Which company is the successful one going global? How can we truly “go out”? What’s the next step to successfully “go global”? These issues have always been a topic of concern to the Chinese business community.
In fact, in the experience of overseas investment, Chinese textile and garment enterprises have both successful cases and failures, and have gradually accumulated useful experience. By comparing the management models of several successful “going global” companies, we can easily find that localization is a problem that international companies must face and solve. When foreign companies come to China, most of their staff are Chinese. Naturally, Chinese companies also need to do this when going global. Of course, this requires a process, because there are great cultural differences between countries and nationalities. If you want to work in accordance with local customs, laws and regulations, you must employ local employees and achieve localization. Since localization is difficult to operate and involves large business risks, some companies are skeptical and believe it is unnecessary. However, localization can indeed help companies realize their brand strategies.
In fact, every company has its own vision and development plan. As for what is the next step for companies that have successfully “going global”? We learned through the investigation that some companies are preparing to increase overseas investment and build factories; some companies have established cooperation with some foreign companies; and some companies have established industrial parks overseas…
1 Youngor: Create a top design team to explore international elements
Time 2001
Location Japan
Representative enterprise Youngor Group Co., Ltd.
Reasons for leaving Japan (Co., Ltd.) Houli Company has advanced finishing technology and formulas. The establishment of Ningbo Youngor Houli Garment Washing Co., Ltd. is of great significance to Youngor’s participation in the international market and development of international business.
Management model 80% of Japan’s clothing consumption depends on imports, but Japan has sufficient capital and can cooperate with them to establish joint ventures, and there is not much cultural difference. In addition, employees in Japanese companies have high stability and are extremely loyal to the company. The company joined hands with Japan’s W.GAME company to launch the GY brand. In terms of operation, the GY brand realizes a new personalized sales model by cultivating fashion consultants with Japanese-style service levels.
Some difficulties will also be encountered in the process of internationalization, mainly the process of internationalization. Many companies just want to marry themselves out through joint ventures and find a good husband. Youngor Company, on the contrary, is looking for a good sales and stable sales channel, and constantly learns other people’s business ideas and management methods, and finally takes its own independent path. The same is true in joint ventures. Not only capital and technology are introduced, but more importantly, management ideas are introduced. This has not only expanded our capital, updated our equipment, and improved our technology, but more importantly, our business philosophy has undergone a big change.
Latest Progress The first step for the company to go global is to open up the Japanese market; the second step is mainly to the European and American markets. The emphasis is different: Japan focuses on joint ventures, Europe focuses on introducing technology, and the United States focuses on consumption. Because Europe is the birthplace of famous clothing, and now the whole world admires European style. Its fabric development, product design and innovation represent world trends, so the company digests and learns some of their ideas during the cooperation process. Recently, the company has established top design teams in many regions around the world, including Tokyo, Milan, and Italy, to explore international fashion elements and apply them to clothing design.
2 Shandong Xinguang: Participating in internationally renowned exhibitions to develop new customers
Time 2003
Location South Africa
Representative enterprise Shandong Xinguang Industrial Group Co., Ltd.
Reason for leaving South Africa signed a “Trade, Development and Cooperation Agreement” with the European Union. According to the agreement, the EU will achieve zero tariffs on 95% of goods imported from South Africa within a 10-year transition period, and all tariffs on textiles will be eliminated in 2006. Therefore, China’s blanket exports to the South African market have unique advantages.
Management model companies that want to start a business in Africa must not only have the spirit of being able to endure hardship, fight, and dare to win, but also integrate into local African culture, pay attention to China-Africa friendship, and most importantly, have product innovation and management innovation. mechanism. South Africa mainly produces some woven polyester blankets locally (the rest are mainly imported from Turkey), and almost all acrylic, acrylic and Raschel blankets need to be imported to meet market demand. At present, acrylic blanket products in the world mainly come from China. Developed industrial countries do not produce blankets. Due to backward technology and production processes, some developing countries produce products of low quality and high price, and are unable to compete in the international market. South African blankets are mainly imported from China. Xinguang Company has set up a blanket company in South Africa to transport domestically produced semi-finished products to the local area and sell them directly after processing, turning the sales of production areas into sales of real estate. The products enter local chain stores, supermarkets and wholesale markets, and radiate to surrounding countries. and regions, occupying 40% of the market share in South Africa, and the operating costs of enterprises are greatly reduced. Currently, the company has production lines in both the northern and southern hemispheres.ldquo;”Going out”, I think, one is to have banks and insurance (reassuring insurance) and other institutions supporting “going out”. For example, when Taiwanese companies go global, banks and insurance will follow them wherever they go; the other , the current US-led TPP (Trans-Pacific Partnership Agreement) and TIPP (Transatlantic Trade and Investment Partnership Agreement) are actually aimed at China, and domestic textile enterprises must attach great importance to it. – Director of Jiangsu Dongfei Mazzoli Textile Machinery Co., Ltd. Chang Zhu Peng
“Going out” needs to weigh several factors: first, whether the political situation of the country where the investment is located is stable; second, the cultural difference cannot be too large, otherwise the communication cost will be too high; third, you must form your own team and cannot rely entirely on foreigners. . I think Vietnam basically meets the above conditions. In addition to its advantages in cotton prices, energy, labor, land, etc., Vietnam plans to join the TPP, which will benefit Vietnam’s textile and garment industry. At present, many domestic cotton spinning companies are investing in Vietnam, but I am more optimistic about investing in printing and dyeing projects in Vietnam. If only cotton spinning companies go global, their competitiveness will not last long. Only the entire process of “going global” can have hope. ——Xiao Wei, general manager of Jiangsu Yulun Textile Group Co., Ltd.
Yueda’s internationalization idea is to combine “going out” and “bringing in” and entering into the international system through cooperation. The company is the largest domestic partner of Triumph in Germany and is currently operating very well. It is also cooperating with the German Avender Group to produce automotive textiles on a large scale. Now the company is preparing to cooperate with European parties to open a joint venture in Yancheng to produce cellulose fibers. In addition, the company has also cooperated with Hengtian Group to grow cotton in Zimbabwe. In the future, it will expand its production base in Africa and acquire a brand in Spain. The company’s “going out” is not only textile, but also “going out” together with the group’s mining, highway, automobile and other industries, integrating global supply chain resources and collaboratively developing overseas markets. ——Chen Rong, General Manager of Yueda Textile Group
In my opinion, “going out” will encounter many difficulties, but in the end any difficulty cannot be separated from the character of a person. If you sort out the problems of customers, employees, local governments and the masses, “going out” will have been successful. Most of them. In order to develop customers, the company has opened up a variety of channels, such as advertising in local media, participating in exhibitions, joining relevant local associations, and purchasing industry database data to conduct targeted customer visits. Developing new customers is an essential skill for companies to survive overseas. ——Wang Song, Vice President of Saicheng International Group
