YOUNGOR: Building Brand Phalanx

YOUNGOR has a vertical industrial chain covering the entire garment industry from cotton to retail, which is unique among the global apparel industry.

Although the practice of YOUNGOR is controversial, some people think that the clothing industry focuses on making brands instead of manufacturing. But Li Rucheng has made something else that can not be done in the whole industry chain, and has created the "magic" of the industry.

In his own words, it is "optimizing the industrial chain".

In the clothing industry, fabric is the key factor that determines the quality of garments.

In the domestic cotton textile industry generally can only produce 110 yarn, YOUNGOR achieved breakthrough in the fabric, stood in the leading global fabric industry height.

Last year, YOUNGOR made use of Xinjiang's high-quality long staple cotton, through the continuous optimization and adjustment of production technology and equipment, successfully spin 1.9TEX (300 branches) pure cotton combed single yarn.

This indicates that YOUNGOR's spinning level has reached the leading level in the world.

"The fabric made of our 300 high count yarns feels a bit of silk and feels fine and soft.

We have to sell more than 2000 yuan for this shirt. The added value is very high and no one else can do it.

This is the result of our optimization of the industrial chain. "

Li Rucheng said, pointing to his shirt.

It is Li Rucheng's idea of "optimizing the industrial chain" to make clothes that others can't make and increase the added value of the products.

YOUNGOR has also carried out a similar study on western style fabrics to develop suit and crease resistant suit fabrics.

"Now we are making a wrinkle resistant suit, a set price of 4000 yuan, the average suit price is only 2000 yuan.

This is the advantage of controlling the industrial chain in the whole process, so that we can always adhere to independent research and development, so that products can walk in the forefront of the industry.

Li Rucheng told reporters.

The effect of optimizing the industrial chain is obvious.

According to data provided by YOUNGOR, YOUNGOR's clothing sales increased by 5% in the first 7 months of this year, while its sales volume increased by 15%, and gross margin increased by 30%.

"This means that the price of our single product is improving and the added value is higher."

Li Rucheng came up with a pile of data to confirm YOUNGOR's performance in optimizing the industrial chain.

In the planning of YOUNGOR, there is another important content in synchronizing with "optimizing the industrial chain", that is, "training supply chain".

This means that some of the superior products and key products that are not YOUNGOR's existing industrial chain will be outsourced to other close cooperation suppliers in the future.

"So we don't need to invest in building new production lines or enrich our product lines.

This is very beneficial to YOUNGOR's brand building. "

Li Rucheng said.

Building brand phalanx

In the traditional impression, YOUNGOR always has little action in building brand.

This is not the case.

Although there are no big brands and slogans of Shan Shan's "multi brand and internationalization", Li Rucheng quietly subdivides YOUNGOR's brand and builds up YOUNGOR's brand phalanx.

Unlike the view that the ordinary people just regard clothing as a labor intensive industry, Li Rucheng believes that, from the point of view of the brand, the garment industry is the creative industry and the urban industry, which is an eternal industry.

According to Li Cheng Cheng, with the improvement of people's consumption level, the consumption of citizens has entered the era of individuation, and the demand for clothing is also more and more diversified. This provides the foundation for the development of multi brands.

And YOUNGOR's product quality has also been fundamentally improved, and it has enough capacity to support multi brand development.

It is based on this understanding that YOUNGOR set up five brand studios at the end of last year, not only responsible for brand promotion, but also responsible for design, development, manufacturing, logistics and other links.

Among them, YOUNGOR single brand "YOUNGOR" into three, divided into "Mayor Youngor", "CEO" Youngor and "green label" GY (Green Youngor), the positioning is: "golden standard" to fight 40 to 55 years old administrative civil servants; "blue label" for 35 to 40 years of age, business personnel; "green label" positioning in young fashion consumers.

Coupled with the "hemp family" and the agent's international brand Hartmarx, in YOUNGOR's brand store, now has five subdivision brands.

"YOUNGOR's previous brand positioning is too broad, from young people to the elderly can only choose YOUNGOR brand, now we will subdivide, from the design, fabric, style and other levels of development of different age brands."

Li Rucheng told us the reason why YOUNGOR built the brand phalanx, "and we should ensure the operation and growth of these 5 brands in the whole group of talents, funds and logistics.

Now it can be said that YOUNGOR's operation has changed from the former production and sales type to the brand leading type, and the resources are fully allocated according to the needs of brand development.

The perfect industrial chain is the solid foundation of our brand strategy.

The aircraft carrier of YOUNGOR has firmly promoted the pace of brand upgrading.

"The implementation of our brand strategy to the present, the effect should be pretty good."

Li Rucheng showed YOUNGOR's Transcript: GY brand, a single store in Wenzhou, a day's sales exceeded 200 thousand yuan.

The sales of YOUNGOR's 5 new brands reached more than 100 million yuan in the first half of this year.

Li Rucheng has also made preparations for the internationalization of YOUNGOR's multi brand development strategy.

"New Malaysia group is our platform to integrate international resources and develop international operations.

In the future, if we want to acquire international brands, we will use the resources of the new Malaysia group to operate. "

Li Ru Cheng said.

Gradient pfer of production base

There is another plan for YOUNGOR to upgrade the garment industry, which is the gradient pfer of the industrial base to be completed in the next 35 years.

At present, YOUNGOR has made some moves.

Not long ago, YOUNGOR bought a shirt factory in Hanoi, Vietnam for $about 4000000.

This is an attempt to pfer YOUNGOR's industrial base.

Li Rucheng told reporters that the Vietnamese are more industrious, the investment environment is improving, and the labor force price is lower than that of Ningbo.

"This factory was originally invested by Japanese enterprises, with more than 700 workers, and the factory buildings and equipment were not bad, so we bought it.

In the future, this Vietnam factory will develop into one of YOUNGOR shirts processing bases. "

In fact, YOUNGOR began to implement industrial gradient pfer several years ago to plan the layout of the whole country.

In 2003, YOUNGOR started construction of Chongqing production base in the tea garden of Nan'an District, Chongqing, and became the first production base outside YOUNGOR.

In 2005, YOUNGOR set up Xinjiang YOUNGOR Cotton Textile Co., Ltd. in Xinjiang, specializing in the production of textile yarns.

In 2008, YOUNGOR also set up hemp production line in Yunnan.

All these have effectively explored YOUNGOR's shift to its large production base.

"In the next 35 years, we will gradually shift the production base to Jiangxi, Anhui and other provinces, and retain high value-added links such as proofing, design, brand and logistics in Ningbo. This should also be the content of economic pformation and upgrading.

In this way, we can also produce front-line employees to achieve employment at home.

Li said, "labor prices in Ningbo are relatively high and unstable.

YOUNGOR's garment industry must have new development and must pfer its base.

Hemp: a future oriented industry

The world's top 500 and large multinational companies generally have the strategic layout of "production generation, R & D generation and reserve generation" for their product lines.

YOUNGOR, which has mastered all the core technologies of hemp production line, has made hemp its own reserve industry as a strategic move for industrial upgrading and pformation.

As the helm of leading domestic garment enterprises, Li Rucheng obviously wants to go a long way.

Li Rucheng's "infatuation" with hemp, in his own words, "I got leprosy".

Over the past few years, I have been fond of worrying about Han Ma, and the most important thing in my mind is hemp.

Li Rucheng, who has been obsessed with love for many years, is actually hemp.

But after its detoxification treatment, it has a unique "antibacterial, anti ultraviolet, comfortable, breathable properties", known as the "second layer skin" of human beings.

Although European and American countries began to study hemp technology 20 years ago, YOUNGOR's first breakthrough in industrialization was from China.

After 6 years of research and development, under the joint research of YOUNGOR and PLA General Logistics Department, in April 2009, the world's first industrialized hemp fiber processing line was formally put into operation.

The industrialization process of hemp has finally achieved decisive success.

In the entire research and development process, YOUNGOR and PLA have achieved 9 scientific research achievements in the world, and 20 technological achievements have declared national invention patents.

This is the first time that China's textile industry has a self-directed R & D oriented product, and is also a leading product in the world.

From an economic point of view, "hemp" is worthy of Li Rucheng's long-term plan.

In the European and American markets, the price of hemp is two times the price of cotton, and the demand is increasing at an annual rate of 30%.

At present, only YOUNGOR can produce hemp fabric in the world.

It can be said that YOUNGOR has mastered at least one "unique weapon" on the way to the future competition.

According to Li Rucheng's prediction, the hemp industry chain has a bright future and will have at least 100 billion yuan market scale.

At present, YOUNGOR has opened 5 Han Ma family stores in Beijing, Hangzhou and Ningbo to start the hemp consumption market.

Hemp is a future oriented industry. Hemp clothing and consumer goods are high-end consumption, with high added value.

Moreover, with the improvement of people's consumption level, it is being accepted by more and more people.

I hope more enterprises will join the hemp industry, study the application of hemp and make the hemp industry together.

Li Rucheng is full of confidence in the future of hemp.

"Hemp products are being accepted by consumers, and the hemp market is starting."

The market reaction seems to confirm Li Rucheng's judgement.

Now YOUNGOR's 2 hemp products stores in Ningbo are doing a good job and expect annual sales to exceed 10 million yuan.

The sales volume of YOUNGOR's Hemp products is expected to reach 50 million yuan this year, which is beyond Li Rucheng's plan.