Interview With Chairman Wu Zhize

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Last year, the 2 billion 23 million operating revenue was the base, and the strategic goal of ten billion in 5 years must guarantee a compound growth rate of about 40% per year.

"We have broken this compound growth rate last year, achieving a year-on-year growth of 60.85%."

Wu Zhize told reporters that despite the challenges faced by many markets last year, we believe that the news birds have found room for growth through the development and strategy of "factor driven to efficiency driven environment".

The bottom line is getting more and more: in the first quarter of 2012, the news birds achieved 553 million operating income, an increase of 57.8% compared with the same period last year, while net profit reached 53 million year-on-year growth of 46.7%.

In Japan's "recommendation" rating, it even predicted that the growth rate of the 2012~2014 year's business revenue will reach 65.58%, 59.03% and 47.20% respectively.

It seems that the dream of "billions of dreams" may even fall ahead of schedule.

However, in the sharp increase in performance and the market "to send roses", Wu Zhize believes that the strong position of the bird's market is still far from being reached, and the impact of the overall economic downturn on the company is also faced.

"1+3" efficiency standard

Reporter: how does the development and strategy of "factor driven to efficiency driven environment" put forward by the wedding birds?

Wu Zhize: Company

After nearly 30 years of development, it now has 6 original brands and 3 agency brands.

Of course, each brand's development speed and business performance are different, there are better and less mature ones.

So many brands, how to coordinate development, to bring into full play the advantages of integration, to achieve maximum scale and efficiency? This is a problem we need to solve now.

Now, the most important thing for us is to clarify strategies and find the right direction.

Since 2011, we have carefully reviewed the strategy.

First of all, we have set a general goal, that is, by 2015, we will become an influential multi brand and multi series leader in the industry.

Specifically, it has 15 brands, more than 5000 outlets, more than 10 billion yuan in sales, and a profit of over 1 billion yuan.

Among them, the three main brands of the wedding bird, Saint Angelo and Bao bird should stabilize the top three occupying the fine molecular industry, and the other brands must enter the top five in the fine molecular industry.

Therefore, the goal of achieving "ten billion" in 2016 is actually one year ahead of schedule.

Reporter: according to SWOT analysis, to achieve the strategic goal of "10 billion", what is the biggest problem existing in the wedding bird and how to solve it?

Wu Zhize: let's talk about advantages first. As a listed company, we have a high price earnings ratio. In addition, through years of accumulation, we have formed a management mode suitable for multi brand operation in financial management, human resources and strategic planning.

But if we develop towards a higher goal, we will have shortcomings.

For example, the operation and monitoring needs to be further improved, and there is an internal competitive consumption among the brand departments. In the future, resource relations between the brands need to be improved and properly configured to achieve maximum utility.

What is the opportunity? From the macro perspective, on the one hand, the State encourages the dominant enterprises to carry out industrial integration and become bigger and stronger. On the one hand, the growth of China's GDP and clothing demand and market segmentation provide the foundation for the development of multi brand and multi series.

From the microcosmic point of view, the news birds get the opportunity to learn and communicate with world-class enterprises by acting as part of the international brands, and can learn from the practices of international brand R & D, supply chain management, channel and terminal management and brand management, so as to lay a good foundation for their future internationalization.

Reporter: if you analyze, when external factor drives stop, then we should turn to "efficiency drive".

Then, how does the wedding bird cultivate the new intrinsic factor of efficiency?

Wu Zhize: from the perspective of brand management, we put forward the "1+3" standard, which is a systematic mechanism for cultivating efficiency.

The "1 criteria" is to establish brand management standards in terms of products, prices, channels, promotions and so on.

According to Trout's positioning theory, the higher the probability of brand positioning in brand, product, price, channel, promotion and so on, the greater the probability of success, the stronger the brand's sustainable development ability.

The 3 criterion is to establish a unified standard of R & D system, supply system and marketing system.

In the R & D system, the key is to follow the rules of product development, such as "color development, fabric development, edition development, style development", and gradually improve the R & D system.

At the same time, according to the series of brands, a series of development models are formed, and the whole system of product planning is established.

In the supply system, the supply chain flexibility will be enhanced through the fabric pre investment, batch order, quick filling order and self built small running water, and the pformation of supply system from ODM to OEM will be promoted.

In the marketing system, we should identify the categories and definitions of strategic stores, image stores, performance stores, and loss shops, and at the same time lean resources to excellent agents, and encourage agents to "store more stores in one city" to improve the coverage of the local market.

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Brand matrix carrier

Reporter: whether the company's brand matrix, whether it is reasonable, whether it has been supported by the company's resources?

Wu Zhize: we have made strategic considerations in building the entire brand matrix.

According to the idea of "integrating superior resources and innovating development mode", according to the principle of "mutual integration of brands of the same consumer group and the mutual learning of the same style brand", a strategic thinking of "3+1" has also been formed.

Among them, "3" refers to 3 plates, such as high-grade, middle and high grade, young fashion business dress, and so on. "1" refers to the "Bao bird" brand business attire.

The layout of the whole "3+1" is like building an aircraft carrier battle group, such as the wedding bird brand is an aircraft carrier, and the other brands may be frigates or cruisers.

Therefore, there will be high growth in some brands, and some brands are just defensive. They do not necessarily have to pursue high profits.

Nevertheless, we require all brands to achieve the best market development, but if we have five fingers, we will still have the same length.

Last year, for example, "good news bird" and "San jilo" bear most of the profit contribution, network expansion is more ideal; "Bada Sari" brand image has been improved, inventory control is effective; "treasure bird" Anhui factory capacity needs to be stabilized and improved; "bilutt" performance is lower than expected; "flange sunderton" failed to achieve financial goals and market goals.

Among them, some brands exposed problems, we hope to control and solve as soon as possible.

Reporter: this year, the good news bird put forward the strategy of "big shop project" and "giant plan". What do they mean? What is the role of the whole company strategy?

Wu Zhize: the goal of "billion" can not be achieved without the contribution of agents. However, the current cost of agents is increasing, mainly in store rentals, especially in the mainstream urban commercial areas. In recent years, the increase has been too high, which has depressed the profit margins of agents.

For this reason, we hope that the agent will move from the main business circle to the sub business circle. After the relocation, even if the rent is equal, the storefront may expand multiple times, and at the same time, it can accommodate many brands of the wedding bird.

This "big shop project" is good for the interests of agents.

As for the "giant plan", this is because our original agent system has "scattered and many" phenomena, and agents have formed competitive internal friction in the same area.

Now, we support all excellent agents in the region and encourage qualified agents to do more than 10 stores in the same area.

At the same time, we suggest that these agents change the pattern of "husband and wife store" in the past, gradually introduce professional managers, and truly enter corporatization through team building.

According to this idea, a scale agent may break from 10 networks to 20, or even more.

Reporter: last year's bulletin showed that the 123 million stake of the good news bird had a pressure of about 300 million yuan in exchange for funds of about 300 million yuan to increase the liquidity of the company and promote the "giant plan". In addition, the accounts receivable increased by 172% to 717 million over the same period last year. A large part of it was used for the "giant plan", which increased the outflow of funds and caused the risk of accounts receivable. How could the company balance the contradiction between risk and market input?

Wu Zhize: according to the static analysis of securities companies, we will not do business.

Business must be "wealth and risk".

Of course, we have strict risk assessment and monitoring standards.

What I need to tell investors is that in June 14, 2012, we announced the notice of hypothecation.

Later, why do we dare to use capital to support the "giant project"? That is to say, now is the best time.

Because of the market downturn and the panic of people, this stage will help us to invest and support distributors in the long run.

Stock ownership in a family.

Reporter: the news bird group has announced the direction of the change of stock ownership. Besides the fact that you can not reduce the amount in the next 5 years, you can only increase its holdings. Other founding shareholders should continue to reduce their shares. What is their intention?

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Wu Zhize: This is our internal agreement.

Our company was merged by three family businesses in 1996, which was to complement each other and complement each other in competition.

Today, the situation inside and outside the world has changed.

With regard to the next step of development, we hope not only to achieve the goal of "billion billion", but also to become a centennial enterprise.

How do garment enterprises become Centennial enterprises? We studied the best hundred years brand business model in Europe and America, and found that a good Brand Company has only one soul figure, or even one family, so that the inheritance of enterprises and brands can be guaranteed.

At the present stage, after the concentration of ownership, the decentralization of opinions can lead to unified leadership in the formulation and implementation of the strategy, which is conducive to the development of enterprises.

Reporter: since the merger of three family businesses in 1996, the good news bird has always adopted a professional manager system. Will this affect the professional manager system after the concentration of shares?

Wu Zhize: regardless of the family in the past, or after a family control of the enterprise, but "capital family and professional management" is the basic principle of the company, which will never change.

I remember Liu Chuanzhi said that an enterprise must first clarify its owner relationship if it wants to do well.

This time, we are engaged in the equity adjustment, in order to re clarify the relationship between the owners, not involving the professional managers team.

On the contrary, we need to absorb more and better professional managers.

Reporter: in terms of efficiency drive, the pformation challenge faced by the birds is more equivalent to the two venture. But does the existing manager team have the quality and ability of the founder?

Wu Zhize: Ma Mingzhe, chairman of China Ping An, has an interpretation of different stages of the enterprise. It is said that enterprises rely on heroes when they are young.

Why can peace be bigger? Why do we not fear managers coming in or out? Because it has a platform.

Whoever enters the company must comply with the enterprise platform.

The same is true for birds.

Since 1996, we have explored the professional manager system. To date, we already have a mature management mode.

I do not expect every professional manager to endure hardship and produce strong leadership as I did in my early business. But as long as we enter our platform and implement strategies strictly, we will finally ensure the sustainable development of enterprises.