Zhou Chengjian: Insisting On Making Clothes Only

Among the large group of Zhejiang businessmen,

It is a different kind - the United States has not yet set foot in the real estate industry, nor has it invested in the stock market. The tailor's chairman insisted on making clothes.

When other entrepreneurs think that the clothing business is difficult to grow,

Clothing revenue in 2010 has reached 7 billion 500 million yuan, compared with 2005, the revenue growth of 717.88%. If only compare clothing business, the apparel revenue of American bond clothing has surpassed YOUNGOR, becoming the boss of Chinese clothing enterprises.

The boss will also make mistakes. Zhou Chengjian does not deny that he has made several aggressive mistakes, not only in front of shareholders but also in the media.

"Me&City" is a case often used by Zhou Chengjian to remind himself that he does not want to be quick and aggressive.

In August 2008, when the Shenzhen stock exchange was officially launched, it also launched the sub brand "Me&City".

According to a senior apparel industry, a new clothing brand is usually a year's deficit, two years flat, three years to win, a new brand to make money a year, this is impossible, especially when the new sub brand is different from the original brand.

At the beginning of its creation, the American state dress had set the sales volume of Me&City in 2009 at the scale of 2 billion yuan. In fact, in 2009, Me&City's business income was only 350 million yuan. In 2010, the sales volume of Me&City increased to 690 million yuan, but still far below the target value of 2 billion. At present, Me&City is still not profitable, and how to realize the breakeven of Me&City is a problem that Zhou Chengjian urgently needs to solve.

Zhou Chengjian believes that the "Me&City" experience in the past three years is of great value, and the pursuit of scale should not be the top priority for enterprises. He said: "from today's analysis of Me&City, it is not the first time to go to a large scale shop, and second do not expect to become hundreds of millions of dollars overnight. That is to say, the pursuit of one hundred million to two hundred million in 2008, three hundred million to four hundred million in 2009, five to six hundred million in 2010, and the pursuit of seven to eight hundred million in 2011, which is more insurance; but in 2009, it is going to be 2 billion, which is a great investment. The fact is not yet achieved, but the cost is there, and the income is not achieved. The root of the problem is that there is not enough risk awareness."

Another case is that in September 2010, the United States and the clothing store outlets grew to 80%~90%, including Zhou Chengjian, the United States apparel executives predicted that in the fourth quarter of 2010 and the first quarter of this year, the comparable growth of the same store could reach 100%, so that the United States and costumes greatly increased the number of orders. However, the unexpected climate warming at the end of 2010, coupled with the late arrival of the spring this year, has led to the collapse of the plan and the increase in the amount of apparel in the United States.

In 2011, a quarterly report showed that the amount of apparel inventory was 3 billion 160 million yuan, an increase of about 600 million yuan over the 2 billion 550 million yuan early this year, and Zhou Chengjian admits that according to the annual sales scale of the US state, the amount of inventory controlled at 1 billion ~15 billion yuan is a reasonable level.

For more than 1 billion 500 million of the inventory how to digest, Zhou Chengjian believes that we should strengthen the supply chain management of American Apparel, the goal of performance growth should not simply consider the growth level before the season, but should grasp it dynamically.