Roo · PDF fileCare、Communication、Creativity 5 The birth of jeans In 1873, 143 years ago,...
Transcript of Roo · PDF fileCare、Communication、Creativity 5 The birth of jeans In 1873, 143 years ago,...
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Roo Hsing –
Institutional Investors’ Conference
2016.04.14
Care、Communication、Creativity2
The Vision
To become a service-oriented jeans manufacturer
To reach the vision, RH will have to be equipped with capital, market
shares, and talents.
Care、Communication、Creativity3
Agenda
The past, presence, and future of jeans
How RH positioned itself in the past
How will RH position itself in the future
Q&A
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The past, presence, and future of jeans
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The birth of jeans
In 1873, 143 years ago, Levi Strauss invented the very first blue jeans, and patented it.
Original design of blue jeans is for the miners, therefore, the blue jeans were very toughness、rubbing resistance、dirty resistance。
The disadvantages of Canvas are: hard、 stiff、uncomfortable、unstyled。
The development of denim fabric made the blue jeans to become heavy but soft touch、comfortable wearing、function styling meet worker inquire。
Canvas successfully change into Jeans and wide spread in miners, farmers and cowboys in 19th century.
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Jeans became part of life
Since 1873, blue jeans became popular from the miners and blue collars to others.
Since 1950, blue jeans was loved by all levels due to the developments of fabrics, TV commercials, and John Wayne of Hollywood.
At the 200th anniversary, blue jeans became the member of Hall of America.
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The future of jeans
Jeans is always part of human life,
90% of population owns 1 jeans, and 45% of population owns more than 10 jeans at the same time.
The British women wear 428 times on a pair of jeans at cost of 80USD, while wear 68 times of a pair of legging at the cost of 16 USD.
Believe or not, blue jeans will survive for the next 140 years in the human history.。
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How RH positioned itself in the past
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The past of RH, before 2015/12/31
• RH was the core vendor to many buyers, not strategic vendor
• Advantages: conservative, quality driven, keeping promises, good skills
• Disadvantages: conservative, no expansion, old facility, and manufacturing centered
• Ignoring the migration of garment industry
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Jeans Industry
Cotton Yarn Dye
FabricGarmentBuyers
Roo Hsing
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Buyers’ Market Shares
Brand (%)
Nike 1.3%
H&M 1.2%
Adidas 1.0%
Levi's 1.0%
Zara 0.8%
Uniqlo 0.8%
Ralph Lauren 0.8%
Hugo Boss 0.7%
C&A 0.6%
Tommy Hilfiger 0.6%
Brand (%)
H&M 1.3%
Zara 1.0%
Uniqlo 0.7%
Victoria's Secret 0.6%
C&A 0.6%
Nike 0.6%
Forever 21 0.5%
Gap 0.5%
Old Navy 0.4%
Adidas 0.4%
MEN’S CLOTHING WOMEN’S CLOTHING
• H&M and Levis rank at the no.2 and no.4 in men’s clothing• H&M, Zara, and Uniqlo lead the top three in women’s clothing
sourced:Levi Strauss
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RH’s customers
• Aforementioned are the RH’s customers ever
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How will RH position itself in the future
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Fast fashion is the trend
Brands race for introduction of new design and lower price to the market
To become the great manufacturing partners to the brand buyers, RH needs to be speed driven, quality driven, volume driven
Speed driven: automation
Quality driven: automation and technology
Volume driven: SOP and efficiency
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RH’s future positioning
• To become the strategic vendor of the big brand buyers
• Buyers’ requests: cost, delivery, quality, and sustainability
• Service driven
• Expansion
• State-of-art technology
• R&D
• Sustainability
Better Future
Time
As Is
To Be
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Services lead to prosperity
Dinner with Levi’s and Dockers for both mutual benefit in the future
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Automatic Implementing(I)
Traditional Belt Loop Process
Automatic Belt Loop instrement
Traditional Pocket Crease process
Automatic Pocket Crease instrement
Traditional Pocket Stitching process
Automatic Pocket Stitching instrement
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Automatic Implementing(II)
Traditional Cutting
Automatic Cutting
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Automatic Implementing(III)
Traditional Flow Line
Suspension Flow Line
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Revolution of Washing Process
Traditional Washing Process Laser Washing
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Historical performance of Roohsing
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月
2015 Net Revenue 2016 Net Revenue
unit:NTD ,000
Source: M.O.P.S.
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Q&A