Li Rucheng, the 65-year-old chairman of Youngor Group, decided to gamble.
In recent years, the clothing industry, which has been operating in the company, has gradually faded out. Yesterday, he once again stood in front of the stage and announced a super plan.
"Recreate a Youngor in five years." At the press conference of the Chinese Fashion Festival yesterday, Li Rucheng announced with a high profile.
New materials, new fabrics, new processes, new brands and new services - Li Rucheng announced that he will invest 10 billion yuan in three years to launch a technology and innovation strategy, "to create the acceleration of the development of the apparel industry, called China Fashion coordinates of the apparel industry and the entire service industry."
Li Rucheng has been in the forefront. Last year, he dug up the designer of George Armani, Taiwanese Gong Naijie, as the company's design director. The newly renovated Youngor House, the top designer Philip Handford - in the past, they only designed store space for luxury brands such as Burberry.
In June of this year, he was not young, he took a dozen-hour flight and flew to Europe to visit the top fabric suppliers. These suppliers, which have a history of hundreds of years, used to supply traditional luxury brands such as LV.
Chinese familiar with ERMENEGILDOZENGNA, Cerriti 1881 (Cerruti 1881), the world's largest cashmere manufacturer and largest wool buyer Loro Piana, Italy's famous shirt fabric brand ALBINI, Swiss famous shirt fabric manufacturer Alumo... October 19 On the day, the CEOs of these fabric manufacturers came to Ningbo to sign the contract for the veteran who has been operating the industry for many years.
The popular products in the domestic market have been seriously over-supplied, while the international high-end menswear prices are unrealistically high, with a basic set price of 30,000 to 40,000.
Li Rucheng believes that this gives them the opportunity. Youngor's MAYOR series will use the best fabrics, priced at 8,000 - 15,000 yuan. This price is half or even lower than the top international menswear brand.
He has selected hundreds of senior technicians among the blue-collar employees who have accumulated from the company for 30 years. Youngor intends to create a suitable Chinese for the “successful people†of China with the most traditional red-handed tailoring craftsmanship in China. High-end custom dress for the size.
“Take the top-level fabrics to stimulate the supply side reform of the apparel industry, and replace the fast-selling European and American luxury brands with high-end customized and personalized brands.†Youngor, who has been in the mainstream of clothing, real estate and finance for many years, intends to The main business is gambling.
one
On September 24th, near the most lively Sanyang Square in Wuxi, the Youngor House, which covers an area of ​​nearly 3,000 square meters, opened. This is the asset that Youngor once again invested in a century-old store. The total purchase price of this large-scale specialty store is 250 million, and the decoration price has reached 10,000 yuan per square meter. Therefore, the store has invested nearly 300 million yuan.
And Li Rucheng’s sales forecast for this newly opened seller is only 20 million yuan in the first year. A little calculation shows that the seller's total sales can only be equal to the depreciation of the store.
The loss is only part of Li Rucheng’s “Thousand Store Strategy†plan. Li Rucheng has proposed within the company that in the past few years, a thousand stores of similar scale have to be established in China, and the sales are expected to be tens of millions.
In Nanjing Road in Shanghai, the company has invested 100 million yuan to establish the first central store. “The sales volume of this store in Nanjing Road is 40 million yuan, but if we rent it, the rent can reach 30 million yuan per year.†Li Rucheng said.
Behind the seemingly cost-free investment, it hides the ambition to build a century-old store. This plan hopes to create the first supply-side reformed transformation enterprise sample in the most open textile and garment industry in China.
China has more than 200 million consumer groups with purchasing power. With the development of China's economy, the number and purchasing power of this group will further increase.
However, the general purchasing tendency of this group is imported products from abroad. Even if these products are manufactured from the same production line of domestic manufacturers, they cannot be changed.
In the eyes of Li Rucheng, the so-called supply-side reform is to create effective demand for customers and let them buy the products they want.
Youngor hopes to take advantage of the industrial field and, through its own efforts, win the demand for 200 million consumers of high-quality consumer goods back to Chinese brands.
The domestic clothing industry has said that Youngor's men's products are better than many top-level world brands in terms of texture, but the price is about one-third of them, but they still can't form consumption hotspots in China.
"This is the traditional mass consumer psychology in China, and it takes time to make up." Li Rucheng said. "It requires companies like ours to have the determination to become a century-old store. Only in this way will it be possible to gradually bring together the concerns of domestic consumers over a long period of time."
This is the logic of his desperate opening of the store to the core of large and medium-sized cities in China: it is a collection of high-quality consumers who want to become a century-old domestic company, they will appreciate the pains of producers.
two
Li Rucheng knows that to let domestic consumers turn to their own brand of "China Youngor", he and his staff have to pay the price of time. Only by letting the domestic middle class and above continue to feel the efforts of themselves and their employees, and let consumers get the products with excellent value for money, can he achieve the goal of “creating Youngor brand customersâ€.
But in terms of the current Chinese economy, the difficulty of making clothes that are value-for-money for consumers is becoming more and more difficult, and the time left for the Chinese manufacturer who wants to become an international brand is rapidly becoming shorter.
The challenge also exists: on the one hand, the blue-collar workers in the clothing industry are rapidly becoming scarce and the operating costs have risen sharply; on the other hand, the downturn in the domestic economy is causing the middle class to gradually tighten the wallet and reduce the expenditure on clothing.
To this end, the management of Li Rucheng and Youngor has made a series of strategic responses.
After 2010, he began to implement a multi-brand strategy, establishing the highest-end MAYOR brand to the GY brand for young people, and rebuilding the entire company's production process with the brand as the core;
By 2014, Youngor will transfer the industrial chain that has been hard-working for 30 years, and move the garment processing link to the southwest, northeastern and Southeast Asian regions where private industry is urgently needed to reduce labor costs;
The textile links in the industrial chain have been moved to Chenzhou, where the textile industry peers gather and compete fiercely, so that managers can face competition;
Finally, Li Rucheng and Youngor's management comprehensively adjusted 3,000 sales outlets in various large and medium-sized cities across the country to adapt to the impact of online shopping.
By the time this series of major strategic actions had been basically completed in 2016, Li Rucheng began to establish an ambitious market positioning for Youngor's MAYOR brand: Chinese managers new clothes.
three
As a clothing giant, Li Rucheng has a clear thinking on the transformation and upgrading of clothing manufacturing - only in the direction of branding and high-end. Undoubtedly, only the consumers who have genuinely demanded the quality of clothing have the possibility that the enterprises under his leadership will pursue the persistence of business in the market.
But the challenge is huge.
Li Rucheng knows the weakness of his own business: consumers who love the Youngor brand are among the social backbones that have grown up with him after the reform and opening up. They are the conservative forces in the country, and they are the main consumers of consumption. This group is quite different from the emerging 80s and 90s in character and hobbies.
The young managers of the Youngor management team also have different opinions on this. The brand that was loved after 6070 may not be able to pass the first brand of the formal dress through the idol inheritance as Li Rucheng hoped.
In pursuit of the goal of a hundred years of business, Li Rucheng is also quite tolerant of the different opinions of the management team on the hope of brand rejuvenation. Some time ago, the Ningbo company made some changes, such as adjusting the product structure and market positioning through the form of cross-border marketing, so that young consumers can also like the brand from the inside.
However, this self-taught Ningbo entrepreneur has his own insistence. He firmly believes that the fashion transmission mechanism of the Chinese market will replicate the traditional path of the European and American markets. The public will follow the every move of idol-level figures in various fields, thus setting off the fashion changes.
Although there are many uncertainties and controversies, the future of this road is still uncertain, but this restless amnesty has made up its mind to spend more money on those consumers who have traditionally consumed international brands. Fight for these own teams.
He is not reconciled.
This time, he has prepared enough ammunition.
Editor in charge: Song Jun
Our Hematite Pendant is good in quality and competitive in price. We are manufacturer and supplier of hematite pendant following your specific requirement. We are looking forward to your E-mail and establishing cooperative relationship with you! We would provide professional hematite pendant with good services for you!
Hematite meaning and properties
Hematite is used to improve relationships. If you need your personal relationship to be better, carry a hematite with you always.
The name comes from the Greek word for blood. It has been used as an amulet against bleeding, and so is known as the "blood stone". When arranged like the petals of a flower, it is referred to as the "iron rose". Native American folklore states that war paint made from hematite will make one invincible in battle. People in the eighteenth and nineteenth centuries wore hematite jewelry during mourning.
Scientists of the Mars Exploration Rover Project believe that deposits of hematite ono Mars .may help prove whether large amounts of liquid water ever flowed on Mars' surface. They say that where water was, life may have had a chance to thrive as well.Hematite is good for increasing intuition. In jewelry it is best in a ring worn on the left hand.
Healing properties of Hematite
Hematite stimulates iron absorption in the small intestine, which in turn improves oxygen supply to the body. It can be in direct contact with the skin, but results in inflammation for some people, so test it carefully on yourself before use.
Sources of Hematite
Brazil is the most important source of hematite. Other sources include: China, Canada, England, and Germany.
Magnetic Hematite Pendant, Hematite Cross Pendant, Hematite Heart Pendant, Sterling Silver Hematite Pendant, Opalized Hematite Stone Pendant
JOYA GIFT CO.,LIMITED , https://www.joya-jewelry.com