Can the "super plan" of the high-profile return to the main business Youngor be realized?

On July 8th, in the city of Como, Milan, Italy, Youngor from China, ZEGNA, LORO PIANA, Cerriti 1881 (CERRUTI 1881), Albini (ALBINI) and The six major textile and apparel giants such as ALUMO in Switzerland launched the “Building, Win-Win, Sharing” global fashion eco-propaganda book during the Milan Fabric Show.

According to the understanding of China Garment Network, Youngor has signed a contract with the top five textile and apparel giants in Europe in 2016 to introduce high-end fabrics produced by European companies and jointly build the clothing brand MAYOR with the world to jointly explore the international market. Youngor is not only based on the domestic market, but also has a dream to go out. As Li Rucheng, chairman of Youngor Group, said, “I have the confidence to recreate a Youngor in five years.” So what kind of ecological circle is Youngor now?

Look at the earnings data

According to the financial report data, Youngor achieved operating income of 3.394 billion yuan in the first quarter of 2017, down 38.93% year-on-year, and net profit attributable to shareholders of listed companies was 1.262 billion yuan, down 48.45% year-on-year.

During the reporting period, Youngor brand clothing realized operating income of 119,247,770 yuan, an increase of 14.43% over the same period of the previous year; men's clothing part of 2017 Q1 operating income was 1.24 billion yuan, an increase of 8.6%, accounting for 36.4% of the group's total revenue.

On the whole, Youngor’s revenue and net profit decline are so worrying that the reason for the decline is mainly due to the decrease in income from the real estate sector. In addition, although the Youngor clothing section has maintained a certain growth, but the growth rate is not large, and did not let people see a particularly large improvement.

Clothing, real estate, and investment go hand in hand

Youngor should be one of the representatives of cross-border transformation in apparel companies. Due to the decline in the apparel industry in recent years, Youngor has been involved in real estate and investment. These two cross-border businesses have brought funds to Youngor to a certain extent, forming an “iron triangle” with the clothing business.

According to China Garment Network, Youngor began to engage in real estate development in 1992. The company has successively developed large-scale real estate projects such as Donghu Garden, Donghu Xinyuan, Suzhou Future City, Seaview Garden and Qianhu Beverly in Ningbo and Suzhou. Various properties such as villas and business buildings. In 2009, for example, Youngor’s real estate business achieved a revenue of 5.196 billion yuan, with a net profit of 1.191 billion yuan, reaching its peak, while the net profit of the apparel sector was only 445 million yuan. Shengji will decline. Since then, due to the housing market and the stock market, the property industry of Youngor has also gone downhill.

In July 2017, Youngor announced that it intends to invest 1 billion yuan with its wholly-owned subsidiary Youngor Real Estate Holdings, respectively, to subscribe for 50% of the registered capital, and jointly set up Shanghai Youngor Real Estate Development Co., Ltd., which also marks Youngor’s real estate. The determination of the aspect.

In terms of investment, the acquisition of CITIC Securities is a landmark event in the history of Youngor's investment. In the big bull market in 2007, this investment gave the company a considerable profit.

Youngor’s investment in wealth management products cannot be underestimated. On June 14, 2017, Youngor issued an announcement showing the use of idle raised funds of 50 million yuan to purchase guaranteed-type wealth management products. On June 15, Youngor issued a notice saying that the use of idle raised funds of 35 million yuan to purchase guaranteed-type wealth management products. In addition, the wealth management products purchased by Youngor Group on July 19, 2016 expired on August 17, 2016, and the principal of 100 million yuan and interest of 194,700 yuan returned to the special fundraising fund.

Especially in recent years, real estate and investment have become the main source of Youngor’s income. From the 2016 Youngor's financial report, the real estate sector achieved operating income of 10.265 billion yuan, the apparel sector realized operating income of 4.463 billion yuan, and the apparel sector's revenue was less than 1/3 of total revenue. It can be seen that the real estate sector has become the main force of Youngor's revenue. . In the case of the sluggish clothing industry, Youngor is diversified and it is reasonable to cultivate new profit growth points. However, as old-fashioned clothing companies return to clothing, it is necessary to strengthen investment.

Brand Strategy: Diversified Development

Youngor is one of the old-fashioned clothing companies in China, and its leading product, Youngor shirts and suits, has a high market share. At present, Youngor has the main brand YOUNGOOR and the four sub-brands MAYOR, Hart Schaffner Marx, GY, HANP. This brand diversification strategy has built a multi-variety, multi-grade, and serialized product structure system spanning mid- to high-end, high-end custom and hemp. The age range of the consumer groups is also large, and can be locked by different brands. Target groups. Youngor will try to explore the launch of children's wear products in the future, in order to provide consumers with a more comprehensive experience of the whole category.

From the brand point of view, the main brand YOUUNGOR achieved operating income of 379,067,500 yuan in 2016, a slight decrease compared with the same period of last year; the sub-brands MAYOR, Hart Schaffner Marx, etc. realized a total operating income of 481,369,700 yuan, an increase of 21.48% over the same period of the previous year, sub-brands Although there is growth, it is not high in terms of sales.

It is understood that Youngor's four sub-brands have been launched around 2009. As of June 30, 2016, the four sub-brands achieved a total operating income of 230 million yuan, accounting for only 10.92% of sales. Is this business income somewhat sighing?

Platform strategy: continue to open big stores

Youngor continued to promote the “big store strategy”, made structural adjustments to the direct sales outlets, and adjusted the channel layout according to the consumption habits. According to Youngor’s first quarter 2017 financial report, the number of sales outlets of Youngor was 2,454, with a business area of ​​380,300. Square meters, including: 571 self-operated outlets, with a business area of ​​164,500 square meters, sales revenue accounting for 38.18%; shopping malls with 1,449 outlets, a business area of ​​159,200 square meters, accounting for 45.50% of revenue; 106 shopping outlets The business area is 21,900 square meters, and the sales revenue accounts for 5.44%.

Electricity providers face in the context of the impact and brand rejuvenation, Youngor big shop model is proposed to deal with that in the country out 1000 with annual sales of 10 million yuan of large-scale stores. On the one hand, opening a large store can enclose customers, create a comfortable shopping environment for consumers, create a circle economy, increase trading opportunities, and thus promote sales. On the other hand, open big stores are facing more pressure, and they need to increase investment in brand portfolio, product mix and channel combination. It is also possible to make customers feel that the store is complex and the products are unrealistic. Resulting in a decline in passenger traffic. Therefore, whether the investment of the big store strategy can obtain the corresponding return remains to be tested by the market.

Where is the transformation in the new situation?

At the end of 2016, Li Rucheng, chairman of Youngor Group, announced a super plan – “Rebuilding a Youngor in five years”. New materials , new fabrics, new processes, new brands and new services – Li Rucheng announced that he will invest 10 billion yuan in three years to launch a technology and innovation strategy. So is the road to revival of Youngor a smooth road or a thorn? Youngor has been calling for transformation for many years. From clothing to real estate, investment, and then back to clothing, it is not easy to achieve greater breakthroughs. Although the various layouts of Youngor have a long-term perspective, it is another matter to do. For Youngor, whether it is because real estate and investment have missed the opportunity to become a strong clothing main business, or because the development of real estate and investment has promoted the sustainable development of clothing, it should be the benevolent seeing the wise and seeing wisdom. But one thing is certain, Youngor wants to return to the industry, especially the old line of clothing, is the driving force for reinvigorating.

Lace Placemats

For wedding

Everyone's wedding should be shiny and glamorous, so we create this sparkling placemat for you.We believe it will work well for your wedding.

For birthday

Are you looking for a tablecloth that will go perfectly with your cake and dessert?Just try IUIU Household placemat, it will decorate your dessert table well.

Advantages:

1.Design team:we have a professional design team. Over 5000 designs for selection.

2.Rapid response to your needs:welcome to contact us if you have any problems.
3.Standard: All of our models are approved by ISO9001, SGS and Testex.

4.Efficiency: Our 10 designers will keep you updated with 15 new items each month.

5.Professional factory:we are the biggest manufacturer of table cloth in china,competitive price with high quality.

Round Placemats,Chilewich Placemats,Household Goods,Price Of Gold Per Ounce

IUIU Household Co.,Ltd , https://www.iuiupvcgroup.com