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From Child Labor To Clothing Richest Man, The Invisible Giant Changes His Destiny By Weaving.

2019/10/9 10:31:00 0

Shenzhou InternationalMa Jianrong

China is currently the world's largest garment producer and consumer market, and domestic clothing sales also reach US $430 billion per year. In 2018, China made about 45 billion 600 million garments. Behind the 45 billion 600 million garments is China's perfect apparel industry chain. Among many Chinese garment manufacturers, Shenzhou International is the most worthy company to understand.

Statistics show that Shenzhou International is China's largest vertically integrated knitting manufacturer, and many of the international famous brands such as Nike, Adidas, UNIQLO, Puma and so on come from here.

As chairman of Shenzhou International, Ma Jianrong reached the top of the domestic apparel retail industry in 2019 at a price of US $7 billion 800 million. It is worth mentioning that Ma Jianrong dropped out of school at the age of 13, and Shen Zhou International was initially a small factory in debt. As for the secret of success, Ma Jianrong concluded: I believe that as long as we calm down and do one thing, stick to our main business and remember our original intention, we will be able to do one thing well.

Ma Jianrong was born in the countryside, and his father, Ma Baoxing, began to work at the age of 13. When he was young, Ma Baoxing worked hard in the textile mill and eventually became an expert in the textile industry, helping Shanghai textile industry solve the problem of cotton wool sweater looseness and shrinkage.

In 1990, in order to solve the difficulties of children's urban household registration, Ma Baoxing promised the invitation of the Beilun district government of Ningbo to help Ningbo Shenzhou Weaving Co., Ltd. At that time, the enterprise was invested by three parties, including the local government of Ningbo, and the Ma Baoxing family did not have any shares. As a result, when Ma Jianrong came to Ningbo with his father, he found that the three party investment was not all in place, and the construction of the factory was still in debt. At that time, it happened to catch up with the market of the knitting industry, and the father and son were miserable. But there is no way to build a factory in order to live a better life. Ma Baoxing, who had no way out, made a lot of money from the bank to make the Shenzhou weaving really start.

After solving the problem, Ma Baoxing invited technical experts from Shanghai knitting factory to Ningbo to train his staff. The important employees were brought by himself. At that time, the export of Chinese textiles was mainly based on foreign trade companies, with low quality and homogeneous competition. In order to open the market, Ma Baoxing chose to enter Japan and take the middle and high end route. Ma Jianrong recalled: "everything started from scratch. At that time, a lot of foreign affairs were produced, and many unqualified clothes were burned. By 1995, the company had gained a reputation in the industry.

In 1997, considering the hard work of the Ma Baoxing family for the company, the three party decided to resell the shares gradually to them. In the same year, Ma Jianrong took Shen Zhou's command from his father. Subsequently, Ma Jianrong regards technological innovation as the first priority in promoting enterprise development.

Before the 1997 financial crisis, Shen Zhou earned a net profit of 30 million yuan, but Ma Jianrong spent all his money on sewage treatment plants. At that time, many people laughed at his idiot, but Ma Jianrong said: "doing business can not bring trouble to the society."

After finishing the sewage treatment, in 1998, Ma Jianrong stood up to the pressure of the board of directors and resolutely refused to pay dividends, and used all the profits of the company to buy new equipment. As a result, after the introduction of the machine, because of the lack of confidence in the new fabrics produced by Shenzhou, no one orders, causing the enterprise to fall into financial crisis and once faced bankruptcy. After two years of hard work, this new fabric has become the largest flagship product of the company. Thanks to the advanced equipment, the accuracy of Shenzhou's printing and dyeing can reach 99%, and the highest level of its counterparts can only reach 70%. The reduction of defective products can save sixty million annually.

Since then, Ma Jianrong has tasted the sweetness of technological transformation. Before listing, Ma Jianrong averages the profits of 60%-70% from enterprises to technological transformation every year.

In 2005, Shenzhou was successfully listed in Hongkong. Ma Jianrong spent more time in the night, and spent only more than 900 million nights of financing at that time to replace the old equipment in the factory with the most advanced machine in the world. Ma Jianrong said: Shen Zhou uses technological innovation to achieve three purposes: efficient, comfortable and skilled.

Although enterprises are developing rapidly, Ma Jianrong is not without worries. In the first half of 2008, Ma Jianrong once thought that the enterprise was going to die and there was no hope of developing textile industry in China. He even started thinking about selling his company to buy a shipyard or build a five star hotel. Because in Ma Jianrong's view, Ningbo has entered the late stage of industrialization, and the industry already has the level of moderately developed countries. The textile industry is backward production capacity, the elimination of industry, more people, more pollution.

Under heavy pressure, Ma Jianrong led the team to Southeast Asia and the central and western provinces of China to explore the investment environment. The analysis shows that there are still a large number of surplus labor force in the backward areas of central and Western China. These people must rely on the production of labor-intensive enterprises to drive their hometown into the industrialized society. Therefore, Ma Jianrong firmly believes that the manufacturing advantages of China's textile industry have not yet been reached in twenty years. If Chinese entrepreneurs voluntarily give up this advantage and give it to Southeast Asian countries, it is too bad.

After the financial crisis, the polarization of garment enterprises is very obvious. Like Shenzhou, a company that has been concentrating on its main industry has not only stopped its industrial upgrading but also has been very moist. Most of the textile enterprises that are experiencing problems are due to the fact that the real estate market, stock market and futures market have been quick enough to earn quick money in the past two years, which eventually led to the breakup of capital chain.

After transformation and upgrading, Shenzhou's productivity has been further improved, and its customer base has gradually expanded. By 2012, UNIQLO, Nike, Adidas and Puma became the four main customers of Shenzhou. Ma Jianrong's business strategy mainly includes these points: gradually expanding the business to the European and American markets with the Japanese market as the core; adjusting the product structure, focusing on the sports products with high profit margins; establishing stable cooperative relations with the head customers of the service industry; and persisting in technical research and development for a long time.

In 2018, the gross profit margin of Enterprises above Designated Size in China's garment and textile industry was 15.1%, with a net profit margin of 5.89%, while Shenzhou's gross profit margin was 31.6%, and its net profit margin was 21.4%. It is said that Foxconn is the most OEM factory in the world, but the net interest rate of the Industrial Federation in 2018 is only 4%.

Now, in order to meet the needs of the global market, Shenzhou has built production bases in Kampuchea, Vietnam and other Southeast Asian countries besides Ningbo, Anhui and Zhejiang. Shenzhou not only has the most advanced equipment in the world, but also has the world's first-class fabric and clothing laboratory. Ma Jianrong is almost paranoid about R & D and does not allow any mistakes. In order to develop a waterproof fabric for daily recreation, Shenzhou R & D personnel entered the American living environment to test the average time when they went out to the supermarket and went to work, and designed and developed a waterproof fabric in 15 minutes.

Now, every 24 hours, Shenzhou has 1 million 500 thousand garments and 600 tons of fabric from its production line. Ma Jianrong said: for clothing enterprises, time is life and delivery time is the soul. In 2018 football World Cup, the French football fans needed the French team's costume to celebrate. Shenzhou International sent tens of thousands of fans to Shanghai, Nike in 16 hours, and then they flew to France to catch up with the French team.

Ma Jianrong said: my father and I started working at the age of 13, and even Mandarin was not standard. Many people say that Shenzhou's success is luck, but I know with my father that only two simple words that are supporting us all down the road are honesty. One hundred percent for customer integrity, employee integrity and supplier integrity. Now Shenzhou, to achieve "integrity" two characters, rely on technology, standardization and modularity.

Ma Jianrong said: to be a boss, we must understand production, understand strategy and understand the market, and more importantly, we need to understand the hearts of employees. Shenzhou's staff stability is well known in the industry, and even our top and middle ranking teams have not left one in 20 years, nor have they left behind. Shen Zhou's corporate culture is "decent work, dignity life".

Every year, Ma Jianrong has invested hundreds of millions of dollars in improving the living environment of his employees. Shenzhou has an automatic central kitchen which provides lunch for 40 thousand workers. In Vietnam, Shenzhou is also the first enterprise to install central air-conditioning in the new factory. Ma Jianrong always believed: if an employee can do a lifetime in a company, this is the boss's greatest blessing.

Over the years, Ma Jianrong has been concentrating on the main business, competing with a cotton yarn, competing with a piece of cloth, struggling with a drop of dyeing and printing sewage, and struggling with himself. At present, Shenzhou International is the largest vertically integrated knitting manufacturer in China. Ma Jianrong said: I am a fool, so I only do one thing from a cotton thread to a piece of clothing, but I believe that with our team of more than 80 thousand people in Shenzhou, I will be able to do a good job in clothing and textile.

Reference:

1. "13 year old school dropout apprenticeship, and now he is at the helm of China's textile industry leader in the market capitalization of 70 billion."

2. Adidas, Nike, UNIQLO's Chinese factories make "richest man", high street high ginseng, Fan Xiangdong.

3., the clothing giant starts again! Shenzhou International Hao cast 7 billion 200 million, to build a series of new capacity and technological transformation. "Southeast business daily, Le Xiao Li

4.CCTV interview with Ma Jianrong, chairman of Shenzhou International, an interview with China's clothing revolution

5. Ma Jianrong: transformation and upgrading is to create brands? This is a misunderstanding, economic reference daily.

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