Poor Tailors Become The Richest Road In The World

TOP30, he can't play together!

The basic necessities of life are clothing, food and housing. The clothing industry has huge market capacity.

In fact, the clothing industry is a far bigger market than the Internet industry.

Taking Chinese consumers as an example, a family of 3 spends less than 2500 yuan a year on Internet services, but the expenditure on clothing is far more than $2000. The cost of buying Internet services is usually less than 2500 yuan.

Just this week, a 80 year old old man, relying on his hard work in the clothing industry, successfully surpassed Bill Gate, the technology giant, to become the richest man in the world.

His clothing empire is so huge that the sum of the top 30 brands of clothing in China can not be matched.

It is reported that in September 9th, the founder of ZARA was 80 years old.

Bill Gates has surpassed the richest man in the world.

Amancio Ortega's Inditex group, the parent company of ZARA, MassimoDutti and Pull&Bear, rose 2.5% on Wednesday, making Oman Theo Ortega's personal wealth increased by $1 billion 700 million.

Now, Ortega's net assets reach 79 billion 500 million dollars, while Bill Gates is 78 billion 500 million dollars.

Since Bill Gate has been entrenched in the world's richest man for more than 10 years, the change of ranking is still symbolic.

The wealth of 3 Ma Yun (99.62, -2.95, -2.88%) is not as good as selling clothes.

Listed in 2001, Ortega spent only 15 years crowning the world's richest man.

Over the past 15 years, the number of stores in the Inditex group increased from 1284 to 7013; net sales increased from 3 billion 250 million euros to 20 billion 900 million euros, the average annual compound growth rate was 14.2%; net profit increased from 340 million euro to 2 billion 882 million euro, with an average annual compound growth rate 16.5%.

The annual growth rate of 15% has doubled (less than 5 years), and Inditex has shown the strong vitality of the apparel industry to the world.

In Spain, a country devastated by the financial crisis, Ortega has become the richest man in the world and has become a rare highlight of the Spanish economy.

Ortega, who has entered the year of the cane, still steamed and steamed up. However, in the other side of Asia Europe, China's clothing industry has become a nightmare for entrepreneurs.

The events described in the above news headlines generally occurred between 2012~2015, but last year, the operation of Chinese garment enterprises generally improved, but this was the result of difficult pformation and inventory elimination.

Even so, China's clothing industry is still at a low ebb.

The low tide of China's garment industry is the good time for foreign clothing brands to enter China in large numbers.

Similar to the automobile industry, Chinese clothing enterprises are unable to cope with the aggressive offensive of foreign clothing brands.

Part of the financial data of 30 garment listed companies, in 2015, the total operating income was 127 billion 200 million yuan, while the Inditex business income of the same period was as high as 157 billion 600 million yuan; in 2015, the net profit of 30 Chinese garment enterprises amounted to 17 billion yuan, while Inditex was 21 billion 600 million yuan.

The list of the 30 garment enterprises is as follows: it basically covers the largest clothing brand in China:

In addition, with the 2015 Hurun China rich list as a reference, the top 13 clothing industry tycoons, the total sum of wealth is only 206 billion yuan, less than 40% of Ortega's one.

There are differences between business models.

Take the Zara brand of Inditex as an example, it has an average listing of 11000 styles every season, while most of the other volume brands are 2000 to 4000 styles. The average number of customers entering Zara is 17 times a year, while other general brands are 3 to 4 times.

Zara averages 2 to 4 weeks from development to new products. The average time of H&M is 3 to 5 months, while most Chinese brands are now in the range of 6 to 9 months.

From the development to the maximum speed limit of new products listed, it is a series of control ability of a clothing enterprise in costume design, supply chain management, inventory management, terminal management and so on.

In fact, there are many imitators in Zara. In some Chinese brand stores, clothing categories are equally complicated, but it is difficult for Chinese companies to do well in inventory management only.

Although Inditex's revenue is as high as 20 billion 900 million yuan, its stock is only 2 billion 195 million euros, accounting for only 10.5% of revenue.

Despite the popularity of price wars in China's business sector, gross margins are still considerable for the apparel industry.

In 2015, the gross profit margin of the above Chinese companies was as high as 44.19%. Why did the company still lose 430 million yuan? Sales expenses became the main reason, and its sales expenses amounted to 2 billion 190 million yuan in 2015, accounting for 34.8% of the total revenue.

On sale expenses, Inditex can be described by two words of miserly.

Careful readers can recollect what you have seen on TV or on the Internet.

Advertising? Compared with other clothing enterprises, Inditex can save the advertising money to enhance the efficiency of logistics.

According to Jiefang Daily, a Inditex insider in China has revealed that in the mainland of China, Kita Kamihiro is the three largest port for Zara logistics distribution, from the three ports to the lower level cities. The largest extent is the use of air pportation. There is no route for land use.

Some analysts pointed out that the lack of international vision is the core reason for Chinese garment enterprises to lag behind the international giants.

The clothing industry has gone beyond the shelter and warmth attributes. Fashion is the core of the contemporary clothing industry. Whoever holds the fashion will have the right to speak.

But fashion vane is not only one, and the pformation of clothing companies with a global perspective can timely and comprehensively control the global fashion trend, and then bring these trends to every corner of the world.

If China's clothing industry is still capable of fighting civil war, fighting price wars and assembling copy, instead of paying attention to the global fashion trend, it can only be a slow shot or two shots in the competition, and it is lagging behind people everywhere.

In the 2015 annual report, Inditex has such a description: since 2011, the group has sent staff to the best fashion and management schools. Some of these schools are in Spain and some are overseas. At present, the group has 600 designers.

"In the final analysis, China's clothing industry is still a manufacturing industry, not a creative industry."

The analysts added, "in fact, more than garment industry, many industries in China have such a problem, that is, lack of international competitiveness;

In a sense, China's huge market provides a good growth condition for these enterprises, but is it not another form of resource curse? Since the domestic market is going well, who will think about internationalization? How big is the Spanish market? Inditex besides being forced to internationalize, what else can be done to make it bigger and stronger?

30 years old, 530 billion, 3 Ma Yun are not as good as him, but only a broken car!

Oman, Theo, Ortega, a 80 year old man from the poor part of northwest Spain, was a poor tailor when he was 40 years old. How did he write his own legend?

Ortega's poor childhood was difficult to solve because of food and clothing. At the age of 8, Ortega moved his family to La Coruna. This is a very chaotic little fishing village.

At the age of 13, Ortega finally dropped out of school under the pressure of life to become a clothing store apprenticeship.

The bar owner often hears a young man in the bar saying with great shame: "I must make some achievements!" this young man is Ortega.

But God did not quickly give this teenager his chance.

During his apprenticeship, he married Rosa, the poor female tailor, Leia maela.

Ortega started his own business for the first time. He worked in a clothing store in La Coruna, then opened his tailor's shop and sold a woman's coat to a clothing store.

The first time I started my own business, Ortega found that the elegant nightdress was very popular, but the price was high enough to make people dare to go far.

So the couple decided to make a top-grade nightgown with high quality and low cost, so that people could enjoy it. His idea gained great success in the market. Two.

Seeing the dawn of otgama, he opened his first factory with his wife. However, God did not succeed so easily. When he was nearly 40 years old, he was on the verge of bankruptcy due to the cancellation of a large order by a German enterprise.

In a fit of anger, he formally established the Zara brand and began the road of producing and selling himself.

In 1975, Amancio Ortega opened a clothing store called Zara in La Coruna with 5000 pairs of towers (Spanish currency, equivalent to 30 euros).

This will be the first step for Zara to reach the top garment retail business.

After 5 years of hard work, Zara was recognized by the Spanish market on the basis of its low price and trend. So Zara decided to attack the European market in 1990. He successfully opened 500 Zara stores in 9 European countries.

And will reach North America in 2000.

Zara has its own sales strategy. It will open the shop to the most prosperous area of the city, and slowly extend its tentacles to the smaller towns along the periphery. Just like "oil pollution", it starts with a big drop and then extends slowly.

Unlike other impetuous brands, Zara started to crave advertisements with a little bit of fame.

It chooses to use others to advertise in a strong time, even if it has been "zero advertising", it still enjoys the praise of the whole world.

Soon, in 2006, Zara became a household word in Asia.

Ortega is really a genius. He dares to make innovations that others dare not do.

It takes six months to a year for a traditional supply chain to put the garments on the store, and then you can be sure that it is a very popular front line.

Zara's clothing is only 15 days away from design, processing and delivery to stores, and no matter how popular they are, the clothes they change are no longer sold.

This has also achieved the purpose of "hunger marketing". If you don't buy it, you will regret it if you don't have it.

From design to production to finished product shelves, the process is controlled within 4 to 5 weeks. If the products on shelves have to be improved, it will take only two weeks to complete.

When the new product reaches 50% to 60% of the production, it will be sent to the store. If it fails to perform well in the first week after the shelves, it will be withdrawn immediately and will not be added to the production. If the sale is good, then the predetermined output will be completed in the next few weeks.

However, even the hot money will not stay in the shop for more than 4 weeks, which makes the customers dare not hesitate too much when they look at some clothes, because they may not see it in a few days.

ZARA launches more than 10 thousand new products every year, and these new products are selected from its design team's annual design of over 40 thousand items.

ZARA hired more than 260 designers to fly to various fashion shows to find inspiration in fashion shows in Paris, Milan, London and New York.

Every year, ZARA pays tens of millions of euros for this mode of infringement, but ZARA has not given up because the profits earned by ZARA are much higher than the fines.

Of course, a large part of the clothes that had been changed were used by Ortega for charity. He donated clothes to refugees in Africa, so that people in those poor areas could also wear fashion models.

In order to make the product appear in the store more quickly, Ortega has always adopted the strategy of employing high price to hire the aircraft, which is much more expensive than the cargo ship, but ultimately saved them 5 days' pportation time and won the first prize in time. He knew what the market needed, not just stare at the cost.

Today, Ortega has opened the world to Zara, and 88 countries have Zara's presence. There are 7000 stores in the world. Ortega, who holds Zara, surpasses Bernard Arnott, the boss of luxury brand LV.

The low life of the richest man

Although his deeds are so brilliant and his assets are so rich, Ortega is low-key in the dust.

He never accepted media interviews, or even the list of rich people, even most people did not know his existence.

He always wore a well fitting old shirt, shuttling in various departments "supervisor", and dining with his employees in the company dining room. His favorite food was cheap potatoes, always able to eat clean and not waste at all.

At 11:15 a.m. on a Wednesday in 2004, in an industrial area in La northa, northwest Spain, Amancio Ortega walked out of his office and entered a television room.

15 minutes later, his company started issuing shares to the public for the first time.

When he left the house at 11:45, his 60% stake was worth 6 billion dollars. He had just become the richest man in Spain.

Subsequently, Oman Theo Ortega walked into the dining room of the company as usual.

The Spanish billionaire was low-key and not pleased with publicity. Before 1999, his pictures had never appeared in the media. In life, he tried to keep a low key and refused to tie.

As for the listing of companies, Ortega explains that he wants to ensure that employees have a bright future.

As president, he and his family live in a secret apartment in the urban area. They do not like ostentation, but do not like being disturbed by life. They travel by a $more than 20 thousand (about one hundred thousand yuan) public stealth.

This is exactly the same as the hundreds of millions of Facebook (127.1, -3.17, -2.43%) founder Mark Zakpa. His car is also a $16 thousand Honda flying degree. The real tyrant who has achieved great success is probably the real love for the cause. They do not care about other luxury in their enjoyment, because they are engaged in the happiest job.

He is over 90 now. Fortunately, his little daughter Marta enjoys his love.

So he asked her little daughter to work in a company as an ordinary employee for 4 years, and then asked her to go abroad for a long career training trip to train her talents. He would really inherit his mantle and carry forward Zara.

Many beauties are passionate about the more than 90 year old. They are excited to say that because of Ortega, they can wear fashionable clothes like models without spending a lot of money.

Of course, there are also some popular men's wear. The handsome guys can also praise him!

The experience of the more than 90 year old man is like a legend, telling everyone in the world that it is not too late to be 40 years old if you want to do something.