Hongkong Rich Businessmen Acquire Giordano Stake

In May 12th, Giordano issued a notice confirming Hongkong.

Zheng Yutong has thus become the largest single shareholder of Giordano, and this is Zheng Yutong's first stake in Hongkong's local garment enterprises.

Gaining channel advantages to ensure investment value preservation

"The rise of the new SHOPPINGMALL brings great competition pressure to the department stores. Choosing the real industry is the trend of its future development, and the terminal advantage of the leisure clothing industry has become the" bear's paw "attracting the department stores.

In the face of increasingly powerful channels, it will occupy a more mature and extensive brand resources to form further squeezing for competitors, which is another new struggle and pformation of traditional department stores.

Insiders pointed out.

The department store industry is now rich in competition, so it is of great significance for enterprises to seize the channel resources.

The department store's clothing brand can not only gain brand advantage, but also make the investment value preserved.

Giordano was founded by Li Zhiying, a businessman in Hongkong in 1981, in June 1991.

Giordano provides a natural casual clothing concept for 20-35 year old consumers.

Brand marketing network of leisure clothing

Zheng Yutong, chairman of the new world development, is always active in the investment field and frequently participates in the subscription of new shares.

Prior to mid March, he bought 272 million Ping H shares of Ping An, China, at HK $19 billion 450 million.

Shanghai medicine, which is being invested in Hong Kong, is also rumoured to have won Zheng Yutong's support.

It is also reported that he plans to spin off Zhou Dafu jewelry.

Market participants revealed that Zheng Yutong's stake in Giordano was mainly based on the mainland's marketing network.

Giordano chairman Liu Guoquan said recently that he plans to add 300 new stores in the mainland this year, 70% of which are concentrated in two or three line cities.

Giordano realized net profit of 537 million yuan in 2010, the highest in 20 years.

Bring good prospects for others.

The news that Giordano has won the favor of the big family has brought good prospects for other businesses.

JP Morgan's analysis points out that the news of the stock market is positive for Giordano because the retail network of Zhou Dafu can bring synergies to Giordano, especially for Giordano's expansion plan in the mainland.

However, in the short term, it will not bring too much positive effect to the basic factors of Giordano. It will take a while for the new shareholders to get shares to bring real benefits to Giordano, especially in the promotion and distribution mode.

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Experts point out that with the appreciation of the department stores, the capital of Chinese garment enterprises will become more abundant and capital operation capability will become stronger and stronger.

With the rapid development of casual clothing industry, the power of capital is gradually emerging.

With the power of capital, China's garment industry can create new advantages and stand on a higher platform.

It is also an effective way to develop China's garment enterprises and brands to a certain stage with the help of capital strength.

Over the past one or two years, a number of strong clothing enterprises have been listed, and there are a few enterprises that are actively preparing for listing.

As a well performing casual wear enterprise, it has listed and raised 1 billion 400 million yuan, of which 85% is mainly used to build 68 flagship stores and image shops with an average area of 1400 square meters.

After many clothing enterprises and brands have certain strength, talents and channels, the ability to compete is the capital of enterprises.