Shan Shan Grows Together With YOUNGOR

at home

There is a very strange phenomenon in the world: Ningbo's clothing enterprises, Shan Shan and YOUNGOR have occupied the first and second place in China's garment industry for a long time.

Two big enterprises in the same city, similar development experience, similar distribution channels and sales targets, made them once fierce competitors.

But later, the different development models of the two sides make the two develop and learn from each other, and the two are becoming more and more powerful in competition.

Two entrepreneurs with different personalities

Shanshan and YOUNGOR were two very similar enterprises. They were both the "leading" of the clothing industry in Ningbo. They were all born out of the old clothing factories. They all started out in the production of men's clothing, and even went on the market very closely. However, because of the different sex styles of the two business owners, the two enterprises embarked on a completely different development road.

Zheng Yonggang, chairman of the board: the character is bold, likes the famous car, the pursuit of fashion, decided to build a world-class enterprise of Chinese fir, YOUNGOR chairman Li Rucheng: introverted and steady, he wants to control the entire apparel industry chain, and maintain the leading position in the domestic apparel industry.

Li Rucheng is an educated youth in Shanghai and proud of his own "peasant" identity. It is his own "grass roots" trait that made him have today. Zheng Yonggang once worked as a soldier and liked people to call him "fashion boss" and was praised as "Barton of the clothing industry" by some people.

Li Rucheng wants to build the world's most stylish and most large-scale clothing production base; Zheng Yonggang's idea is to become the world's top brand; Li Rucheng shops in the prime locations of the main streets of most cities in the country, and plans to build flagship stores of more than 500 square meters; Zheng Yonggang doesn't do it himself; he lets others do franchises, acts as the brand of Shanshan, Li Rucheng manages centrally, formatted and institutionalized, Zheng Yonggang advocates noninterference.

Being prudent and prudent, it becomes the standard symbol of Li Rucheng.

Zheng Yonggang likes adventure, the first to eat crabs.

The Chinese fir, led by him, has become the "pioneer of Chinese apparel industry" in many ways: the concept of intangible assets management was put forward in 1990; the largest sales system of clothing market was built in 1992; in 1994, the brand was introduced and the enterprise identity recognition system was brought into full play; in the first place, the reform system was the first listed company in China's clothing industry; in 1996, the international production base was established; in 1999, the headquarters moved from Ningbo to Shanghai;

Rebellious and insatiable become the standard symbol of Zheng Yonggang.

Two different development models

In the middle and late 90s of last century, the scale and sales scale of the two enterprises reached a certain extent, and later came into the field of clothing, and the market competition intensified.

The leading role of Shan Shan and YOUNGOR are facing slower growth and lower market share.

How to do it?

Two roads of great difference have been chosen.

Zheng Yonggang's practice is to outsource the processing of Chinese fir, and use the franchisee's hand to make the fir come out of the sales and production links.

Therefore, Zheng Yonggang drastically stripped the group's original production and sales network.

He believes that the practice of "production and supply chain" is a push operation, which is more suitable for the shortage economy period. In the buyer's market period, it should be a pull operation, that is, the idea of design and the design of fashion products, so that consumers can choose.

At the same time, Shanshan began to push forward the strategy of "multi brand and internationalization". On the basis of its core brand Shanshan, it developed, purchased or collaborated with more than 20 foreign clothing brands abroad.

At the same time, Zheng Yonggang believes that the clothing market is becoming increasingly saturated and the growth potential is limited, and has begun to pform into high-tech enterprises, and is an important industry in the future.

To adapt to this adjustment, Shan Shan moved its headquarters to Shanghai.

At present, Shan Shan has four national 863 projects, such as 18 micron copper foil material, lithium ion negative electrode material, heat shrinkable material, high temperature pressure sensor and so on.

In addition, it also has 9 high-tech projects, such as CO2 extraction, biological aerobactor fermentation, garbage disposal, nanomaterials, supercapacitors, and oswan materials.

At present, Shanshan Group has invested about 1 billion yuan in hi-tech field and has 13 high-tech companies.

Shanshan now puts forward its business scope: clothing, technology, investment, and clothing is only one of its three major plates.

Li Rucheng's plan is to develop to both ends.

To take water from the upper reaches: in order to control costs and further increase profit margins, Li Rucheng invested in the construction of YOUNGOR Textile City.

He believes that the most fundamental thing is to find a road of its own.

Because the imitation of clothing is very fast, the imitation of fabric must have a stage. "

Control of "downstream" channels: data show that at present, more than 40% of YOUNGOR's sales benefit from its own marketing network.

"Grasping the sales channels in their own hands is an important part of YOUNGOR's development of the downstream industry chain of the garment industry."

According to Li Rucheng's thinking, today's YOUNGOR is not only a production enterprise, but also a circulation enterprise.

Li Rucheng sticks to the YOUNGOR brand. Even if he does many brands, he will not miss YOUNGOR. At present, he has three YOUNGOR brands: gold, silver and green.

Shan Shan and YOUNGOR have one thing in common: diversification.

However, even in the face of the same development needs, they chose two different directions: YOUNGOR chose to be down-to-earth and "six wheel drive" - clothing, textiles, foreign trade, securities, real estate and infrastructure.

And the Chinese fir is aiming at high technology.

Zheng Yonggang and Li Ru achieved such a great turn in the development of enterprises.

Starting in 1998, Shan Shan voluntarily lost the position of the first brand of western suit, China's first clothing brand and China's largest textile and garment enterprise, while YOUNGOR expanded rapidly from 1997 to 1999, and maintained a rapid growth momentum.

On the basis of the first brand of shirts, the position of the first brand of Chinese suit and the largest enterprise of Chinese clothing was firmly controlled, instead of the leading position of Chinese fir in the Chinese clothing industry.

Mutual influence and common growth in competition

Shanshan and YOUNGOR have chosen different development paths, but the two companies have been looking at me and watching you.

Two enterprises compete and learn from each other, especially when one party is doing better, and the other side will follow suit.

It can be said that the two sides also interact with each other, and in many ways, we can see each other's shadow.

The first listing of Chinese fir in garment enterprises has raised a considerable amount of money, which is of great benefit to the development of enterprises. YOUNGOR also applies for listing immediately.

Shan Shan eliminated backward equipment, imported advanced equipment from the world, built the most modern garment processing base in China at that time, and achieved internal enterprise informatization. YOUNGOR also followed suit and built a bigger garment city.

Shanshan hired Japanese and Western managers or general workers, and worked with big foreign companies, and YOUNGOR also acted accordingly.

Li Rucheng sticks to Ningbo and manages real estate outside clothing. He has built lots of land and built the largest textile industrial city and clothing city in China.

At present, Ningbo's largest Real Estate Company and international trading companies all belong to YOUNGOR, whose profits have accounted for 60% of YOUNGOR's total revenue. Shanghai, which has moved to Shanghai, saw this and felt that its hometown could not be abandoned. So it killed a "back gun", built a Shanshan Science Park in Ningbo, and bought a local foreign trade company.

YOUNGOR insisted on making clothes bigger, and Shanshan also changed from garments that once contracted to "never give up clothing".

Of course, the two veterans try to avoid making the other's mistakes.

It can be said that if the other party is doing well, it will benefit the other side of the business, while the other side will learn from it as much as possible.

The two bosses were once the vice presidents of the China clothing association.

For instance, when they encounter anti-dumping, the two sides have joined hands unanimously. For example, both sides cooperate with Japan's Teng Zhong.

In a sense, this is also one of the important factors for the growth and growth of fir and YOUNGOR in the same city.