How Did The More Than 100 Million Workers Survive After The Collapse?

Recently, influenced by the collapse of Chinese textile and garment production enterprises, the upstream and downstream industrial chain has reached 170 million of the employed population, and the pillar industry that once occupied half of China's exports has touched the nerves of the Chinese people again.

A large number of clothing brand shops are closing down all over the country, including Bosideng, Li Lang, BELLE, Giordano,

What happened to nine herd kings and seven wolves?

2015 bankruptcy list of famous textile and garment enterprises

In September 6th, Wenzhou Chuang Ji group, which owns 6 branches, officially declared bankruptcy.

According to a senior Zhuang Ji, the incident or the bank generated about 30000000000 bad debts.

At present, 5000 employees of the group are quietly waiting for the result of bankruptcy.

In August 22nd, Zhejiang Hongjian Group Co., Ltd., the 500 largest private enterprise in China with a total assets exceeding 2 billion, was officially shut down.

More than 1000 employees went to the streets to pay wages for three months.

August 19th, 400 employees in Huizhou, Guangdong, Huizhou (Fuji)

The boss of the comprehensive factory ran on the road, and the employees gathered at the factory gate hoping to get their own hard-earned money.

In July 31st, the boss of the East China textile giant Bao Li Jia ran, and 5000 employees suddenly lost their jobs.

At the end of May 2015, the Shandong Lanyan group, the largest denim factory in Asia, with a staff of up to 10000, was bankrupt due to liabilities of 2 billion 500 million yuan.

In May 22, 2015, Fan Bingbing Viske's clothing, which had been cited by Lenovo and was endorsed by the company, was closed down, and the boss ran away with 5000 employees.

In May 18th, the 500 largest private enterprise in 2002, Shaoxing's printing and dyeing company, whose total assets were 1 billion yuan, was five printing and dyeing enterprises.

It is reported that the company has 7 subsidiaries and employs more than 2000 people.

In May 1st, the boss of Dongguan Hou Hong garment factory, who had more than 10000 employees, ran away.

The staff went to the streets to ask for two months' wages and financial compensation. The local government dispatched 1500 policemen to maintain order.

In April 20th, with more than 2000 employees, Lining and XTEP's core supplier, Jaron clothing, were broken by gold chains because of the expansion of the market.

In the textile gathered Shaoxing, Shantou, Changle, Dongguan and other places, the small and medium-sized textile and garment enterprises that are bankrupt and bankrupt are numerous.

China's textile and garment industry died from internal troubles and foreign invasion

As the largest number of employed people, the textile and garment industry, which contributed most to China's reform and opening up to achieve capital accumulation, has fallen into this field.

But "freezing is not a cold day", the fall of China's textile and garment industry is the result of many unfavorable factors.

It should be said that this crisis started in 4 trillion in 08 years.

According to some textile business owners' recall, the textile and garment industry in 2008 had already seen an economic crisis. Most enterprises were prepared to contract their production capacity and cut down their employees.

However, due to the introduction of the "4 trillion" economic stimulus plan, the business of textile and garment industry has been unusually hot since the second half of 2009. In 2010, the price of cotton rose from 10 thousand / ton to 30 thousand / ton.

With the short boom of the market and the push of banks, the industry has launched a wave of crazy capacity expansion.

Some local governments are taking the lead in creating a focus area for textile and garment industry, encouraging textile and garment enterprises to expand new factories and purchase new ones.

Unexpectedly, by 2012, the "4 trillion" economic stimulus subsided, many orders fell sharply, and millions of expensive imported equipment were left idle.

Plus inventory

The sharp fall, many textile enterprises in the previous two years the money made a moment return to zero.

At the same time, labor costs in China doubled more than five years in the 08 years after the introduction of the new labor law.

As the textile and garment industry is a typical labor-intensive enterprise, the rise in labor costs has brought unimaginable pressure to the operation of enterprises.

Especially in the past two years, due to the sharp increase in domestic costs, many foreign-funded enterprises have been pferred to South Asia and Southeast Asia on a large scale.

The most famous ones include Adidas, Nike, UNIQLO, Muji, Castle Peak commercial, Li Fung, Tokyo STYLE, Honeys, etc. these companies are accelerating the pfer of orders to Southeast Asia.

In addition, due to the backward equipment and high operating costs of China's spinning industry, the low end market share below 50 has been eroded by Southeast Asia, India, Bangladesh and other countries.

More than 100 high-end products are controlled by Japan, Germany and Italy.

Before and after the attack, the textile and garment industry has long been defeated.

170 million how many people can survive in the working population?

At the beginning of reform and opening up in 1978, China's one billion population and urban population accounted for only 100 million, but the employment situation in cities and towns was extremely severe.

At that time, the government looked forward to taking the textile and garment industry as a pillar industry for China's economic development, and strongly supported textile and garment export earning enterprises.

In order to support the development of the textile and garment industry, the Chinese government even prefers to bear the United States' blunting accusations about China's human rights situation and strive for more export quotas.

Why does the government attach so much importance to the textile and garment industry? This is because the industry has an unparalleled advantage in absorbing the employment population.

According to statistics, the textile industry can absorb 1876 people per billion yuan in fixed assets investment, while the garment industry can absorb 4464 people.

The average number of investments per 100 million yuan invested by the whole industry is only 903.

In 2007, China's textile and garment industry upstream and downstream industry chain absorbed 170 million of the total population of employment, and deserved to become a steady sea job.

Before liberation, the wages of a worker in the Shanghai textile mill were probably 15-30 oceans, when the salary of the county magistrate was only 20 oceans.

It can be seen how high the textile workers are before liberation.

In addition, in the long run, textile and clothing is one of the most basic needs of human beings. It is an eternal industry, not a sundial industry misled by the media.

In recent years, China's textile and garment enterprises are getting higher and higher in labor cost, land cost, environmental protection cost and tax burden, and even surpass the United States.

China's 1 billion 500 million population has a huge demand for textile and clothing. It is really puzzling to let the consumer market go on like this.

Now, in the first half of 2015, China's textile and garment industry suffered negative growth for the first time in the first half of the year.

With the acceleration of textile and garment industry and the collapse of a large number of enterprises in China, the data in the second half of this year will surely be even worse.

For China's textile and garment industry and business owners, the industry reshuffle and life will be very tragic in the next two years.

As for the 170 million working population, tens of millions of people will go home for months in advance, only heaven knows!

In 2015, the large textile and garment enterprises that had occupied half of China's exports were frequently closed down. They had already produced a devastating chain reaction. The closing tide swept through the textile sales terminal entities shops, and a large number of clothing brand shops were closing down all over the country.

On the one hand, Zara, UNIQLO, Muji and other brands accelerate the expansion of the layout, YOUNGOR, news birds, the United States and other garment enterprises bustle about busy investment busy mergers and acquisitions busy pformation, Anta in the first half of the year 5 billion 100 million crazy record of the highest level of the company, Internet and other Internet brands to seize the market share under the line, while the other side, but there are countless clothing brands want to cry, no tears, deep in the shop.

The flagship store has become a continuous discount shop, or completely disappeared in people's sight.

To Be Or Not To Be has become the dilemma that many garment enterprises owners have to face everyday.

Although a few years after the closure of the shop, it is not a new phenomenon this year. However, from the first half of the year, the number of thousands of closed stores is still staggering.

This platform selects some recent data of clothing enterprises, and lists out a list of clothing brands that are not complete.

2015 of the clothing industry, half of the flame and half of the sea to describe, it is very appropriate.

1. Bosideng: a massive shutdown of the 5053 stores and a net profit since its listing.

Net profit: according to the annual report released in July 28th as of March 31, 2015, Bosideng's revenue in the last fiscal year was 6 billion 293 million yuan, down 23 .61% compared with the same period last year, while net profit dropped 81.01% to 132 million yuan.

The number of outlets: as of March 31st this year, Bosideng retail outlets were 6599, down by 5053 compared with the same period last year, including 1296 retail outlets and 3757 retail outlets operated by third party distributors.

Case comment: first, the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, resulting in a decline in gross profit margin; two, the development of e-commerce and the change of consumer habits, making some competitive entities lack of competitive performance and have to close.

2. seven wolves: net reduction of 519 stores, after the pformation of performance decline has not improved.

Net profit: the company's revenue was 1 billion 130 million yuan, an increase of 10.42%; net profit of 111 million yuan, down 26.28% compared to the same period.

Number of stores: there were 3155 terminal stores in the first half of last year, up to 2636 at present, with a net decrease of 519 stores.

Case comment: in fact, the seven wolf early has changed from "pure industry" to "industry + investment" mode of operation, but the decline in performance has not been reversed.

Under the new normal of the domestic economy, when the traditional clothing industry can not resist the impact of external environment, closing shop is the best choice to reduce costs.

3. IgG: Net minus 236 loss Department counters

Net profit: China's revenue grew by 11.7% to 214 million 900 thousand euros due to the euro's weakness. After excluding the exchange rate, the same store sales fell 0.8%.

Number of outlets: the Chinese market has lost 2886 sales points after a net loss of 236 loss department stores in fiscal year 2014.

This year, the group will slow down the closing speed of Chinese department stores.

Case commentary: clothing enterprises are affected by the electricity supplier, coupled with the increase in rents, making the closure of poor performance shops a timely stop loss option.

4. Giordano: last year 190 stores closed down nearly 40% year-on-year

Net profit: 190 in 2014, net profit fell by 38%. Giordano, a casual clothing brand, released its 2014 performance report 3. The company's sales volume was HK $5 billion 545 million, down 9% from HK $5 billion 848 million in 2013, and net profit fell by 38% to HK $408 million.

Number of stores: as of the end of last year, the number of stores was 2452, a decrease of 190 compared with last year.

Case commentary: clothing companies will generate large quantities of inventory when closing stores, and digestion will inevitably affect the company's performance. This is also an important reason for poor sales and gross profit.

5. BELLE: the scale of stores declined, and retail outlets decreased by 167 in the first quarter.

Net profit and closing number: BELLE international recently announced the first quarter of this fiscal year (March to May) retail business data showed that the largest number of shoe production and retail companies retail sales in China decreased by 167, while its footwear sales decreased by 7.8% compared with the same period last year.

Previously, the scale of stores has always been the advantage of BELLE international.

Case review: under the joint constraints of market saturation, rising costs and persistent impact of electric business, the extensive development mode of women's shoes brand has simply taken the scale and the capacity to reduce costs.

6. Anta: 40 stores to 140 stores in the second half of the year

Net profit: as of June 30, 2015, Anta's revenue reached 5 billion 110 million yuan, an increase of 24% over the same period last year, and net profit increased by 20.2% compared to the same period last year, to 965 million yuan.

Number of stores: for the second half of the year, the number of Anta shops is expected to be 7200 to 7300 at the end of this year. That is to say, Anta may close 40 stores to 140 stores on the basis of 7340 stores in the first half of the year.

Case commentary: Anta has been adjusting its business mode. The intention of pformation is obvious. Traditional business growth is weak, and seeking new market growth point is one of Anta's strategic development directions.

7. nine herd Wang: high or low, not embarrassed, the first half of the shop closed 134

Net profit: income in the first half of the year was 971 million yuan, down 16.6% compared with the same period last year. Net profit was 204 million yuan, down more than 30% over the same period.

Number of stores: to cope with the continuing downturn in domestic clothing consumption, the company's target of closing stores in the beginning of this year was 50 to 100, and 134 had been closed in the first half of this year.

Case review: it is hard to sell without price cuts. Once the price cuts can not support the high advertising fees, it will weaken the brand influence and make no difference from ordinary brands. This is the current predicament of these brands.

8. Busen shares: the development of diversified businesses has dragged down the main business stores for nearly half a year.

Net profit: after listing in 2011, the performance turned straight.

Net profit in 2011 was 52 million 830 thousand yuan, 40 million 160 thousand yuan in 2012, while in 2013, it dropped to 6 million 60 thousand yuan. In 2014, it was a huge loss of 103 million, and the loss of assets impairment was as high as 40 million, which was nearly 4 times that of 2013.

Number of stores: nearly 100 stores were reduced in the first half of last year.

Case commentary: outside the main business downturn, Busen implemented the "epitaxial diversification" development strategy, such as setting up small loan companies, investing in securities companies, investing in real estate development in Zhuji, and investing in cement plants in Sichuan. These diversified investments do not seem to help Busen's development very well.

9. Li: 15 stores in the first half of the year are still going to be stocking.

Net profit: as of the first half of 2015, the net profit increased 11.6% to 277 million yuan.

Earnings growth comes from turnover growth and gross margin expansion.

The turnover increased by 9.0% to RMB 1 billion 188 million during the period.

Number of outlets: as of the first half of 2015, there were 3080 shops in the shop.

During the period, the number of brand "LILANZ" stores decreased by 15 to 2768.

Case review: by the impact of the Internet on retailing, last year, Li Lang closed down some inefficient stores, which is part of the strategy.

Store is for pformation and upgrading, dealers also need pformation and upgrading.

Recently, influenced by the collapse of Chinese textile and garment production enterprises, the upstream and downstream industrial chain has reached 170 million of the employed population, and the pillar industry that once occupied half of China's exports has touched the nerves of the Chinese people again.

A large number of clothing brands are closing down all over the country, including Bosideng, Li Lang, BELLE, Giordano, Anta, nine herdmen and seven wolves.

2015 bankruptcy list of famous textile and garment enterprises

In September 6th, Wenzhou Chuang Ji group, which owns 6 branches, officially declared bankruptcy.

According to a senior Zhuang Ji, the incident or the bank generated about 30000000000 bad debts.

At present, 5000 employees of the group are quietly waiting for the result of bankruptcy.

In August 22nd, Zhejiang Hongjian Group Co., Ltd., the 500 largest private enterprise in China with a total assets exceeding 2 billion, was officially shut down.

More than 1000 employees went to the streets to pay wages for three months.

In August 19th, the boss of Fuji (Huizhou) textile complex, Huizhou, Guangdong, has 400 employees, and employees gathered at the factory gate hoping to get their own hard-earned money.

In July 31st, the boss of the East China textile giant Bao Li Jia ran, and 5000 employees suddenly lost their jobs.

At the end of May 2015, the Shandong Lanyan group, the largest denim factory in Asia, with a staff of up to 10000, was bankrupt due to liabilities of 2 billion 500 million yuan.

In May 22, 2015, Fan Bingbing Viske's clothing, which had been cited by Lenovo and was endorsed by the company, was closed down, and the boss ran away with 5000 employees.

In May 18th, the 500 largest private enterprise in 2002, Shaoxing's printing and dyeing company, whose total assets were 1 billion yuan, was five printing and dyeing enterprises.

It is reported that the company has 7 subsidiaries and employs more than 2000 people.

In May 1st, the boss of Dongguan Hou Hong garment factory, who had more than 10000 employees, ran away.

The staff went to the streets to ask for two months' wages and financial compensation. The local government dispatched 1500 policemen to maintain order.

In April 20th, with more than 2000 employees, Lining and XTEP's core supplier, Jaron clothing, were broken by gold chains because of the expansion of the market.

In the textile gathered Shaoxing, Shantou, Changle, Dongguan and other places, the small and medium-sized textile and garment enterprises that are bankrupt and bankrupt are numerous.

China's textile and garment industry died from internal troubles and foreign invasion

As the largest number of employed people, the textile and garment industry, which contributed most to China's reform and opening up to achieve capital accumulation, has fallen into this field.

But "freezing is not a cold day", the fall of China's textile and garment industry is the result of many unfavorable factors.

It should be said that this crisis started in 4 trillion in 08 years.

According to some textile business owners' recall, the textile and garment industry in 2008 had already seen an economic crisis. Most enterprises were prepared to contract their production capacity and cut down their employees.

However, due to the introduction of the "4 trillion" economic stimulus plan, the business of textile and garment industry has been unusually hot since the second half of 2009. In 2010, the price of cotton rose from 10 thousand / ton to 30 thousand / ton.

With the short boom of the market and the push of banks, the industry has launched a wave of crazy capacity expansion.

Some local governments are taking the lead in creating a focus area for textile and garment industry, encouraging textile and garment enterprises to expand new factories and purchase new ones.

Unexpectedly, by 2012, the "4 trillion" economic stimulus subsided, many orders fell sharply, and millions of expensive imported equipment were left idle.

Coupled with the sharp drop in cotton prices, many textile companies made money in the first two years.

At the same time, labor costs in China doubled more than five years in the 08 years after the introduction of the new labor law.

As the textile and garment industry is a typical labor-intensive enterprise, the rise in labor costs has brought unimaginable pressure to the operation of enterprises.

Especially in the past two years, due to the sharp increase in domestic costs, many foreign-funded enterprises have been pferred to South Asia and Southeast Asia on a large scale.

The most famous ones include Adidas, Nike, UNIQLO, Muji, Castle Peak commercial, Li Fung, Tokyo STYLE, Honeys, etc. these companies are accelerating the pfer of orders to Southeast Asia.

In addition, due to the backward equipment and high operating costs of China's spinning industry, the low end market share below 50 has been eroded by Southeast Asia, India, Bangladesh and other countries.

More than 100 high-end products are controlled by Japan, Germany and Italy.

Before and after the attack, the textile and garment industry has long been defeated.

170 million how many people can survive in the working population?

At the beginning of reform and opening up in 1978, China's one billion population and urban population accounted for only 100 million, but the employment situation in cities and towns was extremely severe.

At that time, the government looked forward to taking the textile and garment industry as a pillar industry for China's economic development, and strongly supported textile and garment export earning enterprises.

In order to support the development of the textile and garment industry, the Chinese government even prefers to bear the United States' blunting accusations about China's human rights situation and strive for more export quotas.

Why does the government attach so much importance to the textile and garment industry? This is because the industry has an unparalleled advantage in absorbing the employment population.

According to statistics, the textile industry can absorb 1876 people per billion yuan in fixed assets investment, while the garment industry can absorb 4464 people.

The average number of investments per 100 million yuan invested by the whole industry is only 903.

In 2007, China's textile and garment industry upstream and downstream industry chain absorbed 170 million of the total population of employment, and deserved to become a steady sea job.

Before liberation, the wages of a worker in the Shanghai textile mill were probably 15-30 oceans, when the salary of the county magistrate was only 20 oceans.

It can be seen how high the textile workers are before liberation.

In addition, in the long run, textile and clothing is one of the most basic needs of human beings. It is an eternal industry, not a sundial industry misled by the media.

In recent years, China's textile and garment enterprises are getting higher and higher in labor cost, land cost, environmental protection cost and tax burden, and even surpass the United States.

China's 1 billion 500 million population has a huge demand for textile and clothing. It is really puzzling to let the consumer market go on like this.

Now, in the first half of 2015, China's textile and garment industry suffered negative growth for the first time in the first half of the year.

With the acceleration of textile and garment industry and the collapse of a large number of enterprises in China, the data in the second half of this year will surely be even worse.

For China's textile and garment industry and business owners, the industry reshuffle and life will be very tragic in the next two years.

As for the 170 million working population, tens of millions of people will go home for months in advance, only heaven knows!

In 2015, the large textile and garment enterprises that had occupied half of China's exports were frequently closed down. They had already produced a devastating chain reaction. The closing tide swept through the textile sales terminal entities shops, and a large number of clothing brand shops were closing down all over the country.

On the one hand, Zara, UNIQLO, Muji and other brands accelerate the expansion of the layout, YOUNGOR, news birds, the United States and other garment enterprises bustle about busy investment busy mergers and acquisitions busy pformation, Anta in the first half of the year 5 billion 100 million crazy record of the highest level of the company, Internet and other Internet brands to seize the market share under the line, while the other side, but there are countless clothing brands want to cry, no tears, deep in the shop.

The flagship store has become a continuous discount shop, or completely disappeared in people's sight.

To Be Or Not To Be has become the dilemma that many garment enterprises owners have to face everyday.

Although a few years after the closure of the shop, it is not a new phenomenon this year. However, from the first half of the year, the number of thousands of closed stores is still staggering.

This platform selects some recent data of clothing enterprises, and lists out a list of clothing brands that are not complete.

2015 of the clothing industry, half of the flame and half of the sea to describe, it is very appropriate.

1. Bosideng: a massive shutdown of the 5053 stores and a net profit since its listing.

Net profit: according to the annual report released in July 28th as of March 31, 2015, Bosideng's revenue in the last fiscal year was 6 billion 293 million yuan, down 23 .61% compared with the same period last year, while net profit dropped 81.01% to 132 million yuan.

The number of outlets: as of March 31st this year, Bosideng retail outlets were 6599, down by 5053 compared with the same period last year, including 1296 retail outlets and 3757 retail outlets operated by third party distributors.

Case comment: first, the traditional "brand + wholesale" business mode not only leads to low product market adaptability, but also increases the management cost of enterprises, resulting in a decline in gross profit margin; two, the development of e-commerce and the change of consumer habits, making some competitive entities lack of competitive performance and have to close.

2. seven wolves: net reduction of 519 stores, after the pformation of performance decline has not improved.

Net profit: the company's revenue was 1 billion 130 million yuan, an increase of 10.42%; net profit of 111 million yuan, down 26.28% compared to the same period.

Number of stores: there were 3155 terminal stores in the first half of last year, up to 2636 at present, with a net decrease of 519 stores.

Case comment: in fact, the seven wolf early has changed from "pure industry" to "industry + investment" mode of operation, but the decline in performance has not been reversed.

Under the new normal of the domestic economy, when the traditional clothing industry can not resist the impact of external environment, closing shop is the best choice to reduce costs.

3. IgG: Net minus 236 loss Department counters

Net profit: China's revenue grew by 11.7% to 214 million 900 thousand euros due to the euro's weakness. After excluding the exchange rate, the same store sales fell 0.8%.

Number of outlets: the Chinese market has lost 2886 sales points after a net loss of 236 loss department stores in fiscal year 2014.

This year, the group will slow down the closing speed of Chinese department stores.

Case commentary: clothing enterprises are affected by the electricity supplier, coupled with the increase in rents, making the closure of poor performance shops a timely stop loss option.

4. Giordano: last year 190 stores closed down nearly 40% year-on-year

Net profit: 190 in 2014, net profit fell by 38%. Giordano, a casual clothing brand, released its 2014 performance report 3. The company's sales volume was HK $5 billion 545 million, down 9% from HK $5 billion 848 million in 2013, and net profit fell by 38% to HK $408 million.

Number of stores: as of the end of last year, the number of stores was 2452, a decrease of 190 compared with last year.

Case commentary: clothing companies will generate large quantities of inventory when closing stores, and digestion will inevitably affect the company's performance. This is also an important reason for poor sales and gross profit.

5. BELLE: the scale of stores declined, and retail outlets decreased by 167 in the first quarter.

Net profit and closing number: BELLE international recently announced the first quarter of this fiscal year (March to May) retail business data showed that the largest number of shoe production and retail companies retail sales in China decreased by 167, while its footwear sales decreased by 7.8% compared with the same period last year.

Previously, the scale of stores has always been the advantage of BELLE international.

Case review: under the joint constraints of market saturation, rising costs and persistent impact of electric business, the extensive development mode of women's shoes brand has simply taken the scale and the capacity to reduce costs.

6. Anta: 40 stores to 140 stores in the second half of the year

Net profit: as of June 30, 2015, Anta's revenue reached 5 billion 110 million yuan, an increase of 24% over the same period last year, and net profit increased by 20.2% compared to the same period last year, to 965 million yuan.

Number of stores: for the second half of the year, the number of Anta shops is expected to be 7200 to 7300 at the end of this year. That is to say, Anta may close 40 stores to 140 stores on the basis of 7340 stores in the first half of the year.

Case commentary: Anta has been adjusting its business mode. The intention of pformation is obvious. Traditional business growth is weak, and seeking new market growth point is one of Anta's strategic development directions.

7. nine herd Wang: high or low, not embarrassed, the first half of the shop closed 134

Net profit: income in the first half of the year was 971 million yuan, down 16.6% compared with the same period last year. Net profit was 204 million yuan, down more than 30% over the same period.

Number of stores: to cope with the continuing downturn in domestic clothing consumption, the company's target of closing stores in the beginning of this year was 50 to 100, and 134 had been closed in the first half of this year.

Case review: it is hard to sell without price cuts. Once the price cuts can not support the high advertising fees, it will weaken the brand influence and make no difference from ordinary brands. This is the current predicament of these brands.

8. Busen shares: the development of diversified businesses has dragged down the main business stores for nearly half a year.

Net profit: after listing in 2011, the performance turned straight.

Net profit in 2011 was 52 million 830 thousand yuan, 40 million 160 thousand yuan in 2012, while in 2013, it dropped to 6 million 60 thousand yuan. In 2014, it was a huge loss of 103 million, and the loss of assets impairment was as high as 40 million, which was nearly 4 times that of 2013.

Number of stores: nearly 100 stores were reduced in the first half of last year.

Case commentary: outside the main business downturn, Busen implemented the "epitaxial diversification" development strategy, such as setting up small loan companies, investing in securities companies, investing in real estate development in Zhuji, and investing in cement plants in Sichuan. These diversified investments do not seem to help Busen's development very well.

9. Li: 15 stores in the first half of the year are still going to be stocking.

Net profit: as of the first half of 2015, the net profit increased 11.6% to 277 million yuan.

Earnings growth comes from turnover growth and gross margin expansion.

The turnover increased by 9.0% to RMB 1 billion 188 million during the period.

Number of outlets: as of the first half of 2015, there were 3080 shops in the shop.

During the period, the number of brand "LILANZ" stores decreased by 15 to 2768.

Case review: by the impact of the Internet on retailing, last year, Li Lang closed down some inefficient stores, which is part of the strategy.

Store is for pformation and upgrading, dealers also need pformation and upgrading.