Home >

YOUNGOR Grass Boat Back Arrow To Feed Garment Industry Pnational Mergers And Acquisitions To Create International Brands

2010/6/11 15:25:00 57

According to voice of China "7:26 news" 7:26, Li Rucheng, founded and led by YOUNGOR, is currently the largest clothing company in Asia. Last year, its operating income was 12 billion 200 million yuan, and its profit was 4 billion yuan.

Youngor

Well known, not only because it has nearly more than 50 thousand factories, it is also the largest real estate developer in Ningbo, and also a major shareholder of Ningbo bank.

Textile and clothing, real estate, and financial investment, although Li Rucheng in each of the three seemingly closely related industries, is always dancing with each other, but there are still many people in the industry who criticize YOUNGOR for "doing nothing".

Li Ru Cheng

In an exclusive interview with reporters, he said: those who criticize them may not see their efforts in the clothing industry.

Through the profitability of the capital market, YOUNGOR is using the "grass boat to borrow arrow" to feed the garment industry, and through structural adjustment and technological innovation, the goal of a famous international garment industry, a centennial shop, is becoming clearer and more firm.

People all over the world know that YOUNGOR is a textile and apparel company, but investors know more clearly that YOUNGOR's most profitable business is not textiles and clothing, but real estate and financial investment.

Li Rucheng, the head of the office, has a good name -- "China Buffett".

Reporter: if we regard YOUNGOR's three industries as your children, which one do you like best?

Li Rucheng: the deeper feeling is

Youngor

Brand clothing, because it has been running for 30 years.

But the challenge of real estate is relatively strong. Business investment is a new field. It represents the main direction of China's future economic development. YOUNGOR must take part in it, because modern finance is very necessary.

Interestingly, in YOUNGOR's three industries, financial investment is the most profitable, but employing the least; textile and apparel have nearly 50 thousand employees, but the lowest profit.

The experts joked that Li Rucheng knew very well how to use the money earned from selling clothes to make real estate and financial investments, and then reinvested the profits of the clothing industry with the profits of the capital market.

But Li Rucheng believes that this is a misunderstanding of the market. In his view, industrial diversification is the proper meaning of YOUNGOR's structural adjustment.

Li Rucheng: actually, this is a misunderstanding. Now we invest in real estate by making money from textile and clothing.

This cash flow is quite sufficient. We have 7 or 8 hundred million a year, and this year we estimate that there will be a profit of 10 billion.

Reporter: have you ever thought that if you don't do business in the future, will the textile and clothing become YOUNGOR's secondary industry or even the main business one day?

Li Rucheng: now YOUNGOR textile and apparel has about 10000000000 sales, we have nearly 50 thousand of the staff.

It should be said that YOUNGOR's main business.

The main business can not be expressed in terms of profit.

I think financial investment is the core of modern economy.

As an enterprise like YOUNGOR, the industrial structure must be upgraded to the core.

This is our strategy.

We should not only adjust the structure, but in the past thirty years, we are constantly innovating in the system, and we are constantly innovating in the industry.

YOUNGOR's goal is very clear. We need to create a century old enterprise.

"Grass boat to borrow arrows" is for a bigger campaign.

In Li Rucheng's mind, YOUNGOR represents the development mode of China's private enterprises. It can not only be the largest textile and clothing company in Asia, but also an international superstar and a centenary store.

In the clothing industry, in front of the reality of international big ups and winds, how can YOUNGOR get to know the world? Li Rucheng's train of thought is: borrow a ship to go to sea, mine is mine, and yours can also be mine.

Reporter: YOUNGOR has acquired two big international companies, one is Smart and the other is new Ma, which is a typical international M & A case in China's textile industry.

What is the starting point of the two acquisitions?

Li Rucheng: the goal of our development is to create an international brand, to internationalize the personnel, and to internationalize the enterprise.

We build YOUNGOR's platform overseas through mergers and acquisitions.

For YOUNGOR to open up the world.

Brands have no boundaries.

M & A is not only an industry's M & A, but also a team's integration.

However, Li Rucheng also knows that if he wants to be an international player, only mergers and acquisitions are far from enough.

This year's two sessions, Li Rucheng stretched out his feet to talk about the story of technological innovation once was touted by the media.

At that time, Li Chengyu stretched out his feet to show YOUNGOR's new product, "hemp family":

Li Rucheng: we voted close to three hundred million. Hemp products surpassed our original cotton wool products, which brought a revolution to the wearing of human body.

The market demand is very high, so we must constantly demand new concepts, new materials and new styles.