How Can China'S Garment Foundry Giant Shenzhou International Master Global Manufacturing?

Building flexible supply chain

According to the world clothing shoes and hat net, in recent years, the trend of fast fashion and functional sports products are popular, and the demand of downstream brand customers for upstream manufacturing enterprises shows a trend of "quantity decreasing and quality upgrading".

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As well as the largest supplier of many famous international clothing brands such as Puma, Shenzhou International has an annual production capacity of 110 thousand tons of self used high-grade knitted fabrics and 310 million knitted garments.

As of the fourth quarter of 2017, Shenzhou International had a market value of 80 billion 500 million yuan, and sat firmly in the highest Apparel Group in China.

Shenzhou International has always attached great importance to R & D investment. The annual R & D investment of the group accounts for about 2% of the annual revenue and is at a high level in the textile and garment industry.

Intelligent manufacturing is a magic weapon to ensure production capacity. At present, Shenzhou International has 10 projects listed in the "China made 2025" pilot project in Ningbo, and has built an intelligent three-dimensional warehouse and an unmanned logistics system.

With the rapid rise of the electricity supplier and the change of clothing consumption demand, the life cycle of clothing products is becoming shorter and shorter.

In order to meet the new requirements of "small batch, multi batch and quick response", Shenzhou International has constructed a flexible supply chain to achieve rapid response to orders of different sizes, enhance the stickiness between customers and enhance bargaining power.

At present, orders from the order, fabric production to the delivery date of garment export in 60 days have accounted for 45% of their orders. Shenzhou International has been continuously reducing the delivery time to meet customers' needs to respond to market changes.

The new production order is emerging in the Shenzhou International flexible supply chain.

The requirement for enterprises is that we must customize the needs of users with the fastest speed through the supply chain response.

To support this production mode, we must build a supply chain system that is more agile than the traditional supply chain and can respond to order changes in time. Shenzhou International will experience the pformation of quality from adaptation to innovation.

Jingyuan International

Investing in Southeast Asia

There are many similarities between Jingyuan international and Shenzhou International which have only been listed in 2017.

Jingyuan international started in the 70s of last century in Hongkong, China. At present, the company has 20 automatic chemical plants in Sri Lanka, Vietnam, Bangladesh, Kampuchea and 5 countries in China, with 70 thousand employees, and about 350 million garments each year for the global fashion brand.

At the end of 2016, the group expanded its products to sportswear and outdoor wear with the help of Vista Corp. Holdings Ltd., a Singapore sportswear manufacturer purchased for $190 million 100 thousand.

From the customers of Jingyuan international, it is also almost a clear world famous fast fashion brand, intimate underwear and sports brand, such as uniqo, H&M, GI Pu, A&F, Vic, Puma, Levi's, Andrea, north face and so on.

In 2016, in the global garment manufacturing industry, Jingyuan international ranked first in terms of output and ranked second in terms of output value.

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In ~2016 2014, Jingyuan group earned $1 billion 700 million, $1 billion 688 million and $1 billion 763 million respectively, while net profit reached $81 million 800 thousand, $68 million 290 thousand and $124 million respectively.

In the first half of 2017, Jingyuan earned $1 billion 24 million in international revenue and a net profit of US $69 million 230 thousand.

By the end of December 15, 2017, the international market value of Jingyuan was HK $21 billion 900 million.

Its performance really makes people "jealous".

In addition to being in the leading position in the industry, Jingyuan international is also working with customers to create business models, that is, from the design stage to price formulation, supply chain arrangement, delivery and other processes to cooperate with customers in depth so as to accelerate the reaction time.

In the first half of 2017, the capacity of Jingyuan international in Vietnam and Kampuchea accounted for more than 4 of the total capacity of the group and 3 respectively.

Luo Zhengliang, President of Jingyuan International Executive Office, said that in order to meet the increasing demand of customers, the company will continue to invest about 400 million yuan in Vietnam and Bangladesh in the next 2~3 years, and its production capacity is expected to increase by 50%.

Under the new global industrial structure, the pfer of textile and apparel orders to Southeast Asian countries has become an irresistible trend.

Under such circumstances, the international competitive foundry enterprise, represented by Jingyuan international, is bound to continue to increase the layout of the Southeast Asian market, thus speeding up the "going out" step of a batch of Chinese enterprises.

Wei Zhenni

- the accelerated expansion of overseas layout

By reducing dependence on single customers and promoting the growth of new orders, China Hongkong underwear and sports products manufacturer Jeanne 2017 rebounded rapidly and rebounded rapidly.

Obviously, after the roller coaster ride, Virginia's self adjustment is harmless.

In November 30, 2017, Virginia released the interim results report, as at September 30, 2017, the company achieved operating income of HK $2 billion 813 million, an increase of 30.9% over the same period, and the profit attributable to shareholders increased by 311.4% to HK $95 million 615 thousand.

In the 2016 fiscal year, the biggest customer in Vitoria, the result of a serious decline in the performance of the secret orders, after the 2017 fiscal year, virgin Ni promptly adjusted and expanded the customer base to diversify the risks, and actively expand the world famous brand new customers, so that the group's overall orders increased to 30%.

In the first half of fiscal year 2017, virgin income increased by 30.9% to HK $2 billion 813 million 500 thousand compared with the same period last year. The order of Victoria's group still accounted for more than 30% of the group's revenue and maintained its share in recent years.

In terms of products, bra and underwear products business is still the fastest growing segment of the company's performance. Revenue increased by 34.6% to HK $2 billion 283 million, accounting for 81.1% of the group's total revenue. The revenue of the chest and molded products was HK $272 million, which was basically flat compared with the same period last year, accounting for 9.7%. At the same time, the income of functional sports products also increased by 41.8% to HK $259 million, accounting for 9.2% of the group's total revenue.

Virginia said that the rapid growth of performance mainly benefited from the steady recovery of some brand partner orders, the strong demand for new products by Virgin brand, and the continued growth of sports chest sales.

The order of sportswear products has increased considerably, thanks to the application of its innovative seamless technology in functional sports products, which has been recognized by many brand partners. At present, this category accounts for only 2.6% of the group's revenue. In the next two years, the category's revenue will rise to 10%.

This year, Virginia will continue to exert its strength in overseas markets.

The two workshop of Vietnam's first phase of production has successfully increased its productivity and efficiency. The first workshop mainly produces bust and underwear. Its annual production capacity has reached 40 million. The production efficiency of the two plants put into operation in the first phase has reached 2/3 of the Shenzhen plant.

In addition, third Vietnamese workshops will be commissioned before the second quarter of 2018, mainly producing bra and underwear, and functional sportswear products. The annual production capacity is expected to reach 30 million and fourth plants will be tested in the second half of 2018.

"Benefiting from lower labor costs and government VSIP (Vietnam Singapore Industrial Park) tax concessions, the sales profits of Vietnamese factories will gradually increase or surpass Shenzhen factories in the future."

Yao Jiajun, chief financial officer and executive director, said that virgin also plans that the future Shenzhen factory is mainly responsible for product innovation, as well as the development and manufacture of major brand products, and will also increase the production capacity of sportswear to meet market demand.

Recently, a number of favorable factors have led to a new round of development opportunities for the knitting industry. Especially for overseas markets, benefiting from lower labor costs, tax preferences and some countries' "parity power", the industry has focused on overseas markets and formulated a more proactive productivity plan.

Virginia accelerated the layout of overseas capacity, increased the innovation and upgrading of functional sports products, and the impression of overseas brand partners is becoming clearer.

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