YOUNGOR Buys Women'S Clothing Brand To Enter The Market

In the past two years, YOUNGOR, which has gained a lot of money in the field of real estate and equity investment, will turn more eyes to the main garment industry next year.

"This year, real estate and equity investment are going up and down. Next year, we will focus more efforts on the garment industry."

Recently, Chen Zhigao, vice president of YOUNGOR group and general manager of YOUNGOR fashion, said to the first financial daily.

YOUNGOR has set a target of 20% growth in clothing sales next year and is eager to enter the women's clothing market.

In the offensive women's clothing market, the way YOUNGOR will enter women's clothing has been clear. When attending the "Sohu 2008 China made China speed national row summary forum", Chen Zhigao told reporters clearly that she would "buy Women's clothing brand".

YOUNGOR, which has the most powerful capital in the domestic apparel industry, has shown strong interest in acquisitions.

In early 2008, YOUNGOR bought us KELLWOOD men's clothing business for us $120 million to complete the largest overseas merger and acquisition of China's clothing industry.

Yesterday, Chen Zhigao told reporters that the attack on women's clothing market is still under discussion. He did not give answers to questions such as the acquisition market, women's clothing channels, and market positioning. He just said "there will be news after the Spring Festival".

In June this year, Li Rucheng, chairman of Limited by Share Ltd group of YOUNGOR group, told reporters that "good brands are all mixed men and women." after that, we must integrate men's clothing and women's clothing.

But at that time, Li Rucheng's mood in women's clothes seemed not urgent. "At present, men's clothing is good, and a foundation is laid to develop another one."

"Compared with men's wear, women's clothing market fluctuates little."

Li Xin, CITIC Securities, told reporters that its market demand was more rigid and its profit level was more stable.

However, like men's clothing, the women's clothing market is not easy for any entrants.

At present, the brand competition of women's wear market is fierce.

"Regardless of men's clothing market, the key is market positioning."

Wang Yao, Deputy Secretary General of the China Federation of Commerce, told reporters that "the vast majority of women's clothing is currently in fashion", but there is room for high, medium and low professional women's clothing market.

At present, YOUNGOR has the leading edge in the market of suits and shirts.

To return to the main garment industry, the financial crisis has made Chinese clothing exports worse.

According to the public information, China's garment exporters in the United States clothing market are now active or passive "disconnected", and the European and American textile and clothing orders may be reduced by more than 20%.

"Next year there may be negative growth."

Li Xin told reporters that this is also widely expected in the industry.

However, YOUNGOR's clothing industry has not been affected.

Chen Zhigao enumerated several figures: the sales of domestic clothing this year also maintained a 18% growth. By the end of the year, it was estimated that it could reach 20%, foreign trade sales increased by 60%, and profits could also grow by 30%.

These growth benefited from the acquisition of men's clothing business of KELLWOOD company in the United States, bringing 40 million shirts exports, and at the same time, with the increasingly powerful brand influence, its domestic sales also reached 8 million.

"Now many factories are not full of capacity, but our factories are basically running at full capacity."

Chen Zhigao said.

But YOUNGOR, a garment maker, has changed its impression of investors in the past few years, becoming a Real Estate Company rather than a clothing company.

YOUNGOR's 2007 annual report shows that the clothing industry has accounted for only 1/4 of YOUNGOR's revenue.

However, this year because of macroeconomic changes, in addition to the real estate situation is not optimistic, YOUNGOR's investment in the capital market, such as equity investment before listing, revenue has also shrunk dramatically.

"YOUNGOR's two main industries, real estate and equity investment, are affected and hit more."

Chen Zhigao admitted to reporters that "from the current situation, we expect that the clothing sales and sales momentum will be good next year, so I expect that clothing will become the main source of profit next year."

Next year, YOUNGOR will increase investment and expansion in the garment industry. In the next 2~3 years, YOUNGOR hopes to achieve greater goals for the textile and garment industry.

Chen Zhigao also revealed that YOUNGOR would split its brand.

"Recently, many garment enterprises have begun to return to the main garment industry."

Wang Yao told reporters.

In the past few years, a large number of garment industry funds have entered the lucrative market such as real estate, stock and property rights investment. The severe economic situation has made clothing enterprises return to their old best practices to reduce risks.

And despite the grim export situation, the domestic retail market has maintained an increase of about 20%.

Li Xin told reporters.

This provides market space for garment enterprises with strong brands.

An industry analyst told reporters that YOUNGOR should also strengthen its main garment industry. In the past few years, YOUNGOR has been facing more and more powerful competition, such as wedding birds, because it has paid more attention to other industries.

Wang Xiaonan: editor in charge