Li Lang: Upgrading The Quality Does Not Raise The Price To Abandon Enclosure Expansion

Five years ago, when the reporter first saw Wang Liangxing, chief executive officer of China's Li Lang, whenever he went abroad, Wang Liangxing always had to buy several foreign brands of clothes to return home for research. Five years later, Wang Liangxing once again accepted an exclusive interview with reporters. He said that he bought less clothes abroad because he could not see much.

Wang Liangxing looked more confident than before. Even though the men's clothing industry might be the worst industry recession in the last 20 years, Wang Liangxing believed that he had found a way out of the predicament.

　 Without profit, opening a shop is burning money.

China lilanz The semi annual report released in 2014 showed that in the first half of this year, the turnover was 1 billion 90 million 500 thousand yuan, down 0.2% from the same period last year, and the profit during the period was 248 million 100 thousand yuan, an increase of 2.4% over the same period last year.

This performance is quite good compared with other men's clothing companies listed in the mainland and Hongkong. The reporter summed up the achievements of the 11 listed companies in the first half of this year, including the seven wolves, the good news birds and the Chinese Li Lang. On the profit index, China is the only enterprise to achieve positive growth.

Before that, the growth mode of Chinese men's clothing enterprises was generally "CCTV advertising + celebrity endorser + shop". Wang Liangxing said this extensive growth mode has been terminated. Now it is the product era or the retail era. Many enterprises may not be able to keep up with this transformation.

In the first half of this year, the number of LILANZ retail outlets in China's Lai Lang main brand was reduced by 158. From the whole year, the company maintained a conservative shop plan. In addition, this year's total number of stores is expected to reach 700~800.

The adjustment of the channel, Wang Liangxing explained, used to be relatively small because of the rent and labor cost of the open shop. The franchisee can sell hundreds of thousands of dollars or millions of money in the clothing business, regardless of whether it is professional or not professional. Now is an era of elimination. Professional operators run a store, selling four or five million dollars a year. The discount may be more than 15% off, and the selling rate is more than 80%. However, a professional shop operator who does not know how to make clothes can only make one or two million discounts a year and a discount of more than forty percent off.

As of June 30th this year, the total number of retail outlets in China was 3315, of which 3022 were brands and 293 were L2 brands. The total number of retail stores will be controlled. Wang Liangxing did not give the answer to this question. He said: "it is not important to have fewer stores and less tune. Now, the most important thing is to form new core competitiveness, new profitability and new professional teams. If you do not find a new model, do you shop again, or lose money, or increase inventory, or burn money? "

　　 Upgrading quality without raising prices

In enhancing the profitability of the stores, Wang Congxing, vice chairman of the Chinese board of directors, said that in the men's clothing company, Li Lang took the lead in adjusting the clothing ordering policy, assuming that the 1 stores may sell 1 million in the first quarter. Now, the company has offered to order 750 thousand of the goods to reduce the pressure on retailers to order, so that stores can have more resources to sell new products and digest the old stock.

As the overall consumption environment is weak, the price has always been the high-end high-end atmosphere men's clothing has also been made. adjustment China's strategy is to raise quality and not raise prices. Wang Liangxing introduced that Li Lang has made many high-end clothes. Now many natural fabrics and fabrics are better, and the workmanship is better. Overall, the price seems to have not dropped, but the cost performance has been greatly improved.

Domestic men's clothing enterprises are mainly distributed in Fujian and the Yangtze River Delta region. The phenomenon of homogenization of products has not been effectively solved over the years. In the past two years, Wang Liangxing has continued to play the role of digging talents. He has excavated more than 10 designers from international Brand Company such as Giorgio Armani, Levi s and so on. He has been the creative director and design director of China's Li Lang, hoping to make a unique selling point in the homogenized market. Wang Liangxing said: "our things should be very internationalized, beautiful, and have many elements of their own. Some fabrics are designed by ourselves, starting from yarn itself. In doing so, the cost of raw materials has also decreased a lot, and our competitiveness is stronger. "

The results of the 2015 spring and summer order meeting in China revealed that the main brand of the company was Order goods The amount increased by a high single digit. The total amount of the L2 of the sub brand reached a low double-digit growth. The average price of the two brands was the same as that of spring and summer this year. In terms of terminal retail, Wang Congxing said that through the promotion of products, when all of us had a big discount, many of the discount stores increased from 25% off to 8~8.5.

Anta President Ding Zhizhong and Wang Liangxing are friends. While other sporting goods companies are still hovering, Anta has achieved two digit growth in revenue and profit in the first half of this year. Wang Liangxing commented that Anta's uniqueness was due to its reinvention.

Wang Liangxing is also planning a project that will bring new importance to the garment industry. In his view, clothing should become a part of life style in the future. Besides clothes, there should be coffee, ceramics, lanterns, vases and all kinds of artworks in the future clothing stores. Consumers can gradually enjoy the day when they enter shops. He has planned to set up an image demonstration shop in China.

It is not known whether the clothing store that can drink coffee or art is adventurous. Hu Chengchu, vice president of China's Li Lang, believes that when the industry is at a low ebb, the most important thing for an individual enterprise is to innovate. It is to do something that has never been done before. There is risk in it.

Wang Liangxing said: "now we see that clothing is a bit too pessimistic. People need to eat just to eat, so it can not be a market, business or impossible. Whether you can adapt to this era, whether you can make good design, good quality, good price, have a unique personality, if you can, you can't have no business to do.