Youngor's men's market segment takes a brand change

In the situation where the profit margin is low and new brands at home and abroad are continuously approaching, former fashionistas have invariably embarked on the road to their second venture.

Yesterday, Youngor, Shanshan and Lilang unanimously launched new brands of apparel products at the China International Clothing & Accessories Fair.

Youngor expanded the single brand to five brands. The chairman of the company, Li Rucheng, said: “The Younger brand was originally positioned too broadly and can be worn by migrant workers and professors. Now it has expanded into five brands and faces different consumer groups.” Including Youngor, Shanshan, and Li Lang, they all faced the problem of the older consumers of the original products and their limited appeal to young consumers. This time, they also launched new brands to compete for young white-collar workers.

Youngor's suits and other products once occupied the largest market share in the domestic market. Under the siege of local brands such as Septwolves, Smith Barney and H & M, ZARA, Uniqlo and other multinational brands, Youngor's apparel business is not entirely in terms of profit margin, business growth rate, etc. As expected. In 2009, Youngor's apparel business unit revenue was 5.527 billion yuan, a decrease of 400 million yuan over the previous year.

In the clothing business's profit margin, taking Youngor's flagship shirt as an example, the revenue in 2006 was 870 million yuan, and the growth rate in 2009 was 2.463 billion yuan, but the operating profit rate slipped from 50.23% in 2006 to 2009. 29.37%. By contrast, the gross profit rate of seven wolf shirts was 33.45% in 2006 and 36.04% in 2008. As for the phenomenon of a drop in the profit margin, Li Rucheng explained that it had acquired Xinma Fashion Group (Hong Kong) Co., Ltd. and Xinma Fashion International (Hong Kong) Co., Ltd. in 2008. Xinma Group is mainly a clothing foreign trade business with a low profit margin, so the profitability of the entire Youngor apparel business has also been dragged down.

Regarding the growth bottleneck faced by the garment business, Li Rucheng said: “Younger now has more than 50,000 employees. In 2009, it produced more than 60 million garments. The output can be considered as the world’s largest, and 50 million of them are exported. The brand is sold in China. Apparel 10 million, but the effectiveness of the domestic brand apparel creation is 5 times the export clothing.” Li Rucheng told reporters that this time a brand is divided into five brands, one of the aims is to enhance the Younger Garment profit margins, from The world's largest garment factory is transformed into a world-class brand enterprise.

Du Yuzhou, president of the China Textile Industry Association, said: “The demand for clothing by domestic consumers is increasingly diverse. Clothing companies must subdivide the needs of consumers. Even if only 1,000 people buy this product, if this part of the consumer has enough consumption, Strength, and repeat purchase, can also find the space for survival, so that clothing brand companies can become bigger and stronger."