Scale Advantage

In 2008, Youngor completed its USD$120 million acquisition of Smart Shirts Limited and Xinma Group, the former menswear division of Kellwood, one of the top five companies in the U.S. clothing industry. Since the acquisition, Youngor has become the world’s largest menswear manufacturer, with a production capacity of 80 million clothing items per year.

For each of the past five years, Youngor has ranked first place in both the Top 100 Sales Companies and Top 100 Most Profitable Companies lists generated for China’s clothing industry. At present, Youngor’s total assets are valued at 30 billion RMB (USD$4.41 billion), of which it nets 15-billion RMB (USD$2.2 billion). Youngor’s annual textile and garment sales alone amount to 10-billion RMB (USD$1.5 billion). Youngor was ranked number 113 in China’s list of its top 500 manufacturers, and Youngor is the only clothing company that China has recognized as one of its “Advanced Manufacturers.”

Brand Advantage

Youngor Garment Company Limited, Youngor Group’s clothing company, has become the definitive leader of China’s clothing industry. The World Brand Lab’s 2007 publication of China’s 500 most valuable brands ranked Youngor number 52, valuing the brand at 9.181 billion RMB (USD$1.53 billion). This officially makes the Youngor brand the most valuable brand in China’s clothing industry.

Subsequent to China’s State Administration for Industry and Commerce granting the Youngor name the title of “Well-Known Trademark of China” in 1997, the Chinese Acclaimed Brand Promotion Committee granted the “Acclaimed Chinese Product” title to Youngor’s shirts, suits, trousers, jackets, and ties, successively. In addition, Youngor made it onto the list of China’s “Favorite National Brands,” which is a list generated by votes from the Chinese public.

Marketing Channels

Over the last several years, Youngor has invested a total two-billion RMB (USD$300 million) into the opening of self-run retail chain stores. In 2001, Youngor opened its giant flagship store in Shanghai’s Nanjing Road, China’s first commercial street. It remains the largest store of its kind in China, with a total shopping floor area of 4,800 square meters.

As part of a strategy to consolidate its marketing channels, Youngor has reduced its number of retail terminals from over 3,000 to the roughly 1,500 stores it presently operates. The group aims to shift its concentration from widespread retail chain stores to the domestic areas of the Central Business District (CBD).

At present, Youngor owns over 400 self-run stores, about 900 retail shops in shopping malls, and over 200 franchise stores. Youngor’s recent consolidations have been aimed at gradually shutting down small-scale stores in remote locations and stores deemed non-profitable. At the same time, Youngor has been investing more heavily in large-scale flagship stores in major cities. It is in these metropolitan locations where Younger stores can best serve to raise the value of the Youngor brand by showcasing the brand culture and image.

Youngor’s self-run retail chain stores and flagship stores generate more than 80 percent of its total sales. Thanks to many years of hard work, Youngor now tightly controls its sales channels and benefits from marketing channels that continue to grow stronger, thereby promoting the development of the brand.

Research and Development Advantage

Part of Youngor’s business strategy includes nurturing a shift from the idea of ‘Made in China” to that of “Created in China.” In order to foster this creative process, Youngor has set up Research and Development institutions in Beijing, Shanghai, and other parts of China, and has organized design teams in places such as Hong Kong, the United States, and Italy.

Youngor Group and Dong Hua University, which specializes in textile research and fashion design, jointly established China’s Menswear Research Center. The center integrates research and production, and is the first professional institute in China devoted to the systematic study of menswear fashion trends, brand management, sales procedure, and personnel building. Meanwhile, Youngor has established Research and Development departments in each of its subsidiaries in the form of teams composed of hundreds of researchers and designers. These teams act according to a pyramidal hierarchy wherein they are discrete yet cooperative as they improve Youngor’s ability to design its own products and formulate its own techniques.

Technology Advantage

Youngor owns and operates a state-approved technology center, which plays a supportive role in clothes engineering and technological research, as well as aiding in the integration and use of Youngor’s industrial chain. The center has helped develop thirty-two new products and technologies, twenty-eight of which are regarded as national-level advanced technologies and eight of which are considered international level advanced technologies. Non-iron, pure-linen fabric; super-durable, non-iron knitting fabrics; and numerous other innovations attract high demand in the consumer market.

The State Intellectual Property Office has granted multiple patents to Youngor, including one under the heading of “Method for Establishing Assembled Chest Lining Profiles Using Non-Contact Type Three-Dimensional Human Body Automatic Measuring Technique,” and six others. The office is also in the process of examining and verifying twelve other patent applications submitted to it by Youngor.

Such technological innovations not only foreshadow, but have helped clear the path for Youngor Group’s future technological advancement, as well as directly enhancing Youngor’s core competitiveness in the international market.

Quality Advantage

Youngor’s garment industry is characterized by three “highs”: “high investment,” “high standards,” and “high-tech.” Youngor is the first company to have received both the ISO9000 certification and the ISO14000 environmental protection certification in the industry.

With regards to adopting international standards, Youngor is exercising internal quality control standards that are more stringent than the national standards. In accordance with strict production, management, and quality control procedures, Youngor has organized its garment manufacturing process into thorough operational sequences and has formed a four-tier system of management.

In 2008, Youngor’s shirts passed the “Inspection-Exempt Export Products” review by the State Quality Inspection Administration, making Youngor Shirt Factory the first of its kind to pass this review in Ningbo City’s Yinzhou District.

“Total Quality Consciousness” has become the essence of Youngor’s production management. Each member of Youngor’s staff undergoes rigorous technical training before beginning his or her service. Technical contests are held that allow workers to be granted awards for exemplary performance. Youngor strives to achieve the ideal standardized management procedure that arises from well-planned and efficiently executed production in combination with strict quality control.

Facility Advantage

Youngor has implemented world-class modern production lines and high-end equipment from nations including Germany, the United States, and Japan. Having invested 500 million RMB (USD$73.5 million) on its facilities, Youngor now boasts CAD design and pattern-making systems and CAM automatic cutting beds from France’s Lectra; automatic hanging lines from Germany’s Durkopp; and pressing equipment from both Italian and German companies. Youngor’s production and supply lines are using state-of-the-art comprehensive computer-operated technologies to enhance the clothing production process.

Fabric Advantage

In 2003, Youngor invested one billion RMB (USD$147 million) towards the construction of Youngor Textile City, a large-scale production facility for items such as high-quality dyed yarn cloth, wool fabric, printed fabric, dyed fabric, and knitwear. With the aid of international capital and cooperation with Itochu, Nisshinbo, and other comprehensive business organizations, Youngor Textile City has brought its management ability and Research and Development to an international level, thereby establishing itself as a high-tech, quality industrial production base for textile weaving, dyeing, finishing, and processing. Youngor Textile City is thereby filling the niche for a producer of high-end textiles and fabrics. This allows Youngor to rapidly meet the demands for such goods while simultaneously strengthening the character and image of its brand.

Innovative Advantage

Over the years, Youngor Group has adhered to its motto of “bold changes, constant innovation” by putting effort into refitting the traditional-based clothing industry with modern technology. Drawing on its international resources, the group is forging new components and enhancing existing qualities of its textile and garment chain. Through the government-approved Youngor Corporate Technology Center, the group’s center of innovation, Youngor is bolstering its technological and economic dealings both at home and abroad, and securing the intellectual property rights of its core technologies.

The State Intellectual Property Office has authorized eight of the group’s innovative patents, and twelve more patents are in the review process. The Ministry of Science and Technology has listed sixteen of Youngor’s projects on the “National New Products” list and the “Torch Program,” which is a national program enacted in order to help develop new, cutting-edge technologies. These self-renovating technologies and projects have proven effective in achieving remarkable social and economic benefits.

Market Advantage

While other clothing companies were using the “agent system” and relying on contracted agencies to make their sales, Youngor Garments took the path less travelled and began building its own marketing and sales network in 1994.

In the past few years, Youngor has set up sales shops and counters in both large and medium-sized shopping malls across the nation. Meanwhile, the group has invested 1.5 billion RMB (USD$220 million) towards the deployment of self-run retail chain stores located in CBD’s of major cities. From these actions, Youngor’s multi-level, dynamic marketing and sales network has evolved.

Service Advantage

Youngor adheres to its primary service principle: satisfy the customers’ demands, both existing and potentially existing. The group has established 156 subsidiaries nationwide, employing an additional 7,000 employees to offer pre-sales, sales, and post-sales customer service. Through its network of self-run retail chain stores and a flexible customizing system, Youngor offers garment-making services “tailor-made” to suit the needs of hundreds of companies, as well as rapid service before, during, and after a sale.

After thirty years of development, Youngor has forged a strong vertically integrated clothing chain, integrating the upstream components of textile and fabric production, midstream component of garment creation, and the downstream components of marketing and sales. Youngor has achieved an annual domestic garment production capacity of 15 million shirts, 2 million suits, 2.2 million trousers, 1.1 million leisure coats, 15 million knitted items, and 3 million ties, along with an annual overseas garment production capacity of 40 million clothing items, and a domestic fabric production capacity of 72 million meters of yarn-dyed fabric, 6 million meters of worsted woolen cloth, and 20,000 tons of knitted fabric.

In effect, Youngor’s industrial chain has begun to enable us to build an internationally acclaimed brand and establish an enterprise with enough vitality to last centuries.

Related company: Youngor Garments Co., Ltd.

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No.2, Yinxian Avenue West, Ningbo City, Zhejiang Province, China

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