Hong Kong's new giants

Chapter 603 [Trillion Club]

In the conference room of LEIT Group, Lin Zuhui held a meeting with the senior management of the group and the presidents of the sub-brands.

LEIT Group is like a 'LVMH Group' of middle and low-end clothing, with a large number of sub-brands under its umbrella, but Lin Zuhui has always emphasized the principle of group cooperative management and independent sub-brands.

What is co-defense management, that is, the group can provide designer scheduling for sub-brands, and the major sub-brands share a "production system"; sub-brand autonomy means that the management of sub-brands implements independent management and operation, According to market mediation, the group is only regarded as a third-party organization that can provide "selfless" help, and the group also regards itself as a service organization that can provide advice, but cannot directly interfere with sub-brand management.

Zhou Rongqing, president of the JEANSWEST brand, first reported his work.

“真维斯目前全球门店为276家，全部集中在亚洲，香江18家、日本76家、内地72家、韩国38家、台岛25家、东南亚47家，去年营业额为78亿港币，纯利8.1亿港币。”

"Our competitors in Asia, Uniqlo has nearly 300 stores, most of which are concentrated in Japan. Last year, Uniqlo only had a turnover of 50 billion Hong Kong dollars, and the profit margin should be less than 7%. Uniqlo recently launched two new series of stores. ——Uniqlo Sports, Uniqlo Home.”

Lin Zuhui listened carefully to Zhou Rongqing's report and thought about it.Over the years, his business vision has become extremely vicious. Assuming that he has no memory of his previous life, or even penniless, it will only take a few years for him to become a rich man.

Zhou Rongqing reported the situation of Jeanswest in detail, and also reported the situation of Uniqlo. The reason for this is that Lin Zuhui has always made Jeanswest regard Uniqlo as its biggest opponent.

And understanding the opponent is undoubtedly very important. Only by knowing yourself and the enemy can you win every battle.

"Uniqlo sports and Uniqlo home are destined to be failures, so there is nothing to worry about. We Jeanswest only do one thing - that is to position casual wear as Jeanswest, and Jeanswest is casual wear." Lin Zuhui said firmly.

All the senior executives nodded their heads with admiration in their eyes. The boss's grasp of the general direction was decisive and correct, which saved the brand from many detours.

Then, Lin Zuhui said: "70% of Jeanswest's clothing models are basic models. What we emphasize is customer psychology. Suppose I am a customer. I see a bright Jeanswest store. I know that the clothes here are very good, and I also know that the Jeanswest brand actually has no brand. When I wear Jeanswest, others don’t know what brand I am wearing (the trademark does not appear in a conspicuous place, and it is hidden). But as a customer, I know that the fabric of Jeanswest’s clothes is good. , cheap, popular style, so I trust him!"

Everyone nodded frequently, and the boss said all the most reasonable words, because Uniqlo pays attention to "high quality and low price", if the trademark is conspicuous, it will be a burden-worried that friends will laugh at what they wear is cheap.

Zhou Rongqing also said: "The boss is right! Moreover, Jeanswest attaches great importance to 'explosive styles'. The invention of polar fleece sweaters has laid a solid foundation for Jeanswest in Asia, and we will strive for more explosive styles in the future. The model of driving stores with single products is very classic."

The polar fleece sweater was first invented and sold in two years, allowing Jeanswest to completely defeat Uniqlo. In the first year, Jeanswest sold 2 million pieces, in the second year it sold 300 million pieces, and in the third year it sold 800 million pieces (Uniqlo took away About 1300 million), this is a proper miracle.Of course, the LEIT Group factory makes a lot of money by OEM for European and American brands, and the consumption level of Europe and the United States is higher.

Lin Zuhui immediately had a new idea when he heard the explosion, and immediately said: "I have three ideas, you should remember them!"

Zhou Rongqing immediately said, "Okay!"

Next, Lin Zuhui said: "The first item: plaid shirt. Such a plaid shirt requires comfortable fabrics, many styles, and comfortable styles. Moreover, we can give it 'added value', and the guide plaid shirt is the best choice for programmers and engineers. I love it, and I also agree with the current environment of the 'Internet Age'. Oh, yes, Giordano should also pay attention to this model in Europe and America!"

At this time, Giordano has begun to make efforts in Europe and the United States, and is committed to creating the model of GAP and ZARA; different from Jeanswest, Giordano also does fast sales, but it pursues "fast fashion", that is, at the fastest speed. Emerging fashion, copied to their own shelves.Giordano's grade is also slightly higher than Jeanswest, which belongs to the mid-range.

To do this, an entire production system needs to be created.

The production system of the LEIT Group can be said to be the most advanced in the world. A fashion model that appeared in Paris Fashion Week will be changed in the design center immediately after being borrowed by the fashion observers or designers of the LEIT Group on site. It is then transmitted to the production system via satellite.

The production system of the LEIT Group is also a huge empire, with two bases in Zshan City and FS City; around these two bases are the partners of the LEIT Group; in this way, the entire environment from printing and dyeing to tailoring , are all concentrated in one area, and the production efficiency ranks first in the world.

Finally, there is the speed of 'on the shelves'. There is no doubt about the speed of Heung Kong's trade. Garments from Guangdong Province can be packaged and shipped within 1 to 2 days, and then airlifted to all parts of the world.

"Yes, boss!" Giordano President Liu Guoquan replied seriously.

The executives were really eye-opening. The boss knew the development of each brand very clearly, but the facts also proved that the boss's strategy was very correct.

"The second model, a bra camisole, is like this. This is a popular model for female customers"

"The third type, light and warm underwear."

"In short, new technologies and new fabrics can make us go further and more stable, and polar fleece is an example."

All the executives nodded one after another. The LEIT Group has a dedicated research and development center for the group, and the investment is very large.Of course, the rate of return is also extremely high. The invention of the polar fleece sweater alone has made a lot of money, and more importantly, it has driven the development of the brand.

In the end, Lin Zuhui said to Zhou Rongqing: "Surrounding Uniqlo in Japan and not giving them the opportunity to expand overseas is our future policy!"

Zhou Rongqing was shocked, and said: "No problem! Even in Japan, we JeansWest has brought strong pressure on Uniqlo. Yanai is trying to compete with us by opening the number of stores, but they don't know that their net profit rate is getting lower and lower! "

Due to the rise of Hong Kong culture in Asia, it has also driven the recognition of the Hong Kong brand. This invisible value is really inestimable.For this reason, LEIT Group also has many specialized "Hong Kong fashion brands", which are also very popular overseas.

Lin Zuhui nodded and said, "I'll let you know about speeding up the number of stores, so don't worry!"

For a while, everyone was concentrated. It turned out that Lin Zuhui intervened in the expansion of Jeanswest's stores half a year ago, otherwise the pressure on Uniqlo would be even greater; not only Jeanswest was stopped by many store plans, even other clothing brands, also known as The opportunity to open a store in Asia has been stopped.On the contrary, Giordano began to enter Europe and the United States on a large scale more than a year ago.

Lin Zuhui didn't continue to say, everyone had to continue to manage the business at hand.

After the financial crisis, taking advantage of the sharp drop in store rents is the best opportunity for expansion. This is called counter-cyclical.

"Okay," Zhou Rongqing said.

Next, is Giordano Liu Guoquan's report.

In the early days, Giordano was already a best-selling brand in Taiwan and Southeast Asia before being acquired by the LEIT Group; after the acquisition, the LEIT Group immediately increased Giordano’s overseas development, and now, it is carried forward by the group in the European and American markets.Although it may not necessarily conquer Europe and the United States, there are definitely many benefits.

In Liu Guoquan's report, Asia's performance was as good as ever, with a net profit of about 5000 million; while the United States not only failed to make money, but lost 3000 million Hong Kong dollars, and Europe made a small profit of [-] million Hong Kong dollars.

Hearing that the United States lost 5000 million Hong Kong dollars, Lin Zuhui laughed instead: "I think it's good news that North America is losing money. Our store on Fifth Avenue probably lost almost that much!"

Giordano has a super store of tens of thousands of square meters on Fifth Avenue in New York, which is Giordano's sign in Europe and America, and it releases global popular elements every day.

Liu Guoquan nodded and said: "This store lost 6000 million Hong Kong dollars last year, but we still made money in other stores! The boss had a very good idea at the beginning, that is, to open only one global flagship store on Fifth Avenue. mode"

It's not that Lin Zuhui is smart, but because of the lessons learned from Uniqlo's previous life. Uniqlo opened only large stores in North America in its previous life, which caused losses for 16 consecutive years.

Lin Zuhui learned his lesson, and then came up with ZARA's "grease tactics". First, Giordano opened a central store in a city, and then opened other stores around it like oil stains.The central store is slightly larger, and the surrounding (city-based) stores are mainly small and medium-sized.

He himself has [-]% confidence in Giordano's campaign in Europe and America. What's more, even if he doesn't make a lot of money, it will still improve the entire brand.Having said that, Lin Zuhui was quite envious of the brand in the hands of the porter, who was able to achieve a market value of [-] billion in his previous life.

In the final analysis, that brand is a local brand in the United States, and the porter was acquired through equity acquisition, not the European and American business he developed.

Thinking of this, Lin Zuhui is very concerned about the acquisition of Fila. Maybe he will successfully build a global sports brand second only to Nike and Adidas.

At this time, the LEIT Group is quite powerful, and it is also a well-known clothing giant in the world, with an annual net profit of 30 billion Hong Kong dollars.

Crocodile shirts, Jeanswest, Giordano, the three major clothing brands;
IT fashion retail group;

LEIT factory;

Ouchi Secret Detective, a global underwear brand;

Luchenshijia red wine brand;

Nature Hall, a beauty group;

Xtep sports brand;

Luk Fook Jewelery;

There are as many as hundreds of other brands, which together form the LEIT Group.

In the future, it is not uncommon for this group to have a market value of trillions of Hong Kong dollars.

Japan, Uniqlo.

At this time, Yanai Masa did not realize that he had made many fatal mistakes, and was still frantically opening stores and expanding business.

History often changes people's character as well.

A subordinate reported the situation and said: "In terms of turnover, we are already very close to JeansWest, but there is still some gap in profit margin!"

Liu Jingzheng immediately waved his hand and said: "Only when we occupy the market, we will consider increasing the profit margin. We need to speed up the expansion of stores. Only in this way can we squeeze Jeanswest out of Japan. By the end of this year, we will have 350 stores!" "

The supervisor reminded: "Will it be too much? In this way, our profit margin may drop below 5%! Moreover, Jeanswest's expansion in Japan has stagnated!"

Liu Jingzheng immediately said firmly: "We must expand the number of stores and defeat JeansWest with an absolute advantage. Therefore, we still have 80 stores to open this year. I hope you will do your best."

The supervisor can only say: "Hi!"

Liu Jingzheng said with satisfaction: "Although there is a lot of pressure, as long as this year passes, we can go to the mainland and South Korea next year to compete with Jeanswest. There can only be one 'Fast Retailing Brand' in Asia. That is our Uniqlo!"

"Hey, we'll beat Jeanswest!"

In fact, at this time, Uniqlo has three major problems:
First, opening Uniqlo sports brand and home brand stores is doomed to fail;
Second, with the more brutal expansion (stimulated) than the previous life, coupled with the strong competition of JeansWest's more than 80 Japanese stores, Uniqlo's cash flow has almost dried up, and it has begun to pay a lot of debt.

Third, the manufacturing system is immature. Uniqlo uses an OEM system. There are 160 OEM manufacturers in the Mainland, which has caused uneven production quality and greater confusion.Jeanswest's production system is based on two super factories, and then radiates to other allied factories, which is far more advanced.

Lin Zuhui has already anticipated the situation of Uniqlo. Once the Asian financial crisis is over, he will let Jeanswest start "counter-cyclical expansion". At that time, it may open 80 to 100 stores in Japan a year. It will depend on how Uniqlo responds.

At that time, the opponent is short of money, but I will pull the opponent into the 'money burning war'.

At present, Uniqlo is relatively weak in regions and countries other than Japan, which makes Jeanswest more targeted to encircle and suppress Uniqlo.

At least in the mainland and South Korea, it is almost difficult for Uniqlo to enter!

Due to the Hong Kong culture, the Hong Kong brand is more competitive in Asia. In addition, Jeanswest is the ultimate version of Uniqlo in all aspects. It will overwhelm Uniqlo, which will be the general trend.

At this time, Jeanswest, Giordano, and crocodile shirts have almost no franchises, and all operate in their own stores. This is also worried that franchises will affect the development of the brand.Crocodile shirts do have some franchises, but they are also strictly audited and managed.

Of course, sports brands like Xtep also adopt the franchise method, but only open to third- and fourth-tier cities, and almost all first- and second-tier cities have their own franchise stores.In the later stage, if there are excellent franchisees, they can let go of first- and second-tier cities.

(End of this chapter)