Analysis: The Road to the Transformation of China's Garment Family Enterprises

Looking at the form of China's garment enterprises, the vast majority of private enterprises are family-owned enterprises, the vast majority of which exist in the form of "couple husbands" or "brothers". The family-owned enterprise is only a phased formulation. The development of the enterprise is a process from small to large and from weak to strong. When it develops to a certain extent, it will become a social and public enterprise. This is an inevitable trend. Managing a company with a family system has become a common management model for 70%-80% of private enterprises. Family-owned companies have many advantages. For example, in the early days of the venture, the company was small in size, and the core members were basically family members linked by kinship and kinship. The entrepreneurs had natural parental authority and depended on parental authority to ensure the smoothness of the family business. Operation. When enterprises develop into social and public enterprises, they often encounter too many bottlenecks in the management process, such as: bureaucratic management, unscientific talent mechanism, unclear equity, unscientific decision-making procedures, organizational obstacles, and lack of good The company's corporate culture and Other issues, I think that in the final analysis is to solve the internal conflicts of family businesses. That is, how to solve the problem of how a family-owned garment company goes toward a family of companies. The family business must go to the corporate family to govern the company and to govern the family, starting from the following aspects:

First, a clear diagnosis of corporate life cycle: family business is not easy to survive, the data: the average life expectancy of foreign family business is 24 years, the family life of Chinese family business is shorter, 88% failed to reach the third generation, only 3% The family business is still operating in - and later. Why do Chinese companies like to promote the establishment of a hundred-year brand, a hundred years of business? That is because China does not have many longevity businesses. Deciding on the fate of a family-owned company is not based on efficient management mechanisms but on the helm of the company. Once the direction of the helm is inaccurate and the positioning is not clear, it is easy for companies to enter the abyss. Where does the longevity road begin? Enterprises must be aware of the status quo of enterprises' current affairs and grasp the pulse of their enterprises. They must establish a family of companies rather than a family company in order to plan and extend the company's life cycle.

Second, formulate a scientific talent strategy: After the family-owned company becomes bigger and stronger, the company grows too fast, the scale expands, and the management is complicated. The management of the family members alone is obviously not timely and urgently requires the introduction of professional managers. The demand for high-level talents in enterprises has increased. The top-level organization of an enterprise has changed from the former family member to become the main position of the enterprise to the appointment of capable person as an important and important position. At this time, the most scarce thing is not monetary capital but human capital. When a family enterprise changes its “de-familiarization” to a social enterprise, it must reform the enterprise-team. It must be clear about the mechanism for employing people and rationalize the concept of employing people. In order to appoint a person with high quality, it is imperative to break the family-owned company's ethos of setting up posts and formulate a mechanism for employing people on posts. Complete the transition from a small company to a large company and from a human company to a system company and complete the transition from perceptual management to scientific and institutional management. The sharp contradiction between the family ethics and the scientific talent management mechanism that reasonably solves the problems of parental authority and affection.

Third, the development of advanced management strategies: The biggest contradiction of family-owned companies is the contradiction between operating rights and ownership. The decision-making and management rights of the family business of clothing, the identity of the major investors and the main managers are highly integrated. Family-owned companies should put “corporate interests” on top of “family interests” and “family companies” should transform themselves into innovative “corporate families”. How to conduct a scientific and reasonable separation, from the ownership of the family members of the original blood relationship or in-laws relationship to the company's shareholding system reform, once the family business survives, it must consider the issue of reasonable equity arrangements, and break the traditional family-owned business operations centered on operating rights mechanism. Set up a board of directors, a board of supervisors, and a general meeting of shareholders; set up specialized agencies such as auditing, remuneration, administration, human resources, finance, and strategic planning committees.

In short, corporate development is based on the basic principle of “people-oriented, philosophy first, and healthy development”. Family-owned enterprises are prepared to take risks from multiple perspectives, including talent strategy, business strategy, and company life. In the future, the road ahead will face more severe challenges, such as: family-owned companies to internationalize, accept global market competition, issues such as corporate successors and other issues, are major corporate issues. It is hoped that the apparel industry will also create a number of business families with the most Chinese characteristics.