Search in special clothing market two years to become Dongguan, "the first unit"

August 10, 2019

Dongguan garment industry, Dongguan search for special clothing called a mysterious and legendary dark horse. In 2005, Marks and Sister founded the company, different from the unusual "first to build the market, rebuild the factory" off-production model to make it rapidly boil the market; Humen known as "Southern School" clothing distribution center, hatching, including pure, loose eagle, including many brands , But the Dongguan garment "the first unit," but by special search in the Taoist won; when the big-time fashion big eyes staring a large city in the second and second tier, search in special but the cash cow planted in the countryside. Take the "off production and avoid the factory" path As of the end of last year, the company has a total of 1521 stores, of which 129 outlets directly managed to join the shop 1392. This means that more than 400 days of listing gold, in search of special won 35.44% of the store increase. This result is unimaginable when starting a startup in 2005. In those days, Ma Hong, Ma Shaowen and his sister Ma Shaoxian set up in Daocheng Dongguan found in the special Clothing Co., Ltd. As a latecomers, they search for a mainstream profit model that they are reluctant to copy. They first set up their own business routes by "cutting off their production and avoiding factories" by first cutting off the front-end design and terminal retail channels, . Search mainly in the special mode to join the franchise and direct sales of "trendy front" brand youth casual wear, this light asset model helps companies save capital, quickly occupy the blank market, reduce investment risk. In order to supply 1521 stores, the search in the establishment of special "prolific" design center, in a small amount of variety of forms, each year more than 5,400 new models, the final listing of nearly 3,000 new models, in order to promote the terminal store out Cargo rate. In the third and fourth tier cities specializing in the company founded the sixth year in November 2010, search special landing in Shenzhen Stock Exchange SME board. A listing, search at the special offer price of up to 75 yuan per share, 113.6 times the price-earnings ratio makes this 2 million start-up apparel retailers in just 5 years will receive nearly 4.8 billion in wealth. In addition to light production redesigns and sales of light asset model, search Yuet also determined to avoid peers in the first and second tier cities in the face-to-face fight, switch to third and fourth tier cities, the first in the industry put forward the concept of "fashion to the countryside," Ma Hong Even more is the media labeled the "village fashion overlord" label. At present, sales in third and fourth tier cities account for about 80% of the total. In this regard, Ma Hong's explanation is that the domestic market of 34 markets is vast and a large number of blank markets are in urgent need of development. For the purpose of listing to raise funds, search Yu Te is more insisted on the fund-raising in the "most for the issuer in the youth casual clothes 34 markets 38 stores." To further consolidate the issuer in the domestic youth casual wear 34 market positions. Competition peers Semir 2011, Semir's total revenue of 7.761 billion yuan, net profit of 123 million yuan. As of the end of 2011, Semir brand terminal stores reached more than 4,000. Youth leisure style positioning, cost-effective pricing, combined with march to the second and third tier cities, Semir and the trend of front-line veneer fight at a glance. Smith Barney in 2011, Smith Barney's operating income of 9.945 billion yuan, net profit of 1.206 billion yuan. As of the end of 2011, there were 4,164 Smith Barney stores, of which 659 were direct sales stores, a net increase of 170; and 3,505 franchise stores, a net increase of 609. Smith Barney invested heavily in direct sales stores, but also worth searching for special reference. Pure as a symbol of Humen clothing brand in 2011 to achieve sales of 5.8 billion yuan in 2011, 316 million yuan tax amount ranked first in Dongguan private enterprises, this year is striving to reach 7 billion yuan in sales. This set up 16 years of clothing big go is a quick shop "honest" strategy. Reporter observes "base camp" intensified competition in self-managed shop low Although the search for special light asset management mode was magnified and applauded, but the franchise business model still let it skim over the ice. Search franchise stores in the operating period is generally not less than 2 years, the company is not in any way to the franchise store franchise fee, mainly to buy a franchisee way to earn the difference. For such a business model, search Yu Te admits that "the company has lower control of the franchise, there is the loss due to the franchise and affect the company's operating performance and future development risks." Compared to the same industry giants, self-operated shop ratio Small, became the obvious weakness of the trend front, the company said its next phase will focus on the development of direct sales stores and strategic franchise stores. With the intense competition among peers in the first and second tier markets, some dominant brands started to enter into the third and fourth markets, resulting in the possibility of intensified competition in the "base camp" search.

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