Youngor's independent research and development functional apparel gross margin over 60%

“Indifferent shirts developed independently in China, in addition to Youngor, are not available in other apparel brands.” When it comes to functional clothing in China, Ms. Zheng of the Youngor Design Department told the reporter that the gross profit rate of the company’s men's business clothing exceeds 60%. .

The outlook for profitability of functional apparel is evident in Youngor's. “This market is very large, and there are also many people who have this demand for clothing. However, most local brands in China are not very active in R&D and have limited capital and manpower,” said one industry expert.

Non-ironing shirt gross margin nearly 70%

"Youngor mainly produces men's business clothes. For functional clothing, the company is now doing ironing technology and it has been for many years." Ms. Younger told reporters, and the company's product development is unique. The company not only has cotton mills, wool mills, but also cotton cultivation bases in Xinjiang.

In other words, Youngor started product research and development from the source, not from other manufacturers. "From the requirements of origin and processing of fabrics, there are very strict procedures. Many domestic brands do not have such conditions," said Ms. Zheng.

Domestic ironing technology can only be described as a younger one. How is this technology overseas? A person in the clothing industry told reporters that the foreign brands of ironing technology are already very mature.

Ms. Zheng also said at the same time, “The company’s branded apparel is designed for mass-market products, with a relatively high price/performance ratio and good sales. The gross margin of ironing products is also relatively high, exceeding 60%”.

At present, the company's main business is brand clothing, clothing OEM and real estate development. In 2011, the company’s branded apparel business revenue was approximately 3.81 billion yuan, of which the operating cost was approximately 1.3 billion yuan, and the operating profit rate reached 65.66%. A clothing OEM is far less than the self-developed brand clothing. The operating income is about 2.32 billion yuan, the cost is as high as 2.04 billion yuan, and the gross profit rate is only 12.14%.

It is worth noting that the gross margin of property development is lower than that of branded clothing, which is 44.75%.

Among them, Ms. Zheng mentioned a hot-brand shirt, the highest gross profit rate, reaching 68.67%, close to 70%. The gross profit rate of branded suits was slightly lower than that of shirts, which was 65.17%.

According to statistics from the China National Business Information Center, in 2011, the company’s leading product Youngor shirts and suits had a monthly average market share of 13.22% and 13.54%, ranking first for 17 years and 12 years in a row.

It can be seen that the market for functional apparel is still very broad. “The company's investment in R&D is still relatively large. The ironing products, shirts from SP, HP have been rising to DP, and are currently further upgraded on the basis of DP. DP technology has been used. In pants," said Ms. Zheng of Youngor’s Technology Department, “The company also has its own patents for the development of anti-wrinkle suits.”

For this purpose, Youngor set up a DP post-processing research center and testing center to strengthen the in-depth development of DP products. Ms. Zheng said, "The company has indeed invested a certain amount of research and development costs."

The competition in the apparel industry is fierce. In Youngor’s annual report in recent years, the reporter has repeatedly seen the company’s need to increase the wording of technology research and development. The company pointed out that international and domestic brands are striving to increase market share and increase brand influence. Therefore, the company still needs to work hard to increase R&D investment, quality control, information construction, and channel expansion.

Research and development of environmentally friendly products

"The company's position is that the product has functional features. This is our core product, and it is the flagship product. Its sales account for a relatively large proportion, and it is rising, accounting for more than 60%." Ms. Zheng told reporters, in addition to studying suits wrinkle In addition to being hot-iron-free, the company's third largest functional product currently under research and development is hemp fiber.

Why did you choose Hanma R&D? She said that hemp has environmental protection, anti-bacterial and anti-ultraviolet effects, and now people are more environmentally friendly and return to nature. Hemp fiber can be used not only in clothing but also in home textile products.

The suit is a traditional costume, and the addition of hemp is quite fashionable. In this concept, the international sportswear brand Nike also joined in its clothing. At the upcoming London Olympics, Nike's apparel designed for "flying man" Liu Xiang is made of environmentally-friendly materials, consisting of 82% recycled polyester fabrics and 13% recycled plastics.

Of particular concern is that hemp fiber has independent intellectual property rights. In 2011, Younger’s main family of Hanma played a total of 10 stores, and hemp fiber was mainly used in shirts, casual pants, T-shirts, sweaters, and jeans. The company pointed out that based on the existing products, the company mainly develops new products with high quality and excellent quality, and integrates the product packaging.

“The current rapid development of domestic branded apparel, coupled with the competition of foreign brands, R&D and innovation capabilities are the core competitiveness of domestic apparel companies in participating in the market.” The above industry experts told reporters that domestic clothing companies should change their concepts, pure processing of incoming materials This approach has gradually been detrimental to the long-term development of the company. This industry needs to increase the technological content of its own research and development, and it will not be long-term practice to adopt it.