YOUNGOR 2 Billion 500 Million "Ball Making Plan" Domestic Sales Hedging Costs Rise

In March 31st, YOUNGOR (600177), which had two booths, was the 2008 China International Garment Fair closed in Beijing.

SH, this high-profile appearance, facing the current management problems of RMB appreciation, exchange rate adjustment, raw material price rise and the introduction of the new labor law, YOUNGOR chairman Li Rugang admitted that the enterprises really felt the pressure.

"No pressure is false. Ningbo's per capita consumption level and income are in front of the whole country.

For example, when our business is marketing (domestic sales) and the new labor contract law is promulgated, enterprises will have to bear more than about 3000000 yuan in terms of management cost.

Li Rugang said.

"At the beginning of this year, more than 20 clothing and textile enterprises went bankrupt in our town. This time we took several enterprises to come and learn from them. How can we live better?"

Zhang Haijun, Secretary of the Hezhen Committee of the Xiuzhou District of Jiaxing, China, came to the meeting.

According to Zhang Haijun, domestic clothing giants are developing sales channels in China, trying to rely on the domestic market to push the pressure of overseas exports.

At present, many garment enterprises pfer core business to downstream retail terminals, and YOUNGOR's actions in the retail terminal are slightly understated.

"At present, the company intends to build a ball project, a total of 50, according to local conditions, the size of the ball."

Li Rugang said.

Li Rugang's "ball" refers to the marketing companies everywhere.

It is understood that there is a marketing company with an area of more than 2400 square meters in front of the YOUNGOR headquarters building, which can create 30 million yuan of sales every year. Most of the appearance of the building is made of round glass, which is known as the "ball" by the industry.

Public information shows that Li Rucheng, President of YOUNGOR, once proposed that the company should deploy in 2008: the focus of the clothing industry is to strengthen the construction and reform of channels and logistics.

Li Rugang explained to reporters that the company's new plan for strengthening retail links is the "ball making" plan.

According to Li Rugang, YOUNGOR is still the main selling market in China. The group is now investing 2 billion 500 million yuan in the retail sector to implement the "ball making" plan.

It is understood that YOUNGOR group's initial investment budget for each marketing branch is around 50 million, and 50 marketing centers will be built throughout the country.

The sales volume of each company is expected to be 15 million yuan / year. The location of the location is initially determined in provincial capitals, cities and cities with large population density.

"Such as Jiangsu, Nanjing, Suzhou, Wuxi, Hebei Langfang, Heilongjiang, Harbin, Daqing, Zhejiang provinces, Zhejiang, and so on.

We all look good.

Li Rugang said.

The reporter understands that the plan is in contact now, and YOUNGOR has already made preliminary intention with some relevant land regulatory departments in some places, such as Chongqing, Suzhou, Hebei Langfang and Shenyang, and has obtained certain preferential policies.

"The main problem facing us now is that, because the central business circle in some places is already saturated, we will face fierce competition as well as the rising price of resources.

Therefore, we choose to build a sales network in urban and rural areas and emerging cities.

According to the policy, price and location of the local government, it will be completed in the next 3 to 5 years.

Li Rugang said.

In order to better complete the "ball making" plan, YOUNGOR set up a Asset Management Co.

"The company's main job is to specialize in buying houses, building houses and selling houses, for the location, construction and relocation of 50 marketing companies."

Group insiders told reporters.

"We have more than 2000 retail terminal stores.

There are more than 400 self owned stores, large shopping malls, more than 700 franchised monopolization (mainly in remote areas), and 50 national marketing centers in the whole country, which mainly consider self monopolization, so that the company can directly grasp first-hand information, participate in the management of retail stores, and understand the needs of the market at the same time.

Li Rugang added.

But Li Rugang still believes that opening the domestic marketing links is not a fundamental solution to the business problems of rising costs. The most important solution is to increase the added value of clothing and enhance the brand image.

"If the unit price retail price increases by 15%-20%, the cost of the external adverse factors can be completely solved."

Li Rugang said.

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