Hongdou Group strives to transform and upgrade

In the first half of this year, in the context of the global economic recession and the slowdown in the domestic economy, in the face of unfavorable conditions such as the unprecedented rapid increase in labor costs in the industry, Hongdou Group’s tax revenue in the first half of the year remained strong at 30%, dominating the industry.

How can Red Bean Group still achieve impressive results when the domestic textile and garment industry enterprises generally suffer from grievous grief, with the representative of the Communist Party of China, the first party of the China Private Enterprise, and Zhou Haijiang, president of the Red Bean Group, saying that they have grasped the lifeblood of the company's transformation and upgrading. . "I think the 'Lewis turning point' of the Chinese population has already arrived. This is something that companies must face. Although it is difficult to accept in the short term, in the medium and long term, it is a good thing to promote the transformation and upgrading of enterprises." said Zhou Haijiang. "In the future, companies need to study how to occupy both ends of a smiling company and achieve transformation and upgrading through technological innovation and brand promotion."

In Zhou Haijiang's view, Chinese companies have always been engaged in the production of low-end manufacturing and processing, and they cannot achieve industrial upgrading, which is related to low wages. Without a stable group of industrial workers, corporate production will suffer. Because it takes a lot of time to recruit and train employees, the company's production efficiency cannot be improved, and transformation and upgrading are even less relevant. The shortage of migrant workers, the fluctuating work efficiency, and the loss of large-scale personnel in the coastal areas are the drawbacks and harms behind the low wages. The most direct consequence is the poor stability of the enterprises. “I suggest that companies should keep up with the times. We should treat wages as an investment, not a cost. Such investment will lead to increased worker loyalty and improved efficiency. This is the 'efficient wage theory' that I strongly promote within the group. With efficiency wages, the group has improved the quality of the workforce, promoted labor efforts, and reduced the resignation rate, said Zhou Haijiang.

Since the US subprime mortgage crisis began in 2008, Red Bean has accelerated the pace of group transformation and upgrading, accelerating the realization of high-tech industrialization of traditional industries and high-tech industrialization. One-handedly to R & D design to be competitive, one-handedly to the brand to benefit, to create their own "smile curve", red bean sales in 2011 reached 35.1 billion yuan. “We changed from the original production and operation type to the creation of operation type, the original engineering center as a model factory, and the rest of the outsourcing. Our own energy is mainly focused on R&D and design. The front end is the creation and the back end is the operation. The Group has firmly grasped the three key elements of innovation: talent, platform, and investment, and its ability to innovate has rapidly increased, said Zhou Haijiang.

The operation-creating Red Bean Group has created two large-middle-sized “dumbbell-shaped companies” that will strengthen both ends of the smile curve. The middle processing will mainly rely on social resources. The company’s processing plant will be transformed into a model factory, and red bean management will be output at the same time. Culture; while group companies and three-tier companies will focus on R&D and brand development. Looking back at the transformation of the Red Bean Group in recent years, Zhou Haijiang said that the basic personnel of the Ministry did not basically increase, and focused on design and R&D, model factories, and terminal markets. Conventional production was entrusted to outsourcing factories. “We only keep 20% of production, and outsource the remaining 80% to collaborative companies. Now, there are more than 500 companies that have collaborated with the Red Bean, which has formed a good relationship of win-win symbiosis,” said Zhou Haijiang. In order to control the risk of outsourcing, each outsourced processing plant, Red Bean, will send employees to check on the site, and also implement a strict elimination system. Up to 10% of outsourcing processing companies will be eliminated each year.

One end of the "smile curve" is technology. Patents are the most powerful weapon for enterprises to win the initiative in market competition and obtain higher profits. In recent years, the patent strategy for red beans has achieved remarkable results. In 2011, 211 patents and 41 invention patents were applied for. In particular, it is worth mentioning that the number of red beans declared for more than 100 consecutive years, and now there are more than 1,700 patents. And all the patents applied for were transformed into industrial production, which became a strong support for the growth of the company. The other end of the smile curve is brand development. Since 2008, the five major brands of red beans - red bean image men's clothing, red bean home, red bean home textile, Yi Duffy, Xuan Dini, set up a chain of stores in the country, becoming the mainstream population of consumer choice. Up to now, the Red Bean brand chain stores have soared to more than 3,000 in the country, and only the Red Bean Men's Chain Store Monopoly has reached more than 1,000.

In addition, Hongdou also targeted the rich mine of electronic commerce. Zhou Haijiang said that we have also spotted the opportunity for e-commerce to become an important part of China's trade circulation field and started the construction of a Chinese textile material trading center. The first project was established under the direct leadership and advocacy of the China Textile Industry Association and was listed as a key project in Jiangsu Province and Wuxi City. It is the first third-party electronic trading platform focusing on spot trading in the national textile material professional market, marking the advent of the e-commerce era in this industry and will certainly promote the transformation and upgrading of the Chinese textile industry.

At the time when the party’s *** is about to be held, the goal set by the Red Bean Shaoshuai Zhou Haijiang to “Red Bean” is to ensure that the production and sales in 2017 will break through the 100 billion mark, build China’s first cultural brand, and create a multinational enterprise for hundreds of years. Zhou Haijiang firmly believes that once the domestic textile and apparel industry booms, Redbean Group is expected to achieve more attractive performance.