The Loss Of The Olympic Feast Is The Epitome Of The Difficult Pformation Of China'S Garment Industry.

Three years ago, Hussein Buffett appeared and shouted, and the stock price of Dayang created 5 times a year.

Three years later, the "endorsement" target of Da Yang's creation turned into an Olympic delegation of the United States.

Not only because of the "made in China" identity, but also in the stock market.

For investors, Dayang creation is "mysterious and low-key"; in the eyes of industry researchers, Dayang creation is China.

The epitome of the difficult pformation of industry.

The Chinese newspaper is "not happy".

At the opening ceremony of the July 28, 2012 London Olympic Games, the US Olympic team wearing blue berets, red ties, blue blouses and white bottoms attracted attention.

Little known is that the American team's entrance dress is from the founder of A shares, a listed company.

"With the introduction of partners, the company made the first custom of making costumes for the US team in the Beijing Olympics.

Because of the good response, the United States has also signed more than 2000 orders for the US team's entry dress.

Yesterday, the company insiders revealed to reporters.

It is understood that the order was signed in November 2011, and those who admitted that "sales revenue should be reflected in the company's daily report."

As for the outside world that "Olympic clothing can bring 1 billion dollars in revenue", he can not help laughing: "too exaggerated, the company is only doing clothing processing, profit margins are about 8%, and has little impact on the China Daily."

However, this "purely obligation to help" order has brought infinite worry to Da Yang's creation.

In the early July, members of the US Congress criticized the "American delegation's clothing and made in China" and believed that "the delegation should wear the uniform made in the United States".

It has even been suggested that "all uniforms should be recovered, piled up and burned up, and then start again."

At the same time, the company's stock price did not soar because of the "Ao", and in recent years even received five Yin lines.

"The remarks made by US Congressmen" burn their dresses "are just excesses, not to be taken seriously," a researcher from Shanghai industry told reporters. "Although manufacturing in the US is defeated in China, Chinese manufacturing companies only earn poor processing fees.

On the other hand, the manufacturing base of the US industry is declining, and rebuilding will face the risk of high cost.

The confrontation between the two sides is just another form of game. "

Brand "secret"

To get rid of the cheap "made in China" label, Dayang did not work hard.

Since 2003, the company has accelerated the expansion of its own brand business. At present, it has three brands: Genesis, Kamen, and search cool.

Unlike other fashion brands, a big gust of wind is advancing.

In the past years, the company rarely mentioned the operation of the three major brands.

In the 2011 Annual Report, the company simply mentioned, "the company continues to promote the multi brand strategy, forming a new pattern of three brand optimization, integration and collaborative development, and further intensify the domestic market development."

The earnings report is "like words like gold" to the three brands.

For the apparel industry, which is highly valued for channel expansion, the company also appears to be "slow".

In 2011, the annual report of the company introduced the creation of 4 stores in Beijing, Qingdao, Chengdu, Zhengzhou and other places, and in 2010, 5 new stores were sold in Beijing and Shenyang.

By the end of 2011, the number of creative brand shops was about 25.

Company insiders, "the company's own brand business accounted for more than 20% of the sales, the company still wants to move forward steadily, the channel expansion is too fast, afraid of company management, sales can not keep up."

As for the data of brand building, it is too stingy to disclose. The explanation is: "the proportion of independent brand profits is relatively small. Besides, the company is mainly based on professional clothing, and the market position targeting is high-end. The price is between 2 thousand and ten thousand. If the information is disclosed in more detail, it will affect the external bidding."

A company shareholder told reporters, "in addition to Buffett's endorsement in 2009, the creation of Da Yang was red and the stock price was showing. The company had been obscurity in the two level market.

After the first issue of fundraising in 2000, there was no way to raise funds in the two tier market.

Companies rarely communicate with investors and have no desire for capital markets.

Transformation is extremely difficult

In fact, the creation of Da Yang is the epitome of the difficult pformation of China's garment industry.

Anecdotal rumors that the foreign brands of Dayang's creation OEM include LVMH, Prada, ECCO, Nike and so on. The company insiders deny it.

Industry sources said, "at present, the company's processing business accounts for more than 60% of the sales revenue. Almost all the authorized production enterprises in the country have the protection agreement on the brand processing, and do not disclose any details, which also determines the characteristics of the cautious and prudent behavior of the listed company.

The above Shanghai researcher frankly stated that "Dang Yang's clothing made by the founding of the world can reach the Olympic Games and show its technical ability.

But export processing and clothing brands are completely different. The former can receive orders as long as your labor force is cheap enough.

But making clothing brand involves the positioning and design of the market, and the construction of the channel, and production is only a very small part of the whole chain, which brings considerable business pressure to the company.

He said, "at present, the international economic recovery is slowing down, trade protectionism is on the rise, and the demand for international clothing market will continue to slump.

In China, there are many unfavorable factors such as rising labor costs and RMB appreciation, coupled with the fact that the domestic brand operation experience is still shallow, and the market brand competition is intensified. The future operation will face many challenges. "