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    ME&CITY&Nbsp; New Strategic Adjustment On The Very Road.

    2010/6/30 11:17:00 61

    Smith Barney

    Planning and process are the foundation of success. Execution and flexibility are the key to success. Zhou Chengjian.

    ME&CITY's flagship store in Huaihailu Road has been reshaped for several months, and the original store pattern has been adjusted.


    "In 2009 and the first half of this year, the cost of ME&CITY is too high. The company will make amendments to this year's development strategy. We must postpone our long-term investment, and we can't just ignore tomorrow."

    Smith Barney

    Zhou Chengjian, director of clothing, in his office in Shanghai, told the securities times writer the plan for the company to adjust its present and future development strategies.


    In the last 3 years, the pace of American Apparel can be described as "no ordinary road".

    In 2008, the financial crisis swept the world. Under the background of the domestic and international garment industry, A was successfully landed in the A-share market, and 1 billion 400 million development funds were obtained during the severe economic cold winter period.

    From 2009 to the first half of this year, the US brand multi brand strategy was officially launched. After the launch of ME&CITY, its performance was lower than market expectations due to expenses and other reasons. Net profit fell 90% in the first quarter of this year.

    For the United States not to take the unusual way of clothing, the next way to go? I have in-depth exchanges with Zhou Chengjian.


    From a United States to two states


    "The past year has been very profound."

    Zhou Chengjian told the author that in the process of making a US barrack dress into two American Apparel (including the two brand categories of American and ME&CITY), the overall performance of this year's overall performance can be achieved through the groping and tossing in 2008 and 2009.


    In 2008, the day of the American Board landing on the small and medium-sized board, the ME&CITY brand conference was held in Shenzhen.

    "I would rather be a turtle in the right direction than a rabbit in a wrong direction."

    After more than ten years of entrepreneurship, Zhou Chengjian took the first step in the strategy of double brands.

    According to the introduction, ME&CITY is stripped from the city series of the Meters/bonwe brand, and has gradually developed the four major product structures of urban fashion series, urban leisure series, business series and children's wear series.


    From a large brand of two product lines to a series of two major brands, the United States of America clothing this step is not easy.


    "The performance in the first half of this year is not particularly satisfactory, mainly due to the large amount of investment in the early ME&CITY, coupled with labor shortage, which has led to delays in the delivery of suppliers."

    Zhou Chengjian stressed that the company is now taking various measures to make up and adjust. It is expected that the situation will improve after autumn, and it is expected that there will be a good pcript throughout the year.


    In the clothing industry, the emergence of a new brand usually takes 3-5 years to mature.

    Zhou Chengjian tried to break the deadline.

    "New brands generally require two to three quarter products to test the water. With their years of experience, Smith Barney hopes to finalize the pattern with a quarter and a half of products.

    I believe that the development space of ME&CITY will be no less than that of Meters/bonwe, although the future development of Meters/bonwe brand is still very big. "

    According to him, ME&CITY has gradually found the direction in running in with the market. From the beginning of this summer, the richness of products will be greatly improved. "The change will be very obvious, and it is expected that the year-on-year sales will increase by more than 30% over the same year."


    In 2009, the rapid expansion of the United States direct dress camp, direct store growth of 27% to 523, an area of about 74% to 270 thousand square meters, revenue grew 61% to 2 billion 300 million yuan.

    Among them, ME&CITY2009 almost all developed in the form of direct battalion mode, which attracted the attention of many people in the industry.

    Zhou Chengjian's explanation is: "the strategy of the United States direct clothing and joint development has not changed, but it is also normal that ME&CITY2009 did not join the store.

    Only when the company builds up the brand of the direct operation system and lets the franchisee see the value, can the interests be driven to join.


    Taking the ME&CITY children's clothing series, which is located at the age of 3 to 12 years old, as an example, he emphasized that the product was gradually endorsed by the joining market, and now it signed more than 150 franchisees. It is expected to reach more than 300 this year.

    "Children's clothing series authorized franchisee agent will further drive the whole brand of ME&CITY, from the original direct camp to the franchise and direct development, and now many franchisees require the company to also authorize the adult wear series."


    {page_break}


    Weighing the current interests and future benefits


    Last year, the target of total revenue growth was 40%, and net profit fell by 70%-100% in the first half of this year.

    Smith Barney

    Clothes fall into the throes of rapid development.

    "In terms of ME&CITY, the company did pay a lot of tuition fees. When it started, it overestimated itself and set an unrealistic goal." Zhou Chengjian admitted that the company's profit growth was slow in 2009 under the pressure of cost pressure, and the profit declined in the first half of this year, weighing the interests of the current year and the interests of the future. The company decided to adjust its development strategy.


    Zhou Chengjian pointed out: "to achieve great development, ME&CITY must invest heavily, and from 2009 and the first half of this year, the cost is too high.

    The company has decided to slow down its long-term investment, focusing on management improvement and efficiency improvement.

    Once the benefits are improved this year, we will make moderate investment next year. "

    In the interview process, Zhou Chengjian repeatedly stressed that as a listed company, the United States and costumes should ensure that the interests of the year, but also to balance long-term interests and short-term interests, "we can not blindly pursue the future regardless of today."


    The United States has recently launched a stock incentive plan, the first 7 million shares awarded to 7 executives and 193 other employees, including incentive objects, the right to exercise conditions in 2010 -2013 4 years, the annual net assets yield of not less than 12%, net profit compound growth rate of not less than 25%.

    Zhou Chengjian emphasized the responsibility for the management team and employees. "This year, the company launched equity incentive, and the net profit growth is less than 25%. The incentive will fail, and to achieve this goal, we must make strategic adjustments."


    "The company's listing will bring me back to reason," Zhou Chengjian called himself an impulsive personality. He was not enthusiastic about the results of the statements before listing, and more about the development goals. Now we should slow down the pace of development and pay more attention to risk control.

    Looking forward to the company's development prospects, Zhou Chengjian is confident that "the past year's development has expanded the platform for the company's development and is expected to be in good condition in the next 3 to 5 years."


    The more we do it, the more we do it.


    It is generally believed that

    Smith Barney

    The costumes are handy in promoting the popularity of the spokesperson.

    In the 90s of last century, Zhou Chengjian used the heavy gold to invite the then Hongkong Red Star Aaron Kwok, which was not common at that time.

    Some comments pointed out that Aaron Kwok's endorsement played an important role in the early growth of Meters/bonwe, and promoted its rapid growth into a first-line brand. Since then, the cooperation between Meters/bonwe and Jay Chou has also played a win-win effect.

    With the debut of ME&CITY, the United States and costumes have joined hands with international giants such as Wentwo Miller and Orlanndo Bloom.


    "Celebrities and image spokesmen can expand the brand influence," Zhou Chengjian said. In 90s, few people would like to spend a lot of money to invite the image spokesperson. Mei Bang dress just grasped the opportunity, but in the current market competition environment, it is far from enough to rely on the image spokesperson to enhance the brand influence and popularity. Brand building will be more reflected in providing service value beyond the product itself, and refining the needs of consumers.


    According to Zhou Chengjian, the company operates two brands of Meters/bonwe and ME&CITY through two departments, sharing management platform, supply chain platform and risk control system, but has independent shop system and different brand strategy and business strategy.

    "Retail can be more and more refined, more and more sophisticated, the need for two brands, four series, because the brand not only represents products, but also highlights different types of lifestyles."


    He further elaborated the necessity of market segmentation based on the difference of sales data.

    "During the small holiday period, Meters/bonwe stores and ME&CITY stores in Shanghai have almost 3 days of cumulative sales, but the gap between single day sales is very obvious.

    Sales of popular brand Meters/bonwe rose sharply on the first day of the holiday, and sales fell sharply on the third day, accounting for only half of first days.

    In contrast, ME&CITY mainly localizer the 22-35 year old urban white-collar who pursue fashion. Consumption habits are mature and rational, and daily sales are more balanced.


    Specific to internal control management.

    Smith Barney

    The clothing is used in IPO to raise funds to use specialized planning information system upgrading project, the introduction of SAPAFS shoes and clothing industry solutions and other management systems, respectively, to supply chain management and product planning, design, development process and other fields to optimize.

    Zhou Chengjian introduced, "at present, the new ERP system has just completed upgrading, helping enterprises to shift from production demand orientation to market demand orientation, so as to achieve sustainable and rapid development."

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