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A Hundred Good Stores Have Fallen Into A Hundred "Difficult" Situation

2022/6/6 15:39:00 0

A Hundred Good Families

A hundred good stores have fallen into a hundred "difficult" situation.

After all selected Slyder closed all offline retail stores, several news sources disclosed to brand digital reading (ID: winlive2019) that baijiahao will withdraw its cabinet on a large scale by the end of June. The number of brands checked with baijiahao and Antarctic e-commerce, but no reply was received.

On May 27, on the investor interaction platform, some investors asked: "after purchasing baijiahao, what is the layout plan of the shopping center channel? What is the plan for opening and closing stores this year?" The response from the Antarctic is effective, "Baijiahao is currently in the process of delivery and integration. In the future, the company will seek high-quality customer cooperation and actively promote online and offline business promotion according to its brand characteristics. After the acquisition of baijiahao, the company will close some inefficient stores. However, the company should try its best to make reasonable compensation and care for all the people who leave. This is what the company should do. The company will develop 100 stores in the future Good series of offline stores. "

Picture source: interactive platform for investors

From the reply, it is imperative to close the store. The humanistic care revealed in the text also makes people doubt whether they are planning to lay off staff. No matter whether the rumor of withdrawing the cabinet is true or not, it is an indisputable fact that the market of baijiahao is declining in China.

After nearly 20 years in China, it has caught up with the enlightenment tide of Chinese clothing. The Korean fast fashion, which is represented by 100 good representatives, together with European and American brands and local brands, has updated the aesthetic and fashion trend of the mainland market. As fast fashion fades, Korean clothing brands such as love and clothing have become the memory of a generation. Baijiahao, which is hard to make profits, wants to help itself by committing itself to the domestic capital side.

But for baijiahao, is antarctic e-commerce a good destination?

To be abandoned

During the containment period, a shopping center investment promotion personnel disclosed to brand digital that baijiahao would withdraw all cabinets on June 30, and other employees of baijiahao also confirmed the news. After that, brand digital reading (ID: winlive2019) verified with baijiahao and Antarctic e-commerce, and no one answered the phone.

On the social networking platform, since May, some people have posted that the local 100 good stores are about to withdraw their cabinets, including Xuzhou Yunlong Wanda Plaza, Wuhan Guanggu Joy City, Huai'an Wanda Plaza, Nanning Baisheng impression city, Anhui Huaibei Wanda Plaza, Anhui Huaibei Golden Eagle International Shopping Center, Shenyang Baisheng shopping center, Shenyang Tiexi xinmate, Shenyang Nantong, China Resources, Mixc and other stores.

There are also shopping malls of investment personnel said that did not hear the news, but that there is no fire without wind. A hundred companies have been acquired by Antarctic e-commerce.

After the acquisition of baijiahao, in the investigation of Antarctic e-commerce by 20 institutions, Zhang Yuxiang, chairman of Antarctic e-commerce, revealed the direction of store adjustment in response to the offline mode of baijiahaoli. "We always think that offline is a very good opportunity, and what we are particularly optimistic about is not mall or department stores, but maybe the street stores around us. Because street stores have a big advantage, they can be old users and do user life cycle management."

In November 2021, Antarctic e-commerce announced its intention to acquire part of the trademarks and equity of baijiahao, and finally the dust settled: Antarctic e-commerce purchased some trademarks of TBH Global Co., Ltd. held in mainland China and the * * Special Administrative Region with their own funds of 330 million yuan (including 78 trademarks such as basic house, mind bridge, Jucy Judy, etc.), And to purchase 100% equity of baijiahao from baijiahao * * Co., Ltd. with its own capital of 180 million yuan. The total amount of the two transactions is about 510 million yuan.

Antarctic e-commerce said in the announcement that due to the rise of content e-commerce, the value of some famous and personalized brands has been highlighted, and the acquisition of such brands will help to build the company's brand system; In the future, the company will provide better quality management and management for the short-term R & D companies and better quality management for the future Products with personality, good quality and low price.

It's hard to say whether the deal is worth it. Entering the portal website, "is baijiahao going to go bankrupt", "baijiahao company withdrawing from the cabinet in China", "what happened to baijiahao group" and "acquisition of baijiahao group" implied that the market did not trust baijiahao.

According to the data released by Antarctic e-commerce, in 2020, the total assets of baijiahao will reach 830 million yuan, and the total liabilities will reach 1.09 billion yuan. The revenue of that year will be 1.34 billion yuan, but the loss will be 180 million yuan. By 2021, the net asset loss will expand to 340 million yuan, equivalent to one tenth of the revenue of Antarctic e-commerce in 2021.

Under the huge pressure of loss, around 2020, 100 brands under the banner of Haohao have begun to make major changes in shopping centers.

Baijiahao has four major brands: basic house, mind bridge (Xinqiao), Jucy Judy and mr.class. In domestic shopping centers, it has subdivided into basic house man, basic house woman, mind bridge women's wear, mind bridge men's wear and other different brand stores.

According to Yingshang big data, the main brands of basic house, mind bridge and Jucy Judy have more than 100 stores in shopping centers. From 2019 to 2021, the number of shop closures of mind bridge and Jucy Judy are higher than the number of stores opened, and the number of outlets closed by Jucy Judy is even three times higher than that of open stores.

It is also the end of an era from the high spirited spirit when we first entered China to the frustration of devoting ourselves to people.

2 open high and go low

Korean fast fashion, which is a good representative of 100 brands, was once an indispensable part of China's clothing market.

According to the public information, baijiahao was founded in 1996, basic house entered China in 2000, mind bridge and Jucy Judy entered China in 2003. The three brands mainly focus on fashion, business leisure and girl style respectively, which together form a diversified brand matrix.

At that time, China's clothing market was the "fat meat" coveted by global brands. In 2004, Zara tested the Chinese market by opening a flagship store in Hong Kong, and officially entered the mainland in 2006; China's La chapel was just established in 2001, and Taiping bird changed from men's wear to women's wear market.

Within ten years, together with "Laoxiang" group, 100 representative Korean wave competed with local, European and American fast fashion brands. From 2005 to 2015, it is the decade of Korean wave's heyday, and also the decade of baijiahaohao and other Korean fast fashion brands.

According to public information, the business of TBH global (one hundred parent companies in South Korea) is developing rapidly in China. As of December 2015, TBH global has 1757 brand stores in China. Almost at the same time, UNIQLO has 467 stores in Greater China, while INDITEX, Zara's parent company, has only 566 stores in China.

Based on the total retail sales (Enterprises above the quota), China's clothing industry has experienced a rapid growth from 2006 to 2012, with an overall growth rate of more than 20%. However, after 2015, the overall growth rate tends to be flat, ranging from 6% to 8%.

However, the "clothing bear" of enie group became the fastest turning point of China's clothing industry in 2015; In 2017, the company closed its SPAO stores in major cities across the country; H & M's overall business has slowed significantly since 2015, not just in China. At the end of 2013, the number of Meibang clothing stores was nearly 5000. By the end of 2015, its direct stores and franchise stores in China had been reduced to more than 3700, which means that 1300 stores were closed in two years.

Baijiahao is also following the trend. According to the financial report data, the sales volume of TBH global in 2015 increased for three consecutive years, reaching 632.1 billion won, but its net profit declined for three consecutive years. In 2015, TBH global entered into a loss state with a loss of 9.7 billion won. According to other data, TBH global lost 57.7 billion won in 2018; It will lose 1.982 billion won in 2020; In the first half of 2021, it lost 3.101 billion won.

 


Source: Official Website of TBH Global

The data of baijiahao's Chinese market was not disclosed, but according to media statistics, from 2017 to 2021, baijiahao was punished by the market supervision department for 13 times, and the problem of unqualified products was repeatedly prohibited. The parent company made profits but did not make money, and the Chinese market was also in a mess. TBH global chose to stop bleeding by cutting off its arms.

At the end of 2019, TBH global officials said that the company was in debt problems and was looking for various ways to raise funds. The sale of its China business may help TBH global alleviate its debt pressure to some extent.

After several twists and turns, baijiahao has become a real Chinese brand.

What's wrong with people?

Joining the Antarctic e-commerce matrix, will Baijia have a bright future in China? Perhaps we can find clues from the previous acquisition trip of Antarctic e-commerce.

In 2008, Antarctica, a brand of thermal underwear established in 1997, slashed the production and sales ends, and transformed into a "brand authorization" mode: "ngtt" Antarctic community, and became a tag porter. The products of Antarctica have also rapidly expanded from underwear to silk quilt, cotton clothing, children's clothing, electric scissors, curlers, children's cars, diapers and so on.

After that, Antarctica acquired Cartier crocodile and classic Teddy respectively in 2016. In the following year, Antarctic e-commerce established a joint venture with international clothing brand C & A, which owned the online use right of C & a trademark in China, and became the online operation partner of "C & a" brand in China.

These brand acquisitions have greatly enriched the categories of Antarctic e-commerce: the main authorized categories of Antarctic brand include underwear, home textile, home fabric, etc., while the main authorized categories of Cartier crocodile brand include shoes, men's wear, luggage and leather goods, etc; The main authorized categories of Jingdian Teddy include children's clothing, infant clothing, parent-child clothing, diaper / washing care and other baby and child products, pregnant women's clothing, and maternal products, etc.

At present, the total number of authorized e-commerce suppliers in Antarctica is 1 0358, and the authorized number is 1 031 in 2029. A large number of authorizations, combined with the long-term experience of Antarctic e-commerce platforms, have greatly improved the sales volume of these brands.

For example, after the acquisition of Cartier crocodile, the sales volume increased rapidly. In the first half of 2021, the sales volume increased by 1.85 billion, but the word-of-mouth also declined. In March 2022, Cartier crocodile bags were detected to have fallen off fuel and touched the skin, causing allergies.

Chart source: Antarctic e-commerce financial report

Behind this is the negative effect brought about by a lot of authorization and lax control of commodities. Before this, Antarctica has been on the "black list" for many times, and has been frequently complained about quality problems.

With the continuous consumption of brand power, the revenue of Antarctic e-commerce also began to decline. In 2021, the total operating revenue of Antarctic e-commerce will reach 3.888 billion yuan, a year-on-year decrease of 6.80%. Among them, the total operating revenue of the company's headquarters reached 808 million yuan, a year-on-year decrease of 42.12%. The net profit attributable to shareholders of listed companies was 477 million yuan, down 59.84% year on year.

Although Antarctic e-commerce attributed the decline of revenue to the revenue changes caused by the decline of Taobao, Jingdong and vipshop on the one hand, and on the other hand, it was attributed to the fact that Antarctic e-commerce was expanding cross-border e-commerce and food projects and had made a lot of initial investment. However, the brand authorization model itself has its two sides. It can make the brand realize at low cost. However, if the control of the brand is not effective, it will consume the life of the brand.

"If you don't control the quality, the consumers will not be satisfied. Whether you are OEM or OEM, consumers only know that you are the brand you are buying. As the brand reputation declines, and finally the ability of premium becomes lower and lower, the brand will become worse and worse." Shi lichen, founder of Beijing Dingchen Management Consulting Co., Ltd., once told the media.

It is not difficult to imagine that after baijiahao is acquired, Antarctic e-commerce will continue the previous strategy, authorize the brand and vigorously expand online channels.

In the survey of Antarctic e-commerce conducted by 20 institutions, Zhang Yuxiang, chairman of the board of directors of Antarctic e-commerce, answered the plan for the future of baijiahao, which mentioned that in Antarctica, baijiahao is positioned as spa, that is, retailer + brand merchant. Insist on being affordable to the poor and respectable to the rich. The style may be more diversified. Cartier, mind bridge, Jucy Judy, these personalized brands, will carry out style positioning. In terms of price, they will take two price routes: the suitable price route taken by the Antarctic people; Baijiahao, Caoyu and C & A do brand discount. Then, this brand discount may be more like Tjx, that is, fashion brand discount.

"We want to sell women's clothing and women's clothing. We want to sell women's clothing and women's clothing Zhang Yuxiang said.

It can be predicted that these measures may help baijiahao reverse the current loss situation and bring about a certain degree of growth. However, if the Antarctic e-commerce can not make full use of baijiahao's advantages in R & D, production and quality management, the acquisition is only a flash in the pan for baijiahao.

 

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