Multi Brand Has Become The Trend Of Single Brand Clothing Encounter Profit Ceiling

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How much can a single clothing brand do in mainland China? Can it achieve 10 billion yuan? Some foreign sporting goods brands have done it, but the sporting goods market is not performing well, and the funds for channels have gradually shifted to high-end menswear.

"10 billion yuan may be a limit," he said. "Business needs to be bigger and more brands."

Other domestic single brands may have a small business limit.

Multi brand has become the only way for garment enterprises to develop.

In fact, the smoke of mergers and acquisitions has never stopped. In the first half of the year, after the news released by piercad, a veteran clothing company in Italy, willing to sell the brand, domestic brands went forward to Italy negotiations. At present, the clothing business is still overlooked because of the high price, and the bag business has been bought by an enterprise in Guangzhou.

Recently, the duvet producer, bostin, announced to enter the women's clothing business.

It said it would spend 890 million yuan on the acquisition of JESSIE 70% stake in the domestic women's clothing brand.

The brand is a women's dress in Hangzhou. It was founded in 1999. Its customers are women aged 28 to 45.

As of the end of September, there were 81 self operated stores and 172 franchised stores in Beijing, Shanghai and Guangzhou.

After the acquisition of women's clothing industry and the introduction of non seasonal clothing brands, Bosideng completed the acquisition. It is expected that JESSIE brand women's clothing will expand about 200 new stores in 3 years and the total number of stores will exceed 400.

"I have a dream to make a consortium like LV, and to make a big clothing brand in the next 10 years through acquisitions and mergers."

Li Rucheng, chairman of YOUNGOR, said that the strategy of the company is to accelerate the internationalization of the brand in the form of mergers and acquisitions relying on capital and industrial chain.

YOUNGOR acquired the new Malaysia company in 2008, and launched the new brand CEO, and established an international channel.

At present, YOUNGOR has 6 brands.

Li Rucheng believes that to some extent, multi brand strategy may bring a change of organization to YOUNGOR.