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    Happy Birds: "Happy Culture" To Enhance Brand Effect

    2011/11/5 15:50:00 5

    Hi Culture Brand Effect

    The good news bird is the magpie, and its "golden pass" and other meanings make the "Hi culture" very popular in China.

    Therefore, the 002154.SZ launched a comprehensive upgrading of brand publicity in the first half of the year. Through the new advertising slogans, promotional films, official website community and official micro-blog, all efforts were made to create the "happy culture" of the wedding birds.


    In the first half of this year, reported bird business revenue was 732 million yuan, up 56.5% over the same period last year, operating profit of 110 million yuan, up 72.56% compared with the same period last year, the net profit attributable to shareholders of the company was 92 million 650 thousand yuan, up 65% over the same period, corresponding to the basic earnings per share of 0.16 yuan.

    At the same time, the birds announced the three quarter expected performance, net profit growth of 40%~60%.


    The news bird is a joint venture founded by three private clothing enterprises in Wenzhou in 1996. Its semi annual report shows that the top four of the main businesses are tops, trousers, T-shirts and shirts, which amount to 78.10%. The gross profit margins of these four businesses are all over 50%, mainly in the face of sales in China, and the overall business situation is better than that of export clothing enterprises.


    Huatai Securities believes that the gross profit margin of the news birds has continued to rise and the cost has risen slightly.

    The main reason is that the continuous increase in prices in recent years has been accepted by the terminal consumer market. The gross profit margin of the products has been gradually raised, and the gross profit margin in the first half of this year has continued to rise by 4.76 percentage points.


    As a result of increased marketing efforts, the rate of selling birds has increased by 0.67 percentage points, and the percentage of management fees increased by 1.72 percentage points is mainly due to the increase in maintenance cost, human cost input and the increase in the cost of research and development of St. James' brand.

    However, San Jie Luo casual wear market is developing rapidly, and it is also in line with the general trend of the whole industry development.


    As a traditional industry, the overall operation of the wedding bird is slightly better than that of its peers. It increases investment in customer relationship management and provides richer VIP activities and services.


    In terms of channels, the company implemented regional market development planning, and insisted on opening a large store, while promoting regional giant strategy. In the first half of the year, there were 44 new bird shop and 31 shops in San Jie Luo.

    The steady expansion of the channel and the continuous improvement of product prices have kept the performance growing rapidly.


    In addition, since the idea of "two pioneering" was put forward by the news birds, the support for franchisees has been continuously strengthened. According to the report, the number of "good bird" and "Saint Angelo" stores reached 759 and 172, an increase of 11.8% and 57.8% compared with the same period last year. The total area of terminal business was 136 thousand square meters, an increase of 24.77% over the same period, while the same store grew by more than 20%.


    On the target of sales revenue, the bird wedding scheme can double its revenue in the next three years.

    The main way to grow is to speed up the expansion of stores and multi brand and multi series.


    However, the reality of the clothing industry is that consumers' loyalty to the brand is rapidly decreasing. Many brands are facing the problem of brand aging (especially women's clothing). For example, the men's clothing such as Shun Mei, Rossi and so on, and the wedding birds are no exception. The company is ready to prepare for the old brand problems that Future Ltd may appear through cultivating new brands and extending the serialization.


    One of the main measures to prevent brand aging is to use the brand extension strategy. The advantage is that we can make use of the brand identity and brand preference formed by consumers over a long period of time, and constantly develop new brands, so that the brand life span can be extended.


    At present, the good news bird has acquired some new brand's agency and management rights through acquisition and equity participation, and this process will continue in the future.

    Multi series, mainly in the horizontal extension of the brand, such as leather shoes business, women's clothing business.


    In addition, although the birds were listed only four years ago, they had been selected as "TZ50" in 2011. This shows that the company's performance can be profitable for three consecutive years and is willing to pay dividends. In 2008, dividend payout rates were 15.30%, 11.41% and 10.54% respectively in 2008.


     
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