Li Rucheng, chairman of Youngor Group, is very professional about clothing and has a profound understanding of the transformation and upgrading of clothing.
Recently, at the Youngor Group headquarters interview with Li Rucheng about the transformation and upgrading of the topic, he touched the reporter wearing a Younger short-sleeved shirt, pointing to his shirt and said: "Your shirt fabric is 80 yarn, the price of 300 yuan Around me, my 300-yarn yarn costs more than 2,000 yuan. We will innovate fabrics and build brands in the future. This is the transformation and upgrading.†This simple and clear statement vividly illustrated the transformation and upgrading of Youngor.
Optimizing the industrial chain Youngor has a vertical industrial chain covering the garment industry from cotton to retail, which is unique in the global apparel industry. Although the industry is quite controversial about this practice, some people think that the focus of the apparel industry is to do branding rather than manufacturing, but Li Rucheng has made things that others cannot do in this whole industry chain and created industries. The "magic". In his own words, it is "optimizing the industrial chain."
In the apparel industry, fabrics are the key factors in determining the quality of garments, and the quality of the fabric depends on the yarn. The finer the yarns, the softer and more breathable the fabrics from the textile, and the stronger the wrinkle resistance of the fabric. The higher the yarn count of the yarn, the finer the yarn, the better the quality of the cotton and the more expensive the price. It is generally believed that more than 40 yarns are higher.
In the case that the domestic cotton textile industry generally produces only 110 yarns, Youngor achieved a breakthrough in fabrics and stood at the leading position in the global fabric industry. Last year, Youngor made use of high-quality long-staple cotton from Xinjiang, and through continuous optimization and adjustment of production processes and equipment, successfully tested 1.9 TEX (300) pure cotton combed single yarn. This indicates that Youngor's spinning level has reached the world's leading level.
“The fabric of our 300 high-grade yarns feels a bit silky and delicate. It’s very delicate and soft. We need to sell more than 2,000 yuan for this type of shirt. The added value is high, and others cannot do it. We have optimized the achievements of the industry chain.†Li Rucheng pointed to his shirt.
It is the idea of ​​Li Rucheng's "optimization of the industrial chain" to make garments that others can't make and improve the added value of the products. Youngor also carried out similar research on suit fabrics to develop a wrinkle-free suit fabric. “Now we have made anti-wrinkle suits with a price of more than 4,000 yuan and ordinary suits with a price of only 2,000 yuan. This is the full advantage of controlling the industry chain. It also allows us to adhere to our own research and development to make our products at the forefront of the industry.†Li Rucheng told reporters.
The effect of optimizing the industry chain is obvious. According to data provided by Youngor, in the first 7 months of this year, Youngor’s apparel sales increased by approximately 5%, while its sales amount increased by 15% and its gross profit margin increased by 30%. "This means that our single product prices are increasing, and the added value is even higher." Li Rucheng has come up with a bunch of data confirming that Youngor optimizes the performance of its industrial chain.
In Youngor's plan, there is also an important content that is synchronized with the “optimization of the industrial chainâ€, which is “cultivating the supply chainâ€. This means that in the future, some of the dominant products and key products that are not in Youngor's existing industry chain will be outsourced to other closely-cooperated suppliers. "In this way, we do not have to invest in new production lines, but also enrich our product line. This is very beneficial to Youngor's brand building." Li Rucheng said.
Recently, at the Youngor Group headquarters interview with Li Rucheng about the transformation and upgrading of the topic, he touched the reporter wearing a Younger short-sleeved shirt, pointing to his shirt and said: "Your shirt fabric is 80 yarn, the price of 300 yuan Around me, my 300-yarn yarn costs more than 2,000 yuan. We will innovate fabrics and build brands in the future. This is the transformation and upgrading.†This simple and clear statement vividly illustrated the transformation and upgrading of Youngor.
Optimizing the industrial chain Youngor has a vertical industrial chain covering the garment industry from cotton to retail, which is unique in the global apparel industry. Although the industry is quite controversial about this practice, some people think that the focus of the apparel industry is to do branding rather than manufacturing, but Li Rucheng has made things that others cannot do in this whole industry chain and created industries. The "magic". In his own words, it is "optimizing the industrial chain."
In the apparel industry, fabrics are the key factors in determining the quality of garments, and the quality of the fabric depends on the yarn. The finer the yarns, the softer and more breathable the fabrics from the textile, and the stronger the wrinkle resistance of the fabric. The higher the yarn count of the yarn, the finer the yarn, the better the quality of the cotton and the more expensive the price. It is generally believed that more than 40 yarns are higher.
In the case that the domestic cotton textile industry generally produces only 110 yarns, Youngor achieved a breakthrough in fabrics and stood at the leading position in the global fabric industry. Last year, Youngor made use of high-quality long-staple cotton from Xinjiang, and through continuous optimization and adjustment of production processes and equipment, successfully tested 1.9 TEX (300) pure cotton combed single yarn. This indicates that Youngor's spinning level has reached the world's leading level.
“The fabric of our 300 high-grade yarns feels a bit silky and delicate. It’s very delicate and soft. We need to sell more than 2,000 yuan for this type of shirt. The added value is high, and others cannot do it. We have optimized the achievements of the industry chain.†Li Rucheng pointed to his shirt.
It is the idea of ​​Li Rucheng's "optimization of the industrial chain" to make garments that others can't make and improve the added value of the products. Youngor also carried out similar research on suit fabrics to develop a wrinkle-free suit fabric. “Now we have made anti-wrinkle suits with a price of more than 4,000 yuan and ordinary suits with a price of only 2,000 yuan. This is the full advantage of controlling the industry chain. It also allows us to adhere to our own research and development to make our products at the forefront of the industry.†Li Rucheng told reporters.
The effect of optimizing the industry chain is obvious. According to data provided by Youngor, in the first 7 months of this year, Youngor’s apparel sales increased by approximately 5%, while its sales amount increased by 15% and its gross profit margin increased by 30%. "This means that our single product prices are increasing, and the added value is even higher." Li Rucheng has come up with a bunch of data confirming that Youngor optimizes the performance of its industrial chain.
In Youngor's plan, there is also an important content that is synchronized with the “optimization of the industrial chainâ€, which is “cultivating the supply chainâ€. This means that in the future, some of the dominant products and key products that are not in Youngor's existing industry chain will be outsourced to other closely-cooperated suppliers. "In this way, we do not have to invest in new production lines, but also enrich our product line. This is very beneficial to Youngor's brand building." Li Rucheng said.
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