GXG Parent Company'S "Full Category Chinese Fashion Group" Layout Road

In the past two years, China's economic growth has slowed down and consumption has slowed down due to the global economic environment. This year, under the impact of the epidemic, China's apparel industry has been unprecedentedly affected. Faced with the cost pressure of inventory, rent and excess income, many small clothing enterprises have pressed the pause button.

But "danger" always coexists with the "machine". Although the epidemic has caused a heavy blow to the apparel industry, it also shuffle and restructure the industry, forcing enterprises to think about the innovation of the profit model, speed up the optimization of the layout of the channel, and attach importance to the shaping of brand power. Mu Shang Group began to enter the line of deep integration in 2019. Continue to "optimize the integration of existing stores, layout internationalization" pace of development, following last December and Wancheng Resources announced the establishment of joint ventures, announced that they will be responsible for the operation of ESPRIT mainland business. In April this year, the mosang group also announced the cooperation with Yi Hao rice brand management Co., Ltd. to participate in Paul&Shark and other international brand agency business, and the brand territory expanded again.

In the great environment of "danger", the mosang group is moving on. Therefore, the special interview of win business network and the digital executives of the dialogue group analyze how the company will expand its territory through strategic layout, break through the tradition through the channels of adapting to the current situation, and move towards the "Chinese fashion group of all kinds".

Take another son to build a bridgehead for internationalization.

Many brands and internationalization have always been the development strategy of Mu Shang Group.

Since the opening of the multi brand strategy in 2010, the main brands of mousse group are: flagship menswear brand GXG (demand area: 80-150 square meters), Main Street trend GXG jeans, children's wear brand gxg.kids with GXG design concept, urban commuter menswear brand Yatlas, sports brand 2XU.

As we all know, Mu Shang Group plans to spend 60 million yuan to win the ESPRIT mainland business by holding 60% rights and interests of the joint venture company. According to the next brand development plan of ESPRIT, the head of public relations of Mu Shang group revealed to the winning network: Mu Shang will completely reshape the channel, pricing, brand image and consumer portrait of ESPRIT. Specifically, the group will be solely responsible for its product design, marketing and promotion, and will be placed in the new shopping mall channel with an area of 100-200 square meters of new image store. However, affected by the epidemic this year, the group will appropriately adjust the shop opening time and product production time of the offline stores. It is expected that no specific brand reform rules will be introduced before the second half of this year.

The Paul&Shark is the second international brand in the recent "multi brand and internationalization" strategy. This brand, founded in 1976 in Italy, is mainly free, casual and gentlemanly. In addition to men's, women's wear and children's wear, Paul&Shark, inspired by sailing and adventure sports, has launched a series of limited theme clothing series.

The reason why the mochan group chose Paul&Shark is because of its positioning as the "internationally renowned senior leisure brand", which is in line with the group's brand tonality and the taste of the mainstream users. This is only an important brand in cooperation with Italy, and there are still other brands in the layout.

For the future deployment plan of internationalization strategy, Mu will give full play to the group's existing channels, products, members, supply chain resources, and deepen the new retail platform to meet the needs of consumers in different scenarios. "Establishing a multi brand and multi product fashion platform has become the first choice for international brands to seek strategic cooperation in China, so that we can make the integration of brand internationalization and globalization more smoothly." Ding Dade, vice president of Mu Shang Group, said CFO.

Layout, costumes and all categories to expand group layout

In 2018, with the total retail income, the group held a market share of 3.3% in China's fashion men's clothing market, ranking second in the country.

Judging from the recent two international brands' strategic cooperative actions, moshang group has started the extension of clothing category. The acquisition of Esprit's business in mainland China and the agency of Paul&Shark not only made the group's two well-known brands further consolidate its leading position in men's clothing industry, but also filled the group's vacancies in women's clothing brands.

With regard to the expansion plan of all kinds of clothing, the mousse group will be based on existing resources and accumulated experience, and is still dominated by men's wear and sports retro brand. Men's clothing category will expand to the trend brand. In addition, the Shang Group is considering buying the brand of women's clothing, but considering the strength of the existing 13 million member system is not dispersed, the choice of brand will be considered, especially high-grade or especially low-grade, which is basically not within the scope of its choice.

In addition to the expansion of offline entities, Mu Shang Group also hatched women's clothing, underwear, men's shoes and home textiles online. It is reported that online women's wear and underwear have been sold for two years, and now they have reached the expected sales volume.

Continuous optimization and adjustment under the new store

Closing stores is another important move for the group in 2019.

According to the unaudited 2019 results announcement released by mosang group in March 30th, group revenue and net profit declined in 2019 compared with the same period in 2018. The group said that in addition to the slowdown in the industrial environment, the group entered into a deep integration period.

In Ding Dade's view, the layout of the store is to serve consumers better and better, and to improve the efficiency of the store and maintain a dynamic balance. "Because of the market transfer of offline channels, the rising operating costs of stores and other market factors, and the upgrading of offline channels, we have adjusted the store network and closed down stores that fail to achieve sales targets."

The announcement shows that since the second half of 2019, the group has closed 513 stores. Among them, the number of GXG stores decreased from 1216 to 1118, GXG jeans decreased from 505 to 336, and gxg.kids decreased from 454 to 249. Yatlas was reduced from 69 to 29.

Obviously, by rapidly opening up the market to seize the market share, the strategy and mode of operation to drive revenue growth by the number of stores is no longer suitable for the current market trend and demand. The invasion of the epidemic also reflects the limitations of the traditional single profit model. Reducing the number of lines under the line and distributing the online channels has become the way of innovation for more and more clothing enterprises.

After closing the inefficient stores, the mosang group will also focus on further deepening the new retail mode, linking online and offline, further developing the number of smart stores and increasing the wisdom of existing stores. "We want to make offline stores not only an image shop, an experiential shop, but also an important part of the new retail mode." Ding Dade said there would be no obvious channel difference between the online and offline industries.

For the exploration of the new retail mode, Wu Lei, vice president of e-commerce and general manager of e-commerce, told the winning business network that after implementing the basic strategy of online and offline integration for several years, and through the systematic integration of some commodities and members, the group will upgrade the whole system level in this year, and integrate all the systems on line and offline to form a unified data. At the same time, at the same time, we should accelerate the construction of the organizational structure of the small front desk public backstage, and explore new channels such as social networking and live broadcast based on the new retail mode of online offline integration.

For the current popular live with goods, Wu Lei said, this is a very worthy of affirmation of the technical means, will greatly reduce the distance between the brand and consumers. But in view of the gradual deification and irrationalization of direct seeding, the layout strategy for the channel is:

1. live directly with consumers through direct seeding, and live broadcast in customer service reception and after sales.

2. make use of the head anchors of some platforms to do inventory and sales and promotion of cost-effective products.

3., the live broadcast of the brand is normal. This part will not lead the sales concept, promote the brand to consumers, introduce the joint names, fabrics and collocation of the products.

Conclusion:

Each industry reshuffle is a concentration of industry upgrading. It is also inevitable that enterprises with ability to survive and fight against beating will be eliminated by market. But for enterprises with strong brand strength and strength at the end of products, design, supply chain, or an opportunity to counter the trend.

For moshang group, whether relying on a strong supply chain system to quickly transform the mask to meet the needs of VIP members and customers in the outbreak of the epidemic, or to rapidly expand the channel to achieve a breakthrough of 100 million of the total turnover of the social electricity supplier after the outbreak of the epidemic situation, are all the reflection of the adaptability of the enterprise under the strength of the enterprise.

In view of its existing brand development plan, mosang group said that in addition to stabilizing GXG's leading brand position in domestic casual fashion apparel, gxg.kids has become an obvious leading brand of children's clothing in China. Develop 2XU's potential in the field of professional sports and Yatlas in the high-end commuter field.

The future group will continue to expand its cooperation with international famous brands, carry out new cooperation modes such as brand industry crossover and designer interoperability, and look for international excellent franchisees to lay the international market and enhance the brand's international reputation.

Today, moshang group is still on the road of multi brand, internationalization and all kinds of layout. How will the two international brands be developed? How will the moxa group make the international agency business become its growth accelerator and truly become a Chinese fashion group across the whole category?