Mr. Wan Shi Li Hired Former Hermes Executives: Silk Industry To Help Themselves Through Integration

Recently, the famous silk enterprise Zhejiang Wan Shi Li group announced that it formally hired the former Hermes group's core management member, the Hermes silk holding group CEO, the French PatrickBonnefond (PatrickBonnefond), as the CEO of Wan Shi Li silk culture Limited by Share Ltd CEO and WAN Shi Li's French brand MARCROZIER.

　　 Wan Shi Li Li Jianhua, chairman of the group, said in an interview with reporters that in recent years, China's silk enterprises collectively were in a downturn because they did not have their own brands, and the direct purpose of Wan Shi Li to hire Paris special was to make use of their experience to build brands so as to achieve the goal of "teachers and foreigners".

In fact, with the continuous development of the trend of world economic globalization in recent years, the competition pattern of the industry has been broken. More and more Chinese silk enterprises have realized that relying solely on making money instead of labor costs has been unable to survive. Only by integrating industries can we get the initiative.

　 Brand building of silk enterprises is a difficult problem

Statistics show that Paris began to serve as the general manager of Sofileta, a famous textile enterprise in France in 1991, and became the CEO of Hermes group silk Holdings Limited in 2009. During his 5 years in office, the global layout of Hermes silk business expanded further, and its turnover increased by 200%, and its profitability increased by 300%.

Wan Shi Li said that Paris will be fully responsible for the personnel training, brand structure, and the research and implementation of the international development strategy of silk brand, and comprehensively promote the layout of the silk brand — — MARCROZIER in the Chinese market and the European market.

It is understood that after the acquisition of the French silk brand MARCROZIER last year, the layout of the silk brand has begun to emerge.

Li Jianhua said that such "bringing ism" may not be a bad thing. The purpose of hiring Paris special is to reduce the risk of brand building.

For the difficult problem of silk brand building, Ling Lanfang, another Zhejiang silk enterprise — — chairman of Zhejiang Silk Road Co., Ltd., also has deep understanding.

Ling Lan Fang pointed out to reporters that "consumers have not yet reached practical cognition and brand awareness for high-end luxury silk home textiles, and the cost of channels in large and top shopping malls is high. It is impossible for enterprises to earn money in the long term. How to solve these problems requires a manager with practical manipulation to control the overall situation."

　　 Integration of silk enterprises in Zhejiang Save oneself

Statistics show that in 2013, China's silk exports amounted to US $3 billion 510 million, a slight increase of 3% over the same period last year. In addition to the increase in the export volume of silk manufactured goods, the export volume of other large categories of products decreased to varying degrees. According to the statistics of the financial situation of 87 silk enterprises in Zhejiang Silk Association, in 2014 1~5 months, 87 enterprises completed the current gross industrial output value of 8 billion 586 million yuan, realized sales income of 10 billion 618 million yuan, 38 enterprises suffered losses, and the loss reached 43.68%.

In this regard, insiders pointed out that, with the increase in cost in recent years, the development of Zhejiang silk reeling industry has declined; the market downturn, demand is not strong and raw silk prices continue to steadily rise, making Zhejiang silk enterprises net profit growth and gross margin decline in recent years.

The reporter noted that Jiaxin silk (002404, SZ) was a silk garment enterprise listed in A shares in Zhejiang province. Its net profit in recent three years has been increasing every year, but its growth rate is decreasing year by year. The net profit growth rate of Jiaxin silk in 2010 was 18.75%, 14.40% in 2011 and 5.04% in 2012, and its net profit growth rate was -6.02% in the first half of 2013. In addition, the gross profit margin of silk, silk, clothing and other products also declined.

Faced with the predicament, Zhejiang's silk enterprises began to seek transformation based on the actual situation through high-end, scale and differentiation, and through technological innovation and transfer of basic industries.

In order to deal with unstable raw material prices and shortage of labor, Jin Fuchun silk group and other Hangzhou silk enterprises have newly established Hangzhou Jin Fuchun silk dress company, and integrate silk resources nationwide to create a strong silk industry chain.

In this regard, Ling Lan Fang pointed out to reporters that the way out for Chinese silk is two, one is "New York Paris" and the other is "people's home". The former must contend with the top international brands, and the latter is to let the people get cheap and fine household silk.