Semir Gold Rush Children'S Market Addiction: 100 Million Yuan To Enter The Field Of Early Education

In this regard, company Zheng Hongwei told reporters that the first is the company has customer resources, the company's children's clothing brand balbala has become the first brand in the domestic market share of children's clothing, with 5 million to 6 million VIP customers, these customers have the possibility of becoming a child early trainee; secondly, the company has franchisees and agents in all parts of the country, including more than 3000 offline stores. At the same time, the company will provide financial support to expand business in the future.

　 Investment in children's education

In July 21st, Semir clothing announced that the company signed the agreement on the purchase of assets with Hongkong Rui Zhi Group Limited (hereinafter referred to as Rui Zhi group) in July 17th and purchased 70% stake in Yu Han group (Shanghai) Information Technology Co., Ltd. (hereinafter referred to as: Yu Han Shanghai). The transfer price is based on 2.5 times of the 2013 year income of Yu Han Shanghai as the basis of valuation. It's 102 million 200 thousand yuan.

Statistics show that Yu Han Shanghai is a wholly-owned subsidiary of Ruiqi group. It owns two educational brands and related children's education businesses, including FasTracKids (genius baby), FasTracEnglish (little earth). Audited, as of December 31, 2013, Yu Han Shanghai's total assets amounted to 128 million 912 thousand and 600 yuan, net assets of 73 million 99 thousand and 300 yuan, 2013 operating income of 58 million 652 thousand and 100 yuan, net profit of 4 million 230 thousand and 800 yuan.

Huaxin securities Tang Feng believes that Semir clothing purchase price is more reasonable. It indicates that with the increase of per capita income and the acceleration of urbanization, people pay more attention to children's education and training. The formal implementation of the second child policy will also promote the rapid development of children's education. "At present, there are more and more preschool institutions in China. In the future, as the state strengthens the supervision of preschool institutions, the real brand and strength institutions will still stand out. Yu Han Shanghai is China's first preschool education institution accredited by the ISO9001 international quality system standard, and it is expected to benefit directly in the future."

It is understood that "genius baby" is a preschool education institution aimed at fully developing the potential of the 3 year old -6 year old child. At present, there are more than 400 centers in more than 50 countries around the world, and become leaders in the field of preschool education all over the world. They are rated as one of the ten fastest growing chain enterprises in the world.

Yu Han Shanghai and its subsidiaries have launched child education business in China through buyout of gifted baby brands and related intellectual property rights. As of now, genius baby has opened 91 teaching centers in 64 cities. Little earth children's English is a private brand created by Yu Han Shanghai's integrated international resources. It is specially tailored to Positive Innovative English for children aged 3 years old by international language experts and children psychologists according to their physical and mental development and learning characteristics. The Reinforcement (PIER) teaching method is equipped with rich and standardized curriculum contents, so that children can travel around the 37 countries without pressure and learn English happily. So far, little earth has 12 teaching centers in 5 cities across the country.

　　 CICC The company believes that the acquisition of Semir clothing Shanghai Yu Han shares belong to the advantages of combining resources complement each other. Yu Han Shanghai has good educational resources, but the channel expansion ability is relatively weak. After the completion of the acquisition, resources can be integrated with the existing resources, such as Barbara's existing channels, members and online and offline resources.

According to Semir clothing director Zheng Hongwei, the company's early childhood business and children's clothing business will complement each other. Including the use of children's clothing existing 5 million to 6 million customers to develop into children's early childhood college, the company will also rely on the existing more than 3000 children's clothing store selling children's education related products. At the same time, the Internet can also be developed as a platform for early education.

In view of Semir clothing's old line of clothing, therefore, the company is ready to start the original management of Yu Han Shanghai to continue its management. "The company will give Yu Han Shanghai support through the board of directors as a major shareholder."

Building children's industrial chain

For the acquisition, Zheng Hongwei, a company secretaries, told reporters that "the reason why companies invest in early childhood education is because the company has customer resources and capital and can make Yu Han Shanghai stronger and bigger."

In fact, the premise of allowing Semir clothing to invest in the children's education market is inseparable from the rapid growth of the company's children's wear brand balbala.

"The children's clothing business of the company maintains an annual growth rate of 20%. If we invest in children's education, the two businesses can complement each other and there will be great room for development in the future." Zheng Hongwei said.

Statistics show that Semir apparel children's clothing business income has increased from 548 million yuan in 2008 to 2 billion 535 million yuan in 2013. At the same time, the composition of the company's children's clothing in the main business has increased from 16.7% in 2008 to 35.12% in 2013. Moreover, the gross profit of children's clothing increased from 20.45% in 2008 to 38.78% in 2013. According to the data, the performance of children's clothing is still strong and has maintained a high growth trend during the recession of the clothing industry, which has also given Semir's confidence in investing in the children's education market.

Zheng Hongwei said the acquisition meant a shift from the company to an integrated service provider. Reference to the American Golden babe also manages children's clothing and early childhood business, we can see that the future development of children's market is very large.

　　 data Show that Gymboree is a professional retail store in the US, mainly engaged in children's toys manufacturing in the United States, operates 8 brands of high-quality clothing and accessories for children, as well as Jinbao Bei music games and music brand children's programs.

According to the Research Report of CICC, the acquisition of early education companies is in line with the development strategy of Semir clothing to the comprehensive service providers of children's industry, and is expected to become a short-term catalyst. In the medium to long term, the company will continue to invest in M & A, games and other related industries to integrate acquisitions and resources, and create a closed loop for children's industry.