive growth and brought about extremely lucrative profits with a profit margin of more than 10%. On the other hand, Chinese manufacturing enterprises are facing the dilemma of increasing labor costs and increasingly difficult profits, and the profit margins are generally maintained at 3%-5%.

As a result, many manufacturing enterprises are trying to enter the real estate industry to achieve high returns to make up for the small profits of the manufacturing industry.

With the full entry of Chinese household appliances into the small profits, even China's home appliance giant GREE, Midea and Haier have entered the real estate industry to try to get a slice of the cake.

In recent years, China's real estate bubble and stock market bubble have absorbed substantial corporate capital, and some enterprises have quickly withdrawn from the original industry after backdoor listing, which is doubtless unfavorable to the development of China's real economy.

Capital is the core resource of capital intensive industries, but it is not the core resource of all real industries.

If the enterprise wants to pursue high profits, the "putting the cart before the horse" ignores the development of the original industry, and may fall into the dilemma of blind operation.

What GREE, Midea, Haier and other entities need to learn from YOUNGOR is to build an industrial network with high industrial relevance and high core resource pfer to support the expansion of the original industry.

ZARA adopts the "value chain model" to effectively integrate the value chain of garment industry, reduce the depreciation rate of clothing, enhance the value of clothing, and realize "fast fashion".

YOUNGOR uses the value net mode to jump out of the clothing industry and build a diversified business with clothing as the core to enhance the resultant force of the overall competition.