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    In His Announcement, Baozi Did Not Hide The Worries About The Future Of The Clothing Industry.

    2015/7/11 13:31:00 31

    BaoziAnnouncementClothing Industry

    Baozi plunged into the vortex of "leaving the fashion industry".

    Although Kenneth Chan, the actual controller of baozi, publicly stated that the so-called "exit" is the misreading of the privatization of the outside world, Baozi will not abandon the fashion and clothing business.

    "Baozi is planning capital restructuring in a planned way. After privatization, it will withdraw from H-share and return to A shares."

    However, this is still unable to cover up the unfavorable situation of Baoji's performance in the high-end women's clothing market.

    "The future of traditional fashion apparel business is difficult and challenging."

    In his announcement, Baozi did not hide the worries about the future of the clothing industry.

    In recent years, as fast fashion and light luxury brands continue to enter, as one of the representatives of the high-end women's clothing in China, Baozi's life is not easy, and the weak performance has been going on for quite some time.

    Kenneth Chan, CEO, wanted to save baozi by controlling the cost of operation, optimizing the retail store network, and establishing e-commerce, but at the moment it did not seem to effectively curb its downward trend.

    According to baozi financial report, in 2011 ~2014, the turnover of the company was 1 billion 985 million yuan, 2 billion 98 million yuan, 2 billion 137 million yuan and 1 billion 879 million yuan respectively, and the operating profits were 566 million yuan, 481 million yuan, 411 million yuan and 170 million yuan respectively. The profits of the company's shareholders should be 430 million yuan, 351 million yuan, 293 million yuan, and 293 million yuan.

    Not only baozi, China's high-end

    Women's wear

    Are facing such difficulties.

    Another women's clothing company, the shares of the company, also encountered a decline in performance. In the 2014 fiscal year, its operating income was 1 billion 235 million yuan, down 10.40% compared with the same period last year. The net profit attributable to shareholders of listed companies was 121 million yuan, down 48.14% from the same period last year.

    Zhou Ting, Dean of the Institute of wealth and quality, also admitted that "I do not agree with the real value of the brand, but I can't match those foreign luxury brands."

    Cost performance

    It's a luxury.

    Nowadays, consumers are more and more mature. Fake foreign brands and fake luxury brands are not as good as the fast fashion brands with high cost performance.

    The key is not to embody some characteristics in product design. "

    The "fake foreign brand" theory originated in 1989.

    That year, Baozi, founded in Toronto, Canada, was bought by Kenneth Chan, a businessman in Hongkong.

    Subsequently, the company is headquartered in Xiamen, and its focus is also moved to China.

    To enhance its position in the hearts of Chinese consumers, Baozi has increased its international exposure.

    Baozi, who is clothed in "foreign" coat, has successfully painted the essence of "made in China" in this regard.

    When Hongkong was listed in 2003, as a leader in high-end women's clothing, Baozi was regarded as a Hong Kong stock star.

    Similar to baozi's clothing industry, there are many, with the reduction of tariff on imported clothing, and more and more genuine foreign brands entering the Chinese market.

    Fake foreign brands

    The problem of high price is becoming more and more obvious. Baozi's price bubble is broken, or it will face the reshuffle of the clothing market.

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