Garment Industry Cross Industry Diversified Development PK Deep Tillage Main Business

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In the industry, this kind of discussion has not stopped for a certain degree of enterprises to choose diversified industries to develop diversified industries, or to focus on the development of main industries of deep tillage.

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.

Cross border and diversified development of garment enterprises

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 whole enterprise has also gained rapid development.

YOUNGOR, the leader of the domestic garment industry, is a typical example of the diversified development of the industry.

YOUNGOR is a private enterprise in Ningbo, Zhejiang, with early clothing,

Business started, and then vigorously expanded real estate business and equity investment, with "clothing, real estate, investment" these three carriages to promote their own progress.

As early as 1992, when housing reform just started, YOUNGOR had already had its first real estate company, YOUNGOR real estate, and began to test the real estate industry.

Looking at the rate of rising housing prices in recent years, it seems that YOUNGOR entered the industry early in the morning and seemed to be a good choice.

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 deliveries due to project cyclical factors, and its revenues and operating profits dropped by 46.94% and 32.12% compared with the same period last year.

The rate of cash recovery slowed down, the inflow decreased by 2 billion 526 million yuan over the previous year, while the payment of land, works and taxes and fees outflows 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%.

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

Today, the industry of Shan Shan 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 moved to Shanghai, they began to implement diversification strategy.

At present, the technology of Shanshan has become the largest domestic manufacturer in the field of lithium ion batteries, anode materials and electrolytes, and ranks among the top three in terms of technology advancement and scale.

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

In addition, Shanshan has actively entered the financial field, becoming a strategic investor of many financial institutions such as Ningbo bank and Huizhou Merchants Bank, and has successfully invested in securities, futures and insurance fields.

Shanshan has established more than two private equity funds through joint venture, and has invested in the market.

Shanshan also actively entered the field of trade circulation. For example, Ningbo Airport Logistics Co., Ltd., which is controlled by Shanshan, is a state level bonded port area approved by the State Council. It has been granted direct clearance and is becoming the leading integrated logistics service provider in China.

Moreover, the projects of the oorlies jointly invested by Shanshan Group and Japan Mitsui realty Co., Ltd. are also expected to become another important project for the development of Chinese fir.

The third quarter performance report of Shanshan, which was released shortly ago, showed that the company's lithium battery material industry achieved a net profit of 67 million 10 thousand yuan during the reporting period, down 8.56% from the same period in 2012.

Investment business achieved net profit of 48 million 770 thousand yuan, an increase of 42.43% over the same period last year.

Some analysts believe that although the company's lithium battery material net profit has decreased, but due to the first half of 2012 lithium battery industry performance in general, while the price of lithium cobalt oxide cathode material continued to decline, the company's lithium material business performance is relatively normal.

For the ups and downs of enterprises on the diversification road, Shandong sulang clothing

Wu Jianmin, chairman of Limited by Share Ltd, believes that there are many successful examples of cross industry diversification, such as MITSUBISHI, Mitsui, Itochu and other enterprises in Japan.

There is no right or wrong in diversification. Any country has a successful case of diversification in any period.

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 enterprise scale and ability to resist risks, corporate governance structure, entrepreneurial team with considerable vitality and sense of innovation, and the integrity of talent team, the most intelligent way for enterprises is to learn from a number of large enterprises in Europe, America, Japan and South Korea. In order to diversify the road by means of investment, mergers and acquisitions, instead of entrepreneurs themselves, they should start learning again and start from scratch.

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Do the main business

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 set up 5 brand studios, namely, MAYOR, YOUNGOR, GY, HANP (hemp family) and Hart Schaffner Marx.

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 has provided solid technical support for the development of YOUNGOR brand.

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, YOUNGOR, Hart Schaffner Marx, HANP and MAYOR, GY all settled in.

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.

The strategy of diversified development of Shanshan in the fields of science and technology and investment has also been criticized by "deviating from the main business".

But in March this year, the 10 most important brands of Shanshan gathered on the stage of CHIC (China International Clothing and Fashion Fair) to arouse the audience's memory of the "Shan Shan special hall" years ago.

During CHIC2012, the reporter held an in-depth conversation with Li Qiming, vice president of Ningbo Shanshan Limited by Share Ltd.

Li Qiming said that the collective appearance of Shan Shan shows that its "multi brand and internationalization" strategy has entered the upgrading stage.

One is to start the peak strategy.

That is to say, Shanshan should be more high-end in the commercialization and seek the cooperation opportunities of top brands worldwide.

Through in-depth cooperation with the world's top brands, we will enhance the influence of Shan Shan's clothing brand as a whole and set up the benchmarking position of fir in the high-end fashion business circle.

The two is the strategy of scale development.

Shanshan will focus on the positioning and target consumer groups of the existing brands, make the market stronger and bigger, and continue to introduce international brands with large-scale development potential, extend the product line to the fields of fashion, leisure, women's wear, children's wear, etc., and carry out scientific planning and establish an entire healthy brand echelon.

The three is channel upgrading.

In addition to cooperation with Itochu, the operation of the outlets is a typical example of the upgrading of Shanshan plan channel.

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 industry clothing, there is a bigger idea for the Chinese fir: it has long abandoned the original idea of selling clothes and clothing to survive and develop, and by using the advantages of international resources, such as originality, joint venture, agency and authorization, will operate a complete brand tier in the Chinese market and become a truly "global brand integrated carrier".

Let's take a look at the Jiangsu red bean group.

The enterprise is also a leading enterprise in the domestic garment industry. The product of the enterprise has developed from the original knitted underwear to the four major fields, such as clothing, rubber tire, bio pharmaceutical, real estate and so on, and the industry has diversified management pattern.

In the four major industries of ormosia, each industry only makes one point, concentrating on resources at one point.

For example, the rubber tyre industry of the red bean group specializes in the mining tires of all steel radial tires. At present, the production capacity of the red bean all steel radial tire has reached 4 million sets, and the biological medicine industry specializes in the Taxus anticancer medicine, which is said to have broad market prospects.

Zhou Haijiang, the rudder of red bean, understands the diversification of red beans as "incremental diversification", that is to say, with the money left on hand, we can not find investment channels and methods in the existing fields with the existing experience, and only expand the new industries.

An important feature of "incremental diversification" is that it does not squeeze the investment of main industries, but does not abandon its main business. It mainly depends on whether enterprises have extra funds to invest.

So far, the main clothing of red bean still accounts for 50% of the group's total revenue (part of the listed company is only part of the garment industry).

Zhou Haijiang formulated a development strategy for the red bean group, which is "relatively diversified and highly specialized".

Under the leadership of Zhou Haijiang, we have identified four major industries: textile and clothing, rubber tires, biological medicine and real estate.

At present, the growth of the three businesses of rubber tires, real estate and biomedicine has brought a huge complement to the overall revenue of the red bean group, accounting for 30%, 15% and 5% of the group size respectively.

In the interview, Wu Jianmin also said that in the future, he would take the road of "professional specialization and diversified investment".

"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.