Hong Kong Stock Bosideng Multi Strategy Breakthrough

The recent high-profile movement of Bosideng, a Hong Kong stock, has attracted the attention of the apparel industry and capital markets.

In October 28th, 03998.HK announced that it would buy 70% stake in Di Hui and Lang Hui world at a price of 892 million 500 thousand yuan (which could be adjusted and the final price was not more than 945 million yuan).

In the paction cost of 728 million 500 thousand yuan, Bosideng will be issued at two HK dollars per share of HK $3.1, and 235 million shares will be paid by shares. The balance will be paid in cash.

The cost share accounted for 2.93% of the enlarged share capital.

The price is set to be closed until 2014.

As China

This time, the acquisition of women's clothing companies with good market visibility and achievements will further promote their diversification strategy and further establish their position in the women's clothing market.

The net profit after December 30, 2010 was 54 million 396 thousand yuan.

As of August 31, 2010, the gross value of its unaudited assets was 190 million yuan and its net asset value was 127 million yuan.

Lang Hui currently owns many women's clothing brands such as JESSIE (Jesse) and LeMauve, and provides women's clothing design, brand marketing and planning services.

Among them, Jesse was founded in 1999, is located in the 28-45 year old women's high-end women's clothing brand.

In the women's clothing industry of Shenzhen, it is a

After the completion of the paction, Di Hui will hold a 2.93% stake in Boston.

According to the agreement, Dehui company guaranteed that Target Corp's net profit reached 85 million yuan, 108 million 800 thousand yuan, 136 million yuan and 166 million yuan respectively in the 4 years since this year.

In the future, Bosideng will sell Jesse women's clothing through proprietary and exclusive mode, and will consider developing the international market at the right time.

Di Hui will also make greater efforts to expand the Chinese market. It is expected that 200 new stores will be opened in the next three years and the total number of stores will be increased to 400.

The acquisition caused a certain shock in the women's clothing industry in Shenzhen.

Jesse, a well-known woman dress brand in Shenzhen, sighed with emotion in her micro-blog: "Jesse is the brand of women's clothing for more than ten years, Bosideng acquisition, who cares who worries?" but other industry insiders pointed out that the fashion buying trend of clothing companies began.

China's clothing companies will have a "big, big, small and small" scale, and the future business will be bad.

In fact, there is no doubt that Boston is pleased with the acquisition.

Bosideng pointed out that Target Corp has experienced more than 10 years of development in the women's wear industry. It has a sound management system and excellent design, production and marketing management team, and has a relatively comprehensive sales network, enjoying a high reputation in the women's wear industry.

After the acquisition, Target Corp will become a new business development platform for Bosideng, based on its existing management team, so that Bosideng's women's clothing business will develop rapidly.

The acquisition is in line with Bosideng's expansion to women's clothing industry, as well as its entry into non seasonal clothing products, enhancing product mix and diversifying and improving profitability.

Because of the profit guarantee provided by the Target Corp agreement, Bosideng believes that the acquisition can provide substantial profit contribution and improve the current revenue structure.

Statistics show that in 2010, Bosideng group achieved sales revenue of 15 billion 800 million yuan, up 43.6% over the same period, and has been ahead of the national market for 16 consecutive years.

As of March 31, 2011, the company had 7579 retail outlets and six core brand down garments, including Bosideng (Bosideng), SnowFlying (Xue Zhongfei), Kangbo (Kang Bo), Bengen (formerly Bingjie Bing Jie), Shuangyu (double feather) and Shangyu (Shang Yu).

Brand portfolio (Bosteng, Xue Zhong Fei, Kang Bo, Bing Jie) sales account for 36.7% of the national down market.

For Jesse, this is not a new start.

Capital circles have pointed out that many clothing brands in the current market are somewhat powerless under the new competitive situation.

In the face of bottlenecks in brand development, choosing to cooperate with powerful capital forces, recombing the development framework of enterprises, and inject new impetus to brand development is actually a wise choice.

In this sense, Jesse, who has strong backing from Bosideng, will usher in a new development.

Transformation of "integrated apparel brand operators"

In recent years, Bosideng, which has no dispute with China's down garment industry, has firmly promoted the diversified development strategy and pformed into "integrated apparel brand operators".

Men's clothing is a key project of Boston's four seasons fashion pformation.

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In May 2009, Bosideng bought Jiangsu Bosideng Clothing Development Co., Ltd. (before its renamed Jiangsu KangBo Garment Co., Ltd.) with a maximum of no more than 650 million yuan, and entered the field of men's clothing. This is also the first step to complete its pformation strategy from "single season product brand" to "four seasons clothing product brand" as Bosideng brand.

Bosten's men's wear is targeted at quality life. The target customer is a 28-45 year old urban man who is committed to providing different city dressing solutions for urban men.

Bosideng men's wear plate has been fully co operated with European design team. Its products include leisure, business casual, formal dress and so on.

In recent years, the annual clothing industry event CHIC, Bosideng also focuses on promoting its young men's clothing brand.

After several years of deep farming, Bosideng menswear has achieved a good performance growth. Currently, there are nearly 1000 stores in the country, and sales volume reached 980 million yuan in 2010.

More importantly, Bosteng men's clothing also stands out in the international market.

It has been stationed in the strong marketing network of the British chain brand GREENWOODS (Green Woods), and has opened two stores in the UK, which is known as "the beginning of China's own brand stores to land in the European market".

Also in 2009, Bosideng gained the trademark ownership of Rocawear, a street fashion brand in the US, in Greater China (including Mainland China and Taiwan, Hongkong and Macao).

Rocawear is dominated by young leisure routes, targeting 18-28 year old Hippie hippies.

Statistics show that American Hip-hop singer Jay-Z founded Rocawear in 1995, including men's wear, women's wear, children's wear and accessories, and sales to over $700 million this year. The company has offices in the UK, Japan, the Middle East, Europe and Canada.

In March 2010, Bosideng also launched the fashion city style brand -- BOSIDENG VOGUE.

The brand takes the independent operation mode of the down jacket team and locates in the urban fashion style. The target consumers are locked in 20-40 year old urban office workers and some middle class. The product style is based on fashion and leisure.

BOSIDENGVOGUE invited French renowned fashion consultants to sort out their products, subvert the old product pattern with design as the main part and supplement part of buyers, implement the product composition system of "market buying and promoting design", and adopt a buyer's system with separate men's and women's clothing.

At present, BOSIDENGVOGUE has stores in Changshu and other places.

This time, the acquisition of women's clothing brand is the further implementation of Bosideng's diversification strategy, and will further establish Bosideng's position in the women's clothing market.

According to the brand combination development strategy formulated by Bosideng, in the field of down garments, the brand culture connotation of Bosideng will be further enriched in the future, and the brand positioning of Bosideng will be further enhanced. On the basis of consolidating its position as the top high-end brand in the Chinese down garment market, the influence of Bosideng brand will be extended to other non down garments, and Bosideng will become a famous international brand.

At the same time, we will try our best to drive the independent brands such as Xue Zhong Fei, Kang Bo and Bing Jie, including other brands, including mergers and acquisitions, agency, joint venture and channel exchange.

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On the basis of consolidating and maintaining the market share and good performance of the down garment industry, we will continue to promote and implement the development strategy of four seasons garment products in the future, and further enhance the proportion of non feather garment products to the overall sales.

In addition to investing in the development of non down garment business including Bosideng men's clothing, the group will continue to actively seek for non feather garment brand projects with high development potential and good reputation, expand its brand and product mix through acquisition, merger or cooperation, and accelerate the development of non down garment business, so that high-quality products of the company can serve different consumer groups throughout the year.

Specifically, the number of Bosteng men's retail stores in the country is expected to reach 1100 by the end of 2011; Rocawear brand business plans to open more than 300 Rocawear independent stores and store stores in Greater China by 2013; BOSIDENG VOGUE will also increase retail outlets in a planned way according to the specific process and market demand of business development.

Gao Dekang, chairman of board of directors of Bosideng International Holdings Limited, said that under the global competition pattern, brand is the symbol of the strength and core competitiveness of enterprises and even the country.

It will adhere to the brand building with value as the core, constantly innovate in brand, R & D, science and technology, management, marketing and other systems, and make great efforts to pform into a respected world famous integrated garment operator.

"Future Bosideng is not only a brand concept, it should be a successful, excellent clothing brand group and brand product synonym.

We are promoting pformation, upgrading and diversified development with four seasons, internationalization, fashion and high-end.

Even Bosideng has bigger ambitions.

Gao Dekang said that the industrial restructuring of the future enterprises will not be limited to the format of "big clothes". It will face wider market space, strengthen interaction and integration with basic industries such as highway, hotel operation, rural finance, solar photovoltaic and other emerging strategic industries, and build a modern industrial system with structural optimization, advanced technology, cleanliness and safety, high added value and strong employment capability on the basis of horizontal competition and vertical chain integration.

I have to admit that Bosideng has indeed created the industry miracle in the field of down garments for many years. In recent years, the high-profile performance in the field of clothing has been seen for all to see. Only in the future, it will expand in various fields that are not related to clothing, and how the effect will be integrated.