Ever since, Erdos is committed to excavating the essence of cashmere materials and has established a brand concept that combines both cashmere style and innovative spirit. In December 2009, Sohu sent a reporter to visit the Ordos Group in Inner Mongolia to learn more about the whole process of production of a cashmere sweater, and had an exclusive interview with Li Changqing, vice president of Ordos Group, and Mr. Dufour, a co-designer in 2010.
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Sohu: As the industry leader in the industry, what does Ordos think about the current status of the cashmere industry?
Li Changqing: At present, the cashmere industry is facing a great opportunity for the industry to reshuffle. Although China has entered a new phase of heavy chemical industry, traditional labor-intensive industries have been affected by factors such as national policies and changes in market conditions in recent years, especially under the severe impact of the world economic crisis, which are facing severe difficulties. Many SMEs have already closed down. However, there is still much room for development in China's cashmere industry. As far as the entire industry is concerned, Ordos’ comprehensive competitiveness in new product development, market sales, and operating profitability are still far ahead.
Sohu: Well, what we do well is the domestic market. This part of the sales market is doing very well, right?
Li Changqing: Not only at home, but also in the international industry, we should also be doing very well. Under the modern market environment, backward production capacity will accelerate the exit of the market; enterprises with advanced industrial technology and strong independent innovation ability will stand out more easily and become bigger and stronger in the process of reshuffling the industry. And we have precisely incomparable competitive advantages in many aspects such as industry chain, industry scale, industry level and cost, brand, marketing, and social responsibility. Moreover, we have already taken the first step. We have taken active and strategic adjustments in the adjustment of enterprises' structure and industrial upgrading, and the high-end industrial chain. Currently, we are making every effort to advance and the effect is obvious. Therefore, in this era of "remainings are king," we have confidence, conditions, and ability to obtain a new round of major development.
Sohu: In the past two years, the global financial crisis has had a great impact on many domestic small and medium-sized garment enterprises, especially those export-oriented garment companies. Now we also see that many of these companies are also having to turn to the domestic market. .
Li Changqing: Yes.
Sohu: In fact, Ordos decided to start investing heavily in the expansion of the domestic market when the export market was very good. How was the brand building aspect considered?
Li Changqing: The adjustment to domestic sales transformation is based on such considerations:
First of all, with the rapid development of China's economy, the Chinese market will inevitably become the largest consumer market. As a high-grade consumer product, cashmere products have also moved towards more Chinese families as the people’s living standards improve. Therefore, we feel the potential for building and developing domestic markets. It is very big.
Second, establish a national ambition and create a world famous brand. Developing our own national brands in China and building the world's Chinese brands has been our goal since the founding of our group. The facts also prove that the group's brand strategy is very correct and it also has advanced consciousness. Since the establishment of the domestic market in 1991, the Ordos brand has experienced the development process of nearly two decades. Ten years ago, it had built the largest clothing sales network in China. Its sales outlets spread across major cities in China and county-level towns, reaching 3,000 at present. Multiple. The Ordos brand has been deeply rooted in people's minds and has become a symbol of Chinese clothing brands.
Under the stable market building policy of the Group, our domestic sales market is basically in a stable growth state.
Sohu: What is the growth rate?
Li Changqing: Our growth rate has remained at around 10% in the past two years, and the growth rate in 2009 was 15%. We set a goal for growth over the next five years, which is an annual increase of 20%.
Sohu: Are you planning on revitalizing the cashmere industry this year?
Li Changqing: Yes. This is our goal for the next five years.
Sohu: I saw some figures in the plan. For example, the final sales of the textile and garment business segment must reach more than 10 billion yuan, and then domestic sales should not be less than 8 billion yuan. This may mean that we should continue to increase the proportion of domestic sales, and then export it. In 2010, it reached 3.5 million units, and in 2014 it reached 5 million units. Then, the area of ​​domestic sales stores will increase by more than 20% annually from 2010 to 2014, which is based on 2009.
Li Changqing: Yes.
Sohu: I think that after many people looked at this figure, many people, including me, were surprised because the current environment was in the midst of a trough.
Li Changqing: Yes.
Sohu: What are the specific ways we Erdos will implement this series?
Li Changqing: Such a figure?
Sohu: Right.
Li Changqing: Since the outbreak of the financial crisis, many businesses in China have been hard hit. In this situation, we Erdos Group not only survived well, but also sought greater and further development. Wang Linxiang, Chairman of the Board of Directors of the Group, was far-sighted, quickly adjusted its strategic deployment, and introduced the "2010-2014 Ordos Textile and Apparel Business Sector Revitalization Plan". In the plan, we proposed a grand revitalization goal. By 2014, domestic sales will increase from 1.3 million units to 3 million units, and the sales volume will reach 5 million or more. From 2010 to 2014, the area of ​​domestic sales stores will increase by more than 20% annually on the basis of 2009. After the target is set, we do not slog slogans, let alone hold high. We have raw materials as a guarantee, technology as a backing, brand as a foundation, and funding as support, and we will surely achieve the set goals.
The first is quality raw material protection. Ordos Group established 26 raw material purchasing bases in the main cashmere producing areas and distribution centers in China, and invested a lot of funds each year to support the construction of the ecological captive project for cashmere goats and the integration of animal husbandry, industry and trade, and ensured sufficient supply of high-quality raw materials. The cashmere resources we control account for 40% of the world's cashmere resources. In order to cope with the possibility of risks in the raw material market, we will carry out appropriate strategic reserves of raw materials in addition to normal production demand reserves. In order to protect and rejuvenate the cashmere industry, the Inner Mongolia Autonomous Region has specifically introduced cash discount policies for discounted cashmere in areas such as the Ordos Group.
Sohu: What policy?
Li Changqing: Cashmere policy is a discount policy.
Sohu: introduced this year?
Li Changqing: Yes, just introduced this year, reflects the government's support for the development of the cashmere industry, this is our raw material protection; another one is that we have a strong technical backing. Erdos Group owns a technological innovation system that is recognized by the State-owned Enterprise Technology Center and National Cashmere Products Engineering Technology Research Center. It has a research team of more than 2,000 including doctors, masters, senior engineers, and external experts, and has successfully held four sessions. The “International Cashmere Testing Technology Seminar†promoted the continuous improvement of the national cashmere industry standard system, promoted the development of the industry’s technology, and won the country’s voice in the development of international cashmere standards and international cashmere trade. After the sales of “nano†cashmere products, in 2009 the company focused on “health, environmental protection, fashion, and personality†and focused on the “three anti-antibacterial cashmere sweaters†and antibacterial (antibacterial + electromagnetic radiation) cashmere trousers and cashmere digital printing series. product.
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