There is a question that has troubled Goudan for a long time: China has a population of 1.4 billion and it is such a huge market. Why has it not launched a world-class clothing brand?
Luxury, light luxury, fast fashion… none of them can be beaten.
Goudan said that it is too difficult to satisfy people’s yearning for a better life. Every time he goes to the mall to buy clothes, he goes around in a 360-degree circle, and in the end he can only walk into Armani Uniqlo is next door to Levi’s diagonally across the door.
“The last Beidou satellite has reached the sky.”
Goudan is puzzled: Is it as difficult to make satellites as it is to make clothes?
“The real estate industry, which is always criticized for having no technical content, has also given birth to world-class real estate companies and several Fortune 500 companies!”
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The Chinese stock market has been booming recently, and everyone is saying that “the bull market is coming.”
Stock investors excitedly sang “The Big Crazy Song”: Brokerages are going crazy, brokerages are going crazy, brokerages are going crazy, banks are going crazy… retail investors are going crazy, retail investors are going crazy, retail investors are going crazy at their peak.
Singing, singing, some old investors shed bitter tears. Seeing that its bank stocks have reached their daily limit, military industry stocks have reached their daily limit, and real estate stocks have also skyrocketed. However, most of the clothing stocks that they once had a heavy position in have been wiped out without causing any disturbance.
Compared with their peak period, some clothing companies have lost tens of billions in market value. No matter how much they rise, they are just a drop of hot water on the iceberg.
Goudan glanced at the “No. 1 Chinese Women’s Clothing Stock” in the warehouse and found: After this round of “bull market”, La Chapelle’s stock price finally rose from 7 cents to 8 cents. hair.
But it is still 298 cents short of the peak of 30.62 yuan three years ago. And Zhou Chengjian, who once became the richest man in China’s apparel industry because of the surge in stocks, discovered that his own Meibang Apparel has lost more than 33 billion in market value in 10 years. Today it is less than 5.8 billion.
Looking at the “King of Jackets” Seven Wolves, the current market value is less than 4.2 billion. Compared with the most glorious time, it has dropped by more than 80%. Ten days ago, when other companies began to prepare their 2020 semi-annual reports, La Chapelle finally issued its 2019 annual results report.
This report released late at night shows that in 2019, La Chapelle’s revenue was approximately 7.666 billion yuan, a year-on-year decrease of 24.66%; the net profit attributable to shareholders of the listed company was – 2.166 billion yuan, an increase of nearly 2 billion yuan in losses compared with the same period last year. La Chapelle said in the annual report, “Go all out to achieve the goal of turning losses into profits in 2020.”
But the cruel reality is just like what fans often say to the Chinese men’s football team. As the old saying goes: You don’t have much time left.
La Chapelle, which has been losing money for two years in its third year of listing, is already facing the risk of delisting.
Under the influence of the epidemic, the performance of clothing companies in the first half of the year almost fell across the board, especially in the first quarter. Nandu reporters counted 20 listed apparel companies and found that their revenue in the first quarter fell by up to 67.05% year-on-year, and their net profit fell by up to 1543.56% year-on-year.
In the cold wind, only Younger bloomed like a wonderful flower in the wind.
Its first quarter performance report showed that the group’s revenue was 3.894 billion yuan, a year-on-year increase of 51.07%. Net profit attributable to shareholders of listed companies recorded a year-on-year increase of 37.05% to 1.033 billion yuan.
This performance makes Adidas, which is “losing an average of US$100 million in revenue every week”, and Nike, which has lost RMB 5.6 billion in three months, envious.
Li Rucheng, the boss of Youngor, said at the shareholder meeting two years ago that the United States has Nike and Germany has Adidas, and Youngor is fully capable of becoming such a group.
Unexpectedly, Boss Li’s grand blueprint came true at the most difficult moment. He overpowered the world’s clothing giants by generating income from “selling houses”.
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In fact, Goudan has already told the crux.
The real estate industry can produce world-class real estate companies and Fortune 500 companies. After accumulating a certain amount of capital, Chinese clothing companies are rushing to engage in real estate development. There are also some cross-border finance and investment fields.
Therefore, 1.4 billion people cannot praise a “Chinese LV” or “Chinese ZARA”.
As early as 1992, Li Rucheng had already been involved in real estate. He successively acquired land for development in Ningbo, Suzhou, Hangzhou and other places, and was known as the number one brother in Ningbo’s real estate industry. Clothing companies are engaged in cross-border real estate, and Youngor is the most persistent one.
At its peak in 2014, Youngor Real Estate sales exceeded 10 billion, and real estate business revenue accounted for 72% of the group’s overall revenue that year. In the following two years, this figure was also close to 70%. %.
The popularity of the side business has overshadowed the main business, and it was once suspected that Youngor was going to completely change his career.
But in 2019, the 40th anniversary of Youngor’s establishment, Li Rucheng broke everyone’s guesses. He said: Youngor will gradually build a world-class fashion group in 30 years. Boss Li said that he has a clear idea for future development, which is the fashion industry. Stop all other unrelated businesses that should be stopped, and close all those that should be collected.
You say no, but your actions are honest. In 2019, Youngor spent 7 billion to acquire land, double the amount in 2018. In April this year, the land auction market had just recovered, and Youngor quickly joined hands with Powerlong Real Estate to spend 4.862 billion yuan to acquire the Huanglong Trade City plot in the core area of Wenzhou City.
The real estate business that Li Rucheng wants to stop is still playing the role of Younger…�On the Forbes China Rich List, Zhou Chengjian ranks 15th with a wealth of 24 billion, only 400 million less than Xu Rongmao and 2 billion less than Wang Jianlin. At that time, the clothing industry’s ability to create wealth was pretty good.
At that time, Metersbonwe was the fashionable clothing in the hearts of many young people.
Ten years later, in 2020, on the same list, there is no clothing industry giant in the top 20. The highest-ranking one has OEM experience for Adidas, Nike, Puma, and Uniqlo. Ma Jianrong, the boss of Shenzhou International, known as the “Foxconn of the apparel industry”, ranked 46th with a value of US$6.7 billion.
Metersbonwe was revealed to have total liabilities of over 4.1 billion, and its capital chain was in crisis due to continuous losses. Recently, due to a contract leasing dispute, the daughter of successor Zhou Chengjian, Hu Jiajia, was The Shanghai court “restricted consumption”, and Meibang ranked No. 5 in Weibo’s hot searches.
China’s textile and apparel industry is now facing the dilemma of insufficient domestic and foreign demand and overcapacity. In the past 10 years, the trend has changed and it has become an industry with difficult operations. In the A-share apparel and textile sector, Heilan House, which once ranked first with a market value of 80 billion, currently has a market value of less than 28 billion, and more than 80% of listed companies have a market value of less than 10 billion.
In 2019, Heilan House’s inventory amounted to 9 billion, and inventory accounted for 41% of operating income.
La Chapelle, which set a small goal three years ago to “break through 10,000 offline stores in 2020”, has been closing stores and continuing to sell off assets. Following the sale of an electronics store last year, After acquiring the equity of the business company, the company recently revealed that it plans to sell 100% of the equity of Taicang Xiawei Warehousing Co., Ltd. held by its wholly-owned subsidiary Laxia Taicang for a transaction consideration of approximately 725 million yuan. Trying to revitalize the main business by selling existing assets.
Goudan was worried that La Chapelle’s Shanghai headquarters could not be saved. “It covers an area of more than 60 acres, with a total construction area of 160,000 square meters above and below ground. Five connected buildings stand on Lianhua South Road, Minhang, Shanghai.”
Goudan said that these five buildings were sold. , La Chapelle will be able to turn losses into profits this year and eliminate the delisting crisis.
At the end of last year, La Chapelle had already rented out one of its buildings. Company founder Xing Jiaxing also said that in the face of performance losses and debt crisis, La Chapelle will choose to sell real estate to tide over the difficulties.
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Youngor sells houses to subsidize performance, La Chapelle may Selling property to survive.
These clothing companies that are no longer favored by the times eventually meet on the road of real estate.
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