Lin Jun: Building China'S Leather Industry Ecosystem

The holy land group was founded in 1994, and now has more than 20 branches. It has developed and operated nearly 30 projects. Among them, Lin Jun led the operation of one of the largest leather leather cities in Guangzhou, the Holy Land Shiling (International) leather goods city, with a total construction area of 500 thousand square meters from one to five. It is China's largest leather and leather goods production and trading market and raw materials distribution center. The six to ten total construction area is about 1 million square meters.

As a member of the industry, Lin Jun, a 33 year old Chinese leather man, has been trying to change the "big but not strong" situation of China's leather industry.

In late July, as a representative of outstanding entrepreneurs, Lin Jun visited the Latin American countries with state leaders, and then he will go to Europe to expand.

Taking advantage of this gap, global personality magazine reporter gave an exclusive interview with Lin Jun.

Focus on the top of "smile curve"

Talking about the current situation of leather goods industry, Lin Jun said in a word: "although China is a large leather country, it is not a leather power country."

Most of our enterprises are in the "smile curve" of the lowest end, the profit margins are very small.

The "smile curve" theory is put forward by Stan Shih, founder of Acer group. This curve is like a smiling mouth with low middle and high ends.

Both sides represent the two links of higher value in the industrial chain -- R & D and channel, while the middle is a lower value manufacturing link.

In Lin Jun's view, China has numerous leather manufacturers at present. Although they produce leather goods, most of them are not at the top of the "smile curve".

Lin Jun used millet and GREE's 1 billion big gamble as an example: in 2013, millet used 4000 employees to set up 31 billion 600 million yuan sales, while GREE used 70 thousand people to get 120 billion yuan sales.

GREE faces all aspects of the "smile curve". Xiaomi focuses on product development and user services. 2500 people do things to communicate with users, and 1400 do research and development.

Rather than saying that millet has been successful in doing business, it is better to say that millet only focuses on the top of the "Smiling Curve" - channel, design and service.

Lin Jun pointed out that production enterprises are passive existence, without channels and designs, and can only be attached to the production chain.

In order to make the reporter easier to understand, he also demonstrated on the small white board: the domestic leather goods production factory received orders for 300 thousand yuan in the first year, just to meet the production capacity; in second, it received 500 thousand yuan orders, so the factory added equipment and manpower to meet the order; third years, the order reduced to 200 thousand yuan, at this time, the factory is facing the problem of overcapacity.

In order to continue to operate, the factory can only rely on price cuts to compromise.

Therefore, Lin Jun's location for the shrine is clear, focusing on the channel links at the top of the "smile curve" to build a good platform for leather production enterprises.

Truly "chain operation"

Lin Jun pointed out that most of the market of leather goods is "off chain operation". By collecting management fees and other forms, it does not consider bundling business with the market as a whole. The services provided by the market have not fully met the needs of merchants at this stage.

At the same time, Lin also mentioned the concept of leather leather eco circle, and thought that the relationship between enterprises in leather leather industry chain is similar to the food chain in biology.

For example, in a simple food chain like grass, rabbit, wolf and lion, if we kill all the rabbits, the grass will grow up, and the wolf will starve to death because of the extinction of the rabbit. Even the most powerful lion will die from the extinction of the wolf.

It can be seen that every organism in the food chain is interdependent and destroys any living creature in the food chain, which will inevitably lead to a loss of balance in the food chain and eventually destroy the ecological environment on which human beings depend.

Similarly, in the supply chain, "raw material supplier producer seller", if the manufacturer ignores the interdependence of all the elements in the supply chain and pays too much attention to internal development, the production capacity can be improved continuously. If the supplier fails to provide raw materials in time, or the sales capacity of the retailer can not keep up with the development of the capacity, then the industrial chain can not be sustained.

"Looking at the leather leather industry chain, from leather producers, processors, finished products producers and brands, and so on, all rely on simple business cooperation or trade links, all links are lack of organization and optimization, and there is no self-regulation capability, so it is easy to get out of supply and demand."

Lin Jun said that the holy land is a regulatory role, through the establishment of a supply chain management platform, through the provision of services in all aspects, including design, research, finance, logistics, etc., to reduce the operating costs of businesses, truly "chain operation", and business growth together.

Lin Jun mentioned that it's easy to boil a pot of water on the ground, but you can't boil a pot of water on the plateau. This proves that the environment is very important.

Therefore, the holy land group put forward the development strategy of "bringing in and going out", not only providing a window for the industry, but also providing a competitive platform for businesses to perform.

Under the layout of Lin Jun and the Holy Land team, the six to ten phase of the Guangzhou central axis Shiling leather city, which is built on the central axis, will be built as a "leather leather satellite city", adding the concept of supply chain, and seamlessly butting the world's excellent brands, products, designs and ideas with the vast needs of China.

Through the introduction of international exhibition brands, we gather together the famous Chinese luggage and leather goods brand and the European strength leather goods brand.

The supply chain platform and management system with four streams, business flow, capital flow and information flow, leveraging the global leather industry chain, and building a window for the dialogue between Chinese brands and the world, and building the most influential market for finished leather products in Guangdong and even the whole country.

The concept of satellite city is help.

The leather furniture enterprises have access to the two channels of the international channels, and achieve the goal of reducing costs and increasing competitiveness through the optimization of the links under the big data and the industrial chain.

"No finance, no media, no fire."

The leather leather industry can produce an evolutionary ecosystem.

This ecosystem has the characteristics of "three lives": one is symbiosis, which means that all aspects of the industrial chain exist around a goal, for example, the market needs a bag, so the leather producers, processors, producers and branded traders coexist for this bag. Two is mutual production, for example, products need media to propagandize, media also need to find products to publicize, they are interdependent relationships, that is, what the industry calls cross boundary; three is rebirth, that is, it can generate an ecological circle.

Many people have not yet realized the importance of "interaction", but Lin Jun has attached great importance to it.

In 2012, Lin Jun felt that the development of an industry "no finance is not alive, no media is not fire". As a leather man, he has the responsibility and obligation to build a platform for the entrepreneurs with dreams, leaving the historical contribution to the contributors and promoters of China's leather industry, and letting more people know and participate in the industry.

Therefore, he spared no expense to create an unprecedented "China Leather Oscar", to inject vitality into the leather industry in China: in November 30th, 60 foreign embassies, more than 130 leather buyers, 100 famous domestic and foreign movie stars, more than 1000 Fashion Cross guests and many mainstream media representatives, as well as tens of thousands of spectators, gathered in Guangzhou landmark, Haixinsha, to witness the great event of the Chinese leather industry.

"Leather design week" is another highlight of Lin Jun's campaign.

In the leather industry, design and R & D is the most important part, but the Chinese leather industry often pushes the brand forward and hides the designer behind it.

We will hold Shilin international leather design week in November this year to set up a display platform for designers.

At the same time, we need to carry out a dream program for leather goods designers in China.

It is foreseeable that the injection of fashion elements and the participation of media will enrich and constantly evolve the ecological circle of leather and leather products.

These pboundary initiatives may be innovation and breakthrough for others, but Lin Jun believes that he is just adapting to the changing trend of the times.

He joked in his Mandarin accent with Guangdong accent: "the last generation said, 'have not eaten pork before, have you ever seen a pig run?' now we have to say, 'there is no chance to see a pig running and not eating pork yet.'" this is the change of times.