YOUNGOR'S Clothing Brand Upgrade, Private Customized High-End Route

When night falls, a commercial circle stands on the people's road in Wuxi. It will illuminate the most prosperous pedestrian street of the city, the Chong an temple pedestrian street, and then turn around the temple of Chung on temple and go west.

Large building.

"We will broadcast live tomorrow," a staff member on the floor said to the interface news.

According to their plan, YOUNGOR's fashion designer will lead a male model together with the anchor to finish up to four stories.

And introduce and try on the company's products.

That's more than that.

On this staff's activity schedule, there are also "Olympic champion Shi Zhiyong challenge", "art hall", "VIP private concert" and so on.

Wuxi

As a new position of YOUNGOR's "big store mode" promoted by the whole country, its house has been expensive from construction to formal opening.

"It cost 255 million yuan to buy the building, and the total cost from design to decoration is close to 30 million yuan," the staff said to the interface news.

The high cost shows the financial strength of the multi staple company, but behind it is a profound change in YOUNGOR's marketing channel (600177.SH).

Li Rucheng, a farmer born, led the former Youth garment factory from a small workshop to China's largest textile and garment enterprise. YOUNGOR has experienced it.

(12.600, -0.12, -0.94%) the era of the industry's development is also facing a painful period of industry integration and business mode change.

Consumer shopping habits change, e-commerce channel extrusion, product homogenization and cost pressures and other factors, nibbling the profit margins of the garment industry.

In the first half of this year, the sales growth rate of China's clothing industry continued to slow down. Over 40% of the apparel listed companies declined in performance, and more than 60% enterprises had a net profit growth rate of less than 20% over the same period, and a number of people, such as Li Lang, Giordano, and seven wolves (10.280, -0.01, -0.10%), etc.

Net profit declined.

This sounds like some general data. Once it is listed on a listed company, it loses tens of millions of profits.

Take 9 Mu Wang (15.300, 0.02, 0.13%) (601566.SH) as an example. In the first half of 2016, the net profit of the men's clothing business decreased by 11.39% compared to that of the previous year, corresponding to 25 million 383 thousand yuan.

From the point of view of the amount, it is equivalent to the total revenue of the company in the same period in central and southern China.

YOUNGOR is also hard to escape.

Also in the first half of 2016, the clothing business revenue of the company was 2 billion 214 million yuan, down 7.2% from the same period last year, and the gross profit margin was 65.08%, a decrease of 2.85% over the same period last year.

This is the first negative growth of YOUNGOR's clothing business revenue.

Consult the company's annual report, YOUNGOR

The stagflation of revenue appeared in 2013. The original revenue growth rate of more than 10% fell to 5% in that year. In the next few years, the growth rate of YOUNGOR garment business revenue was declining.

Market changes are forcing enterprises to pform and upgrade.

Back in 2011,

It proposes that the garment business will be pformed from "production management to brand operation".

At the moment, the opening of Wuxi stores is an important component of this goal.

According to the plan, in the next five years, YOUNGOR will pform the current 3000 small shops into 1000 large shops like YOUNGOR's home in Wuxi, and the volume of business will double.

To this end, YOUNGOR set up a leading group of large stores this year, headed by Li Rugang, vice chairman of YOUNGOR group Limited by Share Ltd, and vice president of YOUNGOR, Gao Yali as deputy head of the group, and the head of the company's eleven major marketing companies as team members.

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In the big shop blueprint, these 1000 stores will be responsible for YOUNGOR's VIP service, O2O experience and fashion culture dissemination. Li Gang has confidence in the plan.

At the opening ceremony of YOUNGOR's home in Wuxi, Li Rugang appeared as scheduled in the company's clothing business. He was dressed in black YOUNGOR and responded to all the problems thrown by the media.

"From the experience of Korea and Japan, 30% of the enterprise's product sales come from the environment.

YOUNGOR's construction of large stores will enhance its image, management and profits.

Li Rugang said.

In fact, big shop mode is not the first YOUNGOR initiative.

From the early childhood brands such as Gap and H&M to the Honeybee Pupa of the domestic brand, Wang Qiuhan, a teacher of the clothing College of Wuhan Textile University, believes that the accumulation of abundant raw capital and the influence of foreign mature brands are the reasons for the rise of the big store model in China.

This mode helps to accumulate consumer's recognition and loyalty to the brand, and because of the large variety of products in the big store mode, it is easy to choose, and it also helps to enhance the brand connotation.

But Wang Qiuhan also believes that the big store mode will not only enhance business costs, but also test enterprises.

And supply chain management capabilities.

"If the enterprise does not have good comprehensive operation capability, the consumer psychology can not be accurately grasped on the product, and if the supply chain management system can not run efficiently and accurately, it will have a negative impact on product sales."

How to deal with the increase in the cost brought by store expansion? Li Rugang said that the property of the core business circle is limited, and the issuance scale of currency will become bigger and bigger. The value appreciation of the purchased property is very obvious these years. Buying a house is more cost-effective than renting a house.

YOUNGOR also has enough funds to support the big store mode. Although sales and profits do not necessarily increase in the short term, it is long-term interests for predecessors to plant trees and catch up with others.

about

In terms of value chain, there is a smile curve. Among them, "design and brand, channel and sales" is the two most profitable link.

If YOUNGOR's 1000 big stores are to better seize the channels and sales, YOUNGOR's recommendation to the four major brands is to catch the former.

At this point, YOUNGOR first emphasizes the product itself.

Li Rucheng, chairman of YOUNGOR, wrote the word "YOUNGOR dream" for the company.

At the beginning of the word, Li Rucheng wrote, "the shore of the East China Sea, the wings of the Yangtze River, the generosity of the Jiangdong children, four thousand, rely on the towering of the Ming Dynasty, step into Sanjiang and calm, sing the wind of Kyushu, and build a century of great cause".

In less than 50 words, YOUNGOR's development course and chairman Li Rucheng's expectations are clearly visible.

Siming, originally a mountain name, is also a nickname of the old Ningbo house in Zhejiang. It is said that there are stone stones on the mountain, four sides like windows, and light in the sun, moon and stars. It is in Ningbo, a city with traditional clothing making.

Completed the building of its brand industry chain.

In 2002, Li Rucheng spent $100 million to build his own textile city. Subsequently, YOUNGOR's Cotton Corp, water washing plant, textile printing and dyeing company, excipient industrial city, wool spinning and dyeing company were set up. The upstream industry chain of the entire garment industry was almost incorporated into the YOUNGOR industry.

One person

Senior practitioners told the interface news that YOUNGOR is the only company in the domestic apparel industry to build the apparel industry chain.

Li Rucheng once said that there are several reasons for the company's production of fabrics.

First, there is a certain gap between domestic fabrics and foreign ones, but most of the high-grade fabrics needed for YOUNGOR production need to be imported. The high tariffs lead to high cost. Two, many domestic textile enterprises have developed their own industries to the downstream, engaging in garment manufacturing, forcing the company to take a "small and complete" road. However, the most fundamental thing is that the company wants to find a road of its own to form its own core competitiveness and originality; three, in the face of competition from textile and garment enterprises,

After two in one, the fabric will follow.

The need to respond in time can seize the opportunity.

At the moment, YOUNGOR's industrial chain is maturing, from raw materials, textile fabrics to garment manufacturing.

In addition to quantitative and pricing flexibility, the quality and function of products have also been improved.

Xu Peng, director of the company's brand, told the interface news that the connection point of YOUNGOR industry chain at all stages has been more perfect than before. It can be said that there is no difference between the products of the company and the international brands.

Vertical super long industrial chain is considered to be the cornerstone for enterprises to build a century old brand.

However, with the rapid development of information technology, the strategy and structure of the garment enterprises have undergone profound changes.

The most prominent representative is Hai Lan's home.

It is understood that

The production and design of garments are completely outsourced, provided by fashion designers, and then screened by the designers of Hai Lan House headquarters.

If the two sales season does not sell out, the Hai Lan House will have the right to return the goods to the manufacturer or the two purchase and sale of "Bai Yi Shun".

Downstream of the industry,

The number of stores is expanded by the way of franchising, but franchisees do not participate in experience management. They only need to pay one million yuan to join the margin and management fees. Hai Lan's home has done the work of goods delivery, store management, operation and location selection of stores, and at the same time, due to the return of 100% products sold by Hai Lan's home, the attraction of franchisees has increased greatly.

The role played by the "Porter" has made the home of Hai Lan a great success. Zhou Jianping, chairman of the company, has become the 293rd place in the world's richest list and has become the domestic leader.

The richest man.

Wang Qiuhan believed that

Different business models have their advantages and disadvantages.

Because the textile industry is a labor-intensive and technology intensive industry, its vitality is stronger than that of the garment manufacturing industry. Therefore, the adoption of the whole industry chain management mode will give the enterprise a stronger foundation.

Besides, enterprises can independently develop products according to the development of their own brands, avoid homogeneous competition in the market, and also save the cost of fabric purchase and pportation, and increase the profits of enterprises.

In the supplier mode, enterprises do not have to invest too much in production. They only need to concentrate on the design, marketing and other links. This way of operation is easy to enhance the competitiveness of enterprises, so as to gain more market share.

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Xu Peng, the brand director, seems to be the focus of the company's attention because of the adoption of the whole industry chain, which requires the company to make the overall decision of the front end and the terminal.

At present, YOUNGOR has formed a brand cluster centered on the main brand YOUNGOR. The company's four top brands include MAYOR, Hart Schaffner Marx (Hart Marx), GY, HANP (hemp family).

MAYOR is the upgrading of YOUNGOR's main brand. It mainly takes the high-end line, and the brand includes two concepts: customization and ready-made clothes.

"In October, Mayor will have a new conference. We will work with five leading brands in the world to bring high quality and cost-effective products to consumers," Xu Peng said.

In YOUNGOR's strategic blueprint, MAYOR is its strategic blueprint.

The direction of future development.

After the LOGO worship period, big brand consumers are becoming smarter. MAYOR wants to hit these people's consumption pains.

"The same quality of a shirt, MAYOR price than foreign high-end brand 2/3 cheaper, or even more."

Hart Schaffner Marx (Hart Marx) and GY respectively focus on American leisure and fashion. The hemp family is YOUNGOR's original brand. Its raw material is hemp, which has many functions of preventing bacteria and preventing ultraviolet rays.

The layout of this brand, YOUNGOR is optimistic about the future development prospects of green consumption.

However, although

The four major brands in 2009 have been launched, but their proportion in YOUNGOR's clothing business revenue is not high. By the end of 2015, the four major brands had achieved a total operating income of 398 million 173 thousand and 400 yuan, accounting for only about 17.98% of the total revenue of clothing business.

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YOUNGOR has also gone through some detours.

In 2006, YOUNGOR's brand was subdivided into "Mayor Youngor", "CEO" Youngor and "green label" GY (Green Youngor).

The "golden standard" is the chief executive of the 40 to 55 age group; the "blue label" is for business people ranging from 35 to 40 years old; the green label is located in the young and fashionable consumer group.

At that time, YOUNGOR also invited Kris Phillips to speak for him, many young consumers.

Cognition began from then on.

Unfortunately, this classification method is not satisfactory in the market.

Ai Chis, a marketing master, once commented that the only difference between the blue label, the gold mark and the green label is the target market, which is not obvious to the consumers. In fact, the similarity of the names of the three brands can also confuse consumers.

After that, YOUNGOR made adjustments according to the market reaction, but Ai Chis was

There are also some complaints about launching five brands in succession.

He thought that

The real problem is not brand but timing.

It takes a long time to build a strong brand, and the introduction of five new brands is a serious strategic mistake.

The company should focus all its resources on a brand and build second brands after the success of the brand.

From the current strategic perspective,

It is planned to introduce a sub brand in one stage. This year is MAYOR. Next year is the hemp family.

Interface news noted that in YOUNGOR's 2015 annual report, MAYOR and the hemp family's business revenue were lagging behind the other two sub brands, and this strategy has the meaning of "prescribe the right medicine".

Li Rugang said it would give sub brand more flexibility.

In terms of management, the four sub brands set up an independent business unit, independently operated and assessed. In terms of production, YOUNGOR has strict restrictions on the production and recovery rates of the main brands, and the sub brands are relatively free.

He stressed, "we talked about competition in the market in 80s, and it was a success or failure in the factory. At present, YOUNGOR can offer tens of thousands of stores to open a store, and millions of dollars to buy a store.

The future can also be heavily inviting competent people.

Finally, it depends on products.