Li Rucheng Is Making YOUNGOR High.

The following data are from

first-half earnings report

Li Rucheng, who has always been low-key, is making YOUNGOR a high-profile.

At this time last year, Li Rucheng, chairman of YOUNGOR group, made the top five in Europe.

When businessmen came to Ningbo, the fabric manufacturers who originally provided services for LV and other first-line brands chose the Chinese clothing company, which is much younger than themselves, to expand the market together.

According to the world clothing and shoe net, this year, Li Rucheng also called the chief executive of HSM group, Jeffrey Wolf, the largest suit maker in the United States, and let him join him in Ningbo international.

The festival is the 130th anniversary birthday of HartSchaffnerMarx (Hart Marx).

Obviously, as a benchmarking enterprise for Chinese men's wear, YOUNGOR is revealing the signal of returning to the main garment industry, which is also the best response of Li's Cheng to the phrase "five years of reinvention and a YOUNGOR" last year.

Market by road

Hart Max's popularity in China is not very high.

But in the American market on the other side of the ocean, the 130 year old western style clothing brand, known for its tailored suits, has a large fan base. Its fans include the thirty-fourth president of the United States, Eisenhower, the five-star general of the army, and the fortieth president of the United States, Ronald Regan.

After the celebration of Li Rucheng's birthday, more and more consumers learned one thing: Obama wore the brand suit when he took the oath of the forty-fourth president of the United States.

In fact, many people do not know that the American brand, founded in 1887, met YOUNGOR ten years ago.

In the more than 30 brands produced by HSM group, Li Rucheng chose Hart Max with strong business taste to become the first international brand of YOUNGOR agency, and formally acquired its brand operation right in Greater China (mainland, Hongkong and Macao) in 2014.

Both sides seem to have borrowed the way.

Today, the Asian market is becoming more and more important, and China is the top priority.

HSM hopes to quickly open up the situation with YOUNGOR's mature market advantage and network channels, while Li Rucheng hopes to introduce more international clothing brands with agent HSM.

After years of low-key growth, it looks good.

According to YOUNGOR annual report, in recent five years, Hart Max's annual growth rate has reached over 35%.

For a well-known international brand that is not as familiar as luxury goods, this figure has already given higher expectations for both sides.

At the press conference, Li Rucheng expressed the hope that in the next 5 years, Hart Marx could maintain an annual growth rate of more than 20% and achieve 1 billion sales in 5 years.

Talk about "three carriages"

For a luxury fashion brand celebration, and a clear number of figures before and after the conference.

Compared with the last few years, Li Rucheng has become more and more talkative in the field of clothing.

YOUNGOR seems to want to take off the two labels that have been posted on the outside world for many years, such as "investment experts" and "real estate bigwigs", and tells everyone that they have never been divorced from the main garment industry. The 20 thousand year old garment factory has been sticking to it.

Some figures may prove that in recent years, YOUNGOR's return to its main business is not as superficial as the outside world, but a pressing matter of the moment.

The annual report shows that in the first half of this year, YOUNGOR group's revenue and net profit decreased by 37.70% and 33.33% respectively. Analysts pointed out that the decrease in investment income from the profits generated from the carry over project and the book reflected in the investment business were the main reasons for the decline in its performance.

In the three major business segments of clothing, real estate and investment, the apparel business achieved 2 billion 400 million yuan in the first half of the year, up 13.62% compared with the same period last year, and the garment business has become the only sector in the three major sectors that has increased revenue and net profit over 10% over the same period.

Compared with the growth of the clothing sector, the gains of the other two sectors are decreasing.

Li Rucheng, 66, now looks at different business sectors.

"Since last June, my 50%-60%'s energy has been put on clothing, taking into account the real estate and investment business.

The fundamental reason is that the environment is changing. If YOUNGOR really wants to be bigger and stronger, clothing is our core.

The real estate industry is constantly adjusting and controlling, the prospects are not very clear, and the opportunities for investment are relatively large. We also do not have a very strong professional team. In the clothing sector, YOUNGOR has been investing in it for more than 30 years.

Although compared to the real estate output of 500 million or 1 billion, clothing is making money by selling clothes one by one, but slowly enough, but it is robust enough.

Li Rucheng's new retail

At this press conference, Li Rucheng repeatedly mentioned a word: new retail.

In the face of the impact of the Internet economy, the real industry has shouted bitterness. Li Rucheng, led by YOUNGOR, is seeking more methodology.

What Li Rucheng wants to do first is one plus one minus.

"Our goal is to reduce YOUNGOR's 3000 stores to 1000, concentrate on adding 1000 stores, and build them into marketing platforms with sales of over 10 million yuan."

After that, Li Rucheng also had a set of "five elements" theory.

"YOUNGOR must complete five elements next.

It is high quality products, competitive cost, fast logistics response system, comfortable experience environment and high tech marketing means.

According to Li Rucheng, YOUNGOR has the conditions to achieve this breakthrough according to the current industrial status and its own concept.

For example, with 10 million member big data, using 3D volume data, two-dimensional publishing, VR Union, WeChat payment and other Internet technologies, the traditional production and sales will be completely pformed to realize the pformation of enterprises themselves.

Take a scenario for example.

For example, when you are on a business trip to Beijing, you need a suitable shirt temporarily. You can log on to YOUNGOR's customized platform at the airport. After you input your personal member information, the platform will make your shirt according to the data you left behind, and send it to the designated store within 24 hours.

"Now these conditions are already available, and have entered the operation process. Next year, we will set up the first YOUNGOR new retail model store in three cities in Ningbo, Shanghai and Hangzhou."

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Steady and fast fashion strategy

Now that the heavy industry has returned to its main business, how will YOUNGOR go on the strategic planning of the garment sector?

At the press conference, Li Rucheng admitted that since the reform and opening up to now, the domestic men's clothing has completely completed the diversification process, and the form of clothes is numerous.

And as the government and academics estimate for the future development of domestic consumption, the next step will be the differentiation of consumption in the Chinese market. In the clothing industry, the results of diversification will be preserved to meet different consumers, and the mainstream clothing enterprises must complete the upgrading of consumption together with the mainstream middle class consumers.

"For example, Hart Max, the market must have a foundation, and two must nurture itself."

Li Rucheng, for example, said that American fashion has a lot of space in China. Many Chinese consumers do not like to wear neckties, and are willing to wear relaxed, casual and outdoor style costumes. Therefore, the development of American clothing can complement the YOUNGOR and MAYOR (YOUNGOR's high-end self owned brands) which are seriously focused on European business, helping enterprises seize the consumption trend and enrich the product layout.

In Li Rucheng's view, boosting is necessary.

For example, last year with Zegna (ZEGNA), LORO PIANA, Cerruti 1881 (CERRUTI 1881), Albany (ALBINI) and Alu mo (ALUMO) and other top world fabric manufacturers to jointly develop YOUNGOR launched its own high-end brand MAYOR.

As a result, the revenue of sub brand MAYOR increased by 284.97% over the same period last year.

Obviously, after MAYOR, Li Rucheng thought Hart Max was also there.

This year's semi annual report shows that although Hart Max's revenue is not as good as MAYOR, its growth rate has reached 34%, and the number of sales outlets has increased by 20 over the same period last year, reaching 447.

When it comes to how to look at the sales performance of the domestic double eleven electric business, Li Rucheng insisted on his own direction. "Health is more important than speed. I hope YOUNGOR can withstand wind waves and challenges."

More interesting reports, please pay attention to the world clothing shoes and hats net.