Ma Ruimin, Chairman Of Di Su Fashion Co., Ltd.: The Number Of Shops Is Not As Good As The State.

In the first half of this year, economic data were released. According to the latest statistics released by the National Bureau of statistics, in the first half of 2019, the total retail sales of social consumer goods amounted to 195210 billion yuan, up by 8.4% compared with the nominal growth rate (6.7% below the price factor).

As for the eight main consumption components, residential expenditure accounted for the largest share, and per capita living expenditure was 7618 yuan, up 6.7% over the same period last year. This means that more than 1/3 (36%) of the consumption expenditure is used for renting, and the rest also have a certain increase.

But there is only one item falling in expenditure and clothing, and people spend less money on clothes. In the first half of this year, the per capita clothing expenditure was 1156 yuan, down 2% from the same period last year.

Correspondingly, A share clothing enterprises in the first quarter of 2019, the overall data is not ideal. How to stabilize or even improve performance under the condition of weak clothing consumption expenditure has become a problem that many clothing listed companies must solve this year.

According to Zhitong finance and economics APP, some companies choose to increase revenue and reduce expenditure, such as closing stores. Some companies choose to further enrich their product lines through mergers and acquisitions, or expand further to the sinking market of the three or four tier cities.

In the great challenge of the market, the fashion performance of the year that has just been listed for a year is still remarkable. In the first quarter of 2019, di Su fashion achieved 584 million yuan in operating income, 13.53% in synchronous growth, and 195 million yuan in net profit, an increase of 32.58% over the same period last year. Non net profit growth in the first quarter was 12.18%.

With the downward trend of the environment consumption and the fierce competition in the service industry, how can we make steady progress in this field? Ma Ruimin, chairman of Di fashion, has a very clear way of thinking about the future M & A targets, the layout of the sunken market, the layout of overseas markets, and the operation plan of the business side and the capital market.

　　 About the target of merger and acquisition

At present, the women's clothing brand DAZZLE, DIAMOND DAZZLE and d'zzit, respectively, cover the high-end, high-end and mid end brand women's clothing market. Meanwhile, in the second half of 2017, the company launched the menswear brand RAZZLE.

It can be seen that the company's product line is more concentrated. Therefore, M & A is obviously an important means to enrich the company's product line and further improve business barriers.

In this regard, Ma Ruimin, chairman of Di Su fashion, said: "for mergers and acquisitions, since the company chooses to go public and enter the public view, we must advance the development of return shareholders. In the future, there will be mergers and acquisitions in fashion fashion, but we must keep a clear mind, and the target of merger and acquisition is complementary to the existing business of the company. There are more opportunities for mergers and acquisitions, but choosing benchmarking is very important. "

So what are the specific directions of choosing the target?

"We value the complementarity of existing and satisfying customers' pursuit of quality of life," Ma said. For example, the combination of sports and fashion is a blank part. The customers who are concerned about fashion can not satisfy their customers when they choose sports. In this respect, they are more concerned. In the future, they hope that the company's products can involve all aspects of the customers, and the pursuit of customers' quality of life is more important.

In addition, Ma Ruimin said: "we have different standards for good targets, some may not be very good at present, but the content development is relatively good. I will also think that it is a good target. I think there are still a lot of good targets in the middle and high-end fields, which need to be excavated."

　 About sinking Market

In the first quarter of the data, a number of clothing listed companies have closed shop. Recently, an analysis article about the sunken market is being faced with fierce competition from a second tier city. Many consumer enterprises have begun to consider the strategy of sinking. What is the strategy of local fashion in this area?

"From the perspective of sinking, our space is still very large. For example, many cities in the north have not gone," Ma said. At present, China's big environment, domestic demand is being pulled, so for us, sinking is certain. For example, Jinhua is a small city in Zhejiang, but our most expensive brand DIAMOND DAZZLE sells very well over there. So I think every city has a group of people who are concerned about fashion and quality requirements. So we have to constantly optimize our channels, then sink and expand, and internationalize.

According to Tianfeng securities, the number of stores in 2018 was 1062, and it is still located in the middle reaches of the industry, and there is still much room for improvement.

Tianfeng securities analysis team said: "through comparison with other brands with the same brand positioning or style, we find that the main brand DA currently has 613 stores, and there is still room for storage. The high-end brand DM currently has 53 stores, and it is expected to reach more than 100 stores in the future. The 383 brands of the young brand DZ are relatively low at present, and are suitable for sinking in the three or four line cities. At present, the ceiling is far from being achieved. The menswear brand RZ is still in cultivation stage, with only 13 stores, and will continue to expand."

In addition, it is understood that some brokerage analysts believe that the development of the company is mainly based on channel development, and the retail capability of the terminal is slightly weaker. The performance of the store is not bright compared with other domestic brands. In 2018, the total single store revenue of Di Su fashion was 3 million 60 thousand yuan, of which the single store revenue of the direct store was 3 million 630 thousand yuan, and the single store revenue of the franchising terminal was 2 million 750 thousand yuan. (according to the calculation and calculation of terminal water flow), there is room for improvement in the store efficiency of the main brands, such as Wenger, singer, and Lancy.

In this regard, Ma Ruimin said that compared to the number of more concerned about the quality of the shop, that is, the improvement of store efficiency.

She said, "I don't want too many stores, but I want to make the store better. Every open shop, I want to grow from depth to store efficiency. I am very concerned about the same store growth. There are still many aspects that we have not done well, and every store has bigger growth space. Our strategic planning is the same. There is a clear goal for the growth of single stores and the growth of same stores. From a consumer's point of view, do not want a brand that you like to go out everywhere. If you do well in every store, it will have a positive impact; if the number of stores is large, but the operation is bad, that is the negative impact.

The other side of the sinking market is the online market.

For online and offline choices, Ma Ruimin put forward his own views. She said: "in the first two years of the business boom, there were many voices saying that the line was dead. But I firmly believe that the entity store under the line is irreplaceable. My ultimate vision is to improve the quality of life of guests. I think the leading line is an important form to achieve this vision. So I must not be able to change my mind because of the easier online outbursts, lower investment costs, or higher profits.

Ma also said: "our online momentum is also keeping good. At present, the new retail line is synchronized. At the beginning, we only sold stocks, and now all the new products are synchronized. We started online on a relatively late date, initially commissioned by the electricity supplier generation operation, the first two years before we set up our own professional electricity supplier team, in recent years are more than 30% growth.

　 About overseas market

Under the pressure of big decline in domestic clothing consumption, more and more Chinese brands are going abroad. Overseas market has become an important position for many listed companies.

"We are now laying out this piece," Ma said. We have just gone out, for example, in Japan, at the beginning, you would say that the Japanese are very conservative. Do you want to develop a product line suitable for the Japanese? I didn't think about it either, but finally decided not to develop a different thing for Japan, but to bring our brand intact to Japan. Our shopping mall in Japan has entered the young d 'zzit brand. Our sales are the first place on the floor, and there has been a big increase every year. It's liked by many people. "

Ma also pointed out that the market also needs differentiated things. For example, the Japanese wear (color) is fixed, but a good product we sell is pure green. We also counted whether the Japanese or Chinese people bought our products in Shinjuku, Shinjuku, and found that seventy or eighty of them were Japanese. So we have to satisfy consumers' new and old attitude, and we are very curious about our fresh things.

In addition to the Asian region, the fashion may also extend to Europe: "there are two stores in the famous Japanese stores, and there are also shops in Macao, and then Hongkong and Southeast Asia are in progress. This piece of Europe may expand. So from the point of view of the channel, we still have a lot of things to do. Some have to optimize, and no one needs to find the right ones. " Ma Shui min revealed.