Competition For Control

A well-known sports brand -- double star is in a fierce competition for 51% shareholding power. The dispute between shares is launched between two star group, southwest double star and Qingdao Twin Star Industry Co., Ltd. (hereinafter referred to as "celebrity industry").

Reporters yesterday learned that, because the headquarters - double star group stopped supply, and occupied half of the double star domestic market, the more than 2000 source stores of Southwest double star were in urgent need.

On the other hand, with the support of the double star group, celebrity industries have been developing channels in all parts of the country. In the pivotal market of Chengdu, celebrity industries have already sent a new agent, Chengdu Binxing celebrity economic and Trade Co., Ltd., stationed in Chengdu, and began to supply some double star stores that are in short supply.

The dispute over share ownership has made southwest double star "take off shoes". It is understood that the double star group Chengdu science and Technology Investment Development Co., Ltd., located at 99 north section of Chengdu Binxing Road, is the bridgehead for the development of the southwest market of the double star group. Among them, Chongqing double star, Kunming double star and Guizhou double star are both holding subsidiaries of the company, plus Sichuan area under Chengdu jurisdiction, and four are dubbed by the two star group as the southwest double star.

Liu Shuli and his wife, Wang Hai, who are the leaders of the double star group, are now in the southwest market. Liu Shuli is now the chairman of the board of directors of the southwest double star. His wife, Han Junzhi, is chief executive officer. He is also chairman of Ji'nan double star.

According to the information provided by reporters yesterday, Liu Shuli, chairman of the southwest double star, received a letter from the 51% Star Group asking for "holding the shares of Southwest double star" by February 17th.

On the 19 day, Liu Shuli sent a letter to Binhai group and President Wang Hai, asking whether the holding side is a two star group or a celebrity industry.

Because last year, the double star group has pferred all the footwear assets to the Qingdao double star industry limited company. It is understood that the company is a company jointly invested by the Binxing group, the Binxing group and the three natural shareholders.

Among them, Wang Hai invested 6 million 900 thousand yuan, accounting for 21.88% of shares, becoming the largest shareholder and chairman of the board.

On the 23 day, Liu Shuli received the "notice on dismantling" sent by the double star group, saying that the southwest double star violated the trademark rights and interests of the group company, so it no longer had the right to use and operate the trademarks and products of the Binxing group.

Two days later, celebrity industries also sent a notice that if Liu wanted to let celebrities hold 51%, they could continue to discuss the right to retain their dual agent in Southwest China.

Li Feng, chief marketing officer of Southwest double star and general manager of Chengdu company, have worked for 11 years in two stars.

As the elder statesman of the southwest double star, Li Feng told reporters about the idea of Liu Shu Li, who is playing chess in Qingdao and the double star group.

"In the current situation, it is impossible for celebrities to hold southwest binaries."

He said that if the double star group wants to hold 51% of the shares of the southwest double star, the southwest double star naturally has no objection, but the shares will be handed over to the celebrities who are also private enterprises. The southwest double star is very reluctant.

"The most important thing is that the business philosophy of celebrities and southwest binaries is totally different."

Li Feng said that the southwest double star is currently taking a popular and low price strategy, mainly in the residential areas, schools, counties, townships and other regional layout, and in the previous contacts with celebrities, celebrities proposed to take the high-end line, and to adjust the total price of the double star products. "This is totally different from our business philosophy and mode. At present, there are more than 2000 franchised stores in Southwest China, of which Sichuan accounts for 1000. If we take the high-end line, then the layout based on consumption capacity will be lost."

In the course of the interview, Li Feng repeatedly stressed that the authorized power granted by the double star group to the southwest double star is from August 1, 2006 to July 31, 2008, and the longest authorization is April 2009. Therefore, the southwest double star believes that unilateral termination of the authorization is invalid.

Celebrity industry has entered Chengdu enclosure. It is understood that the sales of Binxing clothing reached 700 million yuan last year, while the southwest region completed 600 million yuan. Last year, the whole group sold more than 100 million yuan in the market. Besides Shandong, there were seven markets in Ji'nan, Zhengzhou, Shijiazhuang and Yunnan, Guizhou, Sichuan and Chongqing. The seven markets accounted for 80% of the total sales of shoes and clothing of the whole group, and 3000 stores were arranged. Four of the western regions occupied 2000 stores.

Reporters learned that since the lifting of the authorization in February 23rd, the two star group and celebrity industries have stopped supplying Western double stars.

Yesterday, the reporter visited several double star stores along the Red Star Road. Some of the stores said there was no source of concern at the moment, but there were also stores that said the current source of goods could only be maintained until early May.

Why is there such a situation?

In this regard, Li Feng told reporters that as early as March 6th, the new agent appointed by celebrity industries, Chengdu Binxing celebrity economic and Trade Co., Ltd. has been stationed in Chengdu, and has distributed red headed documents to Chengdu's double star stores, calling them agents of double stars, requiring them to sign agreements and pay deposits after signing shop.

Li Feng said that it is now the off-season for clothing and footwear sales, so some stores may not be able to supply enough goods. On the other hand, some stores may not be able to support the celebrities because they can not afford to support them, and accept the supply of celebrities.

It is estimated that up to now, 20% of Sichuan's 1000 stores have turned to celebrities.

At the same time, reporters learned that the double star group has also made a new plan and put it into practice.

Double Star Group executives have been building new logistics platforms all over the world. Apart from the southwest new logistics platform, Qingdao platform, Linyi platform, Tianjin platform and its subordinate Baoding platform have been established.

What is the plan of the southwest double star after the three brand competition?

Facing the reporter's question, Li Feng said that the southwest double star invested about two hundred million yuan, and established two double star production bases in Dayi, Chengdu and Wanzhou, Chongqing. The annual output of these two bases is 6 million pairs of shoes and 4 million sets of clothes.

"The loss of two bases will exceed 1 million yuan a day," he said.

Li Feng said that in order to stop the direct loss of the two production bases, the larger Dayi base has resumed production.

"We will continue to produce products that are already on the line. On the other hand, we are also seeking other cooperation, such as sticking other brands."

Li Feng told reporters.

Reporters also learned that, at present, the southwest double star executives have been divided into three ways, running all the way to Shandong, continue to report to the Qingdao municipal government and the Qingdao SASAC, hoping to approve the authorization. The other way is to solve the urgent need for thousands of workers to eat, Chengdu is urgently discussing the way to make the factory run as soon as possible, and the third road horses are rushing to launch a new brand.