Youngor's restructuring of 14 billion reorganization garments for the next 30 years

I am currently focusing on two pieces, one is branded clothing and the other is investment. After this round of adjustment, Youngor will have a very good development in the next 30 years. ———Ye Rucheng, Chairman of Youngor Group

In 2009, Youngor started its business for 30 years.

Thirty years ago, several educated youth established a youth garment factory in Ningbo with 20,000 yuan. After 30 years, it has grown to have more than 50,000 employees, net assets of 12 billion yuan and total assets of 30 billion yuan. Large multinational companies.

“30 years is a crucial year. The 30-year-old generation is about to withdraw, and the new generation is about to enter the stage.” On the occasion of 30 years of business, Youngor Group Chairman Li Rucheng has placed his eyes on the future.

1.4 billion reorganization of clothing sector

Clothing is always the main line

In July, Youngor Group announced that it had invested 1.4 billion yuan to increase the registered capital of the wholly-owned subsidiary Youngor Garment Holdings Co., Ltd. to increase it from 200 million yuan to 1.6 billion yuan. After the capital increase was completed, Youngor Garment Holdings calculated the equity of Younger’s 22 apparel companies in the amount of Youngor’s contribution.

“Yorgor's reorganization of the apparel structure is beneficial to the company's business again.” An industry analyst said, “This is an institutional beneficial exploration, in line with international practice; more importantly, after the financial crisis, the global apparel industry structure will be With major changes, Youngor's adjustment will take a stronger initiative in the future international competition."

The newly-established apparel holding company consists of six divisions including integrated services, market operations, commodity logistics, overseas operations, international brands, and production coordination. The domestic sales market and production segment are respectively integrated into six regional marketing companies (East China, Zhejiang, (Chongqing, South, North, Central Plains) and four production companies, and at the same time established two new companies, Hemp World and Chinese Language Creativity.

For restructuring, Li Rucheng used eight words to describe: adjustment, restructuring, development, and innovation.

“Reorganization is related to the healthy and sustainable growth of Youngor. It is the starting point and new starting point for Youngor’s development toward the next 30 years and going to the world.” Li Rucheng pointed out in particular that “In the past 30 years, we have emphasized the improvement of quantity, and we will focus on quality later. Promote and focus on the Youngor brand.”

Of course, reorganization is not a cluster of things and it will take a while to complete. Li Rucheng stated frankly: “Dozens of companies must come together and work is very difficult. I am going to spend 3 to 5 years and integrate it into a core company, changing from quantity to brand.”

For the restructuring of the garment industry, the industry also has the view that Younger's garment business is returning. In recent years, Youngor has succeeded in the investment field and has tasted the sweetness in real estate. Therefore, to a certain extent, it ignores the investment in clothing; However, with the downturn and cyclical fluctuations in the real estate industry, Youngor had to re-examine the status of the garment sector.

For this view, Youngor does not agree. Youngoru’s board secretary Liu Xinyu stated that the interpretation of Younger’s transfer of industrial focus was purely a misunderstanding. Clothing is still the core industry of Youngor. Youngor has always been a leading company in the apparel industry, and real estate is a cyclical industry, so the main line of clothing Younger Younger will not give up from start to finish.

A set of data also confirms Liu Xinyu's point of view. According to the data, Youngor’s advantage in the field of clothing has always existed. Youngor now owns China’s largest apparel marketing network. In 2006, the company completed the industrial chain across textiles, clothing, and retail. In 2008, Youngor’s main profits from apparel, real estate, and textile sectors accounted for 50%, 42%, and 8% of its total profits.

“Apparel is a basic industry, real estate is a growth industry in the future, equity investment is an exploratory industry. Although the three industries are at different levels, but they have a dependency, Youngor will insist on doing it.” Li Rucheng said that in the next 10 years, Younger The brand will be greatly improved, and now he will operate it personally. The management of real estate is relatively stable. He is currently focusing on two pieces, one is branded clothing and the other is investment. "After this round of adjustment, Youngor will have a very good development in the next 30 years."

Brand serialization

Youngor's CEO, Mayor, and G&Y go hand in hand

At the end of August, the G&Y brand launched by Youngor and W.GAME in Japan opened the first direct-operated store in China in Suzhou. With the launch of the G&Y fashion brand, Younger, who has always appeared as a classic and stable image, has once again become a subject of concern. Does Youngor change his face?

In fact, this is just one of the Younger brand serialization moves.

After years of development, Youngor has formed a vertical textile and apparel industry chain led by branded clothing operations. With Younger's acquisition of the core Menswear business of the US KELLWOOD company, Hong Kong Xinma Group, Youngor received a stronger design in 2008. Development and international management capabilities have formed one of the largest textile and apparel industry chains in the world. At this time, Youngor is also facing the issue of how to achieve brand transformation and industrial upgrading under the new situation.

“Younger has a lot of room for improvement in branding. What we need to do is adjust the brand strategy, develop new brand series, and gradually form a brand series with accurate positioning, product refinement and the ability to meet the needs of different consumer groups.” Li Rucheng Indicated.

According to reports, in the first half of this year, Youngor officially put forward the brand serialization strategy, and now it has been clearly divided into three brands: YoungorMayor, YoungorCEO, and G&Y: G&Y targets 25-35 year-old college graduates and quasi-elite professionals in the workplace; YoungorCEO is based on the current Youngor brand, targeted at 35-45-year-old business people with high cultural and high income; YoungorMayor is targeting high-end customers such as civil servants.

At present, the Youngor brand serialization has made substantial progress. Three brand studios have been established, led by three senior leaders and equipped with independent planning departments responsible for the operation of their respective brands.

G&Y's terminal promotion has already begun. Following the launch of the first store, nine stores will be opened in Shanghai, Hangzhou and Ningbo. It is expected that the number of stores will reach 15 in 2009 and 40 in 2010. The Mayor brand's current design sample will be launched soon, and future store promotion will focus on high-end positioning.