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Li Rucheng: Let The Chinese Brand Go Further

2012/4/10 23:08:00 10

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Youngor

Li Rucheng, chairman of the board, said in a media interview that the financial crisis inspired YOUNGOR to recognize YOUNGOR's strong point or the clothing industry, so as to adjust from 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 industry, but also in the international arena, it has been favored by some multinational companies. Recently, we have talked more about brand mergers and acquisitions and strategic cooperation."

Li Rucheng said.

When it comes to YOUNGOR brand development,

Li Ru Cheng

It said, "YOUNGOR brand has been put into the market since 1991, and has been recognized by the market through more than 20 years of operation. Its market share is also growing. It has maintained more than 20% growth every year. The gross margin of sales is higher than that of any brand in China, and its brand vitality and development prospects are good."

In order to make up for the fact that YOUNGOR's original customer base was characterized by a large number of business personnel, relatively formal, and a certain gap with the public fashion, and based on the consideration of market diversification, YOUNGOR implemented the multi brand strategy in 2009 and created it.

Five brands

。

The main brand YOUNGOR is for the official business crowd; MAYOR aims to build China's tailored high-end brand; GY brand builds the concept world of young people in fashion style; HANP brand originated from Tiancheng, advocating the concept of health and environmental protection; Hart Schaffner Marx inherits the American style of leisure.

In addition, when it comes to how to learn from the experience of international famous brands such as POLO and LV, Li Rucheng said, "in the operation of brands, we can learn from POLO's practices, not necessarily to be specialized, but the span can be larger."

At the same time, we can learn from LV group's practice of purchasing luxury brands through a large number of acquisitions and mergers. "

For this year's situation, Li Rucheng said, will be better than 2011, "because our foundation is relatively solid, brand clothing after 3 years of adjustment, investment, cultivation, next year will begin to have a better development."

Let the Chinese brand go further

Reporter: YOUNGOR diversification strategy is a very wise choice and a particularly good way to mix and match. In terms of diversification of the main industry, should we focus on international enterprises, such as Europe and America, especially the European luxury brands, which have fully derived related fields?

Li Rucheng: from the clothing industry, I think China's overall industry level is still in its infancy, and now there is a distance from YOUNGOR to Europe, no matter in terms of industrialization level, information level, design concept and brand operation.

15 years ago, I saw all the big clothing enterprises in Europe, America and Japan. At that time, I thought blindly that they could surpass them in 10 years.

5 years ago, they moved their industries to Asia - China and Southeast Asia, especially in Nordic and southern Europe. They were very successful in their pformation. They adopted the idea of information technology and design and brand operation to make the brand bigger.

Under the great cultural background of China, the practitioners in the clothing industry, whether management team or marketing team, are deficient in information level and foreign language. Tian Ji's horse racing story is the three category of horses in the industry, because the industry is different from the Chinese people's expectation of value orientation, and outstanding talents are more willing to invest in the financial and IT industries.

In Europe and the United States, the clothing industry managers generally have two qualifications: professional qualifications and management degrees.

The different structure of talents in the industry also directly affects the speed of integration with the international market.

There is still a long way to go for Chinese enterprises to participate in international competition. The media should also give us enough time and tolerance, not to require Chinese enterprises with European standards.

Now the world's clothing industry, the real big brands such as Zegna, Armani, BOSS, etc., because of high operating costs, high market prices, actual sales are not large, basically in a state of no profit.

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%.

CHIC2012 exhibition YOUNGOR exhibition site photos

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Making brand into a cultural industry

Reporter: YOUNGOR has derived from the traditional functional leading brands, such as GY, which is fashionable, young and personalized. The difference between them is very obvious. What are the weak links that are facing the more difficult and need to be solved now? What are the assumptions about the future of GY?

Li Rucheng: YOUNGOR brand has been put into the market since 1991, and has been recognized by the market through more than 20 years of operation. Its market share is also growing. It has maintained more than 20% growth every year. The gross profit margin of sales is higher than that of any brand in China, and its brand vitality and development prospects are good.

In view of the fact that the customer group is characterized by a large number of business people, relatively formal, and a certain gap with the public fashion, and based on the consideration of market diversification, we created the GY brand in 2009.

GY is a supplement to YOUNGOR's main brand in the young series.

At present, our target audience is basically located in the 25~35 age group (the core age is 28 years old and ~33 years old). The young elite group should not only embody the characteristics of youthful vigor, but also conform to the needs of the society for the maturity of the professionals, which is in line with the aesthetic and value orientation of the mainstream social groups.

In fact, we launched this brand, also considered the factors of the change of the domestic population structure. From the end of 90s to the present, the development of sports brand in the industry is very fast. It indirectly reflects the demand of students - high school students and junior high school students. This is just like the American baby boom. It is in the stage of consumption growth. The birth of GY conforms to the needs of the times.

From the perspective of channel construction and brand promotion in recent years, we take East China as the core, and have built more than 100 outlets. This year, sales can be over 100 million, especially in Jiangsu and Zhejiang. Sales in Hangzhou and Yintai can be up to ten million.

Next, we will extend our tentacles to key cities such as Beijing and Tianjin, and promote the development of neighboring cities through image stores and flagship stores.

Reporter: General Li, about the brand of GY, do we have some highly targeted publicity, advertising or marketing strategies?

Li Rucheng: GY and "YOUNGOR" are two separate brands with their connotations and blood ties. They are put together because they haven't grown up yet and want to eat YOUNGOR's milk. At present, they are still in the "blood pfusion" period, and the next step is the independent operation of the brand.

Reporter: General Li, I would like to know the market performance of hemp in the application of civilian products. Can this new industry become our new growth point? Is there any relevant policy support at the national macro policy level?

Li Rucheng: the state has very clearly identified the hemp industry as part of the national "12th Five-Year plan" plan, and approved a hemp Industrial Park in Anhui, indicating that the country's expectations for this new industry are still relatively high.

In 2003, when the hemp industry appeared as a concept, we roughly made a frame: China imports about 700000 tons of hemp from abroad every year. If we can replace half and develop some new markets, if applied to the fields of medicine, food, health care products, decorative materials, fiber and so on, we can reach 1 million mu planting scale, drive hundreds of thousands of farmers to become rich, and bring 100 billion of China's fixed assets.

From planning to completion and commissioning in 08 years, all the production facilities were developed by ourselves.

Groping and growing up, it was recognized by FAO of the United Nations (micro-blog) and won the Innovation Award.

The products we produced were able to equip the general soldiers in 2012. This is a good news and turning point.

Basically flat in 2011, it was profitable in 2012.

It has passed through winter and has entered the spring stage.

At present, there are 22 stores in the whole country, which may reach 30~35 next year.

We are not eager to expand the market rapidly. Instead, we hope to dig deeper into the products and brands and make it more perfect. It will give the society and consumers more unique enjoyment and experience to benefit mankind.

At the same time, I hope more people can participate in the development of this new industry.

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Exploration of "going out"

Reporter: we have been concerned about the "going out" of YOUNGOR in the form of merger. How did YOUNGOR come along? What difficulties did we encounter and how did we overcome it?

Li Rucheng: since 2008, YOUNGOR has spent $120 million to buy new Malaysia. After 3 years of operation, I think we have gained three benefits in this international M & A:

First, the integration of our industrial chain, originally our textile enterprise - Sheng Tai, Japan, its large orders to go all over the world to find, after mergers and acquisitions, formed from upstream to the retail terminal of the integrated operation system, no longer worry about the order.

And we have explored a way for YOUNGOR's internationalized operation. Now we have a sales company in the US, a sales headquarters in Hongkong, and a dozen factories in Southeast Asia, Vietnam, Philippines and Sri Lanka.

These belong to the integration of industrial entities.

Second, we have integrated international resources, and have been supported by the import and export bank through international mergers and acquisitions, lending us $eighty million at low interest rates, splitting it into two through Hongkong's new Malaysia, partly integrating into the textile industry, partly establishing an international financial platform in Hongkong, and melting hundreds of millions of dollars, enabling our capital chain to have international support.

The third and most important thing is that we have mastered some new core technologies of Singapore and Malaysia through the acquisition of new horses, such as YOUNGOR's DP shirt technology, from the new Ma Na, for two years, the development of light shirts has grown by 30%.

After three years of integrated operation, YOUNGOR has not only broadened its horizons, but also has gained worldwide recognition, and has been recognized by international and domestic peers. Now, Goldman and other investment banks often come to us for mergers and acquisitions.

But buying a new horse is equivalent to eating a big dumpling. It needs to digest slowly. After digestion, it will be easier to eat Xiaolong Bao.

Reporter: you once said that you have a dream to build YOUNGOR into a special consortium like LV.

So how do you locate YOUNGOR brand in the future, continue to be a popular brand like POLO, or a luxury brand like LV?

Li Rucheng: POLO and LV are two concepts.

POLO has many brands, such as green leaves, which support the POLO brand. Light shirts can sell US $200 from 20 US dollars, and the entire POLO can retail in the US for us $10 billion.

What we know about LV seems to be only packages. In fact, she has 40 brands, specialized financial investment groups for brand acquisitions, but 50% of the profits and sales capabilities come from packages, and 50% of its profits come from its champagne wines. Many other brands are actually losing money.

In brand operation, we can learn from POLO's practices, not necessarily to be specialized, but the span can be larger.

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

Appendix: introduction of YOUNGOR brand

In March 26th, at the twentieth China International Clothing and accessories fair, which opened in Beijing, YOUNGOR's five major brands focused on the latest product line.

YOUNGOR: three series of exhibitions

This Beijing clothing festival, YOUNGOR brand in 380 square meters of large exhibition hall through the business dress, business leisure series, urban leisure series and other three series of exhibitions, focuses on the brand to upgrade functional products and product quality improvement and brand in the future development of the following aspects:

1. Upgrading of functional products.

In recent years, the brand has joined YOUNGOR's industrial chain, and has continuously upgraded the quality of functional products through the improvement of DP technology, technology upgrading and equipment renewal, and launched the upgraded version of DP shirt series.

At present, driven by DP shirts, crease resistant suits and DP trousers have gradually become the core products of YOUNGOR brand, and have been recognized by the market.

In addition to continuing to upgrade the two functions of "ironing and wrinkle resistance", the brand has also intensified its efforts to study hemp products and launched "environmentally friendly" products to become the third functional products of the YOUNGOR brand in the future.

2, product quality improvement.

YOUNGOR has always promoted product quality as the basis of brand.

To enhance the quality of raw materials, the studio cooperates with Italy's top fabric brands Ermenegildo, Zegna, Cerutti1881 and E-THOMAS.

In the production, we are striving for perfection. We adopt semi woolen lining technology, from the edition, lining, technology and so on to create the western style boutique line and improve the quality.

3, the expansion of brand series.

The YOUNGOR brand is mainly business oriented. Based on the emphasis on the core business products such as suits and shirts, the business leisure series and urban leisure series are launched timely according to the needs of the market and customers.

While maintaining the classic style of YOUNGOR, new classic products are launched to attract younger fashion customers and make brands more vitality.

GY: past and present through NEWYORK

As a rookie in the YOUNGOR family, GY inherits the brand genes of YOUNGOR men's material, such as exquisite material, excellent quality and elegant connotation. It is located in the young fashion crowd of the city. It integrates the popular hotspots in the metropolis of the world, and provides the fashionable new business Commuter Series and the urban leisure series dress for the 25-35 year old, confident and enterprising City cutting-edge male with the precise cultivation and tailoring and mashup.

At this Expo, GY combines the elegant and meaningful impressions of New York's past life with the fashionable and fashionable Street trend in the modern age. More than 30 sets and 100 designs are displayed in the exhibition, with a strong influx of flu in the classic style, cutting back the ancient feelings with the material of the future, following and creating, classical and fashion, color and material.

In the change and contrast, different design elements, through hierarchical arrangement, seem to shuttle in the past and present life of New York style, so that visitors can have a deep understanding of the trend of men's clothing in the future.

In the modern business series, the black and white and blue blue color system is used to re interpret the 70s classic coat, suit and shirt with different methods such as segmentation, gradual change, and heterogeneous inlay, and explore more possibilities. At the same time, we should pay attention to the precise tailoring, make the profile lines sharp and smooth, outline the handsome and capable City talents, and add a large number of military elements to the men, adding some hardness and perseverance to the elegance of men.

The urban leisure series, using the fashionable khaki and black coloring system, is a new variation in the classic nostalgia. It includes a colorful leather jacket, a washed wool suit, a knitted jacket, a commuter shirt, a khaki little Haren pants, and so on.

The elegant outdoor series, including lightweight down coats, leather stitching jackets and pattern sweaters, has broken away from the dull and dark colors of autumn and winter. With the confidence of royal blue and strong bishop red, the geometric / national wind patterns, rich process details and diversified materials interlaced, showing the subtle but changing charm.

HSM: Gary Grant's gentleman's journey

Hart Schaffner Marx, the Centennial brand of the United States, is the best interpretation of American gentlemanly manners. Its clothing is a symbol of quality and identity, and is regarded as an outstanding example of business men's wear.

Gary Grant is a VIP customer in the history of Hart Schaffner Marx. He is also the most classic gentleman figure in Hollywood. He often wears stranded knitted tennis shirts, woolen long neck T-shirt, Johnny's French beach sweater sweater and Breton stripes, and casual cotton trousers or wrong trousers.

Today's Grant style also tends to be a formal jacket with casual pants or cowboys to reflect a sense of cynicism and sophistication.

His maturity has left an indelible impression on today's whole male stars and the men's clothing industry.

Grant once said, "everyone wants to be Gary Grant, including myself."

Hart Schaffner Marx is promoting Grant's lifestyle and dressing concept: no matter what the occasion is, men's clothing should be comfortable and unfettered, casual and casual. Every appearance is outstanding because of excellence.

Grant's formal dress, leisure and home decoration are the epitome of the three series of HSM brands.

The HSM will be modeled on Grant. It will try to depict the 35-50 year old gentleman's multi-faceted picture of life, presenting the gentleman fashion of 2012 autumn and winter.

The elite series: black and white gray tone, suit suit, single west, formal shirt, western style coat is the main product of HSM, and is built on semi formal business occasions.

Urban Series: in the three series, it has the largest proportion, then the west, jacket, cotton clothes, casual trousers and business cowboy. It pays attention to the texture change of fabric, the style is richer, and more attention is paid to the practicality.

Life Series: washed, checked shirt, washed jeans, warm natural materials, such as cotton, wool, cashmere, and more emphasis on American style.

MAYOR: private fashion consultant

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

Taking public service and administrative leaders as the service targets, drawing on the leading men's design trend of thought, using the world's top men's special fabrics and volume customization technology, we build high-end suits and casual wear.

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.

The MAYOR brand provides intimate one to one housekeeping service. It is committed to becoming a high-end fashion consultant and wardrobe expert for high-end personages. It uses the world's top cashmere, ultra-high count wool, imported mink hair and mink hair and other accessories to match the customized version suitable for its physical characteristics. Each customer enjoys exclusive designer one to one service, one person, one edition, individually tailored, size measurement of nearly 20 parts, 60 hours of elaborate production, and a large number of manual processes, and 300 more processes.

Hemp: Museum Quality

It is a slow life to satisfy the traced source of life. It rests in a state of origin, but without quality and delicacy, it presents a museum like state.

This way of life is very precious. It is simple in urban life and keeps its classics and luxury.

This clothing festival, Hemu family, shows the products of hemp family and hemp culture on the theme of the museum's lifestyle.

Each series of products keeps the original ecological characteristics of the hemp fiber, shave and rough, and pursue the life of returning to nature. At the same time, it uses subtle, elegant, simple structure lines and exquisite fabrics to clean the face to show the elegant sensibility of life.

The products are all the core products of hemp family, each of which has been carefully designed and manufactured. It is easy to get rid of rustic, return to rustic, make full use of the characteristics of hemp, emphasize the comfort of wearing and the rationality of structure.

To a great extent, it embodies the brand concept of "nature, health, art and quality" of the hemp family, and conveys the cultural connotations of the coexistence of brand fashion and simplicity, so that every visitor can experience a spiritual baptism and slow life interest from pure natural plants in the bustling urban life.