Youngor buys women's brand to return to the main business of clothing

In the last two years, Younger, who has gained a lot in the field of real estate and equity investment, will turn more eyes back to the main clothing industry next year.

"Real estate and equity investment this year have been ups and downs. Next year we will focus more efforts on the apparel industry." Recently, Vice President of Youngor Group and General Manager of Youngor Clothing Chen Zhigao told the "First Financial Daily". Youngor has set a target of 20% growth in apparel sales next year and is looking to enter the women’s wear market.

Offensive women's market

Younger will enter the women's fashion has been clear, in attending the "Sohu 2008 China Made in China Speed ​​National Summary Forum", Chen Zhigao told reporters clearly that it will "acquisition of women's brand."

Youngor, who has the most powerful capital in the domestic apparel industry, showed strong interest in the acquisition. In early 2008, Youngor acquired US KELLWOOD's menswear business for US$120 million and completed the largest overseas acquisition of China's apparel industry.

Yesterday, Chen Zhigao told reporters that the offensive women's clothing market was “still under discussion”. He did not give an answer to the acquisition market, women’s channels, and market positioning. He only said “There will be news after the Spring Festival”.

In June of this year, Li Rucheng, chairman of Youngor Group Co., Ltd., told reporters that “good brands are 'mixed men' and women’s.” In the future, our men’s and women’s wear must be integrated.” But at the time, Li Rucheng’s mood for entering women’s clothes seemed to Not urgently, "Currently, men's clothing should be done first, and one foundation must be laid before another."

"Compared with men's clothing, women's clothing market is not volatile." CITIC Securities Li Xin told reporters that because of its more rigid market demand, and the profit level is more stable. However, like men's wear, the women's market is not easy for any entrants. At present, women's clothing market brands are highly competitive.

"Regardless of the men's and women's wear market, the key lies in the market positioning." Wang Yao, deputy secretary-general of the China Business Federation, told reporters that "the vast majority of women's clothing is currently positioned in fashion" and can be "high, medium and low professional women's clothing market has space".

Currently, Youngor has a leading edge in the suit and shirt market.

Return to the main business of clothing

The financial crisis has made China’s clothing exports worse. According to public information, at present, Chinese clothing exporters who have taken the initiative or passive “off supply” in the US apparel market have reached 10,000, while orders for European and American textile and clothing may decrease by more than 20%. "There may be negative growth next year." Li Xin told reporters that this is also widely expected in the industry.

However, Youngor's apparel industry has not been affected.

Chen Zhigao cited several data: This year, domestic apparel sales have also maintained an increase of 18%. By the end of the year, it is estimated that it will reach 20%, foreign sales will increase by 60%, and profits will also have a 30% increase. These increases benefited from the acquisition of the menswear business of KELLWOOD of the United States, which brought in 40 million shirts, and at the same time, the domestic sales volume reached 8 million with the increasing brand influence.

"Now many factories are not fully productive, but our factories are basically still operating at full capacity," said Chen Zhigao.

However, Younger, who started with clothing, has changed the impression given to investors in recent years and has become a real estate company rather than a clothing company. According to Youngor’s 2007 annual report, the clothing industry already accounts for only a quarter of Youngor’s income. However, due to changes in the macroeconomic situation this year, in addition to the real estate situation is not optimistic, Youngor's investment in the capital market, such as equity investment before the listing, earnings have shrunk dramatically.

“Younger’s two main real estate and equity investments have been affected and impacted.” Chen Zhigao frankly told reporters. “From the current situation, we expect that the domestic and foreign apparel sales momentum will be very good next year, so I expect Clothing will become the main source of profit next year."

Next year, Youngor will increase investment and expansion in the apparel industry. In the next 2-3 years, Youngor expects to achieve a bigger goal in the textile and clothing industry. Chen Zhigao also revealed that Youngor will split its brand.

"A lot of clothing companies have recently returned to the main business of clothing." Wang Yao told reporters. In the past few years, a large number of apparel industry funds have entered lucrative markets such as real estate, stocks, and property rights. The severe economic situation has caused garment companies to return to their best-selling practices to reduce risks. Moreover, despite the grim situation in garment exports, “the domestic retail market has maintained a growth rate of around 20%.” Li Xin told reporters. This provides market space for apparel companies with strong brands.

An industry analyst told the reporter that Youngor should also strengthen the main business of clothing. In the past few years, due to more attention to other industries, Youngor, who has been leading, is experiencing more and more powerful competition, such as the Annunciation.