Li Rucheng: Younger's Industrial Chain Construction

“Younger's clothing began to be laid out from the raw materials of cotton and hemp. These kinds of products will later strengthen our brand.”

Youngor can make the selected factory foundry products through global procurement, and other companies can also. After entering the brand era, production has become less important, becoming an industry at the end of the value chain, which means high labor density, low technology content, and low profits. As a result, some clothing brands began to shift their production to marketing.

Youngor did not do so. It built an area of ​​370 acres, the country's largest garment manufacturing base. Some people are not convinced that this is a practice that has not kept pace with the spirit of the times. In this regard, Li Rucheng insisted that he said manufacturing was eternal. For the core industrial manufacturing, Youngor will not give up.

Li Rucheng criticized the brand era and outdated production. Looking at the world's famous clothing brands, whether it is industrial brands, commercial brands, without the support of production, can not be bigger and stronger. Even a designer brand has a core manufacturing base or a production group that cooperates with the brand. Like Hermès, there are not only garment manufacturing lines but also upstream fabrics and other industries. There are two main reasons why well-known brands do so. One is to ensure the synergy ability of raw material supply, production, and sales to form a competitive advantage. Second, it is not easy to abandon brand standards and ensure product quality. From this we can see that manufacturing is still an important part of the success of apparel brands.

Nike has succeeded in commissioning processing and has caused other companies to follow suit. The benefits of commissioned processing are obvious. First, it can reduce the burden on companies. Second, it can clearly focus on the allocation of limited resources to key areas. Third, it can use the manufacturing advantages of foundries. However, there are also risks in the commissioning of the processing. The brand's control ability and price negotiation ability have all been tested. If the management is not good, the foundry will become obsessed with the business operation. Nike has a large amount of purchases each year. It has a powerful voice, and other brands cannot control their ability to control and coordinate their industrial chains. Therefore, Nike's commissioning process can be successful, and other brands may not be able to succeed. Li Rucheng analyzed that compared with Nike, Youngor has a small amount of purchases and does not have the ability to manage and control foundries accordingly. Therefore, large-scale commissioning processing will not be the direction of Youngor.
There will be some consideration in the development of the enterprise. Li Rucheng analyzed the future competition trends of the apparel industry: “I think the future competition is the competition of the industry chain, not the competition of a single company. Why do some brands always fail to do it? It is because there is no support for the industry chain. There are some brands in Europe. Why? It is very strong because it attaches great importance to the construction of the industry chain. It not only does it on its own, it has strong control over the industry, and it is difficult for us to control an industrial chain in China, because our procurement cannot control one. Industry, so you can only think of ways to build an industrial chain."

In order to control the industrial chain, Youngor not only owns the largest garment manufacturing base in China, but also entered the fields of cotton planting and hemp planting, forming a complete industrial chain for raw material planting, textiles, garment design and manufacturing. “Yorreer’s clothing began to be laid out from the raw materials such as cotton and hemp. These kinds of products will later strengthen our brand,” said Li Rucheng.