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    YOUNGOR Men'S Brand Tracking

    2012/4/9 14:27:00 38

    YOUNGORBrandCHIC

    In the 2012 "the most competitive brand news survey of Chinese clothing", which has just been carried out by the clothing media, YOUNGOR ranks first in men's clothing. Almost the same consensus has been reached: fashion men's YOUNGOR is a leader of industry and brand strength. Therefore, on this CHIC, our reporter focused on the brand of "the most competitive brand news survey of Chinese clothing".


    Its brand is still eating YOUNGOR's milk.


    In March 26th, the reporter came to YOUNGOR's booth in the men's wear hall.

    YOUNGOR still occupies the old position in the men's wear hall for many years, and last year, it displayed the top 5 brands.

    For many senior journalists who have been tracking CHIC exhibitions for many years, YOUNGOR's visit seems to have brought little news, but, as an industry expert accompanying reporters said, "YOUNGOR itself is news for CHIC."


    In the large exhibition hall of 380 square meters of YOUNGOR, YOUNGOR brand focuses on the upgrading of the brand to functional products and the improvement of product quality and the expansion of the brand in several styles by the three major series of business formal dress series, business leisure series and urban leisure series. While the YOUNGOR brand GY, which leads the modern mix and match trend, has exhibited more than 30 sets and 100 other design works. As a new star in the YOUNGOR family, GY inherits the brand genes of YOUNGOR men's materials, such as exquisite material, excellent quality, elegant connotation, etc., which is located in the young urban fashion crowd, and provides fashionable and innovative business Commuter Series and urban leisure series dress for the 25 year old -35 year old urban cutting-edge men.


    Another brand, Hart Schaffner Marx, is the best interpretation of gentry in the United States. It is praised as an outstanding example of business men's wear.

    The HSM will be modeled on Grant. It will try to depict the 35 year old gentleman of the age of -50 who has many faces in his life. He will play the gentleman's fashion in the autumn and winter of 2012.

    And YOUNGOR group's high-end brand MAYOR, meaning "Mayor costumes".

    As China's first men's wear brand positioning in the executive leadership, MAYOR does not aim at publicizing and flaunting the rich, but aims at interpreting and enhancing the charm and connotation of the executive leaders. Using the styles and quality standards of the top international brands, it provides classic consumers with a subtle, low-key and luxurious fashion style for the target consumers.


    Among them, the most famous brand is Hemu family brand. This CHIC, hemp family shows the products of hemp family and hemp culture with the theme of lifestyle.

    Each series of products has retained the original ecological characteristics of hemp fiber. It is simple and straightforward, and pursues the life of returning to simplicity. At the same time, it expresses the elegant sensibility of life with subtle, elegant, simple structure lines and exquisite fabrics.


    Li Rucheng's explanation for the 5 brand exhibition of YOUNGOR is that several brands have their own connotations and blood ties. The reason why they are put together is that some brands haven't grown up yet and want to eat the "YOUNGOR" milk. At present, they are still in the "blood pfusion" period, and the next step is the independent operation of the brand.


    Repaying huge sums of money to return to main business


    It has been a whole year since I saw Li Rucheng on 2011CHIC. Li Rucheng recalls the whole 2011.

    He admitted: in 2011, YOUNGOR, like other enterprises in China, had a very memorable and difficult year, and two of YOUNGOR's three carriages (textile, clothing, finance and real estate) were trapped.

    But in general, it is much better than expected, much more than many peers, because the risk of YOUNGOR can be controlled.

    Some real estate developers want to liquidate and close down, but YOUNGOR does not exist; some financial investments are in deficit, and fortunately, YOUNGOR is also profitable.


    In Li Rucheng's own words, the two financial crisis has been very helpful to YOUNGOR since 2008.

    Because, if there is no financial crisis, YOUNGOR will continue to increase regional investment in real estate and financial investment.

    It is the financial crisis that inspired us in a timely manner and realized that the strength of YOUNGOR is still the clothing industry, thus changing from the trend of multiple expansion to brand operation.

    From the present point of view, not only in our domestic counterparts, our strength will be stronger than that of the general enterprises, but also in the international arena, we will get the favor of some multinational enterprises. Recently, we have talked about brand mergers and acquisitions and strategic cooperation.


    In fact, as early as the 2008 financial crisis, Li Ru's achievements have vaguely foreseen that China (including the world economy) will face major adjustments, so YOUNGOR will focus on the brand, set up 5 brand studios, and invest heavily in improving market channels.

    In 2011 alone, it invested nearly 1 billion 300 million yuan in 15 new proprietary stores.

    Therefore, we can see that in 2011, the YOUNGOR clothing sector maintained more than 20% growth in the domestic market.

    In Li Rucheng's plan, we are ready to invest 3 billion in the channel construction of YOUNGOR's main industry, because YOUNGOR's channel 40% depends on self owned stores.

    Of course, Li Rucheng also said: this 3 billion is only predictive, not very clear, if there is a good opportunity to buy a big brand, it may still be more than 3 billion yuan.

    For the strategy in the field of Finance and real estate, Li Rucheng also reflected in time. He thought that he had made unsuccessful strategies. For example, the proportion of YOUNGOR's profit sources was 532: financial investment 50%, real estate 30%, textile and clothing 20%, which led YOUNGOR to invest its financial investment which was not strong in itself as an exploratory industry.

    The next step for YOUNGOR to do is to broaden our thinking and do other areas such as finance, but not necessarily as an industry.


    Do LV or POLO?


    In recent years, every time Li Rucheng faced the media, it was actually a public relations. Even being careless, it was easy to become a crisis public relations.

    For example, in the face of some media queries, "the problem that YOUNGOR is facing now is not the diversification strategy, but the professionalization of diversification."

    Some journalists even think: "YOUNGOR's related diversification in the field of clothing is not good enough. We should focus on international enterprises, such as Europe and America, especially European luxury brands, which have fully derived related fields. We should have a lot to do in the depth of brand image and cultural connotation."


    Fortunately, Li Rucheng has developed the habit of interpreting his research on YOUNGOR's strategic direction in a calm way. For many years, the main business has already provided him with enough experience in the operation of Chinese style clothing brand, although some experiences seem too low key and too cautious in the eyes of media reporters, but as Li Rucheng said, "now the central policy is also moving forward steadily, leaving many sequelae too fast.

    The reason why YOUNGOR wants to maintain 15% growth every year is to build the channel well, follow up product research and development capability and team building simultaneously, and strive to enhance the brand.

    This is a more rational and mature management method that we have summed up after years of operation. It is not conservative. "


    In Li Rucheng's research, the real big names, such as Zegna, Armani, BOSS, etc., because of high operating costs, high market prices, and low actual sales, are basically not profitable.

    The truly profitable ones are more popular brands, such as POLO and ZARA.

    Looking back at YOUNGOR, the actual gross profit is above 65%, basically flat with LV, and sales profit margin and return on investment are above 20%.

    Many high tech industries now have a gross profit margin of only 17%.


    At the same time, Li Rucheng made a sharp contrast between POLO and LV.

    He believes that POLO has many brands, such as green leaves supporting POLO's main brand, the light shirts can be sold from $20 to $200, and the entire POLO can retail in the US for 10 billion dollars.

    LV seems to have only packages. Actually, LV has forty brands, specialized financial investment groups for brand acquisitions, but 50% of its profit and sales ability comes from bags, and 50% of its profits come from its champagne wines. Many other brands are actually losing money.


    Therefore, in the brand operation, Li Rucheng thinks that YOUNGOR can learn from POLO's practices, not necessarily to be specialized, but the span can be larger.

    At the same time, YOUNGOR can learn from LV group's acquisition of some luxury brands through a large number of acquisitions and mergers.

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