Youngor Group

Case Background

Youngor Group, founded in 1979, after 30 years of development, gradually established a management pattern ,in which multi-hand textile, apparel, real estate and international trade were the mainstay. Group now has over 50 billion net assets, more than 25,000 employees, is the leading enterprises in Chinese apparel industry. The comprehensive strength has been the 144th among the largest 500 groups all over the country. Featured products youngor shirt continuous eleven years won the first comprehensive in the market share, suit also continuous six years to keep the first comprehensive in market share , suits, shirts, trousers, jacket and tie as China famous brand products.

Upper reach of the industry chain:

Youngor developed the weaving and cloth producing industries. In 2001, cooperating with Japanese businessmen, it invested 100,000,000 Us dollars in setting up a high-tech fabric manufacturing base-a textile industrial city.

Lower reach of the chain:

Youngor developed the retailing terminal by establishing stable and multi-leveled sales network. Now it boasts more than 2,000 business sites in its sales network.

The super long vertical chain had brought some benefits to Youngor. All this maked Youngor possible to maintained its good profitability while it expanded its scale.

But the financial position of the enterprise at the end of the period had not been very good, which had done some harm to its performance. There was the sharp fall of its asset liquidity. Compared with those of real estate, its current ratio and quick ratio are lower. So the company is faced with great financial risks.

Problem

Get Rid of the troubles caused by expansion?

Youngor Group Co.Ltd is the first comprehensive enterprise in the world which has to manage the long chain ranging from weaving in the upper reach to retailing in lower reach. It is really a great challenge to maintain such a large system, to keep very link of the chain flexible, and to guarantee that every link of the chain keeps pace with the changes on the market.

External Environment Analysis of Youngor

Force of Rivalry is strong

International brand:

After China entered WTO, it has become an irreversible trend that the Chinese circulation industry opens its door to foreign countries. The large inflow of famous international brands of garments will make the narrow sales channels of Chinese garment enterprises narrower. Or these brands will create stronger channels by themselves. So the international brand is a great threat to the domestic brand of the garment industry.

Domestic brand:

After a long time development of Chinese