Garment Industry: Main Business And Diversified Development

Perhaps diversification is a double-edged sword. It can bring wealth to enterprises. But if we grasp and balance poorly, diversification can also drag down enterprises.

YOUNGOR group 2011 Annual report shows YOUNGOR's

The operating profit rate reached 65.66%, while the profit margin of real estate development was only 44.75%.

At the same time, the total operating income of real estate development is not high, which is 3 billion 373 million yuan, 440 million yuan less than that of brand clothing.

In the face of pressure, Li Rucheng has also expressed many times that he will pay more attention to the development of the main garment industry. "In China, financial investment is a new industry, YOUNGOR can participate in it, but it can not be used as the main industry, and real estate is regulated year after year. In this case, we must" return to the core ". It was three legs walking at the same time, now it is clothing industry, and the other two industries are deputy.

In 2009, YOUNGOR established 5 brand studios, namely, MAYOR, YOUNGOR, GY, HANP (hemp family) and HartSchaffnerMarx.

Up to now, the operation of the 5 brands has achieved initial success.

In 2009, the YOUNGOR clothing sector achieved 3 billion 300 million yuan in domestic sales and 4 billion 500 million yuan in domestic sales in 2011, and entered a period of rapid development.

R & D innovation is

Development has provided solid technical support.

In January of this year, YOUNGOR invested 450 million yuan and opened a flagship store with a building area of 2000 square meters in Hangzhou Wulin commercial circle. Its five major brands, including YOUNGOR, HartSchaffnerMarx, HANP, MAYOR and GY, were all registered.

This is seen by many as a sign of YOUNGOR's return to its main business.

YOUNGOR held its YOUNGOR, GY and other brands in Ningbo international apparel and Fashion Fair.

Meanwhile, on the day of the opening of the Ningbo fair October 25th, YOUNGOR renovated YOUNGOR store, which has nearly 10 years of history, rebuilt 40 million yuan in the Tianyi business circle.

YOUNGOR, the world's largest flagship store, has a business area of nearly 5000 square meters, bringing together five brands of different styles.

It is understood that in the past two years, YOUNGOR invested about one billion, and has built many large flagship stores in Beijing, Hangzhou, Shanghai, Xi'an, Shenyang and other cities with a business area of more than 1000 square meters.

The construction of this large flagship store can be regarded as a manifestation of YOUNGOR's tamping of the garment industry.

It can be seen that the operation of the clothing section is still very important.

A few years ago, Zheng Yonggang's true feelings may explain more about Shan Shan's love for the clothing industry: "in my mind, clothing is the core industry, and technology and investment are two wings."

I have the deepest feelings for clothes. I am an investment decision maker in other industries.

In other industries, clothes are the fastest and most expensive, but they just smile. "

However, for the main garment, there is a bigger idea for the Chinese fir: it has long been abandoned by selling clothes and making clothes.

In order to survive and develop, we should use the advantages of international resources, such as originality, joint venture, agency and authorization, to operate a complete brand echelon in the Chinese market and become a truly "global brand integrated carrier".

In the interview, we should take the road of "professionalization and diversification of investment" in the future.

"My personal focus is on the development of clothing upstream and downstream, mergers and acquisitions, mergers and acquisitions, etc., and other cross-border diversification is more about using capital as a lever instead of going in to start learning from scratch.

He will learn from some consortia in western countries such as Europe and the United States, and achieve cross-border development through equity participation, so as to gain favorable development in other industries and promote the development of the main industry.