The Pformation And Upgrading Of Jiangsu Dong Du Group Is A "Leader" In The Textile Industry

In 2010, the Dong Du group was awarded 4 patents and 459 external patents. It was awarded the 3 awards of the textile technology innovation award of the China Textile Industry Association, the 3 high-tech products of Jiangsu Province, the 1 Zhangjiagang science and technology progress award, and the "China Textile Industry Association's product development award".

The number of staff members is less than 500 years from the beginning.

In today's global industrial chain, the value added curve of R & D, production and circulation is characterized by high and low middle ends. The added value of R & D and circulation is high, at the two ends of the curve, and the added value of manufacturing process is low, at the bottom of the curve.

This is the theory of "smile curve" in economics.

From the past low-end OEM processing to the 5 modern manufacturing bases such as R & D institutions, core technologies, foreign trade centers, independent brands and distribution at home and abroad, the Dong Du group has preliminarily completed the industrial chain layout on the world economic map, and the industrial gravity center has also been pferred from processing and manufacturing to R & D and circulation links.

Transformation and upgrading, let Dong Du group spin their own "smile curve".

In order to find out the mystery of the development of the Dong Du group, the reporter recently came to the headquarters of the large textile and Garment Group in Zhangjiagang, Jiangsu, to understand its development ideas and Implementation Paths in detail.

Focus on independent innovation

Rely on the unique skills and unique market

Walk into the product showroom of Dong Du group.

"Structural adjustment, pformation and upgrading is the key to realizing the leapfrog development of the Dong Du group. If we had been stuck with the rules, there would be no east crossing group today or even the east crossing group."

Xu Weimin said with emotion when reviewing the course of the enterprise.

In 1993, Xu Weimin took over the predecessor of the Dong Du group, the insolvent Zhangjiagang knitting mill.

In the first few years, despite the unremitting efforts, due to backward equipment and lack of technology, we could barely survive by processing low-end OEM products. Sometimes we could only take the "second hand" and "three hand" orders, and the profit was very low.

"If we want enterprises to get out of difficulties, we must change the situation of backward equipment and low technology content, and achieve pformation and upgrading as soon as possible."

Since the late 90s of last century, the Dong Du group has just got rid of the "survival crisis", that is, tighten the belt and start the equipment renewal.

In order to raise the level of equipment, the Dong Du group almost stopped other inputs and concentrated its funds on "shotgun".

By 2002, the textile equipment of the Dong Du group was upgraded to the international level and the leading position in the country. It has caused great repercussions in the industry and brought a new environment for the Dong Du group.

After China's accession to the WTO, it accelerated the process of integrating into the economic globalization.

Throughout the world, many multinational companies either rely on strong capital to gallop the international market, or rely on core technologies to lead the global industry.

"We can not be satisfied with the introduction of advanced equipment, we must have our own core technology, and constantly enhance our capability of independent innovation."

The new situation has given Xu Weimin new thought.

Since 2005, the Dong Du group has invested tens of millions of yuan in technology research and development every year, and has jointly established the "national textile material testing center" with the Tianjin textile materials research institute, and co founded the Jiangnan University - "Dong Du science and technology research and development center" with Jiangnan University.

"R & D department is the most important core Department of our Dong Du group. Every year, dozens of professionals are introduced. Now, there are more than 200 people with a bachelor's degree or above, and 7 doctors or above.

Xu Weimin said.

After 5 years of research, the Dong Du group has developed exclusive plant dyestuffs for environmental protection in China.

This "edible dye" is made from the natural flower, grass, and the pigment extracted from the stems, leaves and fruits of the trees. It changes the defects of traditional dyestuff pollution and harmful to human health, and has good biodegradability and environmental compatibility.

In 2010, the Dong Du group was awarded 4 patents and 459 external patents. It was awarded the 3 awards of the textile technology innovation award of the China Textile Industry Association, the 3 high-tech products of Jiangsu Province, the 1 Zhangjiagang science and technology progress award, and the "China Textile Industry Association's product development award".

Relying on ecological environmental protection plant dye, this "unique skill", Dong Du group

"Now foreign trade is not the manufacturer to choose us, but we choose the manufacturer, not the top international brand manufacturers do not."

Xu Weimin's speech was a bit of pride.

Developing independent brands

Enhance international competitiveness

Facing the international trade market directly, it not only improves the profit level of the Dong Du group, but also broadens the international view of the enterprise, and encourages them to move towards a higher goal -- developing their own brand.

"Ecological children's clothing is our starting point to develop our own brand, which also relies on the core technology of our plant dyeing."

Xu Weimin said.

Over the past few years, the Dong Du group has developed the ecological children's clothing brand "isebud", "Dong Du Feng" and "Meng Si AI". Among them, "Si Bei de" has won the honor of Jiangsu famous brand, Jiangsu famous trademark, national inspection free product, China green fiber product and so on.

Xu Weimin said, the so-called ecological children's clothing, not only requires dyeing plant dyes, but also meet the requirements of the growing children's clothing.

"Traditional children's clothing can only keep warm.

Now, for the healthy growth of children, there are more stringent requirements in the use of fabrics and edition design.

All children's clothing needs are covered by the children's clothing.

Through the creation of the brand of "Yi Si Bei" children's wear, the Dong Du group has also opened up new sales channels.

"This year, we have increased 60 franchised stores in the whole country, and Beijing, Tianjin, Chengdu and other large and medium-sized cities have set up brand agents and exclusive stores."

Xu Weimin said, "at the same time, we also take a three-dimensional sales model, brand children's clothing should go into shopping malls, also have franchisees, and engage in network sales, just considering the lower cost of network sales channels, our network sales brand and shopping mall and franchisee and other main channel sales brand is different."

In order to expand the influence of Eastwood on the domestic market, the Dong Du group has also organized a series of activities with various multimedia organizations, such as holding children's TV fashion show and sponsoring state-level children's art activities, which not only created a platform for the promotion of children's wear brands, but also brought joy to children.

Brand is the image of an enterprise.

Enterprises should not only make profits, but also take the initiative to shoulder their social responsibilities.

Xu Weimin said.

Over the past two years, the global financial crisis has made a great impact on the manufacturing industry, and the textile and garment enterprises are also in deep trouble.

However, the export of children's clothing of Dong Du group is increasing at an annual rate of 25%.

Especially after the launch of the brand, the sales in China also maintained a two digit growth rate.

Xu Weimin said, "the profit margin of the independent brand is ten times higher than the general foreign trade profit rate.

We hope to build up the national brand of Yi Si Bei De, so that Chinese infants can choose more of our own brands.

Providing first-class services for the healthy growth of children is the best way to enhance the international competitiveness of Dong Du group. "

Optimizing industrial layout

Long term in international perspective

For the industrial layout of the Dong Du group, Xu Weimin is full of confidence. "Making full use of the two domestic and international markets to optimize the allocation of resources in an international perspective is a group's pformation and upgrading over the past 10 years.

As early as 2002, the Dong Du group made a strategic decision, turning all the foreign trade operations of the group company to Hongkong and Singapore, and through the form of joint venture, cooperation, and acquisition of foreign trade enterprises, and so on, the group formed its own international trade "global business order center".

In 2003, the Dong Du group built a factory in Malaysia, opened the prelude to the pfer of manufacturing base; in 2004, invested 150 million yuan in Nantong to build a new garment production base; in 2005, in the form of participation and cooperation in Kampuchea, it built another overseas production base, now has tens of thousands of employees; in 2010, it also built a new production base in Suzhong and Northern Jiangsu.

Xu Weimin said that this year the company further consolidated and improved the "trade forward" and "production pfer", and continued to expand cooperation with Australia and the United States to expand new trade cooperation relations.

"The Australian Industrial Transfer Project has been settled in the Dong Du group. The equipment is now in full swing, and the product development institutions are also striving for it. The acquisition of second factories in Kampuchea is negotiating and signing for the first quarter of next year."

At present, the Dong Du group has formed "headquarters, R & D, brand organizations and high-tech fabric manufacturing industry in Zhangjiagang, the foreign trade center in Singapore, manufacturing base distribution at home and abroad, the sales market in the United States, the European Union, Japan" international pattern.

While adjusting the market structure, the Dong Du group also took the opportunity to readjust its product mix.

"Differentiated management" is one of the company's management strategies.

Xu Weimin said that R & D and marketing is the two major focus of the company's product upgrading at present. "Fabric is focused on R & D, with emphasis on the development of industrial textiles, the application of hi-tech fiber, the enhancement of value-added products and the export of fabrics, and striving for new breakthroughs in technological innovation, product innovation and technological innovation."

Xu Weimin believes that "economic benefits from environmental costs can not be sustained."

While promoting production development, the Dong Du group also actively promotes energy conservation and emission reduction.

Group in Zhangjiagang

Adhering to the spirit of "solidarity, hard work, self support and pressure, dare to compete first", the Dong Du group also put forward the spirit of "first, leading and creating". Xu Weimin said, "although our sales volume has not reached 50 million yuan to nearly 5 billion yuan, the development path of the enterprise has just been rolled out."

We must take a broad view of the world and take the momentum of "fight for everything first" and strive to become a leader in the whole industry.