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    Crazy Red Beans: Open A Store Every 8 Hours.

    2011/4/27 9:13:00 72

    Brand Clothing Of China International Clothing And Accessories Fair

    How fast is it to open 1000 stores a year?


    March

    China International Clothing and Accessories Fair

    On the above, Jiangsu red bean industrial Limited by Share Ltd (hereinafter referred to as "red bean shares (600400)", 600400) general manager Zhou Hong Jiang said that in 2011 red beans men's clothing stores to reach 2000, in 2012 to reach 3000.

    Red beans are expanding at the speed of opening a store every 8 hours, while the number of shops in the year is about 100.


    As early as June 2009, Zhou Mingjiang, chairman of the red bean group, threw out a plan to build 3500 stores in 3 years.

    As of March 2011, in the 09 months of a year, red beans have established more than 1000 stores, totaling 1300.

    At the beginning of the accelerated expansion, there were no more than 400 terminal stores in the red bean brand Idif and the red bean men's wear.


    "This speed is not fast," a high level red bean said to reporters, as long as the pattern is right, it is very fast.


    Difficult pformation


    "Red bean is shifting from a garment manufacturing oriented enterprise to a brand retailing oriented enterprise."

    Wang Zhuo, Secretary General of the China Garment Association (000902), told reporters that this is also what many Chinese clothing brands are experiencing.


    "In May 18, 2008, we formally announced the pformation, and also made clear the brand positioning of red bean, leading the market consumers to locate in the mainstream life of Chinese society."

    The head of the red bean group said.

    At this point, the red bean men's clothing clearly set the target, that is, the mass consumption market, while the red bean men's clothing belongs to the mid-range price.

    Brand clothing

    Stores are mainly built in two or three line cities.


    Although the red beans were 30 years earlier than the seven wolves (002029) and the Chinese fir brand, but it entered brand retail for nearly 10 years.

    Since 1995, the seven wolves have introduced the concept of franchising and developed chain stores. By the middle of 2010, seven wolves had more than 3000 stores in the country.


    The pformation of red bean is due to development pressure.

    Before the pformation, red bean was dominated by clothing and textile manufacturing.

    In recent years, with the increasingly fierce competition in the garment industry, the cost of manufacturing continues to improve, and the profit of single garment manufacturing, processing and wholesale is getting lower and lower.

    Since 2005, red bean clothing has been going downhill, and its growth rate has slowed down year by year.

    Especially in the 2008 financial crisis, the demand for garment processing market was reduced and the foreign trade situation was grim, which posed severe challenges to red beans.


    In 2009, the growth of red bean clothing reached its lowest level. The company's revenue decreased by 5.79% compared to the same period last year, and net profit fell 41.7% compared to the same period last year.

    At the same time, the gap between red bean and YOUNGOR (600177), the American Apparel (002269), the seven wolves and other brands is widening.

    In the first three quarters of 2010, the clothing industry led YOUNGOR's net profit has reached 800 million yuan, and the net profit of seven wolves has reached 180 million yuan, while the net profit of Hong Kong share is only about 20000000 yuan.

    {page_break}


    Real estate has helped.


    In 2010, after the pformation, red bean handed in a beautiful pcript.

    According to the first half of 2010, the company's main business income in the first half of 2010 was 1 billion 362 million 584 thousand and 200 yuan, an increase over the same period last year.

    173.41%, realize the net profit attributable to the parent company?

    25 million 436 thousand and 200 yuan, an increase over the same period last year?

    77.60%.

    This is the first time that the red beans have grown substantially since 2003. The top of the red bean is called this "bottoming out".


    A senior member of the red bean group told reporters that this is actually the change brought about by the growth of red bean real estate business.


    In 2010, Zhenjiang red river flower city peach garden was developed by the red bean control group.

    B group delivery, in addition to the red bean International Plaza project?

    2008?

    In the second half of the year, sales of apartments and office buildings began to settle, so net profit was more than in previous years.


    According to a high-level introduction of the red bean group, in the first half of 2010, the operating income of the red bean real estate sector increased by 715.41% over the same period last year, while the business income of the clothing sector increased by only 6.55%.


    The head of the red bean group said that the red bean men's clothing is entering a stage of steady development after the pain and stagnation at the beginning of the pformation.


    Analysis of the industry, as to whether the steady development, we have to see whether there is no real estate project delivery payment in 2011 whether it can maintain good performance.


    Although benefit from the diversification of the real estate sector, but the red bean group official told reporters that clothing is still the main battleground of red beans, the main industry status will not change in the future.

    {page_break}


    What is speeding?


    Zhou Hongjiang, general manager of red bean, told reporters that China has 2861 county-level cities, while the red beans should cover one hundred percent of the country's county-level cities.

    For red beans, what is supporting this bold decision?


    In order to raise the gross profit rate, the speed of capital turnover and better accept the information feedback from consumers, a senior member of the red bean group told reporters that the trend of chain monopolization has been increasingly clear. The red bean clothing has been developed for over 50 years and has the conditions for this development.


    Wang Zhuo, Secretary General of the China clothing association, believes that red bean clothing has been a way of wholesale trade. Many wholesale markets in two or three cities have red bean clothing dealers. Red beans have to set up terminal retail stores. Transforming these old dealers into terminal brand franchisees is a convenient and fast way; moreover, in many years of wholesale trade,

    Red bean clothing

    A brand reputation has been formed. In addition, as a clothing and textile manufacturer for many years, red beans have strong protection in product design, development and production, which provides strong upstream industry chain support for red beans to enter the terminal.


    It is understood that the planned stores in Jiangsu province are all self owned shops, and the stores in Henan, Anhui, Shandong, Jilin and Hubei adopt the form of combination of self employment and franchise; all the stores located in other provinces and cities are all franchised stores.


    "Clothing industry is more special, a terminal store is successful, this store can be replicated in other similar cities, so as to achieve the purpose of market coverage."

    Wang Zhuo said.


    Of course, not everyone in the industry is optimistic about the rapid expansion of red bean.

    Jiang Hengjie, vice chairman of the Standing Committee of the former China clothing association, said that the move of red bean is an extraordinary speed. The management of storefront, the rapid market reaction ability and efficient logistics system will become a huge challenge for red beans.


    As a listed company, the rapid expansion of red beans will also create tremendous pressure.

    The industry said that such a speed is feasible, it depends on the future results, good performance will bring more investors, on the contrary, if it is not well done, no one will reinvest and bring about its own brand and development.


     
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