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, 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" is a miracle in the field of clothing, known as "the DELL computer in the fashion industry", "the fashion industry's Swatch watch".

"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 fashion nowadays.

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.