Why Was The Brilliant Ordifen Sold "Cabbage Price"?

In March 2nd, Hong Kong stock parity underwear business city beauty announced that it would buy Shanghai famous underwear enterprises for 92 million yuan.

The news is just like a blockbuster, which not only caused the competing reports of the major financial media, but also made people in the clothing industry sigh and sigh.

On the morning of March 3rd, Wang Wenzong, who was in charge of Ordifen, announced that the middle and high level morning meeting, which had lasted for many years, was cancelled.

At the scene, many people began to weeping.

This helpless tears, both for Wang Wenzong's hard to give up, but also on the decline of Ordifen brand.

"But the market does not believe in tears, but the results."

A business executive who has close cooperation with Ordifen is so impressed by this feeling. "Ordifen is our important customer. My idea now is to hope that their adjustment can get out of the difficulty and ensure that the company's business cooperation is not affected."

He said.

Many people only care about last year's arrival at the Hong Kong Stock Exchange and today's highly motivated urban beauty who will easily occupy the high-end market of domestic brassiere from this acquisition. This is indeed gratifying. However, whether as an industry observer or as a loyal customer of Ordifen brand, journalists are more concerned. Why did Ordifen, founded in 1993 and fashionable in the domestic Bra Market for about 20 years, ever let countless women like it, finally came to the end of life and death, and was reduced to the price of selling cabbage at a low price?

There are many reasons behind this.

Steep decline in sales and double squeeze of high cost

First of all, the sharp decline in sales of shopping malls and the continuous high cost of shopping malls, resulting in a profit crisis.

According to the data revealed by the public announcement, Ordifen's sales in 2013 were 372 million 600 thousand yuan and 27 million 320 thousand yuan, and the sales in 2014 were 329 million yuan and 14 million 580 thousand yuan.

By the end of 2014, there were 614 stores, 250 of which were self-employed and 364 were joined. Most of these shops were located in department stores and shopping centers in the first tier and second tier cities in China.

What does this set of data mean?

Based on 2014 data, the average annual sales volume of 614 shops is only 535 thousand and 830 yuan, and the monthly average sales volume is only 44 thousand and 650 yuan.

Ordifen's bra products are mostly in the range of 300 yuan -500 yuan. If the price is 400 yuan and 30 days a month, the average daily sales of these stores are only 1488 yuan, and only 4 bra sales are sold each day.

On the other hand, it is the market's buckles and the continuous high wages of shop salesmen.

Generally speaking, the discount point of the brand in the shopping mall is in the interval of 15%~30%, 25% is about the mean, in addition, it has to add 1% advertising expenses.

At the same time, there is at least one shop assistant in the underwear shop, 2~3 shop assistant.

In Beijing, the average monthly salary of shop assistants is at least 7000 yuan in the past two years.

In a provincial capital city like Xi'an, the average monthly salary of the salesperson is around 3000 yuan.

Moreover, the annual rise in the wage level of shop assistants has become a major trend.

With the electricity charge and so on, the operating cost of the shopping mall counters remains high.

And in sharp contrast to the high cost, in the past 5 years,

The shopping volume is reduced sharply, and the cake is sold by electric providers.

I don't know if I don't know.

Under this double attack, Ordifen's loss is not difficult to understand.

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Marginalized in the front line, a vicious circle.

Second, the competitiveness of integrated brands is falling behind the brands such as Wacoal and admiring, and brand development and sales are in a vicious circle.

Objectively speaking, in the high-end Bra Market of domestic women, Wacoal from Japan has great influence.

Many women over the age of 35 in the city are loyal fans of Wacoal.

Japanese brands rely on their meticulous research in ergonomics, resulting in the fit and comfort, which is the core factor of their popularity.

In this regard, there has been a gap in the number of domestic brassiere brands such as Ordifen.

The brand of Beijing brand in the first tier camp has increased significantly in the past 5 years in terms of brand marketing, multi brand development (love, love beauty, love children, Lanka, etc., and acting overseas high-end brand Bechic store), brand research and design and cultural construction. Brand awareness and market share have also improved.

Close to the love of cooperative customers said that the current love of about 2000 shops.

Based on this projection, annual sales volume is above 2 billion yuan according to the average annual sales of 1 million yuan per store.

"Single love and beauty are stronger than Ordifen's scale and strength."

A co operative customer of Ordifen described this.

Even with the listing on the Hong Kong stock exchange, the company has been growing fast and strong in recent years.

According to the latest data in January 27, 2015, the total retail outlets were 2317, of which 2128 were sales counters and 189 were exclusive stores.

In the first half of 2014, its turnover was HK $12.385, an increase of 9.07% over the same period last year, and net profit of HK $124 million 600 thousand, an increase of 0.51% over the same period last year.

In the 3 quarter and the 4 quarter of 2014, its sales and electricity sales grew by a figure of 8%.

Based on this calculation, its overall sales growth in 2014 is about 8%, and its annual sales volume should be around HK $2 billion 500 million.

By contrast, Ordifen's annual sales of 329 million yuan and its performance of 14 million 580 thousand yuan loss are very thin. Its overall profit pressure can be imagined.

During the chat with reporters, the senior observer of underwear industry said that the branded brands sold in the domestic market include Wacoal, Ttiumph, Adam, Ordifen and so on, but Ordifen's position in the front line has been increasingly marginalized over the past four or five years.

With the comprehensive pressure of the brand, the sales volume of the shopping malls is affected, and the shopping mall starts to carry out the clearing up for the flat effect consideration, so the brand pressure can be imagined.

"Ordifen can sell a relatively good price while it is playing now. In a few years, it is estimated that even 50 million yuan will not be sold.

Can you see the shadow of the underwear in the mall now?

I can't see. Finn's ending is a typical example.

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The rapid growth of the parity mode of selling goods has divided the underwear market.

Third, from the perspective of external factors, the new business model of parity and volume is developing rapidly to divide the underwear market.

You know, once in a long period of time, in the underwear area of mainstream department stores and shopping centers in the second tier cities across the country, the "fragrant" brands of Wacoal, Ttiumph, Adam, Ann Li Fang and Ordifen are almost standard, and their mainstream position is almost impossible to shake.

In view of this, when a group of two or three line bra brands in Shantou, Guangdong, such as Yi Manli, Jia Lishi, olive, Mei Si and so on in the past 10 years to fight the market in a big way, they had to avoid the mainstream shopping malls of the second tier cities, and to the three or four line and county-level cities to open shop and street shops.

The acquirer of this acquisition, the urban beauty, is a typical representative of parity, but once it was not the object of being squeezed, it opened up the line of parity. It was also a pink brand of "urban-rural integration" by the white-collar of urban white-collar.

Once, Ordifen and other first-line brands 300~800 yuan unit price higher premium rate, so that urban beauty is very envious.

So that the two or three line underwear brand in the price of seeking dislocation competition, the price range is more than 50 yuan ~200 yuan, about 100 yuan is the main price of its bra.

But it is really 30 years Hedong, 30 years Hexi.

2 pairs of underpants were sold for 10 yuan at a discount, a bra sold for less than 100 yuan, and the urban beauty who thrived in the vast 234 line market and the urban-rural fringe of the big city had about 5800 shops, annual sales of about 3 billion yuan, gross profit margin of 40%, and annual profit growth rate of more than 30%. While Ordifen's sales were struggling below 400 million yuan, it was plunged into a continuous loss situation.

In fact, the city beauty and Ordifen are two brands of different underwear "Jianghu". There is almost no coincidence between consumers who buy urban beauty and consumers who buy Ordifen, and there is not much comparison between them.

It's like if you compare Chanel, Prada and ZARA, H&M, they are not the same level and dimension.

However, the domestic underwear consumption market is so large. The urban parity sales mode is booming and developing rapidly. It is bound to form a potential preemption and carve up of other branded underwear brands on the whole, just as it is singing all along in the global sales market.

The H&M divided the market for Chanel and Prada.

The market is always so dramatic.

This makes us feel anxious. What will be the final outcome of the Ordifen that will be integrated?

And how many brands in the current domestic apparel industry are struggling like the Ordifen in the brink of survival?

And who will be the next brand to be acquired?