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    Busen Seize The Opportunity To Deep Plough Two Or Three Line Cities

    2011/4/11 10:42:00 41

    Busen Two Or Three Line Brand Business

    Shenzhen is coming to Zhejiang.

    Busen

    Apparel Limited by Share Ltd (hereinafter referred to as "Busen shares (002569, stock bar") is located in the two or three line city cost-effective commercial men's clothing brand, in recent years, the development of sound.


    The company's fund-raising funds are mainly used for direct store construction and production line expansion projects, which not only can expand production capacity, but also improve profitability structure. The increase in direct proportion and the increase in the proportion of high-end products will effectively enhance the gross profit margin of Busen shares.


    Focus on two or three line cities benefit channels sink


    Busen shares main Busen brand men's clothing design, production and sales, the main products include shirts, Western-style clothes, trousers, jackets, sweaters and so on.

    The company takes the "comfort business men's clothing" as the core concept of the product, aiming at the 25-45 year old business men's consumer group, develops three series of products: "fashion trend", "urban upstart" and "classic formal dress".

    In 2010, Busen shares sold nearly 7 million sets of men's clothing products. It is a large sales enterprise in men's wear industry, and is also one of the few enterprises exporting garments with its own brand in China.

    The trademark "Busen" owned by the company was identified as China by the State Administration for Industry and Commerce in 2000.

    well-known trademark

    。

    By the end of 2010, the company had 763 franchised stores (direct counters) and direct outlets (counters).


    The distribution channel of Busen shares was mainly distributed by franchisees, which accounted for more than 97% of the total sales revenue over the years. As of 2010, the company had 43 franchisees, 752 stores and 11 Direct stores.

    Franchise revenue accounted for 97.33% of total revenue, and direct income accounted for 2.67% of total revenue.

    It can be seen that franchisee channel distribution business is the main form of Busen's share sales. Although the proportion of direct investment has increased, it is still in a very small proportion.


    In terms of geographical distribution,

    Busen

    The key areas of the shares are East China and central and southern regions. The company stores are more distributed in the two or three line cities, especially in the county-level cities.

    In the second tier market with emphasis on product quality and cost performance, the company's advantage is more obvious, and it can enjoy the advantage of increasing consumption tendency brought by channel sinking and consumption upgrading.


    In recent years, the main business of Busen shares has continued to grow steadily.

    The income scale of the company in 2008 -2010 was 442 million yuan, 463 million yuan and 537 million yuan respectively, the growth rate was 6.1%, 4.7% and 15.9% respectively.

    Net profits were 27 million 650 thousand yuan, 32 million 660 thousand yuan and 42 million 150 thousand yuan respectively, representing an increase of 3%, 18% and 29% respectively.


    Men's clothing industry is growing rapidly and has the advantage of first mover.


    Thanks to the rapid development of China's economy, the continuous rise of per capita disposable income, the continuous growth of the domestic middle class and the upgrading of consumption structure, China's men's wear industry has developed rapidly in recent years.

    According to statistics, the total retail sales of men's clothing in China increased from about $12 billion 200 million in 2001 to about $37 billion 700 million in 2008, a compound growth of about 17.5% during that period.

    Although the retail scale of men's wear has expanded rapidly in China, the average per capita consumption of men's clothing in 2008 is only 25% and 20% respectively.

    It is estimated that the retail sales of men's clothing in China will increase by about 17.4% in 2009 -2013, to about 83 billion 700 million US dollars in 2013, and the growth rate is far faster than that of developed countries.


    The men's wear industry is one of the most mature sub sectors in the garment industry. It belongs to the full competition industry.

    At present, the traditional clothing enterprises are moving into a "middle line" between formal dress and casual wear, that is, pforming into "business and leisure".

    The business and leisure industry will have a higher level of gross margin and profitability because of its high-end positioning, but it depends on whether the brand has high added value.


    The Busen brand of Busen shares has gained a certain brand position and brand advantage due to its early start operation and the support of first mover advantage.

    With the help of listing and financing, the company is expected to achieve a considerable pace of development with the industry.


    New outlets will become the biggest bright spot, contributing to the year's performance.


    Busen shares planned to raise 229 million yuan in funding. It plans to invest in 26 direct network construction, an annual output of 400 thousand middle and high grade jacket production lines, 100 thousand new sets of high-end suits and brand design and R & D centers, and a total of four projects.

    Among them, an annual production of 400 thousand jackets and an annual output of 100 thousand high-end suits production line will greatly expand the proportion of high-end products.

    However, the "26 direct store construction project" is the biggest highlight of the recruitment and investment projects. After completion, Busen will add 6 comfortable life concept stores and 20 direct flagship stores, and the company's Direct stores will reach 37, which will greatly enhance the company's control over the channel and enhance the profit level.


    Insiders estimate that about half of the stores in the project will be completed in 2011 and gradually start to contribute to their performance. This is the main growth point of the company's revenue before the production line has been completed.

    In the future, with the increase of the proportion of direct battalions in 26 direct outlets, and the gradual increase in the proportion of domestic shares of Busen shares, it is expected that the gross margin level of the company will be improved in the future.

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