Kenna Dances With "Wolf" &Nbsp; Zhou Shaoxiong Restarts Expansion

In March 29th, Beijing new national exhibition W105 news release hall, under the testimony of Sun Ruizhe, vice president of China Textile Industry Association, signed a takeover agreement between Zhou Shaoxiong and Zhang Jianmin, and formally announced Fujian to the industry. Seven wolves Industrial Co., Ltd. bought Hangzhou Kenna for 70 million yuan. Clothes & Accessories News of limited company.

In fact, prior to this, the relevant equity transfer procedures have been completed. In March 15th, Hangzhou Kenna costumes announced recruitment notices on some job hunting websites as a wholly owned subsidiary of seven wolves. Marketing And logistics personnel.

On the day before the press conference, in March 28th, the press conference on China's merchandise sales statistics in 2010 was also held in Beijing. The seven wolves got the top priority in the two industry rankings: the wolf wolf jacket, the first comprehensive market share in 2010, and the first seven wolf jacket for 11 consecutive years. The friendly acquisition is another manifestation of the mutual recognition between Zhou Shaoxiong and Zhang Jianmin's two business philosophy and values, and also an important step in the strategy of the seven wolves.

　　 Kenna costumes and Zhang Jianmin

At a news conference in March 29th, the host mistaken Hangzhou Kenna dress as "Mccann" dress. This also reflects a message from the side: Kenna clothing is not familiar with the media and other people in the industry. Yes, Hangzhou Kenna, which was founded in March 2008, has not been widely reported in the industry. But it has the right to represent Italy brand Canali, Versacecollection and Danish jewelry accessory brand GeorgJenson in China, which is closely related to Zhang Jianmin, the operator behind it.

Zhang Jianmin, a former loan officer of Hangzhou Agricultural Bank, director of the planning office of Hangzhou branch of Bank of communications, President of Zhejiang branch of Bank of communications, and President of Zhejiang Han Po clothing company, is currently the chairman of Shanghai Galan investment limited and the general manager of Hangzhou Kenna Clothing Co., Ltd.

Zhang Jianmin wrote to the reporter's card that he was chairman of the Shanghai garland investment company. However, when the reporter called the phone on the card, it was a sweet welcome phrase "welcome to call the seven wolves company". Is there a problem in the process of making the name card? Zhang Jian people explained that there was a cooperative relationship between the Shanghai garland and the seven wolves.

In the 2002-2006 years of five years, Zhang Jianmin has been associated with the largest women's clothing manufacturer, Han Bo international group. As the president and spokesman of the group, he was named "star financier who walked into the fashion industry and the fashion people out of the financial world" as soon as he appeared.

What impressed reporters was the three "unexpected thoughts" he said in a media interview. A reporter once asked him, what is the biggest feeling in the field of clothing coming from the financial sector?

Zhang Jianmin replied: "I have three" unexpected ": first, I did not expect the quality of practitioners is so low, two is the gap with foreign countries is so great, three is the employees feel so good.

And to change these three "unexpected", Zhang Jianmin believes that introducing foreign brands and understanding the operation platform of international fashion brands is a good way, which can lay a solid foundation for Chinese brands to enter the international market. In the five years Zhang Jianmin worked as president of Han Bo international group, Han Po international has successively represented many high-end international brands such as HAILIVES, HEMPEL, JPR and IZOD.

Also in the operation of IZOD brand, Zhang Jianmin and Zhou Shaoxiong, the well-known entrepreneurs in the industry, began their first close cooperation. In March 2004, Zhang Jianmin and the seven wolf group, which were under the command of Zhou Shaoxiong, announced on the China fashion week that the two sides invested 20 million dollars to jointly establish the Dongli international brand operation company.

IZOD is the next brand of PVH, the second largest clothing company in the United States. After inspecting the strength of various agents, PVH chose the sole agent of IZOD in Asia (including RTHK). Zhang Jianmin and Zhou Shaoxiong can effectively complement each other, greatly reduce the operating cost of the brand and gain greater competitive advantage.

　 After the acquisition, Kenna staff remained.

Like previous cooperation in the operation of IZOD brand, the seven wolves purchase Hangzhou Kenna is also to achieve mutual complementary advantages of resources.

There is no doubt that Zhang Jianmin, who was born in the financial industry, is good at capital operation. In 2008, Kenna Clothing Co., Ltd., founded in 2008, has been developing rapidly after two years of acquisition and integration. It has become one of the two largest agents of Connally in China. At present, Hangzhou Kenna has set up 15 "Connally" brand shops and 4 "Versace" shops in the whole country. The main business areas are concentrated in the northeast and East China.

It is understood that Hangzhou Kenna has been playing an important role in the international luxury brand business in China in recent years, and has gradually become an important platform for international brand development in China. According to Xiamen Fanghua accounting firm limited, the Xiamen Fanghua (2011) 0010 audit report, as of December 31, 2010, in just two or three years, Kenna apparel realized 66 million 370 thousand yuan in business income and 7 million 840 thousand yuan in net profit.

Why should we sell Kenna clothing that has already achieved good returns and good expected returns? This is a matter of concern to many media and industry.

To this, Zhang Jianmin's answer is: "this is similar to the seven wolves listing. Through these years of operation and exploration, we feel that brand agents still have great prospects for development, but in recent years, we have also encountered bottlenecks, that is, the problem of capital. Acting as an international brand requires a lot of input, so we talked about these issues with Zhou, and the two sides hit it off. This is a win-win situation. {page_break}

According to McKinsey, sales of luxury goods in China reached $12 billion in 2010, and sales of luxury goods in China will reach $27 billion in 2015. By then, China will surpass Japan as the world's largest luxury market.

Zhang Jianmin said at a press conference that foreign brands are very optimistic about the Chinese market, and some brands are recovering their agents. Therefore, international brand agents are also constantly shuffling, and the industry competition is becoming more intense. "Through cooperation with the seven wolves, we will be able to expand the strength of Kenna in Hangzhou, develop more in this industry, and have the voice of international brand agents."

What Zhou Shaoxiong values is the standardization and normalization of Kenna's management system, because the two sides have maintained good cooperative relations over the years, and the whole acquisition process is at its own way. "On the one hand, we need some investment to represent international luxury goods. In this respect, we have some advantages and can support Kenna's rapid development in terms of capital."

For this acquisition, the reporter once had such doubt: will a company that has been established for only 3 years and perform well to sell to seven wolves, has Zhang Jianmin lost interest in the clothing industry and completely divorced from the clothing circle?

Zhang Jianmin's answer to reporters is negative. "This acquisition is only a mode of operation of listed companies. After the acquisition, the original management team remained unchanged. This is very normal in foreign countries. There are often many bosses in a company. Many employees do not know who the boss is.

It seems that the Kenna business in Hangzhou is still the same. The general manager of Zhang Jianmin remains the same. Only the boss of the company has become Zhou Shaoxiong.

Zhang Jianmin's idea of market expansion after the acquisition is already known: the number of Canali outlets will increase from 15 to 18 this year, and Versacecollection will grow rapidly from 11 to 4. In Zhang Jianmin's view, with the full support of seven wolves, the development of Hangzhou Kenna will be more rapid, and it is expected to seize the commanding heights of the international brand market in China in the short term.

　 Zhou Shaoxiong's wolf survival

From 1985 Minjin's labor and overseas Chinese clothing craft factory to 1990, the seven wolf wolf jacket entered the "Hualian" and "one hundred" in Shanghai. In 1995, it took the lead in the domestic agency system, and the market share of the seven wolves in the 2001 ranks first in the country. From 2004, seven wolves were listed on the SME Board of Shenzhen, becoming the first Listed Small and medium enterprises in Fujian, and buying Kenna Hangzhou in March 2011 to enter the luxury market. The seven wolves, under the control of Zhou Shaoxiong, showed its wolves survival law to the people with its dexterity and agility.

The acquisition is also a major event for the clothing industry. At the news conference in March 29th, various media reporters kept asking questions to Zhou Shaoxiong and Zhang Jianmin on the rostrum. The host Wang Zhuo also sighed that it was the most active press conference he had attended recently.

In fact, since the listing of the seven wolves in 2004, Zhou Shaoxiong has been looking for opportunities to get involved in the international brand agency business. The international brand agency business is regarded as an important field by Zhou Shaoxiong. The acquisition of an international brand of Chinese agents, is his test of water.

So, does buying Kenna clothing mean that the overall strategy of the seven wolves has begun to float upward, and what adjustments will it bring to the original channel system after the acquisition? What changes will the original sales channels have?

"Most international brands are unlikely to expand their international market by way of direct marketing. They are more willing to find companies with management experience and financial strength. After joining us, we can enhance Hangzhou Kenna's voice in the international brand agency. "

Of course, Zhou Shaoxiong particularly valued the influence of foreign luxury brands represented by Kenna in the high-end department stores in China. "These brands have a good initiative in high-end channels, and create high-end brands for the seven wolves, which can provide a good help in high-end channels, and also provide a good way for us to hatch high-end brands."

"Through international brand cooperation with Canali, we can promote the internationalization of the seven wolves brand, and better integrate the world and create fashion." Zhou Shaoxiong said that the acquisition of Hangzhou Kenna not only helps the seven wolves to enter the Chinese luxury market, but also absorbs the advanced experience of international famous brands in product design, organization order and terminal management through participating in the operation of international famous brands, thus improving the overall management level of the seven wolves.

However, the seven wolves are facing another challenge -- some international brands have reclaimed the right of agency in China, and Kenna's international brand is likely to be repossessed in the future.

"This is indeed our greatest risk, which is quite likely to happen." Zhou Shaoxiong said, "what we need to do in this period is to build this platform, and we will further seek opportunities for agents to have more international brands, including acquisition opportunities."

Nowadays, the geographical boundaries of the domestic and international markets have been gradually broken. Chinese clothing entrepreneurs have realized that if they are not familiar with the trend of the international market and the rules of the international market, their share in the domestic market will be difficult to keep. Therefore, we must guard, but we need to attack. We need to attack and defend. First of all, we must internationalize, then we can better stabilize the domestic market and expand the international market. What the seven wolves do is to lay the foundation for China's local brands to move towards the international market. This is also the common concept of cooperation between Zhou Shaoxiong and Zhang Jianmin for so many years.

　 And for the development prospects of the seven wolves, both inside and outside the industry are optimistic.

CITIC Securities Research Report has said that after a meticulous management of seven wolves, the company's internal strength has been significantly improved. According to CITIC Securities Analysis, at present, the seven wolf channel inventory is at a relatively low level in history. In some areas, the provincial agent has a "stock / sales" ratio of less than 10%, and has ample cash and power to expand, and considers its performance in the next two years to be the most stable.

In April 9th, the 2010 annual report released by the seven wolves showed that the seven wolves group achieved a total operating income of 2 billion 197 million 756 thousand and 600 yuan in 2010, a total profit of 339 million 250 thousand and 200 yuan, and a net profit of 283 million 156 thousand and 900 yuan, up 10.59%, 30.79% and 38.87% respectively over the previous year. And after the Hangzhou Kenna income capsule, Zhou Shaoxiong plans to add 100 million yuan for the expansion of international brand agency business.