Cross Border And Diversified Development Of Garment Enterprises

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In the meantime, the discussion has not stopped for a certain degree of clothing enterprises to choose the diversification development of cross industry, or to focus on the development of the main garment industry.

Some garment enterprises have developed rapidly with the industry outside the clothing industry, and some garment enterprises have also been involved in the non main industries.

Clothing enterprises seek new profit growth points in a diversified way. It is not uncommon to include real estate, equity investment and new energy industries.

It is with those non main businesses that the relevant garment enterprises seem to accumulate more wealth in a shorter time, and the garment enterprises have also gained rapid development.

YOUNGOR, a leading apparel company in the domestic apparel industry, is a typical example of diversified industries.

YOUNGOR is a private clothing enterprise in Ningbo, Zhejiang. It started with clothing and textile business in the early days, and then vigorously expanded its real estate business and equity investment, pulling itself forward with the three carriages of "clothing, real estate and investment".

In 2009, at the peak of China's real estate market, YOUNGOR's real estate business accounted for 42% of the company's overall revenue.

In 2010, the contribution of YOUNGOR's real estate industry to total business revenue reached 47%, and its contribution rate was almost half.

However, due to the most stringent real estate regulation in 2011, YOUNGOR lost 3 billion 234 million yuan in real estate delivery due to project cyclical factors, and its revenue and operating profit dropped by 46.94% and 32.12% compared to the same period last year. The cash recovery rate slowed down, and the inflow decreased by 2 billion 526 million yuan compared with the previous year, while the payment of land, project and various taxes and fees increased by 2 billion 304 million yuan over the previous year.

Li Rucheng said earlier that the performance of YOUNGOR's real estate business in 2011 only accounted for 1/3 of the expected value.

From the perspective of equity business, in 1999, YOUNGOR invested 320 million yuan to get 9.61% of CITIC Securities, becoming the second largest shareholder of CITIC Securities, and YOUNGOR's equity investment took the first step.

YOUNGOR's 2009 annual report shows that the company holds shares in 14 listed companies such as CITIC Securities, with a total investment of 4 billion 670 million yuan and a market value of 12 billion 600 million yuan.

In recent years, due to the stock market downturn, the company's investment in recent years has been decreasing, investing about 5000000000 yuan in 2010 and investing about 2000000000 yuan in 2011.

But this business still caused great losses to the company: in 2011, the net profit of the company's investment sector dropped by 61%.

It is another leading clothing enterprise in the domestic garment industry. It also started with textile and clothing, and later started other industries which had nothing to do with its main business.

Today, the industry of Shanshan clothing involves six major sectors: fashion industry, new energy and new materials, investment, park development, international trade and cultural industry.

It is understood that in 1999, when the headquarters of Shanshan clothing moved to Shanghai, they began to implement diversification strategy.

At present, the technology of Chinese fir clothing has become the largest domestic garment manufacturer in the world with the most advanced technology and scale in the field of lithium-ion battery cathode, anode materials and electrolyte.

At the same time, Shanshan clothing invested in Ningbo Shanshan clothing science and Technology Pioneer Park, Zhongke Langfang science and Technology Valley and Wuhu biotechnology Valley incubator. It is committed to building Silicon Valley of China, providing strong support and development platform for the growth and development of science and technology clothing enterprises.

There is no right or wrong in diversification. In any country, there are many successful cases of garment enterprises at any time.

Some domestic garment enterprises also carried out cross-border diversification. They achieved success in a certain period. However, due to the domestic policy orientation and other reasons, there was a problem in the main industry at a certain time, but can it be said that it has failed in diversification? I don't think we can draw a conclusion in this way.

Wu Jianmin said.

Wu Jianmin believes that

Under the conditions of a certain degree of scale and risk resistance, corporate governance structure, entrepreneurial team's considerable vitality and sense of innovation, and the integrity of talent team construction, the most clever way for clothing enterprises is to learn some large garment enterprises in Europe, America, Japan and South Korea, and so on. In the way of investment, merger and acquisition, they can use the outside brain to realize the diversification road, instead of clothing entrepreneurs themselves relearn and start business again.