YOUNGOR Returns To Main Business To Increase Brand Input To Hart And Marx

YOUNGOR began to accelerate its return to its main business.

A few days ago, YOUNGOR group Limited by Share Ltd (hereinafter referred to as "YOUNGOR") announced that it will increase its flagship American leisure Hart Marx.

Input.

This is regarded as a major move after YOUNGOR's return to the main industry after five years of reinvention and YOUNGOR.

In recent years, YOUNGOR has become an investment company with a larger scale of clothing business.

However, the industry believes that in the context of investment and real estate earnings are decreasing, returning to the main garment industry has become a top priority for YOUNGOR.

Force leisure

In October 18th, YOUNGOR announced that it would increase investment in the Hart Marx brand in the next few years, hoping that Hart and Marx would maintain an annual growth rate of more than 20% in five years and achieve 1 billion yuan in five years.

It is understood that the Hart Marx brand was born in Chicago in 1887 and has a history of 130 years.

The YOUNGOR has reorganized Hart and Marx. The products of Marx and Marx sold in China will be dominated by American leisure wind.

Statistics show that as early as 2007, YOUNGOR became an independent brand licensing agent authorized by Hart and Marx, and also the only Licensor of Hart Marx in mainland China and Hongkong, China and Macao, China.

But in the early days, YOUNGOR didn't do much brand promotion to Hart and Marx. It only opened a sales section for some of its stores.

In 2014, YOUNGOR officially acquired the brand management rights of Hart and Marx in mainland China, Hongkong, China and Macao.

As of June this year, there were 447 sales outlets for Hart and Marx in China.

YOUNGOR will

The age of the target consumers is set at the age of 30-50. In order to better adapt to the Chinese market, YOUNGOR has pformed the product on the basis of the brand style and made the Hart Marx clothing sold in the Chinese market more in line with the needs of Chinese consumers.

Return to main business

Although YOUNGOR has been trying to find a more profitable business segment, and gradually focus on the development of real estate, financial investment and other businesses, cross-border business can not guarantee the stability of performance.

In the first half of 2017, YOUNGOR achieved a profit of 5 billion 399 million yuan, down 37.7% from the same period last year, and net profit of 2 billion 47 million yuan, down 33.33% compared to the same period last year.

From the first half of the financial report, YOUNGOR's revenue and net profit have dropped sharply, mainly due to the decline of real estate business and investment business.

The real estate sector of YOUNGOR realized revenue of 2 billion 903 million yuan in the first half of this year, and realized a net profit of 456 million yuan, a decrease of 54.24% and 60.97% respectively over the same period last year.

The net profit of investment business was 1 billion 145 million yuan, but it was 17.68% lower than that of the same period last year.

Prior to the decline in the performance of the main garment industry, YOUNGOR involved in real estate and investment two major business segments, seeking diversified development.

In the 2009-2011 year, financial investment business has become the biggest source of profits for YOUNGOR.

Data show that in 2009-2011 years, YOUNGOR's financial investment business achieved net profit of about 1 billion 625 million yuan, 1 billion 245 million yuan and 487 million yuan respectively, and contributed more than 30% to YOUNGOR's annual net profit.

In recent years, YOUNGOR's investment in financial and other investment businesses should not be underestimated.

According to incomplete statistics, YOUNGOR has spent about 8000000000 yuan on the purchase of financial products.

However, in the face of low performance in real estate and financial investment, YOUNGOR looks forward to returning to the garment industry.

At the end of last year, Li Rucheng, chairman of YOUNGOR group, issued the declaration of "reinventing YOUNGOR in five years" and launched the strategy of technology and innovation, investing 10 billion yuan to strengthen the innovation of new materials, new fabrics, new processes, new brands and new services.

Among them, 8 billion yuan is "platform strategy" service, and 2 billion yuan implements "membership strategy", "multi brand strategy" and "supply chain strategy" and information system construction.

Future pressure

At present, YOUNGOR includes the main brand Youngor and the four largest brands MAYOR, Hart, Marx, GY and HANP.

Among them, MAYOR is the upgrading of YOUNGOR's main brand, mainly taking the high-end line. The brand includes two concepts: customization and ready-made garments.

Hart, Marx and GY respectively focus on American leisure and fashion.

In the first half of this year, the business revenue of YOUNGOR apparel business reached 2 billion 449 million yuan, an increase of 10.67% over the same period last year, and net profit of 440 million yuan, an increase of 12.96% over the same period last year.

Among them, Youngor achieved operating income of 2 billion 40 million yuan, an increase of 8.85% over the same period last year.

However, MAYOR, Hart, Marx and so on achieved a total operating income of only 350 million yuan.

In addition to vigorously building the brand of Hart, Marx and MAYOR, YOUNGOR also promotes the channel strategy of "opening big stores, expanding hall, closing stores and excellent structure".

In the first half of this year, YOUNGOR's total sales outlets totaled 2469, 85 less than the beginning of the year, but the business area increased by 8690 square meters compared with the beginning of the year.

Retail consultant Min Guangya said that YOUNGOR's return to its main business is the right choice, but in the fierce competition of other domestic men's brand enterprises, YOUNGOR needs to rely on the clothing business to reverse the overall performance of the group.

For more information, please pay attention to the world clothing shoe and hat net information report.