Younger Shanshan City Competition

For decades, the Chinese clothing industry has gradually developed its own competitive advantage. In addition to the integrity of the industry chain support, as well as the extensive use of information technology, clothing industry, "clustering" can also be described as contributing. Industrial clusters are deployed through resource optimization to achieve a cost-saving regional scale effect. The output of China's industrial clusters accounts for more than 70% of the total national apparel production.

And Youngor, who is the champion of the garment industry’s operating income and operating profit, also started out in “Suits Camp” in Ningbo. Its rival, Shanshan, is not to be outdone, ranking fourth in revenue. From 1995 to 2010, it was the era of clothing business. A group of excellent clothing companies such as Shanshan, Youngor, Seven Wolfs, Meibang and Li Ning emerged at this stage.

Younger Shanshan fights with the city's military: production and marketing separation VS channel is king

(1) Li Rucheng vs VS Zheng Yonggang: The confrontation between "peasant" and "marshal"

Many of the heads of private enterprises see the company as a child, while at the same time they are also subconsciously shaping the corporate culture and affecting the company's development. It is precisely these entrepreneurs who have their own unique personality and penetrate it into every cell of the company's operations. Someone once compared Young Liang’s Li Rucheng and Shanshan’s Zheng Yonggang to “peasant” and “poet”—a low-key, subtle, reserved person who does not shy away from the status of a peasant; the other is arrogant, bold and arrogant and claims to be done. Do "Marshal" instead of "General."

It is this kind of solid, steady, low-key, introverted, step-by-step farming practice on the farmland that has made Youngor the most favorite brand and industry logo brand for consumers; it is also such a lion-like arrogance and confidence. Wild, the spirit of running wild in the grasslands, Shanshan has been standing in the peak of domestic leading companies.

(II) Strategic Transformation: Diversification

Founded in 1979, the Youngor Group, which started out as a clothing manufacturer, has formed a business structure featuring branded apparel, real estate development, and financial investment as its main business. It has also been involved in international trade, hotels, and tourism. Different from Youngor's expansion of real estate business, Shanshan chose to enter the high-tech industry and capital operation on the basis of the garment industry, achieving the independent operation of the three sections of clothing, high technology, and capital operation, and they did not meet each other. Zheng Yonggang thinks that clothing is a basic industry. It is difficult to achieve the strategic goals of Shanshan through the apparel sector alone. Therefore, the group needs to reposition itself and look for new economic growth points. In a recent interview, he also pointed out that he has not really engaged in handicrafts for a long time. He is the chairman of the group, and the group has a higher proportion of high technology.

(3) Loss of Susan: Production and Marketing Separation of VS Channels is King

Youngor's shirt market share surpassed Shanshan in 1995, becoming the first in the industry, and maintaining the laurel crown for seventeen consecutive years. Its market share in the suit market surpassed that of Shanshan in 2000, ranking first in market share for twelve consecutive years. Before that, it was the first share of the market that was firmly placed in the market. Shanshan suits once occupied a market share of 37% in the suit industry. Today, despite being the No. 1 market, Youngor never exceeds 15% of its market share. It is conceivable how the Shanshan was beautiful. However, under normal circumstances, the masters are always leading and chasing each other. However, after being surpassed by Youngor, Shanshan clothing has never been able to “rehabilitate”.

Due to the low barriers to entry in the clothing market and the relatively high profitability, the number of domestic garment operators has increased. When the scale of the company's assets and sales reaches a certain level, if it cannot be effectively adjusted in time, the competitors that enter the company will pose a great threat. It can be seen that Shanshan and Youngor, which were in the leading position of the year, are facing the situation that the growth trend has slowed down and the market share has dropped. For the same problems that existed in the market, Youngor and Shanshan had two very different paths. Shanshan chose the best-selling separation, and Youngor insists that the channel is king. Someone summed up the choice of these two roads and the final result as a sentence: Zheng Yonggang judged the direction and Li Rucheng did the right thing.

Younger Shanshan, the person who lives in the city of China: Shanshan moved to Shanghai in the north

Zheng Yonggang believes that the domestic market for suits has become increasingly saturated, with limited growth potential and cannot meet the needs of the company's further development. Therefore, a strategic vision for high-tech development was proposed. To adapt to this adjustment, the company's headquarters was relocated to Shanghai. After going to Shanghai, both Zhejiang and Ningbo excluded the Shanshan when considering the preferential and support policies. In the minds of many people in Shanghai, they do not agree with Shanshan. In this way, Shanshan lost the advantage of local support. At the same time, the Youngor Group, which was slightly smaller than the Shanshan Group before 1999, has taken the top spot in China's men's wear, be it a suit or a shirt. In addition to a solid main business, Youngor has also become one of the most important real estate developers in Ningbo.

Nowadays, in Ningbo, you will experience the existence of Youngor ubiquitously. Located in the prime area of ​​Ningbo's Sanjiangkou, next to the “Seascape Garden” developed by Youngor Ningbo Commercial Center District, it is a three landmark building and the most expensive property in Ningbo. . On both sides of the famous Youngor Avenue, Youngor’s factories, shopping malls and specialty shops can be seen everywhere. Youngor has already shown that he is the owner of Ningbo.

According to related personnel of the Ningbo government, at least in his department, there will be more exchanges with Youngor, and the government also tends to purchase Youngor's clothing as a symbol of Ningbo for gifts.