Lutai Group: “Creativity” is the magic weapon for survival
Lu Thai Group: “Creativity” is the magic weapon for survival
“There are no sunset industries, only sunset enterprises.” This is a saying that Lutai people often say. When the development of the textile industry faces many unfavorable factors, Lutai A has achieved a magnificent transformation from “manufacturing” to “creativity” in the textile industry by stretching the industrial chain and increasing the added value of products.
As a leading company in the production of mid-to-high-end yarn-dyed fabrics, Lutai A’s interim report released today shows that the company achieved operating income of 1.86 billion yuan in the first half of the year, earned US$210 million in foreign exchange from exports, created operating profits of 370 million yuan, and net profits of 290 million yuan. yuan, an increase of 7.00%, 24.41%, 54.37%, and 38.46% respectively over the same period last year. The release of the gratifying mid-term report also further confirms Lu Thai’s industry advantages. When the textile industry was at a trough, how did Lutai cope with the adverse factors?
Industrial chains are interlocking
Since the birth of Luthai, the company has grown from a small cotton spinning mill in the district to a large manufacturer of yarn-dyed fabrics in 20 years. It has formed four major industries: combed yarn, yarn-dyed fabrics, high-count and high-density pure cotton gray fabrics, and shirts. series, the share of yarn-dyed fabrics in the domestic market has reached 30%, accounting for 18% of the high-end yarn-dyed fabric market.
Those who are good at chess seek advantage. “While focusing on the main textile business, we will actively seek breakthroughs upstream and downstream.” Liu Zibin, general manager of the company, believes that timely sorting and stretching of the industrial chain is an important part of Lu Thai’s success.
As time goes by, Luthai has developed from simple spinning and weaving to an enterprise with 20 production plants including cotton planting, spinning, bleaching and dyeing, weaving, finishing, and garment making, and 8 holding subsidiaries. group.
Those who gain resources gain the world. This saying also applies to the textile industry. In order to effectively avoid the risks caused by cotton price fluctuations and ensure sufficient supply of cotton for downstream production, the foresighted Lutai extended its keen tentacles to upstream cotton cultivation.
As for the downstream of the industrial chain, Lu Thai is also actively exploring. As the leader in yarn-dyed fabrics, it will shift from extensional expansion to technological innovation and brand channel construction in the future. Relying on its fabric advantages, the company actively focuses on downstream brand building and other aspects.
It is precisely because the company has a complete yarn-dyed industry chain that it selects high-quality raw materials starting from cotton, and strictly controls the product quality step by step, which ultimately determines that Lutai’s products are of “good quality, high grade, high technical content, and variety of designs and colors.” Many, short delivery time” and other advantages.
The road to “creativity”
“First-rate companies sell creativity, second-rate companies sell technology, and third-rate companies sell products.” Du Yuzhou, president of the China Textile Industry Association, said during a visit to Lutai recently. “What Chinese textile companies lack is creativity. The same fabric is processed by different tailors. The price will be drastically different.”
Luthai has obviously fully realized the importance of creativity. In order to take creativity to a higher level, Lutai strives to seek cooperation with design masters.
In view of the design gap with yarn-dyed fabric companies, the company has improved its design level by hiring Italian designers and setting up a design center in Italy, gradually moving closer to the field of yarn-dyed fabrics. In addition, the company has established the “Lutai Clariant Textile Dyeing and Finishing Technology Research Center” with the Swiss Clariant Industrial Company.
Lu Tai began to walk independently while using external force. For this reason, the company deliberately defined the theme of the 2008 new product launch conference as “cross-border”. Liu Zibin said that “cross-border” represents a breakthrough in thinking that transcends commonality and means transformation and sublimation. It marks that the era of “Lu Thai Manufacturing” has become history and is now changing from “Lu Thai Creation” to “Lu Thai Creativity”. “change. He further explained: “The textile industry is a traditional industry, but the progress of human civilization brought about by the development of science and technology has given the textile industry great room for development. The application of new textile materials and modern high-tech textile technology has made the modern textile industry no longer It is the textile industry in the traditional sense.”
In 2004, the “Lutai Griffin” shirt was rated as a “Chinese Famous Brand”. Since then, the company’s brand road has embarked on a fast two-way road.
Since then, the company has gradually increased its popularity through a series of brand promotion activities such as participating in the China International Clothing Exhibition and attending exhibitions in the United States. In 2005, the company developed its own brand agents in Canada. In terms of fashion creativity, after repeated market surveys, the company finally launched the “Lutai Griffin” blouse A and B styles with “fashionable” design features targeting female consumers aged 20-45. In 2007, the company’s brand promotion center put forward the idea of ”service-centered brand marketing and innovation-centered brand promotion” based on market conditions.
Innovative ideas and strategic innovation. In accordance with this concept, every new product launched by “Lutai Griffin” not only provides people with an enjoyment of life, but also creates a new lifestyle. The five main products launched by Luthai in 2008 all made bold innovations based on the original styles, making them more novel, fashionable and more comfortable to wear.
R&D advantages are fully demonstrated
Luthai has always placed R&D in a prominent position. The company has more than 15,000 sets of internationally advanced machinery and equipment imported from Japan, Germany, Switzerland and other countries.
The company’s just-released semi-annual report shows that in the first half of 2008 alone, the company developedDeveloped a number of new products and technologies such as nylon stretch fabrics, Pearl fabrics, 100% cotton stretch fabrics, new generation XLA (OBC) stretch fabrics, single sweat-wicking fabrics, Savile fabrics, etc. During the reporting period, the company applied for 6 patents. Among them, there are 2 invention patents. The company also has the only 300-count pure cotton yarn production capacity in China and the best liquid ammonia finishing technology. In March 2008, the company was awarded the “Textile Science and Technology Innovation Demonstration Enterprise” by the China Textile Industry Association.
With excellent quality and service, the company’s yarn-dyed fabrics have been widely recognized in the international market, and have accumulated a large number of high-quality customers for a long time, such as Armani, Burberry, CK, ZARA, POLO and other internationally renowned brands. It is reported that Lu Thai’s annual funding for scientific research accounts for about 5% of sales revenue. An expert in the textile industry said: “Such a high R&D expenditure is rare in the textile industry. It is dozens of times that of ordinary enterprises.” In order to better integrate production and R&D, Luthai established a Eight expert committees including spinning, weaving, dyeing, finishing, information, energy and power, and piece dyeing were formed. IztDre
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