The Diversified Adventure of Chinese Garment Enterprises

Editor's note: "China is a big country of clothing, but it is not a strong country of clothing". It has become a consensus among all walks of life, transformation and change of business, becoming the path choice placed in front of clothing companies, and it is related to life and death.

200 million shirts can be exchanged for a Boeing airliner. "China is a big country in clothing, but it is not a strong country in clothing." It has become a consensus among all walks of life. Transformation and change of business have become the path choices facing apparel companies and are related to life and death.

The secret of many domestic garment companies starting up is generally to achieve rapid growth through simple competition such as "heavy products, large quantities, large circulation, and low prices." This creates an illusion for them, as if it can be expanded more quickly by sticking to the past success mode. The problem is that the market has never been static, and the model of success in the past may just be the cause of today's failure. The lesson of the unsuccessful inspection of Shanshan’s underwear in March is here. The reporter Chen Changcheng / Wen Wenzhao the sea, spring bloom. In the office of the Xiamen Trade Company of Haopai Group, occasionally seagulls can be seen passing by the window. The weather in early spring is warm and humid.

Despite relying on outstanding domestic sales business, Haopai Group successfully escaped the financial tsunami and defeated economic inflation. The 67-year-old Hongshou still decided to take a risk to embark on e-commerce.

In the past 30 years, as the board chairman of Haopai Group, Hongxuan has been cautious. “So far there has been no one in the bank.” Since the founding of Xinjiali Garment Factory (the predecessor of Haopai Group) in 1979, Hongxuan has never deviated from the clothing route. Heartless.

During the 30 years from the Xinjiali Garment Factory to the Haopai Group, the company’s economic growth, like China’s GDP, has continued to rise, and it has not suffered a loss for one year. “In 2010, the sales volume of Hao brand garments was close to 2 billion yuan, an increase of 30% compared with 2009.” Hong Hao set up on February 10 when he was interviewed by this reporter.

"I have done 31 years of clothing, never encountered such a cost increase in 2010, some fabrics rose from 1 meter 8 yuan to 17 yuan, workers' wages rose by 50% to 60%." Hong said.

The Haopai Group’s e-commerce project budget is 100 million yuan. It is planned to be officially launched in May this year and will eventually run independently. "Non-professional" garment companies either transition or change jobs, this is the path choice placed in front of clothing companies, related to life and death.

“What men's clothing companies are now doing a good job of transformation and upgrading?” Younger’s chairman, Li Rucheng, has been irritated by the outside world’s doubts about the diversity of Youngor’s. Zheng Yonggang, chairman of Shanshan Group, even stated on different occasions: "I don't care about clothes now. I'm investing."

As the two banners of China's garment industry, Youngor and Shanshan Group's performance is quite subversive. A well-known business magazine once criticized Youngor in an article as "not working properly." In 2010, Youngor successively took out 5.5 billion yuan to subscribe for non-public offerings of up to 10 listed companies. At a land sale conference held in Hangzhou, Youngor took a total of 2.421 billion yuan to buy two plots in the Shenhua area in Hangzhou and set a new record.

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