Brand Research: The Birth And Prosperity Of Burshlung

A few days ago, a news of the Lining family business was launched by many people, and the memory of Hong Kong brand clothing was aroused by many people. Before 2010, Hongkong's three largest clothing brands, burshlong, Baleno and Giordano, were very popular in the mainland market. They could see stores in all the streets and lanes. Huang Bo once proudly pointed to his clothes in "Crazy Stone" and said, "brand, Baleno!"

That is the final aftertaste of Hong Kong brand clothing left to the mainland audience. With the rapid fashion giants such as ZARA, H&M and UNIQLO entering China, the burshilong have lost the label of the trend and are gradually fading away. In 2016, Baleno sold for 250 million yuan. This time, it was the turn of burshon. What is intriguing is that the 66.6% stake sold by burshalon is from founder Roding bond fifth son Luo Jiasheng, while the acquisition side Dragon Development Company is 80% from the Lining family enterprise and the 20% of Luo Shukai's son Luo Zhengjie. In other words, part of the burshon dragon came out of Luojia and entered Luo's family.

In 1970s, there was a popular word - "made in Hongkong". At that time, the export volume of Hong Kong clothing accounted for the first place in the world, which led to over 40 employed people, accounting for more than 2 of the total employed population. It can be said that the brilliance of Hongkong's garment industry represents the brilliance of Hongkong's manufacturing industry. As time goes by, the selling of burshalon seems to once again show that Hongkong's manufacturing industry is no longer what it used to be. Behind the decline of this enterprise, there are both the inability to lag behind the times and the sadness of family succession.

01. Hongkong story can not be separated from scrambled characters.

The story of Hongkong is inseparable from the word "stir". Behind it is the endless thirst for opportunities and wealth. The founding history of Luo Dingbang, the founder of burshland, is no exception.

In 1912, Luo Dingbang was born in Shunde, Guangdong. The family was very traditional, and he set a daughter-in-law for him early. At the age of 23, Luo Ding bang was married to Chen Chusi in accordance with his family's expectations. Chen Chusi's family was very good, and she opened a cotton mill at home. Her parents cherishing her very much. 3 years later, Luo Ding Bang's eldest son Luo Lefeng was born. Luo Ding Bang has taken over Chen Jia mill.

After fighting the war, Shunde has no alternative but Chen's cotton mill is no longer thriving. Luo Dingbang heard that Hongkong had more opportunities and left to think about it. Finally, in 1950, his family moved to Hongkong, bringing the skills and capital saved by Chen's cotton mill.

This is the first time that Roding has tasted the sweetness of speculation. In 1950s, Hongkong was the flourishing period of the cotton mill. As soon as Luo Dingbang arrived in Hongkong, he soon got advice from Guangdong's fellow townsman, rented the workshop and started a cotton mill. Under the double blessing of experience and capital, Chen Jia's cotton mill has been reborn in Hongkong, but this time, we are more accustomed to calling it "Roche cotton mill".

Hongkong is small, but its market is broader. From the cotton line to the clothing industry, the textile industry has to go through four stages: spinning, weaving, dyeing and sewing. The first step is to spin the cotton into thread. After the cotton mill's business is on the right track, Luo Dingbang is aiming at the next step: weaving.

From the post-war to the 1960s, Hongkong was popular in weaving. The weaving method was more traditional and the fabric was stiffer and stronger. At that time, Hongkong had been exporting cheap clothing such as vest, T-shirt and swimsuit, so it was customary to use this woven fabric. While Luo Dingbang complies with the tide, he uses woven technology to develop softer and comfortable knitted fabric, and wait for the opportunity.

Weaving and knitting is the most important turning point in Luo Dingbang's entrepreneurial process.

In July 1961, the United States entered into a short-term arrangement on international cotton trade at the international cotton textile conference to limit the import volume of 22 kinds of Hongkong cotton fabrics. There is no doubt that the short-term arrangement made by the United States is just another excuse for trade protection, but Hongkong can only accept it. This shows that the scale of Hongkong's exports of cotton fabrics has been large enough to arouse the vigilance of the US market. Soon, European countries also joined in this short-term arrangement, hoping to rely on political power to artificially curb the invasion of Hongkong's textile industry.

Luo Dingbang is one of the dark horses in this trend towards cotton in Europe and the United States. Unlike the less developed regions' desire for durable woven fabrics, Europe and the United States have a soft spot for soft knitted fabrics. Roy Ding bang, who was ready to take the lead, won the export share early.

In early 1970s, Europe and the United States asked for a further expansion of the scope of Hongkong's cotton textiles. The industry rules, which were called quota system in Hongkong textile industry, were formally implemented. As the name suggests, the quota system is determined by the highest value of exports in Europe and the United States, and Hongkong manufacturers claim their share by volume. This system is very beneficial to large manufacturers. In order to promote employment, the government of Hongkong is more willing to distribute quotas to large manufacturers, and even to include the representatives of manufacturers into Hongkong delegations. They are directly negotiated with trade representatives from European and American countries.

The manufacturers who get quotas usually make two choices. The first is to sell quotas, and they do not start their own businesses. They sell their shares to high prices and make quick profits. The second is to do business, recruit workers, and produce enough products to export overseas, so as to save their homes.

Luo Dingbang chose second kinds. Since then, Roche cotton mill has been renamed "Roche knitted".

02. Originated from Luo Ding Bang's resistance to reality.

Burshalon is the most famous brand of Roche knit. It originated from a resistance to reality by Luo Ding bang.

Since the implementation of the quota system, the textile industry in Hongkong has begun to have an outflow tendency. Many manufacturers who have already mastered the source have chosen to build factories in less developed areas and then export them to destinations, thus avoiding quota restrictions. Some manufacturers have stayed in the garment industry with higher profits to meet the needs of the European and American markets while seeking other markets that need to be developed.

In 1986, Europe and the United States re expanded the scope of Hongkong textiles, covering 90% of Hongkong's textile exports. This is certainly not aimless. In the past thirteen years, the volume of Hongkong's clothing exports accounted for the highest in the world. Not only low-end clothing, the middle class likes Marks&Spencer, Hugo Boss, Marc Jacobs, Nike, Littlewood are also produced by Hongkong foundries.

Roche knitted has also been a representative factory before. Because of the big family business, it did not suffer any losses in the game of quota system. Nevertheless, seeing the tightened restrictions, Luo Ding Bang still felt very uncomfortable. Thus, under the advice of Luo Shukai the second son, in 1987, the burshon dragon was formally established. Just 6 years ago, Baleno and Giordano had already made a mark in Hongkong, but they still had a "successor" on the back of Roche knitting.

In short, the counterattack of burglung is mainly based on two points: first, positioning leisure, youth clothing, and attacking young people's market. Unlike the older generation who is frugal, the living conditions of the younger generation in Hongkong have improved a lot. They are well off and have more pursuits for fashion. Such customer groups are more likely to buy at high frequencies. Second, carry out franchising business, collect affiliate fees, provide products, allow outsiders to join, and make money for burlung.

Rodin bond is a person who has been steeped in textile industry for decades. He is very familiar with every aspect of spinning, weaving, dyeing and sewing, and is more aware of Hongkong's import and export situation. Many manufacturers have left Hongkong to move to lower cost and less restricted places, while burshlung has done the opposite thing, selling itself and selling every single profit from yarn to ready-made garments.

At that time, peers were closely watching abroad, but not many people noticed the booming demand in Hongkong. Burshlung, Giordano and Baleno soon became the best sellers in Hongkong. In the first year of its opening, burshlung went to sea quickly and opened retail outlets in Singapore.

In 1993, burshlung entered Southeast Asia and the mainland market. It also relies on affiliate mode. In the case of relatively more cost saving, burshlung has become the "brand" familiar to both Chinese and mainland consumers in Southeast Asia.

In the same year, the burshalon listed on the Hongkong stock exchange and its opening up soared, which seemed to presage a bright future for Hongkong.

This is also the year when the Hang Seng index climbed from 5000 to 11000 at the beginning of the year, or more than 1 times. Li Zhaoji's new property in Ma'anshan has already opened 600 feet (about 54) 2 million 200 thousand Hong Kong dollars. Compared with 60s, the price of property has climbed 100 times in the past 30 years.

Under the lion rock, the praise of industry and hard work has gradually faded away. The great era of catching up and selling stocks and speculation has become a topic of long standing for Hongkong people in 1990s.

03. Glory and defeat

All of this, Luo Dingbang no longer cares.

In August 13, 1996, Luo Dingbang died. Before he died, he called the next son Luo Shukai to his side and transferred all assets of the family company's interests, cash and property to HK $1 billion, and appointed him as executor of the executor.

According to Roding's wishes, all the heritages were divided into three equal shares, one for the Luo family, one for charity and another for illegitimate children. It is decided by Luo Shukai, the second son.

This is an unusual will. Unlike other rich families whose relationship is disordered, Luo Dingbang's family relationship is relatively simple, with five sons and a daughter known, all from Chen Chusi, and a mysterious bastard. Luo Dingbang's will means that, apart from the 1/3 legacies of the illegitimate child, the other children can only snub the sage and beg for food under his hands. In a short time, the Luo family became a loose sand.

However, Luo Dingbang never had a bowl of water for his children.

After 3 years of marriage, Luo Dingbang and Chen Chusi had the eldest son Luo Lefeng, but Luo Yue Feng was very mature. At the age of 3, he learned to speak, shy and wooden, and Luo Dingbang did not like him. On the contrary, Luo Shukai was the second son, intelligent and intelligent. After he was born, Luo family moved to Hongkong, and Luo Dingbang became a famous "knitting king" since then. Besides, Luo Shai Kai advocated the establishment of the castle lion dragon.

Luo also understood his awkward position at home. After he got married, he and his wife moved out of the Luo family, starting from a sewing machine, starting from scratch and starting a garment factory.

How far is the relationship between the ROC brothers? While the retail scale of the Hongkong is expanding, the cost of the garment industry is also rising. In order to save costs, burshalon began to look for factories to make ready-made garments. Even so, Luo Shu Kai, who led the company, did not take care of the company. Even now, Jingyuan group, founded by Luo Lefeng, has been very famous in the industry. UNIQLO and H&M are their customers.

With the example of big brother, Luo's descendants can only find their own way out. Three women Luo Jiasui went to the road of speculation, four sons Luo Jiabao founded the group, six children Luo Jiaju founded real estate, and entered the real estate industry. Luo Jiasheng, the five son, became a big shareholder of burshallon, but he did not participate in the actual management.

In 2003, the mainland tourists went to Hong Kong for free travel, and Hongkong's tourism revenue soared. The burger dragon, which occupied Hongkong's streets and lanes, became one of the most popular clothing stores for tourists at that time. With this easterly wind, the burshalon is expanding rapidly in the mainland.

In 2005, the market value of burshlung exceeded 250 million Hong Kong dollars, and the mainland franchises opened one after another. At the end of June 2011, there were more than 1400 shops, and no one expected it to be the last glory of burlung. The defeat seemed to come at once. In the next few years, the growth of burshilon's revenue has been lingering low or even negative. Net profit plunged 98% in 2017 and began to lose money, with a deficit of over HK $139 million in 2019.

Until recently, the burshlung announced that it was selling the Lining family.

In response to the declining trend of the BIS lion, some media have interviewed Luo Ding Bang's eldest son Luo Luo Feng. At that time, Luo's style was far ahead of his father, and Jingyuan group became one of the three largest garment manufacturers in Asia, ranking seventeenth in Fortune magazine's "50 world changing enterprises". Hearing this question, Luo Lefeng just said lightly, "Cheng also joined in, and failed to join."

What's the difference between styles and brand positioning? How will they fail to join? After 2010, H&M, ZARA, UNIQLO and other fashion giants are spending money to hire spokesmen for eyeballs. They are also trying to deepen their brand awareness by occupying large shopping malls. In the same period, what did burshlung do? It still stayed in the corner shop, and the negotiation fee was much less than that of the franchisee.

The defeat of burshlung, Baleno and Giordano is not only the rolling up of capital scale, but also the slowness of their long stay in the safe area.

Of course, the burroshiro is already a small part of the Roche family business. Luo Dingbang's children, such as Luo's own home, or have already joined the property market in Hongkong, have become the new king of Hongkong in the new era.

Luo Ding Bang has made a career because he refused to sell quotas. Nowadays, most of his descendants are still hard to refuse the fast money handed over by the times. As for the representative of the Hongkong born dragon, after the third hand, the bottom has already gone with the wind.