The 15 Year Growth Phantom Of A Chinese Women'S Clothing

What has happened in the past 15 years by hkei group, which is owned by Ou Shi Li? What has the Hertz group done in different stages of development and different industry environment? What is the gain and loss of HKEG's strategic layout in the face of the future?

The development of herkey group can be divided into four stages.

The first phase of 1993-1999 years is also the prehistoric development of Hechi group.

During this period, the founders Xu Yu and Li Shanhu met with each other because of their personal dreams and various contingency choices. They chose Guangzhou, chose fashion and chose women's clothing, which laid a good starting point for Heji group.

The second phase at the end of 2000-2005 is the stage of learning and exploration.

At this stage, the Hertz group of Europe first developed rapidly and then suffered from internal and external troubles.

This stage has accumulated a great deal of experience for the subsequent take-off of Ou Shi Li.

The 2006-2011 year is the third stage. The Hertz group shows its ability to control the operation of enterprises, the trend of economic development and the dynamic of the industry. The action is precise, showing the demeanor of a mature fashion brand.

A series of beautiful movements of Heji group made it move towards the road of rapid development, built its own industrial ecological environment, and fully enjoyed the dividends of China's economic development.

During this period, the Hertz group was able to observe and interpret the key changes in the economic situation, such as population structure, real estate industry and capital market, and so on.

After accepting the investment of LVMH group in 2012, it is the fourth stage. After more than ten years of experience, the Hechi group's quality and pattern have taken a qualitative leap to become the top brand management company in the world. The goal is to cross the capital operation from the industry operation, from the domestic operation to the international operation, from brand operation to multi brand management.

Behind this series of changes is HKEG's understanding of the industry, the development of China's economy and the trend of the world economy.

Starting from a number of key issues in different stages of development of hkei group, this paper attempts to outline the past and present life of herkee group with reference to the background of the times and the development of the industry.

The core figures of herkey group are Xu Yu and Li Shanhu.

We began to interpret the group from its early business activities.

Before 2009, the Hertz group had only one brand of the European force. Therefore, in this paper, we elaborated on the history of 2009, with the European time referring to Heji group.

Starting point and background (1993-1999)

Li Shanhu and his three sisters opened a clothing store called "attractiveness" on the Wenzhou square road in 1993.

This shop is dominated by European and American style fashion.

Li Shanhu's aesthetic feeling is very good. The level of goods is higher than that of his colleagues at that time, and his business is hot.

At that time, the business mode was from Guangzhou, Shenzhen wholesale products to Wenzhou, and occasionally wholesale products from Korea.

In 1996, the three sisters opened second stores on the front road of Wenzhou.

In the same year, in order to make more money, the three sisters began to change their business models: half of the goods were only taken from the market, and then the other garment enterprises were OEM.

In 1997-98 years, Li Shanhu decided to develop in Guangzhou.

In Guangzhou, Li Shanhu married Xu Yu.

In 1999, the European force was formally established in Guangzhou.

The newly established Ou Shi Li has many shareholders in Wenzhou.

According to some parties recall, the choice of starting a new business in Guangzhou, for such considerations: "Guangzhou has been in the group goods, more familiar; in 90s the Guangzhou clothing industry is very popular, a few brands, worthy of imitation."

That is to say, in Guangzhou, Xu Yu and Li Shanhu started a new business and never wavered.

That is, in Guangzhou, they created a legend of Chinese women's clothing industry.

Well begun is half done.

Xu Yu and his wife choose fashion, choose women's clothing and choose Guangzhou.

These choices inadvertently meet the trend of the industry and the trend of the times, making them heroes of the times.

Looking back at this process today, they have at least done something like this:

It's important to choose Guangzhou.

A specific region has a specific industrial environment, and a specific industrial environment provides unique development genes for most enterprises.

It is essential to choose Guangzhou or Wenzhou, Ningbo and Shanghai.

In those days, Guangzhou was China's closest source of fashion.

In a sense, to choose Guangzhou is to choose international and fashionable ones.

Choosing the brand business of women's clothing is very important.

The choice of industries made by individuals is the choice of different era themes from the perspective of the times.

Choosing the theme of the moment or choosing the theme of the future determines the different development rhythm and destiny of the enterprise.

At that time, the flourishing clothing business was not to create a brand of women's clothing, but to act as an agent for foreign brands in China, to do export processing business for clothing, to make men's clothing chains or to join casual wear chains in the domestic market - a collective breakthrough in the Chinese women's clothing industry after 2006.

Xu Yu and his wife chose to create a brand new brand of women's clothing. They chose the development rhythm of the next era - whether they were intentional or unintentional.

Through Xu Yu and his wife choosing Guangzhou, they are determined to create a women's clothing brand business. We can imagine that they had dreams and chasing dreams, and their eyes did not stay in the "as fast as possible, as much as possible to make money".

This is essentially different from those who want to make money.

Perhaps because of this difference, Xu Yu and his wife are comparable to other prominent entrepreneurs in the garment industry.

In 1998, the United States, which started in Wenzhou, pferred its sales and design functions to Shanghai.

He founded in 1995 in Shenzhen and Mars Phil was founded in Shenzhen in 2000.

Also in 1999, Huarun group and ESPIT jointly established Huarun in Hongkong and entered the mainland market in a big way. They openly claimed that 600 stores were opened in 3 years.

All heroes come in groups.

This group of entrepreneurs, not attracted by the most profitable business in the past 90 years, did not blindly chase after from foot pants, body-building pants, blouses, muffin shoes, plastic underwear, women's clothing, and navel to the 1999 Korean style. Instead, they tried to build a fashion empire of their own.

Perhaps because of this difference, Xu Yu and his wife's accidental choice touched the tide of the times.

In 1999, China's per capita GDP entered the first 1500 US dollars.

From the experience of international development, the average GDP of an economy is between 1000-2000 US dollars. The importance of design elements in various industries has gradually emerged, and the mode of chain operation has become popular.

From this point of view, Xu Yu and his wife chose to wear new clothes and choose a new career.

When we put together brands such as Ou Shi Li, Song Li Si, Mass Phil and ESPRIT and put them in the background of the same year, we summed up their starting points as follows: personal dreams and occasional trends in the trend of the times have made a wonderful beginning.

Learning and exploration (2000-2006)

The general characteristic of this stage is that, after rapid development, it is confused and stagnant, and external is squeezed by international brands, and it wavered inside. Finally, in 2006, all shareholders except Xu Yu and Li Shanhu went out of Europe.

According to colleagues, in 2001, Europe has more than 80 shops and more than 200 million sales in more than 40 major cities across the country.

This is a pretty good result.

In the past 2002-2005 years, business faced great difficulties.

The evaluation of the industry is that "Europe is expanding faster, but the product can not keep up with the market."

In the end, other shareholders quit because they did not improve their business and did not make money.

How do we view the vicissitudes, resentments, and changes in personnel in the past seven years? What are the factors that support Europe's coming out of its predicament?

First of all, the ownership structure of enterprises is crucial to the development of enterprises.

The turbulence in the 2002-2005 years of Europe and the clear and rapid development of the thinking after 2006 can be seen how fierce the disputes at the shareholder level are in the way of development, management and decision-making.

Second, it is important to survive in times of crisis.

The difficulties encountered by the European forces were the continuous learning process under the background of global competition and the "adult ceremony" of local fashion enterprises.

Looking back at the women's clothing brand at that time, the brand of the domestic women's clothing such as Ou Shi Li was facing the situation of international brands such as attachment, ONLY, ESPRIT, VERYMODA, ETAM and so on.

The comparison between the strength of Ou Shi Li and these enterprises is obvious.

This process is the training and discipline of the spirit of the European team.

Thirdly, the general trend of the country and the industrial trend have helped Ou Shi Li.

China's market is large enough and the profit margin is large enough.

The process of urbanization in China has opened a huge and fast rising market, and at the beginning of the urbanization process, every industry has enough profit space.

Recall the cost structure before 2005, such as store rent level, you can know how profitable the profit was.

This is critical to the ability of the European time force to "live".

Fourth, persistence is very important.

In the turbulent years of the European era, there are other easier opportunities to make money in front of all businessmen: in the clothing industry, with China's accession to the WTO, foreign trade has developed rapidly, making it easier to make money than independent development brands. In the process of China's rapid urbanization, there are more temptations, such as business opportunities surrounding land and real estate.

Many enterprises in the clothing industry are also gradually separated from the main business in this process. Nowadays, there are not many enterprises that are shrinking or even dying out of their clothing business.

We can not know whether the discussions inside the members of the time group involve the business opportunities outside the brand business, but we can see that most of the entrepreneurs in Wenzhou's clothing industry have been involved in other industries in those years.

Finally, in the field of women's clothing brand, it is very important to grasp the fashion, guide the fashion and get the right to speak.

At this stage, the so-called "product does not give strength" is also not able to grasp the trend of the ability.

After 2006, the positioning and accuracy of European forces, and its active integration into the fashion circle were related to the internal turmoil and entanglement in recent years.

Through the twists and turns of these years, the structure of the shareholding structure of Ou Shi Li is clear, and the Xu Yu couple who firmly adhere to their own brand line have chosen to continue to persist, and other shareholders have chosen other paths.

After years of twists and turns, Xu Yu and his wife's development strategy is clear. After 2006, many precise and effective movements are the result of constant thinking and learning in this period.

Through the twists and turns of these years, Xu Yu and his husband have become mature. It is not only the power of dreams to choose to persist in difficult situations, but also to enhance their ability to control their business after the insight into the operation of enterprises, the laws of industry and the economic situation.

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