In the leit group conference room, Lin Zuhui held a meeting with the group's senior executives and sub-brand presidents.
The Leit Group is like a 'LVMH Group' for mid- to low-end clothing, with a large number of sub-brands, but Lin Zuhui has always emphasized the principle of collaborative management of the group and independent sub-brands.
What is cooperative management, that is, the group can provide designer scheduling for sub-brands, and all major sub-brands share a 'production system'; sub-brand autonomy means that the management of sub-brands implement independent management, operation, and self-management
Mediation is made according to the market, and the group is only regarded as a third-party organization that can provide 'selfless' help, while the group also regards itself as a service organization that can provide suggestions but cannot directly interfere with sub-brand management.
Zhou Rongqing, president of the Jeanswest brand, first reported on his work.
"Jeanswest currently has 276 stores worldwide, all concentrated in Asia, including 18 in Hong Kong, 76 in Japan, 72 in the Mainland, 38 in South Korea, 25 in Taiwan, and 47 in Southeast Asia. Last year, the turnover was HK$7.8 billion and the net profit was HK$810 million.
Hong Kong dollars.”
"Our competitor in Asia, Uniqlo, has nearly 300 stores, most of which are concentrated in Japan. Uniqlo only had a turnover of about HK$5 billion last year, and its 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 had no memory of his previous life, or was even penniless, it would 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 asked JeansWest to regard Uniqlo as its biggest opponent.
It is undoubtedly very important to understand your opponent. Only by knowing yourself and the enemy can you be victorious in every battle.
"UNIQLO Sports and UNIQLO Home are destined to be failures and are nothing to worry about. We at 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 one after another with admiration in their eyes. The boss's grasp of the general direction was decisive and correct, allowing the brand to avoid many detours.
Then, Lin Zuhui said: "70% of JeansWest's clothing styles are basic styles. What we emphasize is customer psychology. Suppose I am a customer and I see a bright JeansWest store. I know that the clothes in it 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 is hidden), but as a customer, I know that JeansWest’s clothing fabrics are good.
, the price is cheap and the style is popular, so I trust him!”
Everyone nodded frequently, and what the boss said was a wise saying. Because Uniqlo emphasizes "high quality and low price", if the trademark is conspicuous, it will put a burden on Keke - he is worried that his friends will laugh at him for wearing cheap goods.
Zhou Rongqing also said: "The boss is right! Moreover, JeansWest attaches great importance to 'hot styles'. The invention of the polar fleece sweater has laid a solid foundation for JeansWest in Asia. We will strive for more hot styles in the future.
The model of using single products to drive the store is very classic.”
The invention and sale of the polar fleece sweater took the first two years, allowing Jeanswest to completely defeat Uniqlo. Jeanswest sold 3 million pieces in the first year, 8 million pieces in the second year, and 13 million pieces in the third year (Uniqlo snatched away
(approximately 5 million), this is a real miracle. Of course, the Leit Group factories make the bulk of the money by OEMing for European and American brands, and the consumption level in Europe and the United States is higher.
When Lin Zuhui heard the hit, he immediately had a new idea and said immediately: "I have three ideas, please note them down!"
Zhou Rongqing said immediately: "Okay!"
Next, Lin Zuhui said: "The first one: plaid shirt... This kind of plaid shirt requires comfortable fabrics, many styles, and comfortable styles. Moreover, we can give it 'added value', and guiding the plaid shirt is the program
It is the favorite of employees and engineers, and it also echoes the current environment of the 'Internet Age'. Oh, by the way, Zuordano should also pay attention to this model in Europe and the United States!"
At this time, Zordano has already begun to work hard in Europe and the United States, and is committed to creating a gap and Zara model; different from Jeanswest, Zordano also sells fast-moving products, but it pursues 'fast fashion', that is, selling products at the fastest speed.
, copying the latest fashions that have emerged in the world and putting them on their own shelves. The grade of Zuordano is also slightly higher than that of Jeanswest, and it belongs to the mid-range.
To do this, the entire production system needs to be built.
The production system of the Leit Group can be said to be the most advanced in the world. A fashion model that appears during Paris Fashion Week will be modified immediately in the design center after being learned on site by the fashion observers or designers of the Leit Group.
It is then transmitted via satellite to the production system.
The production system of Leit Group is also a huge empire, with two bases in Zshan City and FS City; these two bases are surrounded by partners of Leit Group; in this way, the entire environment from printing and dyeing to tailoring
, all concentrated in one area, with production efficiency ranking first in the world.
Finally, there is the speed of "putting on the shelves". There is no doubt about the speed of trade in Xiangjiang. Clothing from Guangdong Province can be packed and shipped in 1 to 2 days, and then airlifted to all parts of the world.
"Yes, boss!" Liu Guoquan, President of Zuodanu, replied seriously.
It was an eye-opener for the senior executives. The boss had a clear understanding of the development of each brand. Facts have proved that the boss's strategies are very correct.
"The second style, a bra top, is similar to this... This is a popular style for female customers."
"The third style, thin and heated underwear..."
"In short, new technologies and new fabrics can help us go further and be more stable. Polar fleece is an example."
All the executives nodded. Leit Group has a dedicated group R&D center, and the investment funds are very large. Of course, the rate of return is also extremely high. The invention of the polar fleece sweater alone is a huge profit, and more importantly
Driven the development of the brand.
Finally, 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, our JeansWest has brought strong pressure to Uniqlo. Yanai is trying to compete with us by opening the number of stores, but little does he know that their net profit margin is getting lower and lower!
"
Due to the rise of Hong Kong fashion culture in Asia, it has also driven the recognition of Hong Kong brands. This invisible value is really immeasurable. For this reason, Leit Group also has many specialized 'Hong Kong fashion clothing brands', which are also
Very popular overseas.
Lin Zuhui nodded and said, "Wait until I notify you about accelerating the number of stores, so don't worry yet!"
For a moment, everyone was focused. It turned out that half a year ago, Lin Zuhui intervened in JeansWest's store expansion, otherwise the pressure on Uniqlo would be greater; not only JeansWest was stopped from many store plans, but also other clothing brands, also known as Uniqlo.
The opportunity to open stores in Asia was stopped. On the contrary, Zuordano began to enter Europe and the United States in a big way more than a year ago.
Lin Zuhui did not continue, and everyone had to continue to run 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 countercyclical.
"Okay" Zhou Rongqing said.
Next, is the report from Zuo Danu and Liu Guoquan.
In the early days, before being acquired by Leit Group, Zuordano was already a best-selling brand in Taiwan and Southeast Asia. After the acquisition, Leit Group immediately increased the overseas development of Zuordano, and now, it has been acquired by the group in Europe and the United States.
The market will flourish. Although it may not necessarily conquer Europe and the United States, there will certainly be many benefits.
In Liu Guoquan's report, Asia's performance was as good as ever, with a net profit of about 600 million; while the United States not only did not make any money, but lost 50 million Hong Kong dollars, and Europe made a small profit of 30 million Hong Kong dollars.
When he heard that the United States had lost 50 million Hong Kong dollars, Lin Zuhui smiled and said: "I think it is good news that North America has lost 50 million Hong Kong dollars. Our store on Fifth Avenue probably lost almost as much!"
Zuordano has a super store covering tens of thousands of square meters on Fifth Avenue in New York. It is Zuordano's signature store in Europe and the United States, and releases global popular elements every day.
Liu Guoquan nodded and said: "This store lost 60 million Hong Kong dollars last year. In fact, we still made profits in other stores! The boss's original idea was very good, which was to open only one global flagship store on Fifth Avenue. All other stores in North America have a small area.
model..."
It's not that Lin Zuhui is smart, but he has learned from Uniqlo's previous life. In its previous life, Uniqlo only opened large stores in North America, which resulted in 16 consecutive years of losses.
Both Android and Apple are available.]
Lin Zuhui learned his lesson and came up with Zara's "grease tactics". He first opened a central store in a city, and then opened other stores in the surroundings like grease stains. This central store is slightly larger, and the surrounding (city
(count) stores are mainly small and medium-sized.
He himself is still 70% confident that Zuo Danu will conquer Europe and the United States. What's more, even if he doesn't make a lot of money, it will improve the entire brand. Having said that, Lin Zuhui is quite envious of the brand in the hands of the bellman. He was able to do it in his previous life.
Market value is hundreds of billions.
In the final analysis, that brand is a domestic brand in the United States. Bellman acquired it through equity acquisition, not the European and American business he developed.
Thinking of these, Lin Zuhui is very concerned about the acquisition of Fila. Maybe he can build a global sports brand second only to Nike and Adidas.
At this time, the Leit Group was quite strong and was also a well-known clothing giant in the world, with an annual net profit of HK$3 billion.
Crocodile shirts, JeansWest, and Zodano, the three major clothing brands;
it fashion retail group;
leit factory;
Ouchi Agent, a global underwear brand;
Luchen family red wine brand;
Chando, beauty group;
Xtep sports brand;
Lukfook Jewelry;
There are hundreds of other brands that together form the Leit Group.
In the future, it is not unusual at all for this group to have a market value of one trillion Hong Kong dollars.
.........
Japan, Uniqlo.
At this time, Yanai Masaru did not realize that he had made many fatal mistakes, and was still frantically opening stores and expanding business.
When history changes, people's personalities will also change.
A subordinate reported the situation and said: "In terms of turnover, we are very close to Jeanswest, but in terms of profit margin, there is still some gap!"
Yanai Tadashi immediately waved his hand and said: "Only when we occupy the market will we consider increasing profit margins. We must 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: "Is it too much? If this happens, our profit margin may fall below 5%! Moreover, Jeanswest's expansion in Japan has stalled!"
Yanai Masaru immediately said resolutely: "We must expand the number of stores and defeat Jeanswest with an absolute advantage, so we still have 80 stores to open this year. I hope you will do your best."
The supervisor could only say: "Hi!"
Yanai Tadashi said with satisfaction: "Although there is a lot of pressure, as long as this year is over, next year we can go to places like the mainland and South Korea to compete with JeansWest. In Asia, there can only be one 'Fast Retailing brand'.
That’s our Uniqlo!”
This chapter is not over yet, please click on the next page to continue reading the exciting content! "Hey, we will defeat Jeanswest!"
In fact, Uniqlo has already experienced three major problems at this time:
First, opening Uniqlo sports brand and home furnishing brand stores is doomed to failure;
Second, Uniqlo's cash flow has almost dried up due to a more brutal expansion (stimulated) than in its previous life, coupled with strong competition from more than 80 Japanese stores of Jeanswest, and it has started to take on a lot of debt.
Third, the manufacturing system is not yet mature. Uniqlo uses an OEM system. There are 160 OEM manufacturers in the mainland, resulting in uneven production quality and greater confusion. Jeanswest’s production system is based on two
The super factory is the core, and then radiates to other allied factories, which are more advanced than ever.
Lin Zuhui has already anticipated Uniqlo's situation. Once the Asian financial crisis passes, he will ask Jeanswest to start "counter-cyclical expansion". By then, 80 to 100 stores may be opened in Japan a year. It will be interesting to see how Uniqlo responds.
At that time, the opponent will be short of money, but he will drag his opponent into a 'money-burning war'.
Uniqlo is currently relatively weak in regions and countries outside of Japan, which allows Jeanswest to more specifically target Uniqlo.
At least in mainland China and South Korea, it is almost difficult for Uniqlo to enter!
Due to 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 be the general trend to overwhelm Uniqlo.
At this time, JeansWest, Zuordano, and Crocodile T-shirts almost did not have franchises and were all operated by their own stores. This was because they were worried that franchising would affect the development of the brand. Crocodile T-shirts did have some franchises, but they were strictly reviewed and
manage.
Of course, the Xtep sports brand also adopts a franchise model, but it only opens to third- and fourth-tier cities. Almost all first- and second-tier cities have its own specialty stores. In the later stage, if there are excellent franchisees, the first- and second-tier cities can be opened.