Clothing Brands Integrate Global Resources - Demand Profits From Both Sides Of The Smile Curve

in China spin Ruyi Group ranked the fourth in the list of the top 500 competitive textile service enterprises in China from 2012 to 2013 recently released by the Industry Federation, setting a new record. In recent years, when the performance of similar textile enterprises declined or even went bankrupt, Ruyi Group became popular against the trend: in 2012, the operating revenue exceeded 30 billion yuan, and the total import and export volume exceeded 1 billion dollars; It ranks 304 among the top 500 Chinese enterprises and the top 10 in the transnational index of China's top 100 multinational companies, and is honored as one of the leading enterprises representing China's textile industry to the world.

"The textile industry that Ruyi Group is engaged in has always been the oldest and most traditional industry, but this industry is facing an important historical transformation period." Qiu Yafu, chairman of Ruyi Group, believes that the transformation period will bring infinite opportunities and possibilities. Find the right direction for transformation and make timely transformation, so that we can achieve curve transcendence in the "textile", the oldest arena.

Integrate global resources - demand profits from both ends of the "smile curve"

The manufacturing terminal value chain of the textile industry is a "smile curve". The highest point on both ends is raw materials and brand retail, and the lowest point is high-end manufacturing, which means that it is not advantageous to gain profits only by manufacturing.

Since 2011, Ruyi has started to implement brand operation and strive to transform into a fashion industry group. Today, Ruyi Group has launched Royal Ruyi, Indiron and other series of brands, opened image stores and specialty stores in major cities in China, and carried the banner of a top luxury brand with original technology and fashion voice.

The transformation to the international trade of raw materials is another direction Ruyi aims at. In the whole manufacturing process of textile fabrics, the cost of raw materials has accounted for 70% of the total cost. "And 70% of them are controlled by a few developed countries in Europe and the United States, leading to the monopoly of most values." Qiu Yafu believes that raw materials are the lifeblood of survival.

In order to control the cost of raw materials, Ruyi Group invested in the acquisition of the century old Australian Lorentu Ranch in 2011, making the enterprise's wool clothing The industrial chain has its own raw material supply base at the source; In 2012, it also acquired the world's largest and most modern high-end cotton base in Queensland, Australia. This year, Ruyi Group also acquired the internationally famous wool research, production and trade enterprise groups Lenpley and WSI Wool Company in Australia and New Zealand with a history of more than 150 years, which makes Ruyi the largest wool industry group.

By integrating global resources, Ruyi Group has formed a unique vertical industrial chain model and become an internationally renowned innovative textile enterprise with two of the world's most complete industrial chains, wool and cotton.

A small man climbs up to a big man -- a giant of overseas M&A brands

Clarifying the strategic positioning and strategic objectives of the enterprise is an important reason for the rapid development of Ruyi Group. In 1997, the enterprise put forward the strategic goal of "striving for international first-class level, striving for international first-class brand". On this basis, the enterprise put forward the goal of "becoming a hundred billion level fashion industry group", and "how to do it" is worth thinking about.

In recent years, affected by Japan's economic recession and financial crisis, Ruina Co., Ltd. has suffered from declining sales revenue and operating difficulties. "Crisis is sometimes an opportunity for brave people." In 2010, Ruyi Group decisively invested 5 billion yen to acquire RENOWN (listed company on the main board of Tokyo), a clothing brand group with 29 brands in Japan and ranking first, which is also the largest investment of Chinese enterprises in the history of Japanese listed companies. This year, Ruina turned from loss to profit, ending the 12 consecutive years of loss history.

In 2012, Ruyi Group acquired YeonSeung, the second fashion clothing group in South Korea, and GWA Woolen Textile Company in India. This year, Ruyi Group also acquired the Royal Royal Worsted Textile Company and Harris Tweed Company, which were established in 1883 in Britain, greatly improving Ruyi's international popularity and influence. Recently, Ruyi Group was awarded the honorary title of meritorious enterprise by China Textile Industry Association, and its status in today's clothing industry has been recognized.

With an international top brand operation team and sales channels, Ruyi Group has mastered a series of management knowledge and skills in production, quality control, marketing planning, store management, etc. of senior and luxury brands, laying a solid foundation for brand operation.

High end positioning, leading in science and technology - forming core competitiveness that cannot be copied

Ruyi Group proposed "modern manufacturing through technology", which is particularly reflected in "replacing human resources with technology". Qiu Yafu, for example, said that Ruyi Group's high-end cotton base in Australia has more than 1 million mu of cotton fields and an annual output of 100000 tons of cotton. Only 29 people are required to complete the process of planting, management and harvesting, and the degree of mechanization and automation is quite high.

Using technology to enhance the competitiveness of enterprises is a magic weapon for the development of Ruyi Group. In 2010, Ruyi Spinning (high-efficiency short process embedded composite spinning technology) independently developed by Ruyi Group won the first prize of National Science and Technology Progress Award, becoming the highest award in China's spinning technology field for more than 60 years since the founding of the People's Republic of China.

Relying on the core competitiveness of high-tech, Ruyi Group successfully introduced Japan Itochu Corporation, one of the world's top 500 enterprises, in 2011. Itochu invested 1.25 billion yuan to obtain 30% of the shares of Ruyi Group at a price of 22.6 yuan per share, and invested in enterprise project construction and brand development; At the same time, South Korea Samsung Products Group also invested 300 million yuan to expand the production capacity of "Ruyi Textile" fabrics through joint ventures with enterprises under Ruyi Group. Ruyi Group has become a world-famous innovative technology textile industry group.

At present, French police uniforms, Spanish aviation uniforms, Spanish military uniforms, Spanish department store retail clothing, Europe's top luxury brands, including Armani, Zegna, Hugo boss, 1881, etc., have purchased a large number of Ruyi fabrics, setting off a trend of "Ruyi fabrics" internationally.