How Can Those White Collar Beauty Treasure Their Memories Of Youth?

600 million yuan for fashion and apparel business

The Ports Design Ltd announced on Monday (June 1st) that it will sell for RMB 600 million yuan.

And apparel business, as the first step to quit traditional fashion dress business and conduct business pformation, may sell the remaining 80% interest in fashion and clothing business at a price of 2 billion 400 million yuan.

Baoji said that withdrawing from the traditional fashion and apparel business of the company and the strategic focus of the pfer company to the relevant industries that are expected to bring better returns to shareholders, the company is actively exploring the strategy to expand its business and find other possible investment opportunities.

The news is likely to make Chinese white collar women about 40 years old sob. Baozi may be one of the first known brands when they were young when they entered the workplace. Many of them will buy a two thousand dollar treasure just like the young people now tighten their belts and buy Gucci bags for a few months. 2000 yuan in the 90s of last century, you know.

Back in January 2015

The reason for privatization is obvious. In recent three years, Baozi's performance has been unattractive.

Baozi's performance has never been good.

From 2007 to early 2008, the price of baozi was about 30 Hong Kong dollars. After the financial crisis plunged, it reached a high level of HK $25 in the early 5 years in early 2010.

But in the past three years, the stock price has slipped all the way. In the first half of June 30, 2014, the operating profit of baozi dropped by 47.3% to 205 million yuan, and its net profit was 54 million 965 thousand yuan, a sharp decrease of 60.7% compared with 139 million 700 thousand yuan in the same period of the previous year.

Among them, the retail revenue decreased by 10.1% to 976 million yuan due to the weak consumption in China's luxury market, and the other income fell 11.8% to 99 million 500 thousand yuan.

As of June 30, 2014, there were 327 stores in baozi, mainly in mainland China, Hongkong, the United States and Canada, representing a decrease of 25 over the same period in 2013.

By comparison, we can see the extent of baozi's decadent: the fast fashion brand ZARA, which has 440 stores in more than 60 countries, is still expanding. Its parent company INDITEX has 8 brands, and there are more than 6460 stores in the world. This year, Indite's brand plans to set up more than 500 stores in more than 60 cities in China.

Once the scenery is boundless, with the earliest Chinese white-collar Beauty, how can it be?

Although one of the "world famous brands" that first entered the mainland, actually it originated in Canada, but it has long been a domestic brand.

But this did not affect the white collar women's tireless pursuit of a treasure.

Baozi was founded in 1961 by the founder of Luke Tanabe in Toronto, Canada. By 1989, Baozi had opened more than 60 stores in the world. He felt that his mission was completed and he wanted to retire.

The Kenneth Chan family, who moved to Canada in 60s, is very optimistic about this brand.

Chen's family bought baozi's 70% stake and became the largest shareholder of baozi.

In the early 90s of last century, in the early days of reform and opening up in mainland China, the Kenneth Chan family, with a keen sense of smell, caught the opportunity and quickly decided to enter the mainland market. In 1993, it opened a trial camp in Shanghai and Xiamen, and the profit reached 5 million yuan.

Then, in more than ten years, Baozi was in the mainland.

It has opened to more than 200 stores, and has become the most popular shop in the same brand, from Toronto to New York, Tokyo, Montreal, Dubai, Hongkong and Shanghai.

Baozi brand has been expanding all over the world, and the group business has touched clothing, real estate, general merchandise and so on.

The successful logic of baozi's early life in the mainland is actually very simple. When it entered the mainland of China, it was also catching up with the rise of the first wave of successful female class. Baozi was immediately regarded as the fashion Bible by Chinese women. At that time, Baozi represented the pursuit of dress, taste, time and beauty for all women.

But baozi always has the tradition of pursuing quality and design.

The famous "less is more" in the design world was first put forward by baozi's founder.

The designer of baozi has always been a brother or sister.

Designer brothers or sisters are like twins, who integrate different personalities and create perfect designs, making baozi once a charming charm.

From the Christine & Miki Tanabe sisters who love Print printing patterns, they focus on the feminine and sexy Dean Dan Caten brothers, and then to the current chief designer Fiona & Tia Cibani sisters. Baozi likes to turn the fresh ideas out of the seemingly insipid minimalism, emphasizing the elegance of the delicate details. All of these have made the former white-collar women love to die.

The position has not changed, the market has changed

Baozi has not changed, and the market has changed. Even now baozi is still the darling of the stars and fashion circles, but the traditional clothing brands including baozi are facing the same predicament -- that is, the rise of fast fashion brands. They are more fashionable in fashion pursuit. They are closer to stars and fashion circles, and they are more interested in the spread of the Internet age.

More importantly, you can spend a small amount of money on clothes that taste like that -- right, wipe out a zero from the back of the price of baozi, which is actually the foundation of fast fashion innovation, so that everyone can consume at a cheaper price to the fashionable products that only a few elite consumers can afford.

To meet the needs of customers' "fast fashion", ZARA's new rivals, from design, data acquisition, supply chain to distribution, all revolve around this goal.

Esprit is also unlucky.

Esprit's brand's global earnings report showed that net profit fell 50.5% in the first half of fiscal 2015 as of December 31, 2014, down from HK $95 million to HK $47 million in the same period last year.

In May 20th, Si Jie global issued a financial warning that it expects to lose substantially in the 2015 fiscal year of June 30, 2015.

In fact, in 2009, Esprit was lagging behind the Swedish H&M, Spain Inditex, Japan Fast Retailing, the United States TJX Cos and GAP five groups.

Faster fashion brands are more fashionable.

The reason for the decline of media commentary Esprit is that it can not keep up with the popularity of these fast fashion, but the price is unchanged over the past year - more than 300 yuan - the price is more and more fashionable in fast fashion brands, which leads to their being abandoned by young people.

The problem of baozi is even more serious. Its design and quality no longer have its unique value with the emergence of new competitors, but its price is more expensive. The 3000 part is basically "starting price", while ZARA and other fast fashion brands only need 1/10 of its price, and because of the fans of fashion elite, the value of brand is not low.

In addition to the global attack of internationalized fast fashion brands, some emerging trend brands such as IT, IZZUE and so on, because they are in line with the cool taste of new people, are also the strong enemies of traditional brands such as Baozi and Esprit. They are not cheap either, but young people are willing to pay for their hearts, just like buying thousands of new Nike shoes.

It is not possible to catch the needs of the young people as they did before. After losing the attention of young people, they lack the more powerful action to pull them back. Selling the traditional clothing business is probably a good choice for those who can not restore the declining trend.