Next Year, Ruyi Or Shandong Will Launch High-End Fashion Brands.

Buying Switzerland

After Bally, known as "China LVMH", Shandong's Ruyi ultimate.

Dream is to create an "Oriental Paris".

"Ruyi will become a 100 billion level fashion industry group in 5 to 10 years", "to build Shandong into the fashion capital of China". This afternoon, the chairman of Ruyi Holdings Group, chairman of the board of directors, announced two plans or disruptive influences on the whole Chinese and the world's fashion industry.

Ruyi's confidence is not groundless. In terms of revenue scale, Ruyi holdings in 2017 is the top 20 fashion luxury group in the world.

Ruyi holdings purchased the luxury brand Bally in February this year.

According to the world clothing and shoe net, DDT released the "global luxury 100" list in 2017, the French light luxury group acquired by Ruyi Holdings Group in 2011 and 2017.

The Japanese apparel company Renown ranked 51 and 58 respectively. According to statistics, in 2016, the combined turnover of two yuan was more than 9 billion 235 million yuan. Ruyi holding group is the only company that has entered the fashion luxury category through controlling.

Shandong Ruyi is already the top 20 fashion and luxury group in the world.

Founded in 2001, the main shareholder of Ruyi holding group is Qiu Yafu, chairman of the board. Its shareholding is 51%, a retiree holding 15.2% of the group, and the remaining 33.7% stake is held by 47 executives of the group.

Unlike European luxury goods giants made by luxury goods, Ruyi holding group is a typical Chinese fashion industry group founded by technology manufacturing industry.

Back to 20 years ago, only 170 million of the sales of Ruyi holding group, making a suit of men's suit material is nearly three times that of Italy.

After leading 40 employees to Europe, Qiu Yafu decided to create a breakthrough in wool manufacturing and strive to build China's "Zegna".

By focusing on the upstream of the apparel textile industry chain, Ruyi holding group has established a complete wool textile and dyeing and dyeing industry chain from raw materials, yarns, dyed fabrics, weaving, sewing and so on. At present, it is the largest wool textile industry group in the world.

The group's high-end customers include international luxury brands Dior, Hermes, Givenchy, Versace and so on.

But Qiu Yafu did not stop there.

In 2008, when he took part in the international fashion forum held by LV and Hermes, he realized that grasping the international fashion discourse power is the fundamental reason why these scarves can sell tens of thousands of yuan.

Qiu Yafu said earlier that Chinese clothing must tear down the "cheap label" if it wants to break through.

He said that Ruyi holding group is integrating global resources, invites the world's best designers to "use it for us", first let you become me, then let you recognize me, so as to enhance Chinese consumers' recognition of Chinese brands.

In his view, fashion is very forward-looking. Real luxury brands create future trends and let most consumers follow.

More importantly, behind the success of luxury brands is consumer recognition of the culture and art of the country. This is the peak of the value chain and why the United States has only the middle end fashion brand as a world power.

Pictured Qiu Yafu, chairman of Ruyi holding group, interviewed by the media.

The formation of global luxury brands is a long process, and is also a result of the combined effect of comprehensive factors.

As the profitability of the textile industry continues to decline, pnational investment is gradually moving towards scale and modernization.

After repeated pondering, Qiu Yafu adheres to the idea of "bringing ism" and tries to extend his business from textile production to international fashion industry.

What shocked the industry is that in 2010, Ruyi holding group took Japan's 100 year old menswear brand Renown in just three months, making it the largest shareholder of the group by 4 billion yen or 44 million dollars.

Ruyi chose seven out of the more than 30 clothing brands of Renown, mainly developing the Chinese market, and at the same time, taking advantage of its high-end market distribution network, opened the first step in the pformation of apparel retailing.

From the brand matrix, the acquisition strategy of Ruyi holding group is closely related to the end of the apparel production supply chain. The raw material market related to the main business of the group is controlled by CS Agriculture Pty of the Ruyi holding group, which controls half of the shares of Lempriere Pty, one of the Australian cotton farms and one of the largest wool suppliers in the country. In Scotland, it bought shares of Carloway factory, one of the three producers of Harris Tweed, and the group also owns the fabric manufacturer, LYCRA lycra and other companies.

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Maje parent company acquired by Ruyi holding group in 2016

The retail end is composed of Swiss luxury brands Bally, SMCP group, Trinity Ltd. Li Bang holdings, Renown Inc, British windbreaker brand Aquascutum, and the German men's suit group Peine Gruppe, which have just completed most of the controlling share purchase this year.

Qiu Yafu said that the group spent nearly ten billion yuan in the past four years to integrate the global fashion resources, and finally set up the layout of three women's garments and two men's clothing brands.

Positioning high-end fashion market, with good growth and historical precipitation, is an important criterion for Ruyi holding group to select and buy brands.

Today, Italy, the United Kingdom, France, Japan's top four fashion capital high-end brands, Ruyi Holdings Group acquired 1/3 of the target.

Compared with Fuxing international, Herme group and other Chinese groups that are making frequent efforts in cross-border fashion acquisitions, Ruyi Holdings has always focused its attention on the field of clothing. When Qiu Yafu first talked about the details of Bally acquisition, he said that this is also a key factor that can finally move the brand with fourth bids.

More importantly, Ruyi holdings group emphasizes that it will continue the traditional and unique characteristics of Bally to maintain its headquarters in Castellano, Switzerland, and continue to operate its marketing, design and sales team through its display platform in Milan, Italy.

This acquisition mode means that the brand will have great independence. The two sides only cooperate in the overlap part of the business, while keeping the brand culture of the new acquisition not diluted, it also helps Ruyi to clear the way on the way to further expand the global fashion layout.

After nearly ten years of integration of global fashion brands, the group put forward a more daring plan.

Qiu Yafu said that in October next year, Ruyi holding group will launch the first high-end fashion brand named "Ruyi". "This is a brand that foreigners do not have, and they can not achieve it. It is the accumulation of 5000 years of Chinese history".

The English name of the brand is royal Ruyi, which mainly attacks Paris and Milan market.

It is noteworthy that LVMH, represented by European luxury group, has gradually acquired acquisitions by creating brand and accumulating capital. The disadvantage of this model is that the group does not control the resources of the manufacturing process and is vulnerable to the instability of the international environment.

While Ruyi holdings takes the fashion resources of first-class designer, distribution network, manufacturing process and so on, and has the advantage of Chinese manufacturing industry, or is creating a new mode of expansion of Oriental fashion industry group.

In fact, behind this plan is Qiu Yafu's ambition to build Shandong into China's fashion capital.

Shandong seems to be out of touch with the fashionable features of Milan, Paris and other fashionable cities with a long history. Qiu Yafu pointed out that the international fashion center must be the base of international fashion trading and the birthplace of creative culture.

He takes the luxury brand Gucci that exploded rapidly in recent years as an example, and its rich bold colors and designs reflect Italy's culture.

These conditions, such as Yi holding, are not available, but he said, "the fashion in the future is in Paris, but the boss of Paris brand is in China". Ruyi holdings intends to create a new way to expand the fashion layout.

To achieve this goal, the group has invested 10 billion yuan to establish a fashion industrial park and a science and Technology Industrial Park.

On line, Ruyi group will invest in the competition of Internet + era, and establish a new retail ecosystem with joint designers, shopping guides and consumers.

Qiu Yafu explained that this pressure is not only in the industry's competitors, but also from Jingdong and Alibaba recently involved in the fashion industry.

Two big business tycoons have launched luxury shopping platforms, and are deeply involved in the international fashion week through a series of cooperation.

After Tmall led Lining, Taiping bird, CLOT and CHENPENG to appear in New York fashion week with Tmall China day, Jingdong recently joined the 2018 BFC/Vogue Designer Fashion Fund to be selected as designer brand Huishan Zhang, Rejina Pyo and Le Kilt to hold a 2018 AW fashion show in Shanghai.

"Ruyi takes the family mentality of the world to build China's own fashion culture circle". Qiu Yapu clearly stated that China's LVMH is no longer a rumor, and its goal is to occupy the top of the international fashion Pyramid.

Bloomberg released a report earlier this year, beware of the upcoming Chinese version of LVMH. It points out that the rapid expansion of Ruyi holdings group follows the Chinese M & a mode. Frequent acquisition of luxury fashion brands in the past few years shows its strategy of winning through capital operation.

The report also pointed out that for a brand with high recognition in Asia but poor performance, such as Prada or Salvatore Ferragamo, it is necessary to consider the potential purchasers in the region like Shandong, and the three leading groups in the industry, LVMH, the peak group and the open group, need to be vigilant against potential competitors from China.

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