YOUNGOR Keeps Its Main Garment Industry On The Shrinking Front Line

Wide knee knit Suit Shorts with bright metallic bright jacket, occasionally appear lattice, small broken flower graphics, there is no lack of leisure atmosphere, but also without losing business temperament......

Yesterday afternoon, a brand name for men's clothing in the United States, such as general motors, Coca-Cola and other brands: Hart Schaffner Marx, held at the Hangzhou Tower 2009 spring summer brand press conference.

However, what you don't know is that the brand that brought the brand to China is YOUNGOR group, which has been raging in the capital market and the real estate market in the past year.

This is also, after many years, YOUNGOR once again came into our view because of clothing.

In recent years, YOUNGOR has been more frequent in the field of clothing, and has gained much new investment from the past. The investment in capital market has also been different. Recently, YOUNGOR has given us more impression that they are making frequent moves in the field of clothing.

"It has gone through a long process to conclude the cooperation with Hart Schaffner Marx from the inspection of brand, the understanding of corporate culture, and finally the successful acquisition of China's general agency rights."

Feng Yanyu, deputy manager of YOUNGOR clothing Limited, told reporters that, before this, YOUNGOR and Hart Schaffner Marx business cooperation has also been nearly three years.

It is reported that Hartmarx was founded in 1887, is a well-known American listed company, and is also one of the largest apparel manufacturers and retailers in the United States. Its products include five major product sectors including Hart Schaffner Marx. According to the 2007 annual report, the total sales of Hartmarx group is nearly US $1 billion.

Hartmarx is the special position of Hartmarx in the American celebrities, which gives YOUNGOR its bright future in the domestic market.

YOUNGOR official revealed that its development in the apparel industry is in the long run.

"We signed a 20 year cooperation agreement and planned to open 100 sales outlets in China within the year through the formed network channels, reaching 300 in 3 years."

YOUNGOR apparel Co., Ltd., the relevant person in charge told reporters.

Before that, YOUNGOR has invested 120 million yuan in acquiring 16 companies and assets in Hongkong new Malaysia clothing.

YOUNGOR chairman Li Rucheng has rediscovered the heart of the clothing industry.

Li Rucheng has thrive in the textile and garment industry. The successful capital investment is supplemented by the top five real estate businesses in Zhejiang. YOUNGOR's three carriages make it a diversified model at the bull market in 2007.

Li Rucheng also said before that clothing was basically ignored, and investment was what he often considered.

That is why, in the past two years, YOUNGOR has been more impressed by market investors than Real Estate Company. In 2007, the annual report shows that the clothing industry has only accounted for about 25% of YOUNGOR.

Analysts are controversial about YOUNGOR's neglect of the development of clothing industry.

However, since the end of last year, YOUNGOR's investment in the capital market has been more than the equity investment before listing, so there is no loss, but earnings have also shrunk as much as the stock index.

What is worse than the capital market is that after frequent high prices last year, it is now in a state of being caught.

Under such circumstances, Li Rucheng turned back to his old clothes shop, which seemed to many people to shrink the front line and regain the neglected garment industry in the past few years.

But YOUNGOR Group official said that they are now based on Li Rucheng's general strategy of operation: by taking more branded lines, increasing the proportion of clothing in YOUNGOR group, "we have never planned to give up the clothing industry."

To return to the main business or to become a trend, "not only YOUNGOR, but some enterprises that have made great strides in Zhejiang in the early years of diversification have been doing different degrees of main industry regression."

Zhejiang businessmen research association responsible person pointed out.

According to the analysis, YOUNGOR is a relatively successful model for Zhejiang enterprises. However, the current financial crisis makes YOUNGOR's original "three carriages", both in the capital market and the real estate industry, are in a historical difficult period. The stability of the garment industry that once was the main industry is crucial to YOUNGOR's response to the global financial crisis. "Therefore, YOUNGOR's eye on the garment industry again is the general trend."

On the other hand, although YOUNGOR's real estate business has been relatively successful, past experience shows that although the real estate industry developed from traditional manufacturing industry is well managed, it is also a staged investment behavior, and it is difficult to make real estate as the last strategic business.

"YOUNGOR's approach is not isolated. With the continuous deepening of the financial crisis, more and more enterprises will choose to shrink their fronts and defend their main businesses, so as to" spend the winter safely ".

The source said.

Yang Jing: editor in charge