Urban Beauty Buy Ordifen To Expand Market Penetration

Yesterday, 9 months after landing on the Hong Kong stock market, Dongguan City beauty announced that it would purchase the famous intimate clothing retailer and manufacturer Shanghai Ordifen from the net proceeds from the prospectus, the purchase price was 92 million yuan (about HK $113 million).

The reporter understands that this is the first large-scale brand acquisition in recent years after the city beauty came into the market last year. Its expansion intention in the market of high-end body clothing is obvious.

According to the announcement,

The design, research, development, sale and manufacturing business of the brand intimate clothing products owned by the seller will be acquired, including Ordifen, ruby and Yi Xia brand and several assets related to the business.

In addition, the group will provide Shenzhen Shanghai with entrusted loans of RMB 105 million yuan through the China Merchants Bank Shenzhen branch.

Zheng Yaonan, chairman of the city beauty, said the acquisition is consistent with our group's strategy to optimize product and brand mix, enhance product quality and expand sales channels, retail network and area coverage.

"After the acquisition, the urban beauty can be established in the high-end clothing market in Shanghai through the perfect sales network and famous brands of Ordifen, and it is expected to expand its penetration in China's personal clothing market."

Public information shows that the Ordifen brand originated in Taiwan and entered the mainland market in 1993 as one of the old brands of high-end clothing.

Shanghai Ordifen won the "China well known trademark" in 2012, and its retail sales of bra and women's underwear in 2014 ranked fifth and seven respectively.

At present, Shanghai

It has 614 retail outlets, including about 250 self operated stores and 364 franchised stores, and has comprehensive sales channels in China's first and second tier cities.

In addition, the company also has a number of intellectual property rights such as patents and trademarks for personal clothing products.

In June last year, the city beauty first landed in Hong Kong stocks as underwear, and soon handed over the first interim results after listing: the total income was 1 billion 736 million yuan, up 33.6% from the same period last year, and gross profit margin increased 3.9 percentage points to 40.1% from 36.2% last year.

However, because the city beauty starts from the two or three line cities, the positioning of the parity and fast fashion makes its brand premium slightly less. So in recent years, the urban beauty is also trying to improve its brand value. By improving sales channels and product mix, advertising image publicity and so on, it will expand the share of the high-end brand market and improve the gross profit margin.

Extended reading:

Urban beauty

Urban beauty is the first fashion in China.

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The brand was born in 1998. As of 2014, there are more than 6000 urban beauty stores in the country. Brand advocacy is not exclusive to stars. City beauty makes you more beautiful and more confident, helping every city woman realize the desire to create a changeable underwear fashion life.

Under its brand, the company now owns women's underwear, city beauty, and men's underwear City front.