China'S High-End Women'S Clothing Market Is Over Competitive, And Products And Brands Are Facing Aging.

CEO Kenneth Chan wanted to control the operating cost, optimize the retail store network, and establish.

However, it does not seem to be able to effectively curb its downward trend.

After selling Paris spring department store, Ports Design Ltd's actual controller Kenneth Chan plans to sell clothing business.

In June 1st, the Ports Design Ltd announced that its wholly owned Affiliated Companies Ports BVI offered 600 million yuan for the current fashion and apparel business Ports HK20%, which was sold to the east rich sea.

Orient Fuhai will identify and introduce third party buyers to Ports BVI, offering an offer of 80% Ports interest to Ports BVI at a price of 2 billion 400 million yuan.

Subsequently, 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 hide baozi in the high-end.

The unfavorable situation of declining market performance.

Is baozi not guaranteed?

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, but also the high-end women's clothing in China.

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 said, "this

I do not agree with its actual value, but it is not up to those foreign luxury brands.

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.

There are many other enterprises like baozi. With the reduction of tariff on imported garments and more and more genuine foreign brands entering the Chinese market, the price of fake foreign brands is becoming more and more serious. The price bubble of baozi has broken down, or it will face the reshuffle of the 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.

Return to A shares

So, is baozi in a difficult position really quitting?

In June 7th, Kenneth Chan said publicly that the above announcement that caused the "Misreading" of the outside world is that its core idea is to gradually pform baozi's China business into A share listing.

"In the history of baozi, fashion is a core link.

Baozi International Group covers many fields of real estate, high-tech, finance and insurance, but the core business is fashion. We will not quit this industry.

A brokerage industry analyst Zhang Ling (a pseudonym) said: "the announcement of the so-called equity acceptor Fang Fuhai is a well-known PE in the industry, and now there are many resources in the A share market. It is not impossible to help baozi in the A share backdoor listing through PE operation."

In fact, in January 2015, Kenneth Chan and Chen Hanjie, the main shareholder of baozi, bought the issued share capital of Baodi 6.8% with HK $3 per share, which amounted to HK $112 million, triggering a mandatory comprehensive offer. If successful, Hongkong will privatize its withdrawal from the market.

However, due to various reasons, the offer was not completed, and Baozhuang privatization was blocked.

This stock sale is another attempt of baozi capital operation.

Clothing watchers believe that under the situation of low performance and stock prices, some traditional clothing companies have increased their share price through various means, including acquiring Taobao Tmall's mature e-commerce team, layout O2O, diversifying development, selling clothing industry, turning to commercial real estate and other businesses.

However, "capital means only" speculation "behavior, enhance performance or need to focus on the development of main business.

It is believed that baozi has been seriously underestimated in the H-share market, or is the important reason why Kenneth Chan wants to fight for A shares.

He said that the market value of baozi "in the H-share market is about 3 billion 100 million Hong Kong dollars, less than 2 billion 600 million yuan."

The "A share" fashion companies can achieve 50~80 times the price earnings ratio. If everyone conservatively estimates 50 times, the market capitalization is about 13 billion 700 million yuan.

Baozi's share price has been weakening in the H-share market in recent years.

At the time of listing, HK $3 soared to HK $31.5 in 2008, and by 2010, Baozi's share price began to fall all the way. At the end of 2014, it fell to HK $2.34, and as of June 8, 2015, Baozi closed at HK $5.63.

For Kenneth Chan's expectation of returning to A shares, Zhang Ling analyzed that the price earnings ratio 50~80 times of the fashion industry was based on the current bull market, but now it is hard to predict how long the stock market dividends will continue for 5000 points in the Shanghai stock market. Secondly, such as the stock of Gao Shiying can reach the ratio of the Shanghai stock market, which is a big story about the capital market, for example, the layout of the Internet and the mobile Internet fashion culture industry, etc., it is hard to say whether baozi can tell his story well.

More importantly, the situation of the women's clothing market in the past few years is no longer in place. Excessive competition in the high-end women's clothing market has left baozi with its previous advantages.

As an international brand of high-end women's clothing, Baozi has the first advantage in the domestic market in the past more than 10 years, but now the international luxury and second tier brands in the international market have entered the Chinese market by way of agency or direct operation. Meanwhile, domestic high-end women's clothing brands such as singer, Mass Phil and other new competitors compete in the market and squeeze their market share.

But baozi's products and brands are also facing the dilemma of aging.

Zhang Ling believes that women's clothing needs to be updated rapidly, but the old customers of baozi are losing their old age and unable to catch the needs of young consumers.

"If you can't focus on innovation, even if you return to A shares, you will not be favored by investors."

Zhang Ling said.