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"Four Questions" Li Rucheng: What Is YOUNGOR Thinking?

2011/4/15 8:44:00 149

YOUNGOR Li Rucheng Brand


The Hangzhou brand YOUNGOR experience Museum, which is the 6 largest brand, will be completed in Yanan Road, Hangzhou at the end of this year.


Today's

Youngor

It is already a well deserved leader in China's clothing industry. In March 27th,

Li Ru Cheng

The news that the chairman will take the team responsible for the meeting with the media is coming out, and nearly 30 media are coming.

People come from different fields, some focus on stock market, financial operation, some focus on real estate, and who is called YOUNGOR is a clothing, property, financial investment in one.

list

What about the company?

But Li Rucheng said clearly: today is mainly about the clothing industry.

So we have an opportunity to approach YOUNGOR and explore the clothing industry.


Ask "industry chain"


In the domestic garment enterprises, Li Rucheng's preference for the whole industry chain is well known.

Over the years, YOUNGOR has built a complete industrial chain from cotton planting to spinning, weaving, printing and dyeing, fabrics, garment manufacturing, design and retailing through joint ventures or wholly foreign-owned businesses.

When you take your destiny in your own hands, you will also grasp the cooperation and profit of all aspects.

So what is the reason for the "second industry chain" trend of "creating brand culture value chain" in the industry?


In answering the questions asked by this reporter, Li Rucheng first talked about the two experience of going abroad: "1994~1996 three years, I visited Japan and the United States, and found that their clothing production mechanisms were all aging. I think I will be able to surpass them in ten years.

In 2006, ten years after I visited abroad again, I found that the garment industry in Nordic Europe and the United States had a rapid pformation. It has increased from production to creative culture and information management, and their rapid response, cost control and creative development have gone up the stage.

I found that ten years later, the gap has widened. "


Li Rucheng's reflection is that in the past ten years, we only focus on product quality, ignoring product culture, that is, the value construction of the brand.

YOUNGOR immediately cooperated with many designers at home and abroad, but the effect was not obvious.

This made Li Rucheng determined to set up 6 brand studios at the core of 6 brands since 2008, not only responsible for brand promotion, but also responsible for design, development, manufacturing, logistics and other links.

Obviously, this adjustment is of far-reaching significance.

It means that the brand will become the strategic center of YOUNGOR in the future.

The era of all brands is coming.


YOUNGOR promotes brand value through "two pformations": changing marketing methods, developing from production to brand, changing industrial layout, and pferring part of labor-intensive enterprises to the central and western regions.


In Li Rucheng's view, this is a "just in time" adjustment.

"At present, the Chinese garment industry has gone through the industrialization stage and entered the brand era from the quality era."

In the era of brand, in addition to the precise integration of industrial chain, it is more important to create brand value chain.


Two ask "internationalization"


In the eyes of many industries and foreign media, the internationalization of China's clothing industry is to sell Chinese brands to the European and American markets, and to exclaim. The two is to acquire foreign enterprises and control international discourse at one stroke.

But in Li Rucheng's view, this understanding is biased.


In the face of the surging international reality, how can YOUNGOR be famous all over the world? Li Rucheng's train of thought is: to go to sea by boat, mine is mine, and yours can also be mine.


In recent years, YOUNGOR has acquired two major international companies, one is Smart and the other is new Ma, which is a typical international M & A case in China's textile industry.

YOUNGOR's goal is to create an international brand, personnel to internationalize, enterprises to internationalize.

"We have built YOUNGOR's platform abroad through mergers and acquisitions to understand the operation rules of overseas markets, focusing on channels and talents.

Brands have no boundaries.

M & A is not only an industry merger, but also a team integration. "


However, Li Rucheng also knows that if he wants to become an international brand, only mergers and acquisitions are far from enough.

Last year's two sessions, Li Rucheng stretched out his feet to talk about the story of technological innovation once was touted by the media.

At that time, he wanted to show YOUNGOR's own new product, "hemp family" socks.


Due to historical reasons, the development of Chinese garment enterprises basically originated from garment processing, and YOUNGOR is no exception.

It is not easy for an enterprise starting from garment processing to stage an international brand. Li Rucheng is very clear about this: "China does not have the creative environment to create luxury goods. It is still very difficult to produce a luxury brand."


Even if it is not a luxury brand, a Chinese brand should be recognized by the international market, and it will take a long process.

"Now YOUNGOR has had a certain impact in the world, but it is difficult to enter the line brand.

Not only the enterprises are making efforts step by step, but also the state is spreading the Chinese cultural industry to the overseas.

Only if our country is really strong, will the brand be recognized gradually.


Last October, coincided with the opening of the Chinese culture year in Italy, YOUNGOR group and the hemp Materials Research Center organized a delegation to Rome and Milan in Italy to investigate the demand for hemp products in the international market.

Li Rucheng and others talked about the achievements and development plans of planting, processing and product development of hemp in China in the process of talks and exchanges with the Italy business people.

The local media reported on the activities of "Italy businessmen being shocked by Chinese technology", which is indeed the case.

The president of many famous enterprises in Italy told members of the delegation that they were very shocked by the depth and achievements of China's research in the field of hemp and their interest in developing new products with hemp and new materials.

Just a week later, a delegation of 9 people from Italy's Italy foundation visited China. It seems that the Italians are really impressed by the advanced technology of Chinese industry in hemp treatment.


Li Rucheng said with deep feeling: "the high degree of reception and popularity of this visit to Italy is unprecedented. The key is that we have completely independent intellectual property rights in the study of hemp and occupy the commanding heights of technology."


M & A is the accumulation of resources and experience. Originality is the commanding point of technology. Internationalization can actually have rich connotation and diversified performance.

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Three ask "do not do business"


Since last year, YOUNGOR's "do not do business" has been spreading within and outside the industry.

This time, another media asked Li Rucheng face to face on this topic.


Li Rucheng laughed and said, "this is a misunderstanding.

What is the main business? I used to be a farmer, farming was my main business; TOYOTA's earliest career was also weaving.

The main industry can not be in terms of profits. I think financial investment is the core of the modern economy. Enterprises like YOUNGOR must upgrade their industrial structure to the core.

This is our strategy. "


People familiar with YOUNGOR know that YOUNGOR starts from textile and clothing, and now has three major industries: clothing, home ownership and financial investment.

The goal of YOUNGOR has been determined to truly become the "China YOUNGOR" standing in the forest of the world's enterprises, and truly realize the vision of "creating an international brand and building a century base business".


"YOUNGOR is facing unprecedented opportunities, such as the big adjustment of the world economic pattern, the great shift of China's industrial gradient, the acceleration of urbanization in China, the escalation of consumption structure and the continuous expansion of domestic demand.

Of course, what is more important is that YOUNGOR's rapid growth in the past thirty years has accumulated all kinds of advantages. We have no reason to miss future opportunities. "

Li Ru Cheng said.


The route he formulated for YOUNGOR is to maintain a steady and fast growth rate, pay attention to training internal strength and enhance efficiency; business income has increased from 33 billion 480 million yuan in 2010 to 50 billion 900 million yuan in 2015, with total assets of 109 billion 900 million yuan, and comprehensive strength has entered the top 100 in China, narrowing the gap with the world's top 500.

Five years later, let the "clothing" become the first in China, let YOUNGOR brand clothing expand its leading edge relative to the domestic competitors, and narrow the gap with the foreign brand clothing giants. "Home buying" has entered the top 20 in the domestic market, becoming a well-known real estate development enterprise in the Yangtze River Delta region, achieving an annual average sales growth of 31%. "Financial investment" must have the national influence, take the private placement and PE as the main body, take the venture capital and the two level market as the subsidiary, prudently formulate the investment plan, carefully select the project around the group industrial layout, actively identify potential high-quality projects, and cultivate new points.


What is the main and what is the deputy, everything needs time to reveal the answer.

Controversy is not important to those who have been on the road.

Li Rucheng believes that we can not go beyond our capabilities to talk about pformation. Compared with some emerging industries, the adjustment and upgrading of traditional industries can be more.


Four ask "successor"


This question is actually mentioned by Li Rucheng himself in his opening remarks.

He said that YOUNGOR is neither a state-owned enterprise nor a private enterprise. It needs to explore a new path in the field of inheritance.


The media know that YOUNGOR shares are dispersed, and as the largest shareholder, Li Rucheng has only 5% stake.

We can not help but ask: for a socialized enterprise with more than 30 stock investors, how is Li Rucheng choosing the successor?


"After 31 years of development, the first batch of entrepreneurs in YOUNGOR is basically approaching retirement age. It is time for the first generation of entrepreneurs to pass on to the second generation and the third generation.

How to innovate the management system and how to inherit it will be a big problem. "

And Li Rucheng had been thinking about this.


So, is it to follow the "separation mode" of Lenovo or to find suitable successors? In Li Rucheng's view, this is not a successor problem, the key is a team.

"We need to set up a supervision body to supervise the enterprises, and recruit creative shareholders to establish a" horse racing horse "mechanism.

Put young people on their posts, exercise, compete, and spend five years to cultivate a group of people.


Li Rucheng believes that the best solution is to combine owners with operators. "Enterprises are shareholders, and they can only be managed and chosen by the founding shareholders to represent social shareholders, and nurturing new business teams."


Li Rucheng admitted that the size of enterprises like YOUNGOR is difficult to let new people lead, whether external or internal.

He believes that the future development of Chinese enterprises is not only a social issue, but also a political and economic issue. To enable the first generation of entrepreneurs to enjoy their old age and inheritors to do better, Chinese enterprises will have hope.

"The inheritance of YOUNGOR enterprises is a big topic. If it is successful, it will bring a lot of lessons to similar enterprises in China.

We are exploring whether we can succeed or not. Please wait and see.



 

 

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