Fujian Businessman Zhou Shaoxiong: Is It Good Or Bad For Seven Wolves To Hunt For Luxury Goods?

March 29, 2011, the nineteenth session of the new national exhibition held in Shunyi, Beijing. China International Clothing and Accessories Fair Zhou Shaoxiong, a lean businessman in Fujian, was very eye-catching in a large exhibition hall wearing a silver fashionable suit. He answered the question quickly, without considering and procrastinating. Like a sudden rush to buy luxury agents. brand Like the company, the decision of seven wolves is full of Zhou's acting characteristics.

There was no news before, and the seven wolves announced at the fair that they formally purchased Hangzhou Kenna Garments Co., Ltd. The company has the highest agency brand Connally (Canali), Versace (Versace Collection) and the famous jewelry brand George Jason Georg Jensen and other agents in China. This means that the seven wolves started selling luxury brands.

At the beginning of the conference, Zhou Shaoxiong made a statement. After that, acting as an international brand will become an important business of the seven wolves. Regarding the purchase price of 70 million yuan, Zhou Shaoxiong confirmed that the source of funds was the seven wolf listed company.

risk

Zhou Shaoxiong said that it is not yet possible to assess how much the business will bring to the listed companies. He said that what we need to do now is to build this platform, and we will further seek opportunities for agents to have more international brands, including acquisition opportunities. He said that at this stage, the consumption of luxury goods can still maintain two digit growth only in the "BRICs", of which China's growth is the fastest, so the seven wolves are very optimistic about the prospect of acting luxury brand business.

However, through various ways, the current international luxury brands have basically reclaimed the right of agency in China, and the second luxury brand has gradually become a direct trend.

For this reason, Zhou Shaoxiong said that he has considered this issue and has always been worried. "This is our biggest risk. This situation is quite likely to happen."

He further stated that only a few of the international brands had to withdraw their agents due to their business structure and had strong direct capabilities. However, most companies felt that the cost of sending them to China was too high, and because of cultural, economic and other differences, they did not understand the Chinese market. They needed to find agents in China. "At this time, the key is whether you can create value for these brands, and how your management is concerned. There will be new brands coming out of the brand, and I would like to believe this." Zhou Shaoxiong said.

As of December 31, 2010, Kenna achieved 66373916 yuan in operating income and a net profit of 7844051 yuan. The purchase price of the seven wolves and Kenna is about 10 times that of Kenna's net profit.

Zhou Shaoxiong said that the reason why the acquisition target was finally locked in Kenna, because "some people do not want to sell, they want to do bigger". The agency's early investment in luxury goods is very large. It needs sufficient cash flow to do market cultivation. Once it is mature, it hopes to do bigger. Moreover, the Chinese market is in the outbreak stage of luxury consumption, and many people will inevitably have greater planning. Zhou Shaoxiong said.

benefit

As for the benefits that the luxury brand will bring to the seven wolves, Zhou Shaoxiong Hao does not shy away from it. "For example, a new brand wants to enter the shopping mall, so it is useless to spend much time trying to find out how many people are useless, but now there are different channels for luxury brands to be available."

At present, there are 15 "Connally" brand shops and 4 "Versace" shops in Kenna, mainly in Northeast and East China.

Zhou Shaoxiong wants to help the seven wolves into the high-end channel with the help of the luxury brand agency. In his words, "when negotiating with the shopping mall, the international brand can enhance the right to speak."

In addition, Zhou Shaoxiong's ambition is also reflected in the plan to acquire international brands.

"We help him (international brand) provide this platform, and he does more communication with us to increase our agency opportunities. From agents to acquisitions, we will go step by step. " Zhou Shaoxiong said.

He added that he had not yet said who to buy the seven wolves, because the seven wolves themselves were looking for opportunities to export, but would further speed up the search for international brands and explore the possibility of acquisitions.

Zhou Shaoxiong elaborated on the future planning of this business, "the key depends on the scale". It will not be possible to rely on a few brands. In the future, it will be unified according to the different teams, so as to become an important part of the seven wolves listed companies.