Delisting, Selling And Privatization, Where Is The Retreat Of Garment Enterprises?

Why are the listed clothing companies on the verge of delisting, selling and privatizing? What are the driving factors behind the new retail revolution? Are the garment enterprises turning over again to rise again?

"New retail" and "artificial intelligence" are at the forefront of the business. In the process of pformation and upgrading, retail enterprises are using the power of new technology to seize the market and strive to become the new retail leader.

In addition to the dividend of the market trend, the Shanghai municipal government issued the "Implementation Opinions on promoting the development of the new generation of artificial intelligence in Shanghai", which is also promoting the comprehensive economic development of AI and the construction of a new intelligent and intelligent city.

Up to now, the new technology has matured, and the nodes that test the ability of AI to fall into the real economy have become increasingly prominent.

In recent days, the French lingerie and clothing retailer, who was 9 months behind the market, will sell its Chinese business apparel part and retain only underwear business.

It is reported that the three brands of garments in the Chinese market are Etam Weekend, ES and E&JOY, and will be sold to a Hongkong investor.

Why are apparel listed companies privatized, declining performance and encountering shop closes?

Etam was founded in 1916 in Germany. In 1928, the agnet chain store developed to Paris, and gradually expanded to become a famous chain store in France and Europe.

In 1994, IgG entered the Chinese market. It can be said that IgG was accompanied by the development of China's garment industry. Only the fast fashion brand UNIQLO, Zara and H&M attacked the domestic market aggressively, breaking the barriers of AGG's establishment in the Chinese market.

Of course, the clothing brand Esprit and Spanish brand Mango, which are facing the same situation as AGG, are facing difficulties in the domestic market in recent years.

It operates 3767 sales outlets, 987 of which are located in Europe, 2442 in China and 338 in international franchise stores.

It is worth noting that in the first half of 2017, the agge group added 21 underwear sales outlets, but none of them were related to the Chinese market. In the first half of the year, the Chinese market was mainly closed shop stop loss, and only 154 stores were closed in the first half of 2017.

Similarly, the history of BELLE, which entered the mainland market in 90s, can be described as a history of rapid expansion.

It is understood that the expansion of its stores reached its peak in 2012, and the number of net increase stores in 2010 was 1500-2000 in -2012, especially in 2011, and a new store opened on average two days.

The store just started to slide, and there was a lot of shops closing down.

According to the 2012 earnings report, BELLE's revenue grew by 13.5% over the same period last year. Net profit grew by only 2.3% over the same period last year. Of course, this data can not be separated from the slowdown in the demand for women's shoes and even the decline. At that time, BELLE, which was dominated by women's shoes and tens of thousands of stores, was hard to break through this layer, because the continued expansion of stores resulted in a substantial increase in the supply side of the market as a whole, and the oversupply of women made the price of women's shoes slide, thereby reducing the profitability of individual stores.

Just as fast fashion brand development in China is mainly based on accelerating store expansion, but it is clear that the increase of offline stores is indeed of great significance for brand awareness and brand building, but just expanding blindly is no longer an advantage in the present era.

Naturally, from 2014, the pace of expansion of BELLE stopped completely, and its reception was "closed shop tide". In 2016, 700 stores were closed.

The accumulation of all these factors finally led to the announcement of BELLE's delisting and privatization last year. This also means that the "shoe king" bid farewell to the altar. After the delisting, BELLE's pformation and upgrading has attracted much attention from the industry.

Privatization for nearly a year, BELLE is also stepping up the pace of pformation, the recent rumors that BELLE holdings major shareholder of high leverage capital and CDH investment consider splitting its sports business and the earliest listing in Hong Kong next year, raising $1 billion.

However, it is also revealed that the consideration of BELLE's split share movement business listing is at a preliminary stage, and shareholders, including management, may oppose the proposal.

Breaking sports business IPO is expected, but its prospects are not optimistic.

According to the EU's understanding, BELLE mainly acts as an agent of Nike, Adidas, Puma, CONVERSE and other overseas sports brand operators and sports and apparel businesses. Meanwhile, this area has maintained growth after the privatization of BELLE. However, it is not easy to want to go public by relying on the role of the agent. Because it is subject to the agency business, it reduces its brand control rights, while the low gross profit and large-scale development mode makes it difficult for its simple sports business to get a high value in the Hongkong market.

So whether BELLE can rejoin the stock market or whether it will be empty is still needed to wait.

Similarly, Daphne, whose performance has been losing money, has lost HK $734 million and closed over 1000 stores last year, after closing 805 stores and 1030 stores in 2015 and 2016 respectively.

In the face of this situation, Daphne has also made moves in store style, cross-border cooperation and e-commerce business.

The above content is not hard to find. Clothing brands represented by BELLE, IgG and Daphne are facing severe tests. The decline of performance and the closure of stores to the end of the delisting are what drives behind them. In order to cater for the trend of the times, the pformation and upgrading of brands is imperative.

Business models are hard to cater for the new era.

The business mode of an enterprise should change from time to time. If it keeps its original state without stepping up its pace adjustment, it will be regressive in the new era.

Most of the traditional clothing listed companies usually start in offline stores to build brand awareness and expand the market, so as to harvest a large number of loyal consumers.

The early entry and the adoption of the business model of integration of acquisition, sale and marketing in the Chinese market have given the age of AGG brilliant design, manufacture and sale in the domestic market, but this mode is too easy to be copied and continued for the subsequent entry of international brands into the Chinese market. On the one hand, the mode is heavily used to constantly divide the market share and increase the competition in the Chinese market; in addition, the increase in the number of brands will make the mode no longer special, and it will not have the advantage, and it will be difficult for AGG to compete with many brands.

BELLE's privatization and Daphne's performance decline are also relevant.

BELLE started in Hongkong. Since its inception, it started selling the foundry business mode with the mainland factories in Hongkong with the "Hongkong design - mainland production - Hongkong sales" mode. With the outbreak of the consumption potential of the mainland market in 90s, BELLE began to set up factories in the mainland and develop BELLE's brand domestic market. Based on the domestic market environment and consumption characteristics, the mainland market did not have a high demand for women's shoes styling design; besides, the trend of the mainland's pursuit made the goods quickly snapped up.

At this time, there was a problem of fake goods. Therefore, BELLE began to form a chain management mode based on the regional distributors of major shopping malls, combining production, supply and marketing, and establishing brand retail network control.

Although this mode of operation reduces the rate of counterfeit goods, it also further causes the contradiction between dealers and brands.

The layout of Daphne in China is mainly accelerated by the expansion of street stores and franchisees. This is because in the 90s of last century, consumers basically concentrated on offline consumption, while street shops helped to establish a complete brand awareness and achieved a good market share in the environment at that time. At the same time, the affiliation mode also accelerated the expansion of Daphne's stores under the domestic market line. The growth rate of stores in 2008 was expanded by 800 stores at -2012 every year, and Daphne once had nearly 7000 stores.

Just through the expansion mode of stores has been divorced from the present era. First of all, the rise of online e-commerce is affecting all offline retail businesses. Consumers are flocking to the line instead of being restricted to offline channels. After all, they face the brand competition of diversified designs and cheap prices. At the same time, shopping centers, which combine shopping, dining and entertainment, are gradually being favored by consumers. The rise of labor costs and rent costs will inevitably bring pressure on Daphne street stores.

Product innovation is decreasing and it is hard to control consumers.

Consumption upgrading, in addition to the control of the characteristics of the market, the core is consumers, because once the core of consumers lost, brand awareness is high or once more far-reaching influence, it may also be difficult to capture consumers in a short time.

And getting consumers' attention lies in products, and how to control the new generation of consumers in the rise of enterprises.

On the one hand, it is the biggest pain and difficulty for clothing enterprises to win the hearts of consumers in the new era, because although their brands have a long history, the disadvantages of brand aging and insufficient innovation are hard to satisfy the new generation of consumers in pursuit of individuation and quality.

In addition, consumers have the ability to accept new things. They do not want to continue to be in the same and popular environment. Instead, they are more individualized and trend oriented. However, the similarities and similarities of products in traditional listed clothing enterprises are contrary to the needs of young consumers.

There are differences between Chinese and Western culture. The design style in the domestic market is totally different from that in the French market. Although it was loved by consumers when it first entered China, the increasing number of clothing products made it different from other brands. Therefore, in today's increasingly demanding brand personality and quality innovation, the strategy of continuing the "difference between China and foreign countries" is also a factor that leads to the end of the crisis. Insiders say that the design styles of AI Ge in China and France are completely different, and even two different styles are hard to imagine.

It came from the same brand.

This is also a reflection of the new iteration of the times, and consumers' pursuit of novelty styles is accelerating.

Domestic clothing

With the increasing number of brands and various styles of brands, it can satisfy different demands of consumers. It is no longer a single brand in the last century. It should be a hundred schools of thought contending.

With good products as a guarantee, attracting consumers also needs a good user experience. For offline stores, problems such as old appearance, confusion of internal structure and disorder of merchandise arrangement will inevitably bring bad experience and even disgust to consumers, so as to lose a group of customers.

Offline costs soaring, leading to "closing shop tides"

The retail industry is faced with the channel of online and offline. For BELLE, Daphne and Eiger, offline channels and opening stores have always been their main strategy. After all, the old companies have already set up a solid brand strategy and take down the market under the market.

The reason why stores are closed is that the cost and the cost of human resources are increasing year by year. The rise of the electricity supplier has led to the passage of large numbers of passengers. The decrease in passenger traffic has led to a decline in sales. The increase in costs has led to an imbalance in revenue and expenditure and thus can not get rid of the fate of stores.

Only offline stores will not disappear, because some consumers still have needs.

Therefore, it is more important to improve product innovation, reduce costs and enhance the sense of consumption experience.

The key to deciding the fate of an enterprise should also lie in the enterprise itself. The fall of the old enterprise needs to be considered carefully.

Improving product innovation depends on the control of consumer habits and psychology and the timely control of fashion trends.

In the new retail era, the application of big data and AI technology online and offline is gradually developing.

For example, the Zara store in the digital age will be automated to click and pick up goods, and stores will have iPad, smart fitting glasses, self checkout, online shopping orders, self picking and other technologies.

Of course, the contact between stores and technology can not be covered in a short time because of the immature technology and high cost demand.

In addition, online and offline dual channel convergence is the trend. We should have channel advantages and channel consumers' quality user experience through channels.

In the near future, every effort should be made to satisfy the curiosity and personalization of young consumer groups, enhance user experience and increase user stickiness, and increase customer purchase and purchase rate.

Recently, Jingdong has jointly established hundreds of AR industry and retail industry partners such as Intel, WAL-MART and vip.com to establish the first AR unbounded innovation alliance in China. It is committed to using AR technology to create new shopping scenes on line and offline. It creates new shopping and enjoyment for consumers through the form of augmented reality visual experience, and improves consumption experience by "experiential shopping".

Young consumers are willing to contact new things and have strong receptivity. Combining technology with the retail industry may be a way out in the future.

Therefore, how to reduce costs, enhance product innovation, gain consumer recognition, experience and ex post service should be carried out at the same time. This may create opportunities for a certain extent.