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    China'S Textile Industry'S "King Of Substitution" Does Not Lose To Foxconn, Its Market Value Is 155 Billion.

    2019/4/4 12:46:00 9737

    China'S EconomyShenzhou International

    The development of Chinese economy in a short span of twenty or thirty years has benefited from the low labor cost in early China and attracted a large number of foreign capital to enter. This led to economic development. The Chinese economy started at the earliest stage from the handicraft industry and the low-end manufacturing industry.




    With the rise of China's economy, the main body of China's economy has changed from a factory to a technological enterprise with independent R & D capability.

    Today, China's processing plants are mostly high-end luxury brands, or high and new technology industries, such as Apple Corp in the world's largest processing plant Foxconn group.




    Of course, in China, it is far more than Foxconn for the generation of processing enterprises to go public, and another company is Shenzhou International.

    Speaking of this company, many people are very strange, but speaking of Shenzhou International Cooperation Company, it is famous, including UNIQLO, Nike, Adidas, Anta and other well-known clothing enterprises at home and abroad.

    Although it looks like a low-end garment processing plant, Shenzhou International has made this industry an annual revenue of 21 billion yuan.




    Ma Jianrong, the boss of Shenzhou International, is also one of the richest men in China after Ma Huateng and Ma Yun.

    In 2018, Ma Jianrong ranked thirty-eighth in the Hurun China rich list with a value of 50 billion yuan and became the richest person in China's clothing industry.




    Since its successful listing in Hong Kong stock in 2005, Shenzhou International's market value has doubled more than 50 times to an astonishing 155 billion yuan, and has been the largest export enterprise of knitted garments in China for many years.

    So how did Ma Jianrong set up the knitting enterprise with a market value of 100 billion?




    Ma Jianrong's father, Ma Baoxing, entered a textile mill when he was a teenager. Because of his mastery of textile technology and his ability to manage, Ma Baoxing was promoted to vice director of a knitting factory.

    In 1990, the Ningbo municipal government set up Shenzhou Weaving Co., Ltd. in Ningbo in order to increase the number of jobs. Ma Baoxing was introduced as the deputy general manager of the company as a senior managerial talent. Ma Jianrong, then 25, entered the factory with his father.




    However, after entering the company formally, Ma family and his son discovered that the factory had some debts not paid due to the construction of the factory building, and the production funds were not in place.

    Father and son two people have no way, only to take the trouble to take up the mess, and start to raise funds and pull orders, so the factory starts to work under such difficult circumstances.




    In the process of running the market, Ma Baoxing found that China's textile exports, mainly through foreign trade companies, the general product quality is very poor, and competition homogenization.

    In order to avoid such a situation in Shenzhou International, Ma Baoxing decided to position the company as a medium and high-end product, laying the foundation for the later development of the company.




    At the same time, Ma Baoxing also found significant market opportunities in the Japanese market that he had studied and studied.

    But baby clothes in Japan require high standards for raw materials, and of course, the price of clothing is very high.

    Ma Baoxing consciously aimed at this market and began to produce high-end baby garments, specially exported to the Japanese market.




    Thanks to the keen intuition of market opportunities, Shenzhou International has achieved profitability since 1992.

    However, in the process of enterprise development, there are also a lot of frustrations, Ma Jianrong has a visit to the Japanese customers once, the representative of the other company said that a batch of products received, water will fall.

    At that time, Ma Jianrong was very nervous. After returning to China, all the clothes with quality problems were burned down, and the quality of the products was strictly controlled.




    In 1997, Ma Baoxing formally handed Shen Zhou international to Ma Jianrong's hands. However, Shen Zhou International has gained popularity in the industry by virtue of its adherence to product quality.

    After Ma Jianrong took over the company, Shenzhou International received the largest order at that time. The order came from the famous clothing brand UNIQLO. The other side asked Shenzhou International to complete 350 thousand orders in 20 days.




    This big order is undoubtedly a huge challenge to the productivity of Shenzhou International.

    But Ma Jianrong resolutely took the order and completed it on time, so he successfully won the trust of UNIQLO, and the two sides established a long-term cooperative relationship. Today, UNIQLO is still the largest customer of Shenzhou International.




    It was in that year that Ma Jianrong put all the company's annual profits in the sewage treatment plant, but the move was ridiculed by the outside world, and it was totally meaningless investment behavior.

    But at that time, Ma Jianrong was convinced that only by improving the sewage treatment system could the sustainable development of enterprises be maintained.




    Over the years, Ma Jianrong has continuously increased investment in production equipment and promoted the production technology and production capacity of the factory. Although it is not effective in the short term, in the long run, it has not only improved the competitiveness of enterprises, but also greatly reduced the operating costs of enterprises.

    Even when the company went public in 2005, the financing of that time was all used to purchase cash equipment.




    Thanks to the advanced production technology and the pursuit of product quality, Shenzhou International has established the long-term cooperative relationship with the trust of many famous international enterprises and has become the largest knitting export enterprise in China.

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