A Brand Leaps From Industrialization For 8 Years

Eight years is a flash for some people and a long time for others. A private enterprise, which has only survived for 16 years in China, has to spend 8 years to break away from the original industrial model on which it became famous. This may be the arduous course that every Chinese manufacturing enterprise must go through in industrial upgrading.

In the process of continuous innovation and questioning, Cunninghamia lanceolata Know what change and persistence are, and what accumulation and precipitation are.

"In my mind, clothing It is a core industry, and technology and investment are two wings. It should be said that I have the deepest feelings for clothing, and I am an investment decision-maker in other industries. Other industries besides clothing are profitable, but they just smile. " Zheng Yonggang, who has fought for Shanshan's cause for 16 years, interprets what he understands as the difficulty of an enterprise's growth in change with simple words.

In Chinese business circles, Zheng Yonggang and his Shanshan have been widely controversial for the past eight years.

Even Zheng Yonggang called himself a "man who likes to make things out of nothing". In the early 1990s, he pioneered the "one-stop production, supply and marketing" model and built the largest direct sales network in the domestic market of Chinese clothing at that time; He listed Shanshan in 1996, becoming the first A-share listed company in China's clothing industry; In the same year, he hired two of the most famous designers in China to promote the "dharma poetry" of fashionable women's clothing, and pioneered the collaboration between famous clothing brands and famous teachers; In 1999, he carried out "production stripping" and "channel reconstruction" with great boldness, changing all the original self operated sales channels to franchise mode; Since the headquarters moved from Ningbo to Shanghai, Zheng Yonggang has set foot in the diversification of lithium-ion battery materials, which can not be matched with clothing; In 2001, in addition to the core brand suits, Shanshan started the "multi brand international" operation of the "NIKE like" mode

Such a leap forward development is so unconstrained that outsiders are quite confused. With the disappearance of the logo of Shanshan Suit from the high-end shopping malls in big cities, "Shanshan Series" has quietly gained a number of new brands, and "Shanshan Phenomenon" has even become a topic of management academia.

In our opinion, the "Shanshan phenomenon" is really enough to become a management topic, but not because of the decline of the market share of the former hegemon - we found that the change that Zheng Yonggang and Shanshan started eight years ago is exactly the same topic that many Chinese industrial enterprises face today: how to upgrade the traditional manufacturing industry along the so-called "smile curve" Is the value chain of the company shifting to the more high-end "productive service industry" as Wu Jinglian said? For an enterprise whose main business has a glorious history but is too mature, where can we find a more growth oriented "second main business" to avoid the profit risk brought by the life cycle of the original single main business? In addition to relying on labor costs and sales staff tactics, how should Chinese enterprises establish their own brands and go beyond OEM system locking? What painful changes in organizational structure, internal management, strategic decision-making, implementation mechanism, corporate culture, performance evaluation, talent replacement and other aspects need to be completed in the transformation of a traditional enterprise to a modern international company?

Zheng Yonggang has thought ahead for several years about the problems facing most Chinese entrepreneurs today; Shanshan has explored the road and provided valuable cases for its peers. Therefore, through detailed interviews, this magazine tries to restore Shanshan's practice of constantly changing itself in the past eight years, to have an insight into the fate and exploration of this Chinese enterprise in the past eight years under the economic climate change, and also to show some possibilities for the broader Chinese business community to move towards the future.

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In the past 2005, Shanshan ushered in a bumper harvest: the revenue exceeded 8 billion yuan, the clothing sales increased by 25.8%, and the profit increased by 59%, far exceeding the scale of Shanshan's single clothing brand at its peak. Zheng Yonggang said that he was relieved, but it was still too early to talk about success or failure at this time. For Chinese market-oriented enterprises with a history of only 20 years at most, the only way to survive in the increasingly changing and complex competitive situation is to continue to innovate, just like Shanshan's corporate slogan: “Lets change ourselves”

Eight years ago, Shanshan was a miracle of excitement for Ningbo people. Today, it is more like history. At least, this is the case in the streets of Ningbo, which already have a modern urban style.

In Ningbo in the spring of March, there were five stores along the street in the bustling OCT, Lecoq、Azzali、Renoma， Three famous brand stores in France and Italy are dazzling and luxurious. By contrast, Firs Shanshan Suit Store next door is a little ordinary.

"In the past 10 years, Shanshan seems to be very busy, but its reputation is really not as good as before," a local man on the street told reporters.

"No wonder. Outsiders can only see the surface. For Shanshan, layout is more important than fame." After listening to the reporter's report, Zheng Yonggang smiled, not anxious or irritable.

"The five brands with different positioning that you see in OCT are all controlled by Shanshan Group," said Zheng Yonggang, Chairman of the Board of Directors of Shanshan Investment Holdings Co., Ltd. "This is the layout, the international mature experience, and the result of our continuous learning from others and changing ourselves in the eight years since 1997."

Such a scene can indeed be found in the Champs Elysees in Paris. This famous fashion brand street is full of high-end clothing and luxury goods stores of different brands on both sides, and quite a few of them belong to one group—— LVMH The world's top fashion group was founded in 1987, with more than 50 top luxury brands, including Louis Vuitton, Christian Dior, Givenchy, Ji Xue and Fendi with a history of 150 years.

"Ten years ago, we could monopolize 37.4% of the Chinese clothing market with a single move," Zheng Yonggang told reporters, "but today we must learn the complex thinking in the international fashion industry."

"We are going to remain silent for another 3-5 years and work steadily. At that time, Shanshan and all domestic garment enterprises will be 'harmonious but different'," Zheng Xueming said. As the vice chairman of the board of directors of Shanshan Holding Company and the president of Shanshan Group in charge of clothing, Zheng Xueming and Zheng Yonggang, the leader of Shanshan, created the brand of Shanshan 16 years ago.

In Zheng Yonggang's opinion, Shanshan is no longer on the same level as all domestic garment enterprises. Compared with eight years ago, today's Shanshan has quietly changed its face.

　　 Brilliance in the era of shortage and silence in the era of surplus

The wild cedar has become calm, but over the years, the perspective and standard of observing the cedar from outside have rarely changed.

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"People are still accustomed to looking for the old suit of Shanshan 16 years ago," said Zhou Shifen, vice president of Shanshan Investment Holding Company. "In fact, the sales revenue of Shanshan Holding Company this year is more than 8 billion yuan, of which clothing only accounts for 1/3, and the suit of Shanshan only accounts for 8-1 billion yuan."

The origin of Cunninghamia lanceolata started in 1989. In that year, Zheng Yonggang took over a small local factory that was on the verge of bankruptcy - Ningbo Yonggang Garment Factory was the predecessor of Shanshan Group.

Shortly after taking over, Zheng Yonggang saw a young man wearing a new and free style suit on a business trip by train. He asked curiously and learned that it was a piece of "clothing garbage" imported from abroad. This "garbage clothing" not only maintains the straightness of traditional suits, but also is very light and soft.

Inspired by this "garbage clothing", Zheng Yonggang immediately organized technical forces to develop new suits after returning to Ningbo. The Shanshan suit, which is different from the heavy and rigid style of the traditional suit, was highly praised when it came out. The slogan "Shanshan suit, don't be too smart" also aptly showed the unique consumption selling points of Shanshan suit at that time. Zheng Yonggang also pioneered the model of "production, supply and marketing together". By 1992, Shanshan had built the largest direct sales network in China's domestic clothing market at that time. In 1997, the annual sales revenue of Shanshan Suit was 2 billion yuan, ranking first in China's clothing market share for seven consecutive years, with a 37.4% market share at the highest. In 1996, Shanshan Co., Ltd. (600884) became the first A-share listed company in China's clothing industry.

Eight years later, how did the brilliant founders evaluate this Shanshan suit? "At that time, the fame and money it brought to Shanshan enabled him to buy a luxury car every day, one a day, for four or five years"; "It is an industrial brand in the era of shortage economy, positioned at the age of 18-60, regardless of consumption level"; "No design elements, incomplete understanding of brand concept"; "One stop model, poor professional division of labor, has not adapted to the changes in market segmentation"; "In order to maintain the income of 2 billion yuan, the inventory must be 800 million to 900 million yuan, which is a time bomb".

These statements from different perspectives, especially those from the later prosperous times, began to appear in 1996, which attracted Zheng Yonggang's attention.

"Zheng Yonggang is a person who likes to challenge, change or surpass himself, or has a strong sense of crisis," Zhou Shifen said. Zhou and Zheng Yonggang have known each other for many years, and understand the personality characteristics of this godfather figure in the Chinese clothing industry and the hard entrepreneurial path he has followed.

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Although the sales revenue at that time was still heavy, Zheng Yonggang felt the coming rain from a series of details: the inventory was too large; The advance payment is not coming; In the past, the terminal sellers who listened to the manufacturer's pricing and even waited in line to pull goods asked for price negotiation; Homogeneous competitors began to appear. They also began to advertise and introduce technical talents; The most important thing is that the gross profit has decreased from about 30% to 12%

"The shortage era has passed, and the buyer's market has come." Zheng Yonggang's strategic judgment is extremely accurate.

He began to consider getting rid of the previous industrial production mode from both sales network and design. "In the era of industrialization, the production and sales of clothing are mainly reflected in the expansion of quantity and the reduction of cost, ignoring the new connotation of the real clothing design." Zheng Yonggang concluded in an internal speech at that time, "Why should the old model be changed? The production and marketing model must have one premise: the market demand is huge, how many goods are sold, how many goods are sold. Once the market demand slows down, the channel is no longer a channel, but a 'warehouse'. Just like a city's traffic system, once there is a problem, the streets and roads become temporary parking lots. "

At that time, Shanshan had 26 branches and more than 30 offices across the country, with more than 6000 sales staff in its direct stores. "The direct store uses the money of Shanshan to buy Shanshan's products, and then sells them for Shanshan," Zheng Xueming said. "In fact, this is not sales, but warehouse transfer. Everyone is willing to buy more goods, but he doesn't care if he can't sell them, which leads to high operating costs and serious inventory backlog."

As the creator of this model, Zheng Yonggang recalled to Business Week that "I was the first to promote the integrated production, supply and marketing model in the clothing industry in order to expand the clothing enterprise, taking into account the unique shortage economic situation in China at that time. In fact, there is no such practice abroad."

In 1999, the network transformation of Shanshan aimed at destroying the "public ownership of private enterprises" began to be carried out in a big way, and all direct stores were cancelled and changed to franchise. Zheng Yonggang emphasized with overcorrection that franchising is the only way out for China's clothing industry and even the clothing industry on the earth. He mobilized and said: "In the past, Shanshan has created a number of 'millionaires'. After implementing the franchise plan, it will create another number of' millionaires' in the next five to ten years."

The franchise stores of Shanshan are divided into two levels, one is the regional headquarters, and the other is the subordinate franchised stores. The relationship between Shanshan enterprises and regional headquarters or between regional headquarters and franchised stores has become a contractual relationship in sales. The franchisee system has successfully solved the problems of adverse selection and moral hazard in the original principal-agent relationship of direct stores. The inventory discount originally belonging to Shanshan has been transferred to the franchisee owner. The direct stores that used to under report sales and accumulate inventory so that they could return the inventory discount to the headquarters in the next year have taken shape. For newly opened franchise stores, Shanshan will open stores in the form of installment payment or borrowing funds. The change from goods in arrears to money in arrears also means that the profits and risks of business and sales of Shanshan commodities have changed from being solely borne by Shanshan to being shared by manufacturers and franchisees.

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Soon, all the stock bubbles accumulated by Shanshan in the past 10 years were squeezed out at one time. The time bomb threatening Shanshan disappeared, and hundreds of millions of yuan of funds were recovered.

However, while the alliance system has achieved initial success, negative effects also appear. Shanshan lost its position as the leader of the suit market. During the interview, Zheng Yonggang also reflected on this: "This network transformation has solved the ownership problem, but since it is the first time for large garment enterprises to implement franchise in China, there are indeed many ideas and policies that are still exploratory. Either criticism or criticism. I will not take the initiative to comment. I insist that what is suitable for me is the best."

"The era of never returning shortage economy has always been missed by Chinese clothing merchants. After the channel reform of Shanshan in 1999, Fujian, Zhejiang and local enterprises in Ningbo have followed suit." Zheng Yonggang firmly believes that what Shanshan is doing is what the whole industry will do in three to five years, He said: "Shanshan has provided the industry with forward-looking practices, reflected the role of leading enterprises, and helped the industry to move closer to the international level in industrial upgrading. I am very pleased about this."

As for the current market share of Shanshan suits, Zheng Yonggang believes that it is not too low, but too high. "From 1988 to 1999, Shanshan Suit once had the highest share of 37%, which is because Shanshan was the first brand, almost in a state of no competition." Zheng Yonggang believed that with the increase of brands, the decline of share is an inevitable rule, "the number of brands should not be pursued. For example, LV, Armani and other top brands only supply a small number of people, and it is enough to open three or five stores nationwide. For example, the Italian medium and high-end brand Macro Azzali, which we operate, it is enough to open 100 stores nationwide. " Therefore, he believes that 1 billion yuan is enough to open 500 stores of Shanshan Suit, "no more brands, it's time to enter the wholesale market".

　　 Know what brand is again and again

Almost at the same time of channel reconstruction, Zheng Yonggang directed Shanshan to carry out another more far-reaching change: brand operation.

The purpose of brand operation reform is also clear, that is, to increase the product focus for the market segment, to increase the design elements to enhance the brand's gold content and fashion sense.

At first, Shanshan seemed to understand brand operation as a leap from large-scale industrial products to design products.

"Design is the soul, and designers are the carriers of the soul. Let the soul return. I have no doubt that the era of designers in China has come." This is the slogan Zheng Yonggang shouted at that time - and it is the first time that the Chinese clothing industry has put forward the idea of independent innovation.

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Some people say that the history of clothing is 3500 years of human self display. Different from the West, Chinese clothing culture was constantly cut off by history, and there was no fashion designer until the late 1980s. "Compared with Europe and the United States, the gap in clothing is cultural. Compared with international brands, China's national clothing industry lacks design art and culture," Zheng Yonggang said. He has long known the fact that suits produced in the Shanshan factory are made with the same fabric, the same worker, and the same machine. If they are affixed with some top international brands, they can sell for 10000 yuan. However, if they are affixed with the trademarks of Shanshan, they can only sell for 2000 yuan at most.

As early as 1996, Shanshan began to cooperate with famous brands and famous teachers, which is the first cooperation between domestic garment enterprises and designers. At that time, Zheng Yonggang hired Zhang Zhaoda and Wang Xinyuan, the two most famous designers in China, to Shanshan with an annual salary of 1 million yuan per person, in an effort to design the best fashion women's clothing "Fahan Poetry" in China. At the 1997 Shanshan Autumn and Winter Exhibition, the two designers launched more than 200 sets of clothing in 17 series.

Since then, Fahanshi Women's Wear and Fanshang Men's Wear have become the original brands of Shanshan based on the concept and quality of international high-end ready to wear. At that time, Shanshan was very confident about these two designer brands, because they not only had outstanding designers, but also had operators with profound enterprise management skills. At the same time, Shanshan also sent technical backbones to Japan and Italy for research in batches, bringing back the quality culture of foreign enterprises to Shanshan. Even Shanshan has set up its own design studio in Paris, the fashion capital of the world.

The transformation of Shanshan has driven Chinese clothing from the industrial era to the era of "design brand". However, this landmark experiment that promoted China's clothing industry brought Shanshan another rethink.

Zheng Xueming, who was the general manager of Shanshan Fashion Design Department at that time, talked and laughed about that time: "Chinese designers are more like 'politicians' in the design industry. They came to work in the enterprise for more than a week only a year, and other times they are busy giving lectures, performing, and participating in appraisals, but they are not as creative as foreign professional designers according to market demand."

The incubation period for the brand of Shanshan is generally three years, that is, one year's loss, two years' average and three years' profit. However, after the expiration of three years, Fahanshi and Sanshang, two high-end brands, failed to achieve the expected goals, and these two original brands had to be transferred.

"Where do famous designers come from? They can only come from the process of designing products to become brands. It's sad that designers without their own products." Zheng Xueming said.

There is no way to build a designer brand, and Shanshan has to look around the world. Since 2001, the company has embarked on a more effective brand road from the perspective of market practice - "multi brand internationalization", that is, through cooperation with international brand companies, to promote their own original brands. At present, in addition to the core brand "Shanshan", Shanshan Group also directly controls 22 brands, including 3 self created brands, 9 international registered designer brands, and 8 international cooperation brands. The cultivation period of each brand is 3 years.

In the practice of "multi brand internationalization", Shanshan's understanding of the brand has been sublimated again. "We are now working as a brand operator. Like Nike, Louis Vuitton and Itochu, Shanshan is an investment company. It controls many fashion brands with capital as the link, but the operation of each brand is entrusted to specific brand companies, and the production process is also stripped." Zheng Yonggang said, "What we are doing now is the way for multinational companies to make money."

But Shanshan has not given up its dream of building an international fashion brand. "In addition to making money, we cooperate with international brand companies in order to learn from others and cultivate our own designers and business talents in a down-to-earth manner." Zheng Xueming said, "The lack of fame means that he did not participate in the award, his professionalism is stronger and his market vision is more plastic."

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Zheng Yonggang is unwilling to predict how long it will take to achieve this ultimate goal, because the history of product manufacturing can be achieved through compression, but the cultural connotation cannot be obtained through compression. "It must be recognized that for quite a long time, it is impossible for China's cars and clothing to produce international top brands. Because China's real clothing design has only 20 years of history. From extensive products to fashion, this qualitative change process has taken nearly a hundred years in France and 50 years in Japan, and clothing brands contain culture and history." Zheng Yonggang believes that, It is up to Chinese culture to become the mainstream culture of the world, but he firmly believes that "with the improvement of economic strength, China will be able to produce world-class mass brands, like the American POLO and CK".

　　 Companies without products and assets without depreciation

By 2004, the main clothing industry and other new industries of Shanshan were in the adjustment period, with little income growth, but the profit margin was improving. Take Shanshan as an example. In 2000, its net profit margin was 16%, lower than the industry average of 18%; By the third quarter of 2004, the net profit rate of Shanshan shares was 12%, far higher than the industry average net profit rate of 4%.

In 2005, Shanshan finally ushered in a bumper harvest: clothing sales increased by 25.8% and profit increased by 59%. In terms of figures, it is far more than the scale of Shanshan when a single brand was at its peak. Science and technology, investment and other sectors also began to blossom in this year. "We have won the overall victory," Zheng Yonggang said.

Zhou Shifen, vice president of Shanshan Investment Holding Company, said: "This is like a seedling cultivated on a hotbed. When transplanted into the field, it will shrink a little, but only after transplanting can it grow into rice."

If Ningbo, the birthplace, is a hotbed for cultivating Chinese fir, then Shanghai, the current headquarters, can be seen as a rice field for the harvest of Chinese fir.

At the end of the 1990s, the radical channel reform and brand operation model experiment implemented by Shanshan put forward new propositions for its decision-making ability and strategic thinking. On the one hand, the revenue of Shanshan suits declined, and the market scale shrank; On the other hand, the hundreds of millions of funds originally accumulated still have no place to invest. At this time, there are only two ways to develop: specialization and diversification.

"There is no right or wrong in these two directions, but we can only choose one." Zheng Yonggang said, "It is reasonable to say that the clothing industry can develop upstream and downstream and extend the industrial chain, but from the situation at that time, the road was very slow. Moreover, once we choose specialization, it means that we still have to stick to Ningbo, which is contrary to the internationalization and modernization goals proposed by Shanshan in its early years."

In January 1999, Shanshan Group moved its headquarters from Ningbo to Pudong, Shanghai. Zheng Yonggang said, "Shanghai is a sea. When we swim with sharks in the sea, we will grow faster."

However, not every veteran entrepreneur of Ningbo Shanshan has the opportunity to swim with sharks. "There are only a few Shanshan people who came to Shanghai with me from Ningbo," Zheng Yonggang told reporters

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It is hard to say whether Zheng Yonggang has been clear about this for a long time. But as early as 1996, Zheng Yonggang made equity arrangements through the capital market, and successfully solved the problem of the benefit distribution of Shanshan entrepreneurs and staying in Ningbo.

In 1996, Shanshan shares were listed. According to the national policy at that time, employees' internal shares could be available, and internal shares were allowed to be listed three years later. "We have 300-400 old employees who are worth hundreds of thousands or even millions at a time," said Zhou Shifen, vice president of Shanshan Investment Holdings.

While the elders stayed in Ningbo, the new elites began to take on important responsibilities. Hu Haiping, the 31 year old vice president of Shanshan Group, emerged at this time. Hu Haiping, chairman of Zhejiang University Graduate Association, was an executive of P&G's Asia Pacific Marketing Department in his early years.

After the headquarters moved to Shanghai, Hu Haiping was appointed as the president of Shanshan Science and Technology Co., Ltd., whose main responsibility is to build the high-tech sector of Shanshan with the help of Shanghai's policy advantages and human resources. In 1999, Hu Haiping introduced the first high-tech project - the industrialization of carbon anode materials for lithium ion batteries. This project belongs to the national 863 plan development project, filling the domestic gap. At present, Shanshan Technology Co., Ltd. has developed into the world's largest comprehensive material base for lithium batteries.

When those who walk lightly travel far away, Shanshan begins to run away on the high-tech road. At present, Shanshan has four national 863 projects, including 18 micron copper foil materials, lithium ion anode materials, heat shrinkable materials, and high temperature pressure sensors. In addition, it also has nine high-tech projects, including biological aerobic bacteria fermentation waste treatment, nano surface electric heating materials, super capacitors, and Oswan materials. The cumulative investment of Shanshan Group in the high-tech field is about 1 billion yuan, and nearly 20 high-tech companies are under the group.

In August 2004, Shanshan Investment Holding Co., Ltd. was established, and all enterprises of Shanshan were reclassified. The holding company controls more than 50 companies, including Shanshan Group, Shanshan Technology Group and their subordinate companies, and is the highest representative of Shanshan Enterprise Community. The board of directors of the holding company is the highest decision-making body. Under the board of directors, there are two committees: investment decision-making and strategic development.

To put it simply, Shanshan Investment Holding Co., Ltd. is an enterprise community legally composed of all enterprises under its name that are wholly-owned, holding, equity participation and intangible asset trust management. The asset relationship is the basic production relationship of Shanshan Enterprise, and the basic organizational structure is the three-level structure of "holding company - industrial group - industrial company". The current structure is that the holding company manages Shanshan Group, Shanshan Technology Group, Shanshan Biological Group, Kechuang Economic and Trade Group and Songjiang Copper Group.

The responsibilities of the three-level structure are different. The holding company has the right of investment decision-making, personnel management and investment income, and is the strategic investment decision-making center of Shanshan Enterprise; The Industrial Group has the power of execution, management and coordination, and is the management center for the operation of Shanshan Enterprise; All industrial companies enjoy full autonomy and are the profit and cost accounting center of Shanshan Enterprises.

Under this framework, Shanshan Holdings directly managed by Zheng Yonggang no longer involves specific products. "As an investment company, its products are enterprises and talents," Zhou Shifen said.

After the establishment of the holding company framework, the state-owned enterprise MBO that improves efficiency by changing the property rights system gave Zheng Yonggang greater enlightenment. Once again, he introduced the principle of right confirmation into enterprise management, and implemented share pooling at the second level of Shanshan's enterprise structure, namely the industrial company level, which is called "federalism" within Shanshan.

Zheng Yonggang divided the enterprises controlled by Shanshan Holdings into three categories of ABC according to their holdings. The operators of these enterprises, no matter how big or small, are bosses and own the equity of their operating companies. Taking Shanshan Technology Company as an example, Hu Haiping, the president, personally contributed 6 million yuan to purchase 25% of the shares, and the holding company rewarded him with 15%. Hu actually held 40% of the shares of the technology company.

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"I designed it," Zheng Yonggang told reporters with a slightly smug expression. "Everyone will not admit defeat." He said, "If you always work for others, the incentive is certainly not enough. If the operator does not contribute his own capital, it is all the equity that is rewarded, and there will be excessive incentive."

In addition to holding companies without products, brand assets that will not depreciate and will increase in value over time are playing an increasingly important role in Shanshan. This is another important step for Cunninghamia lanceolata to break away from industrialization.

After the sales changed to franchise, the production of Shanshan began to slim down. At the beginning of 2002, Shanshan retreated from the garment production and processing field. The holding rights and specific operation rights of the five garment processing plants previously wholly owned by Shanshan in Ningbo were all transferred to foreign companies or individuals. At this time, Zheng Yonggang completely separated Shanshan from production and marketing through processing outsourcing and with the help of franchisees.

It is reported that at present, only half of the clothing of Shanshan Group is produced in its own factory, 30% is produced in other factories in China, and another 20% is processed abroad. "We have partially realized global procurement and global ordering. Where we do well, we will do well," Zheng Xueming said. At present, the countries that produce and process clothing for Shanshan include Japan, South Korea and Italy.

After breaking away from industrialization, Shanshan focuses on the "most core value" link of the clothing industry - brand with "federalism", that is, to drive its own brand through international cooperation. The current cooperation has brought great confidence to Zheng Xueming. "After two more years of study, the period of rapid promotion of original brands will come. In 2007, we will start to increase investment," Zheng said.

At the same time, Shanshan also transferred its own mature brand authorization. In 2005, Shanshan Co., Ltd. gained a lot through authorized operations such as Shanshan jeans clothing and Shanshan underwear.

"The era of defining enterprise value by counting the number of fixed assets such as factory buildings and machinery is outdated. We value intangible assets that will not follow the depreciation of fixed assets," Zheng Yonggang said.