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Fashion Brand Transformation And Upgrading Into Fashion, Can The Brand "Multi Legged" Walk Be Effective?

2020/1/19 12:35:00 0

Clothing BrandTransformation And Upgrading

Facing the complex and changeable external situation, brand market competition is becoming more and more intense. Textile and garment enterprises are also using all kinds of means to expand the growth space of the market. By refining the market, expanding channels, diversified development, cross-border cooperation and other ways to enhance their competitiveness and risk tolerance capabilities. From 2019, we can see that more and more advantageous enterprises are upgrading and developing by fashion collectivization and multi brand matrix collectivization.


Renewing and strengthening brand vitality


Today, brand marketing is being redefined by young people.


Under the background of economic slowdown, the consumption intention of "60 after" and "70 after" is becoming weaker and weaker, while the younger "post-90s" and "00 after" are on the top. According to the world-renowned market monitoring and data analysis firms Nelson survey, they will dominate the consumption pattern of China and even the global market in the next five to ten years.


But unlike the previous generation, their consumption preferences and demand habits are becoming more diverse as the level of knowledge and income increases, and the popularity of social media and the popularity of information. In view of this, many textile and garment brands are adjusting their category distribution, meeting differentiated and differentiated consumption needs, and continuing to increase their multi brand and multi business layout to seek new market growth points. Some brands are starting to build a comprehensive "fashion group" to enhance the overall market share by enriching product lines to form multi brand matrix.


Since the Hong Kong stock market has been listed for three consecutive years to maintain double-digit growth of the southern cloth, the main brand of personalized designer segmentation market as a breakthrough. From the beginning, mainly engaged in women's clothing brand JNBY, to gradually extend the high-end women's clothing less, men's wear designer CROQUIS, children's wear JNBY by JNBY and Peng Ma, home JNBYHOME and other brands. At the beginning of the listing in Hongkong, investors are looking at Jiangnan cloth's multi brand collection strategy to meet the needs of consumers of different gender, age and level, and create more possibilities for occupying a better market and generating income.


By 2018, in order to break its own ceiling and seek greater breakthroughs, Jiangnan cloth began to accelerate its expansion of its brand portfolio. After launching the brand SAMO of the target male audience for two months, it launched the environmental protection fashion brand REVERB quickly. In the beginning of 2019, it launched the new men's clothing brand A PERSONAL NOTE 73, which is the main street fashion and personalized clothing.


So far, there are 10 brands in Jiangnan cloth clothing, which are divided into three parts: mature brand, growth brand and emerging brand. Through the more mature Jiangnan cloth, most loyal consumers are locked up, attracting new consumers with growing brands, and infiltrating new segments of lifestyle with the help of emerging brand businesses, forming a step-by-step step by step relationship between each other, so as to maintain a balanced business ecosystem within the group, encircling consumers in a comprehensive way, and promoting the overall performance of each brand by fan's economic effect.


According to the 2019 fiscal year interim report, the mid term performance of Jiangnan cloth clothing exceeded 2 billion yuan mark for the first time, an increase of 22.6% over the same period last year. Net profit was 380 million yuan, an increase of 22.1% over the previous year, a record high.


In recent years, the trend of high-end women's clothing consumption is obvious and the market is dispersed. In March 2019, Ke Eli Till officially announced that it was renamed the winner fashion holding company, and bought the brand of KEEN REACH under the price of HK $2 billion 390 million, which made the brand of the winning fashion brand owned by Ke Eli Till, nelsi's two main brands, and Laketi, Cox, En Ling, Nai Kou and caddale and other sub brands, so that the high-end product level was more three-dimensional and diversified, with different brand positioning to cover different types of Fei Renqun. At the same time, it also improves brand recognition and popularity better by integrating synergies, saving operation costs and strengthening the profitability of enterprises.


Also based on the integration of resources and the enhancement of corporate image, Vigna S changed the name of the company in May 2019 and set up a group company, named Jinhong fashion group Limited by Share Ltd. Its business scope has also increased equity investment, technical services, business management services and consulting, information technology services, cultural and creative, proprietary and agent services such as import and export of various commodities and technologies.


In August 2019, the security fashion group, which gained 51% stake from zero to seven trade (Shanghai) Limited, realized another strategic layout of the company's entry into the children's products industry. Not only that, however, we are also planning to set up the field of fashion standards, including cosmetics, jewelry and other businesses.


Build stronger international camps



Combing these multi brand layout, it also conceals the ambition of the industry leader to move towards the international fashion group.


Since 2019, a number of powerful brand enterprises have integrated and expanded product lines and channels through joint ventures, equity acquisitions and so on, promoting the high-end operation of brands, enhancing the overall competitiveness of enterprises, and moving towards the international camp. Among them, the most striking thing is the completion of the transaction by Anta, Finland's Amer Sports, which is the largest amount of the sports goods industry to date 4 billion 600 million euros. The official brand of amaven sports includes the Canadian luxury outdoor equipment brand ancestor bird (Arc'teryx), the French outdoor mountain outdoor brand Salomon (Salomon), the Nordic sports fashion brand Peak Performance, the American tennis equipment brand Wilson (Wilson), the Austria ski equipment brand Atomic, the Finland sports watch and the outdoor equipment brand song (Suunto) and the American treadmill brand (Precor) and other income bags.


In the market view, after taking over Amafen sports, Anta will further enhance its international management capability and truly move towards the role of the global sports giant. The subsequent move by Anta seems to confirm this. In the AMMAT sports development blueprint released in December 11, 2019, Anta plans to develop its three major brands of eBird, Salomon and Wilson into "one billion euro brands". It is estimated that the compound revenue growth of amamin sports in the next four or five years will reach 10% to 15%. Then, in December 18th, the Shanghai Anta center officially started construction, planning and building a global innovation and integration base, a global talent development center and a global resource linkage platform.


In fact, Anta has always regarded sports brand giants Nike and Adidas as the target of catching up. Since the acquisition of amamin sports, Anta has shown considerable confidence in catching up with its competitors. It has said, "on the positive battlefield, Nike's advantage is hard to shake in the short and medium term. After purchasing amamwin sports, it can quickly occupy high points in the market segments and form a new confrontation pattern of differential competition."


It is also regarded as a good foundation for the layout of globalization. In October 15, 2019, the company bought 89 million 500 thousand IRO stake in ADON WORLD SAS 43%, the wholly owned parent company of France light luxury brand, thus achieving 100% holding of IRO brand.


At the beginning of 2018, in 1 million 200 thousand, IRO received the exclusive agency rights of the IRO brand in the mainland of China, and was responsible for the sales and distributor management of the products in the agent area. In those days, IRO brand realized 575 million yuan of business income, net profit was 45 million 524 thousand and 900 yuan, gross margin was as high as 65.73%. In the first half of fiscal year 2019, IRO brand's global business income was about 343 million yuan, up 35.32% over the same period last year, of which China's main business revenue was 37 million 760 thousand yuan, up 208.19% from the same period last year.


Continuous good brand performance keeps IRO continuously holding until full holding. "The rapid development of IRO brand is of great strategic importance to the global operation of the company." Xia Guoxin, chairman of the company, said.


In fact, in recent years, by investing in M & A and co operation, the company has gradually developed from single brand to multi brand operation management group. Besides IRO brand, it is currently the first 100% holding international brand, but also owns the main brand, such as song's, Laur, l, Ed Hardy, IRO, VIVIENNE TAM and other international brands in the global or Chinese market control. It forms a high-end brand matrix involving fashion, tide brand, light luxury, high definition, etc., covering different market segments, driving the company's rapid development and accelerating to become an internationally competitive high fashion brand group.


It also spent $2 billion 600 million in 2019 to complete the acquisition of Ruyi group, which includes the world-renowned brand of lycra and its INVISTA apparel and senior textile business. In the past ten years, it has evolved from a vertical textile enterprise to a multi brand fashion group.


As early as 2010, Ruyi Group invested about 4 billion yen to acquire shares of Renown41.53%, a Japanese garment giant, and became its largest shareholder. Since then, with the continuous growth and development of enterprises, Ruyi group has frequently bought and bought abroad. In 2014, it bought the majority stake of Peine Gruppe, a German men's suit manufacturer, bought the French light luxury group SMCP in 2016 at the price of 1 billion 300 million euros; in 2017, it bought the British brand SMCP Aquascutum with us $117 million. In the same year, it announced the acquisition of INVISTA's clothing and senior textile business, and held the high-end men's clothing group Li Bang holdings in 2018. After several years of acquisition, Ruyi group has formed a variety of fashion layout, and has a layout in luxury, light luxury, senior men's clothing, fabric and so on. So far, it has more than 30 international fashion brands and more than 5800 stores, and has been doing business in 81 countries and regions.


In order to integrate its resources and give full play to the brand pulling effect, Ruyi group also merged into many international clothing brands such as Cerruti1881 controlled by its 100% stake in's Ruyi brand Klc Holdings Ltd at the end of the year. It also extends the business scope of Ruyi group from traditional wool spinning line, fabric, clothing intelligent manufacturing to fashion brand operation and intelligent retail store network, forming synergy effect of three major plates, namely, technology fiber, textile manufacturing and fashion brand, and constantly narrowing the gap with international leading enterprises in product design, innovation ability, brand operation and so on. It extends to brand operation of textile and apparel high profit run brand, and realizes transformation and upgrading from textile intelligence to fashion brand operation, and has become an international leading high-end apparel brand operator.


Obviously, since 2019, related brand mergers and acquisitions of textile and garment brand enterprises have accounted for a large proportion. Behind this kind of related merger and acquisition, it shows that the clothing enterprises intend to merge more brands and assets that they consider high-quality into the listed companies through mergers and acquisitions, and enhance the competitiveness of the listed companies. This action echoes the actions of some listed clothing companies to "peel off" some brands and assets. It reflects that under the influence of current macroeconomic environment and industrial development cycle, clothing listed companies intend to gain greater competitive advantage in the development of capital market and industrial transformation and upgrading by improving the quality of assets of listed companies, enhancing the qualification of corporate financing and making effective mergers and acquisitions.
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