Changes In The Profit Model Of A Fur Business

After nearly 20 years of continuous ups and down, the industry began to experience cold snap in 2013.

In the fur market, sudden changes in the market, the price of fur raw material market has dropped sharply, the domestic and foreign consumer market has been sluggish, and with excess capacity and increasing environmental pressure, where does the traditional fur enterprises go? In the face of the continued downturn in the market and serious excess capacity, Zhejiang Zhonghui group has been developing against the trend of pformation.

A report on the total sales volume did not fall, which made Hu Jianzhong chairman of Zhejiang Zhonghui group more relaxed.

As one of the largest fur enterprises in China, the sales volume of Zhonghui fur clothing has been steadily ahead for many years. In 2013, the Group sales exceeded 800 million yuan.

"This year, annual sales are expected to increase by 5% to 10% over last year."

Hu Jianzhong said that the number made him more determined to "win by quality and service priority", develop to brand and benefit from management.

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Big designer makes brand

The added value is increased by more than 10%.

Like the fur business track set up in the 90s of last century, Zhonghui group mainly focused on OEM production.

"Pricing power is firmly in the hands of customers, the cost of production is increasing year by year, and profits are still in place."

Faced with this predicament, Hu Jianzhong founded the brand of "Nu Jia" in 2003 and registered in more than 40 countries around the world.

Having registered goods is only the first step. How to build a brand is the key.

Hu Jianzhong is well versed in the weight of design in fur industry, and integrates the design into the complete industrial chain of raw leather making, leather dyeing and finished product production.

From Spain, raw engineers are invited to produce high quality raw materials, and designers from Italy and France are invited to design clothing styles, and technical personnel from Greece are invited to take charge of garment making technology.

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On the international line, "Nu Jia" fur shows different brand value and brand recognition with similar products in the market.

In November 18, 2012, the first "Yi Nu Jia" brand life hall opened in Zhonghui fur grass headquarters in China. In just 3 months, its sales exceeded 30 million yuan.

Ping Jianguo, general manager of the company, told reporters: "through building brand, the added value of Zhonghui fur has increased by at least 10%."

Not long ago, the "Nu Jia" brand life hall in Harbin was officially opened. This is the thirtieth brand life hall opened by Zhonghui group in China. So far, the group has completed its strategic layout in Beijing, Heilongjiang, Jilin, Liaoning, Shandong, Jiangsu, Sichuan and other provinces and cities.

After the launch of a new life shop sales model in 2012, the group continued to innovate its marketing mode. Last year, it began selling on trial waterlines, and opened online stores on Tmall, Alibaba and other network platforms. At the same time, this year, the group runs the latest consumer experience mode of brand O2O in the living hall, launches member consumption, reduces profit consumption in intermediate links, and improves customer loyalty.

Benefit from management

Enhancing the competitiveness of enterprises with the creativity of employees

"Manufacturing enterprises like ours are the most dangerous."

In Hu Jianzhong's mind, the crisis of development has always been like a shadow.

Hu Jianzhong has clearly realized that it is imperative to reform the internal management mechanism from a family workshop to a group of nearly 3000 employees.

In 2005, he chose to cooperate with Taiwan Jianfeng enterprise management company, and decided to follow the advanced management mode of Japanese and Taiwan enterprises to take the road of Zhonghui management.

Over the past 10 years, the company has invested nearly one million yuan each year to improve the overall quality of the staff and implement enterprise management innovation.

Not long ago, more than 100 middle managers of the company went to Taiwan for training in batches.

For a family business, the core of management innovation lies in the establishment of mechanism.

In recent years, the company has formulated a complete set of management regulations to clarify the reward and punishment mechanism.

This year, the company has formulated a reward policy to encourage technological innovation.

In recent days, the award list of engineer Ping Jianzhong has just been approved. At the end of the year, he will get more than 20 thousand yuan of innovation award.

In April this year, he repeated experiments, through the method of speeding up drum rotation to achieve the phenomenon of foam and coloring in the process of fur dyeing, which means that we can no longer use defoamer. This alone can save more than 30 yuan per year.

Facing the problem of pollution in fur industry, in 2011, Zhonghui fur assumed the only national cleaner production project in China's leather industry, namely, "fur leather processing wastewater recycling system technology integration demonstration project".

The implementation of this project will not only reduce the pollution discharge in the whole process of fur production, but also substantially reduce water consumption, and completely change the present situation of high pollution and high energy consumption in fur industry.

The company invested 43 million yuan for the technical pformation of the project, with an annual environmental benefit of more than 5 million yuan.

New normal and new way

Hu Jianzhong: when any industry fluctuates, the fur industry in 2014 has a turning point. It also gives us the opportunity to "overtake".

As long as we work hard and stick to the brand line and increase our innovation, we will be able to go further and better.