Wenzhou Clothing Enterprises Collapsed Because Of Blind Expansion.

Clothing is the earliest and most mature industry. At present, it still maintains this rapid growth. With the improvement of people's living standards, the demand for clothing has gradually increased. According to the relevant data, clothing retail sales totaled 13707 billion in 2018. Under the background of macroeconomic adjustment, the clothing industry can still achieve positive growth.
However, in this context, there is a succession of crisis in garment enterprises. Some time ago, Forever 21 was handed down for bankruptcy. Now it has become a reality. 300 stores shut down for bankruptcy protection, and Forever 21 really failed.
Coincidentally, a few days ago, some netizens found that the Spanish fast fashion brand Zara was closed in Qi's 4 stores in Wuhan. Because of a very sudden appearance, coupled with the similar clothing brand Forever 21, it announced that it had to withdraw from China in an all-round way, and the outside world could not help but speculate.
Not only is the foreign garment enterprises facing the declining trend, but also the development situation of Chinese local garment enterprises is becoming more and more difficult. As the first clothing company to successfully list on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, La Natsu Bell once had a great reputation, but now it is a constant storm.
La Natsu Bell, founded in 1998, is a classic work from Shanghai. Her main business is women's casual wear. With the help of the "ZARA mode", La Natsu Bell has been advancing all the way with the momentum of rapid development. In the early days of the listing, La Natsu Bell's market value had been as high as 12 billion.
However, the past glory has become the past tense, but now La Natsu Bell is facing a series of difficult problems. Like many garment enterprises, La Natsu Bell also had high inventory problems. According to relevant data, between 2015 and 2016, La Natsu Bell's inventory amounted to 1 billion 700 million.
In order to reduce inventory, La Natsu Bell has been clearing up sales. Not only that, but La Natsu Bell also has a debt of 7 billion 300 million. In order to save costs, La Natsu Bell chose a large number of stores, but it was a drop in the bucket. Eventually, there was still a loss. Even the headquarters building was rented out. The pressure on La Natsu Bell was obvious.
However, La Natsu Bell is not alone. Before that, another clothing name enterprise collapsed. It came from the Zhuang Ji group in Wenzhou. "Solemn body, lucky life!" remember Emil Chau's Chuang Ji's endorsement?
Chuang Ji group was once a famous clothing company in Wenzhou. Zheng Yuanzhong, the founder of Wenzhou, was a former "king of clothing" in Wenzhou. He established the Zang Ji group and became a leader in the field of clothing. Zheng Yuanzhong is the first generation of self-employed representatives in China. His experience is legendary, from "Electrical Appliance King" to "fugitive" to 3 billion annual Group executives. He later faced not only bankruptcy but also 4 hundred million.
In those days, Zheng Yuanzhong, a 40 year old entrepreneur, originally founded a clothing brand "Wei Li Si" in partnership with people. Then he changed his name to Zhuang Ji group because of his disagreement with Zheng Yuanzhong's restructured company, and he called for a senior suit. He asked Taiwan famous singer Emil Chau to speak for herself.
After the scenery, Zheng Yuanzhong ushered in the darkest hour. After the downfall of the Chuang chi group, Zheng Yuanzhong admitted that he did not commit suicide, he did not run, and he owed money slowly. So how did Zheng Yuanzhong and Chuang Ji group change from prosperity to decline?
Wenzhou fashion giant Chuang Ji Group has been closed for a while. Zheng Yuanzhong has been struggling for nearly 3 years and is still powerless to return to the sky. According to the analysis of the insiders, the reason for the closure of the group was mainly due to the market downturn in cross industry and multi sector investment, especially in the shipbuilding industry, which led to the breakup of the capital chain in the cold winter, and the pressure from banks to lend money.
For many enterprises, once the booth is bigger, there will be problems, and so is Chuang Ji group. It also "dies" in the diversified development. Chuang Ji group was founded in 1996. It is the 500 largest Chinese private enterprise. In 2011, its annual output value reached 3 billion. It is a large scale famous enterprise in Wenzhou.
With the growth of Chuang Ji group, Zheng Yuanzhong began to "go out of business." Since 2003, Chuang Ji Group has joined the real estate industry. As we all know, real estate is a profiteering industry, but there are also great risks.
Chuang Ji group cooperates with Hyundai Group to invest in 100 thousand square meters of Chuang Ji shopping center with a floor area. After that, Chuang Ji has been involved in logistics, hydropower, wind power, mining and other fields. In September 2006, the Chuang Ji Group established the Zhejiang Chuang Ji shipping industry Co., Ltd. in Yueqing, Yueqing, under the way of the acquisition and merger of the three shipping companies of the Keyser shipping industry, the Xin Huang ship and the Far East shipping company, with the registered capital of 300 million in Zhejiang, Wenzhou.
According to relevant information, Chuang Ji Group shipbuilding is very serious, not only invest huge sums of money, but also have a large-scale shipping industry. It is reported that Chuang Ji ship has 1.8 kilometers of coastline and 512 acres of reclamation area, and 472 acres of sea area. We have built 6 berth, 57 thousand square meters section and piping manufacturing workshop.
In 2007, Chuang Ji began to ship and received many orders, and Chuang Ji invested 1 billion 272 million before and after, and its total liabilities had reached 1 billion. In order to solve the debt problem, we can only mortgage the order of a large ship to the bank for loan and shipbuilding. However, what the Chuang Ji group did not expect was that the financial crisis suddenly dropped in 2008, which caused a fatal blow to the Chuang Ji group.
Because of the long winter, the Chuang Ji group failed to survive and was crushed. Moreover, after 2007, the clothing industry of Chuang Ji Group has gone downhill, and its performance is declining every year. In this case, Zheng Yuanzhong also blindly sought diversified investment, leading to the main business failure, and the sideline also did not improve much.
Since the beginning of 2012, there has been a constant outcry about the "bankruptcy" and "bankruptcy" of Chuang Ji. When Chuang Ji was in trouble, he was constantly pumped up by banks, and the capital chain collapsed, which led to the government's help. However, Chuang Ji did not survive in the end.
In February 27, 2015, the Wenzhou intermediate people's court decided to accept the application for reorganization of Chuang chi group. The collapse of the large group of Jilin group is very sad. At the same time, it also reflects that in the past two years, the actual situation of the entity retailer under the line is due to the impact of the electricity supplier industry, resulting in a decline in performance.
Other enterprises, like Chuang Ji group, are not well managed or even bankrupt because of their own strategy problems. In a word, the great defeat of Chuang Ji group is worth pondering. What do you think of this?