Mertes Bonwe: How To Sell High Prices For Light Assets?

In August 28, 2008, 002269.SZ landed on the Shenzhen stock exchange's small and medium sized board, offering a price of 19.76 yuan, the opening price for the first day was 30 yuan, and the closing price as of September 4th was 27.40 yuan.

The listing raised a total of 1 billion 383 million yuan.

Today, American state clothes seem to be walking on the road of international casual wear retailers.

With less capital expenditure and high growth, Smith Barney put forward the strategy of "light assets".

This strategy is also known as the dumbbell structure of the virtual management mode, which is the product of the US state dress, which has been handed over to foreign enterprises that have lower labor costs, lower cost, more conducive to pportation and sales, and sold products to all distributors who join Nike.

This business model is not an innovative move. The original Nike company used the "light assets" mode of high value-added links at the two ends of the industrial chain (R & D and brand management) to occupy the leading position of the professional sporting goods market.

Similarly, through the strengthening of brand building and promotion, product independent design and development, marketing network construction and supply chain management, outsourcing, production, affiliate and direct sales combined mode of operation, organizing the design, production and sales of brand fashion casual wear products has been widely promoted in the world.

Among the internationally renowned casual wear retailers, almost 60% of H&M, GAP, Limited, Polo RalphLauren and UNIQLO take the form of production outsourcing.

But Gao Fangmin, an apparel retailing analyst at Guoxin Securities, said: "it can not be said that this is a complete replication of foreign sales patterns, and now clothing retailers basically use this sales mode.

It is an inevitable trend for enterprises and markets to develop to a certain stage.

According to the survey of the domestic casual wear retailing industry, the casual wear retail enterprises that use outsourcing mode can reduce the pressure of cost increase by giving full play to the advantages of the domestic textile industry, such as the advantages of abundant production capacity, strengthening the order bidding mechanism and establishing long-term cooperative partnership, and have the experience of relying on the professional production and service experience of the suppliers and the third party logistics enterprises, so as to enjoy the cost advantages brought by their economies of scale, which is conducive to the enterprises concentrating on the most value-added links and enhancing the core competitiveness.

"Compared with other domestic brands such as YOUNGOR and seven wolves, the" light assets "business channel of American Apparel is a significant advantage, and outsourcing can make us bond clothing more energy focus on product design and R & D, as well as brand building.

Haitong Securities retail apparel industry analyst Pan He analysis.

Obviously, the United States and costumes are walking the old way of the international casual wear retailers, but it is undeniable that the outsourcing form is an important manifestation of the "light assets" of the American state clothing. At present, this "light assets" strategy has earned the qualification of the US state clothing.

From the perspective of the development of enterprises, the United States has developed from "toddler" to the stage of "independent innovation".

With the continuous entry of international brands into the Chinese market, rich and colorful forms of promotion and various brand strategies have made more domestic retailers find that brand building and promotion are the important means for the international well-known casual wear retailers to implement differentiated competitive strategies and maintain consumer loyalty.

American Apparel is also well versed in the rules, but unlike other domestic casual wear, American barrack clothing separates the students from the consumers.

In 2007, the United States began to divide the products into two series: "campus" and "metropolis". At the same time, a completely different design team was assigned to design the products.

Such a move has also made American Apparel a good profit. According to CTR's nationwide market research in 2007, the first mention rate of the 157 leisure wear brands in the 14-35 year old consumer group is 35.6%, much higher than that of other competitors in the industry.

In terms of popularity, purchase rate and brand loyalty, it is also at the forefront of the industry.

In August 2008, on the same day, the United States and costumes decided to launch its high-end brand "Mei & Chi Yi".

From a single brand to a multi brand pformation, the United States also has the same market segments as the international casual wear retailers, and has joined the international cooperation team, MLC, a famous French clothing brand consultancy company.

"Like other international brands, building new brands is a common practice.

The current domestic customer base is relatively narrow, the possibility of upward extension is very small, but it lacks brand extension, so it can only expand two aspects: first, do parallel brand, another new brand is parallel to the United States, and the other is to make the brand series under the Muse banner.

Wang Rong, an apparel retailer analyst at United Securities, thinks so.

Haitong Securities analyst Pan He said: "it can not be said that the United States and the state of clothing is entirely in the development of high-end, the establishment of this brand can help us state clothing to seize more target groups, rather the extension of products."

Testing many brands of water is also the first step towards internationalization.

This step also helped us to effectively excavate a 23-25 year old age group with more purchasing power.