The Turning Point In China'S Clothing Brand Crisis

China's clothing brand can not be underestimated.

These foreign brands, but these foreign brands have achieved their Chinese foundry partner Shenzhou International.

Shenzhou International is a super supplier behind UNIQLO, Nike and Adidas.

It ranked fourth in the 2016 global apparel market value list, ranking first in the country.

In the eight years since its listing, its market value has increased 53 times, and has now exceeded 100 billion Hong Kong dollars.

Textile foundry is not profitable? Its existence at least subverted this recognition.

In the first half of this year, it netted 1 billion 800 million yuan, an increase of 24% over the same period last year.

The Tencent of the clothing industry is the evaluation of the industry.

Ma Jianrong and his father Ma Baoxing were the architects and builders of the Empire.

This overlaps the father and son's life path. They are 13 years old as apprentices, and have been fighting for decades in the factory, becoming textile experts.

Today, the Ma Jianrong family ranks 31 billion 500 million in the seventieth list of the 2017 rich list of Hurun.

Entrepreneurship

Ma Jianrong's father, Ma Baoxing, was a child laborer with a felt hat and went to Shanghai to learn technology. Later, he was trained in Japan.

He is outstanding and serves as deputy director of Shanghai knitting twenty factory.

He was a textile expert. In the 70s of last century, he helped Shanghai's textile industry solve the problem of slack and shrinkage of cotton sweaters.

In the late 80s of last century, in order to solve the employment problem of new local residents, the Beilun district government of Ningbo prepared the Ningbo Shenzhou Weaving Co., Ltd. and invited Ma Baoxing to be deputy general manager.

Ma Baoxing considered that all the children in the countryside could not solve the household registration problem, so they put forward the only request to the government: solve the children's account so that the children could become workers.

In 1990, Ma Baoxing moved his family to Ningbo, and Ma Jianrong entered the knitting and weaving department of the factory.

At that time, the factory was co founded by the government and other organizations.

When they arrived at the factory, they found that the funds were not in place, and the factory building was still in debt.

At that time, the knitting market was cold, and life in Ningbo was very hard.

Ma Baoxing knew that there was no way out for the whole family.

Without money, Ma Baoxing ran around the city to raise money.

No one, Ma Baoxing relies on the technical strength and connections accumulated during the Shanghai work, and asks the experienced teacher in Shanghai factory to go to Ningbo to train workers and cadres.

What can we do without market? At that time, China

Exports are mainly based on foreign trade companies, with low quality and competitive homogenization.

Ma Baoxing positioned the company: we need to open the market, but do not undertake too low order, because this will affect the future development of the enterprise.

This positioning has laid an important cornerstone for the development of Shenzhou.

Ma Baoxing also found opportunities in Japan that he had studied.

At that time, the requirements for yarn were very high, and the requirements of formaldehyde residue, fabric quality and color fastness were all beyond the industry standard.

But the price of a baby garment is not low.

Finding the right opportunity, Ma Baoxing began training basic knowledge for employees and trying to pry open the Japanese market.

By 1992, the company began to make profits.

In March of that year, son Ma Jianrong went to Japan to visit customers.

The other party asked him to smoke in the smoking room.

One of the representatives of the Japanese company politely asked him, "why do we get the batch of clothes washed down and the color will fade?" Ma Jianrong began to feel nervous, smoke was not in the mood, and he didn't want to eat.

Later, the clothes were burnt out and the problem was solved.

The strict control of quality and the positioning of middle and high end made Shenzhou famous in 1995.

In 1997, Shenzhou took important customers.

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It was a risky attempt. The other side gave Shen Zhou 350 thousand orders, and the production cycle was 20 days.

This is a big challenge for Shen Zhou at that time.

But smooth cooperation has also won credibility for it.

UNIQLO is now the largest customer in Shenzhou.

In those days, Shen Zhou started ODM's attempt outside OEM.

The so-called OEM, that is, processing materials, focusing on manufacturing, design and sales is a matter of concern to customers.

In this mode, the pricing power is in the hands of the customer, the customer grasps the core technology, the OEM enterprises have no bargaining power, and the profits are low.

And ODM is from

To the production is completed by the foundry enterprise, it allows the foundries have a certain degree of R & D strength.

After years of development, Shenzhou's industrial chain continues to expand. Now it is a vertical industry with four complete processes including weaving, dyeing, printing, embroidery, tailoring and sewing. Its products cover all knitted garments, including sportswear, casual wear and underwear.

The integrated industrial layout will give Shenzhou certain pricing power and a higher profit margin than a single foundry.

In 1997, several shareholders of Shenzhou decided to pfer their shares to Ma Jia.

At that time, Ma Jianrong felt wronged, and the stock was sent. Why should we buy it? His father said, "buy it better than buy it, buy it to be righteous and just do it locally!"

That is, in the same year, the "two generation" Ma Jianrong formally took over.

Spend money

"Doing business" is a simple sentence. First, we should be a competitive enterprise. We should learn to practise "internal strength" through various technologies and means. Two, integrity, integrity, integrity and integrity to suppliers.

In the internal forum held by CEIBS, Ma Jianrong said so.

Shen Chau's "internal strength" was partly burned by money.

On the eve of the financial crisis in 1997, Shen Zhou earned 30 million.

Ma Jianrong spent all his money on building a sewage treatment plant.

"This is a joke in the eyes of everyone at that time.

If the purchase of high-end equipment is for production, then what is the meaning of sewage disposal? But my conviction is very firm. I am soberly aware that what I did is right.

Now we call it the sustainable development of enterprises, and at that time I had only a simple idea that doing business could not cause trouble to the society, and could not cause harm to the common people.

In 2005, Shenzhou was listed in Hongkong.

"I remember clearly that in one night, I spent all the more than 900 million Hong Kong dollars that I was going out to do at the time, what to do or upgrade equipment."

He changed all the old dyeing machines and looms in the factory into the most advanced machines in the world.

According to media reports, he will withstand pressure from the board and use profits as a technological pformation.

But technological pformation also has some risks.

In 1998, Ma Jianrong invested $2 million 800 thousand and bought almost all the hair raising machines produced in Italy with almost a year's profit.

After the introduction of the machine, because of the lack of confidence in Shenzhou's international production of this new type of fabric, no one orders, the machine is empty for two years, huge amounts of money turn into a pile of scrap iron, and enterprises are facing closure.

Later, after two years of development, the customer was expanded, and tens of millions of orders were placed. Finally, we had to pport the equipment to the production base in Ningbo.

Of course, heavy investment in equipment is great, but in the long run it will save money.

For example, in the printing and dyeing process, Shenzhou can operate with a computer color separation device to make the dyeing accuracy reach 99.9%, while the accuracy rate of printing and dyeing enterprises is less than 70%.

By reducing the rate of defective products, we can save 60 million yuan a year.

For example, in 2007, Shenzhou introduced automatic bed cutting from Italy and the United States, and the material could be saved by more than 15%. This means that we can save 15 tons of cloth every day, and it can save a lot of money when converted.

"Honesty" comes from the efficiency and welfare system brought by advanced equipment.

According to Ma Jianrong, the company can complete the order from delivery to delivery within 15 days.

"Big order 2 million, small order 4000, can be done within 15 days.

Our orders and deliveries are all carried out through the Internet, and there are no other channels at all.

We know that time is money for the clothing industry.

15 days to deliver products, this is a very efficient industrial chain, from spinning, weaving to clothing and printing and dyeing, all links are fully standardized production, and no half difference is allowed. "

On the executive headquarters of Ningbo, there are two characters: decent work and dignity.

In August 2016, the central kitchen of the largest staff canteen in Zhejiang province was officially completed and put into operation.

Shen Zhou also developed welfare housing for its employees.

During the Spring Festival, Shen Zhou also organized a bus to send the staff home.

In its Vietnam factory, he installed central air conditioners for his employees, claiming that "this is unprecedented in Southeast Asia".

Over the past few years, labor intensive relations in labor intensive enterprises have been strained, but Shenzhou labor disputes have always been controlled at a low probability of 1/10000 two.

"If an employee can do a lifetime in a company, this is the boss's greatest blessing."

Ma Jianrong said.

Nowadays, big names often consider two points when choosing suppliers. One is the R & D strength and production efficiency of enterprises, the integrated production capacity and the speed of delivery, and the second is social responsibility and environmental awareness.

Of course, what Ma Jianrong did is also very much in line with the appetite of big brands.

Specificity

Ma Jianrong for the first time

The confusion was in 2008.

At that time, the subprime mortgage crisis broke out, and his whole team thought that the enterprise was going to die.

"Because Ningbo has entered the late stage of industrialization, the industry already has the level of moderately developed countries, and the textile industry is backward production capacity, the elimination of industry, more people, more pollution."

Ma Jianrong said.

At that time, the labor force was tight, the RMB appreciated, and the government led. He even considered selling the company to buy a shipyard or build a five star hotel.

Ma Jianrong led the team to fifteen six counties in Henan and Sichuan provinces, and went to Southeast Asia to understand the investment environment.

He concluded that the manufacturing advantages of China's textile industry did not catch up with any country in twenty years.

After investigation, he once again invested more than 400 million yuan to expand the scale and speed up technological pformation. "If Chinese entrepreneurs voluntarily give up this advantage, it is too bad."

He believes that after the financial crisis test, clothing enterprises are polarized.

Most of the textile enterprises that have problems are jealous real estate and other fast money. They can survive in the main industry. 20% of the enterprises have not stopped their industrial upgrading, and have been very moist.

He has so far focused on the textile industry, "for our country's entire textile enterprises, the opportunity is huge."

In 2010, Shin Chau introduced its own clothing brand Maxwin.

There are people in the industry who have questioned whether the launch of its own brand has been successful.

In an interview with Ma Jianrong in 2013, he said that it takes a long process to accumulate and cultivate a brand from the beginning to familiarize itself with the market and to the design and marketing of clothing.

The market is huge, the brands are numerous, and the competition is intense. How to survive for a long time becomes a problem that new brands need to solve.

He said that Maxwin is testing water and will not make too many attempts in a short time.