High-End Clothing Bubble Luxury Who Flickers

The price of high-end clothing is amazing. How many bubbles are there in it?

Are consumers buying?

Baozi high price bubble: two or three foreign domestic pformation

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Baozi price is high, bubble faces shuffling, privatization is expected to return to A shares to enhance valuation

Baozi, a rumor of "quit the fashion industry" because of a notice of assignment of shares, is now having a hard time.

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

However, restricted by the decline of women's clothing performance, many people in the industry believe that Baozhuang's women's clothing industry is facing the impact of the reshuffle of the garment industry.

Recently, when visiting a large shopping mall in Beijing, reporters found that the price of Baozhuang women's clothing was generally higher than the price of their brand shops at the same level, and its discounted behavior was to make baozi stand out.

"Baozi has never been discounted, and this price is in Beijing."

When a reporter asked a salesperson of a treasure shop, he was told, "baozi has no factory shops and discount stores in Beijing, and never discount."

However, when asked by reporters how to handle inventory, the staff said baozi had similar sales outlets in factories and discount stores in Xiamen.

Is it untrue to quit the fashion industry?

A few days ago, Baozi announced that its wholly owned Affiliated Companies, Ports BVI, would sell the shares of Ports HK20% existing in fashion and clothing business for 600 million yuan to the East Fuhai.

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.

After the announcement, some market participants speculated that after the withdrawal of Hongkong stock spring department stores in 2013, Chen's brothers had plans to withdraw from the main garment industry.

And who will take over the remaining 80% stake in Baozhuang for a time, becoming the focus of attention of the market.

It has been reported that the withdrawal of the main garment industry should be in the Chen brothers plan: at the annual meeting of baozi held in May 29th, the shareholders adopted several resolutions, namely, re election of Kenneth Chan, He Kun as executive director of the company and the renewal of KPMG as the auditor of the company.

In addition, Baoji also changed the name of the company, in addition to changing the English name, it also adopted "Baoguo International Holdings Limited" as a new Chinese name to replace the existing Chinese name "Ports Design Ltd".

All of the above are regarded as examples of baozi's withdrawal from the main garment industry.

Faced with the challenge, Kenneth Chan, the real controller of baozi, accepted the media interview in a timely manner and made it clear that he would not abandon the fashion and clothing business. For baozi's sale of Hong Kong stocks, Kenneth Chan interpreted it as baozi's privatization and returned to A shares.

Baozi intends to return to A shares

"We didn't pay enough attention to A shares before, but we only thought of listing overseas, but now the A share market is more attractive."

In an interview with the media, Kenneth Chan said that with this wave of overseas listed companies returning to A shares, Baozi decided to withdraw from the Hong Kong stock market and return to the A share market after privatization.

Kenneth Chan believes that in the A shares, Baozi can still win the popularity of investors.

Kenneth Chan explained to the media that the market value of baozi fashion in Hongkong stock exchange is about 3 billion 100 million Hong Kong dollars, less than 2 billion 600 million yuan, and its value is seriously underestimated.

But if it returns to the A share market, its market value will exceed 20 billion yuan.

At present, the price earnings ratio of other fashion companies in the mainland can reach 50 to 80 times. If some conservative 50 profit earnings ratio is estimated, the profit after tax is 274 million yuan, corresponding to the market value of about 13 billion 700 million yuan.

It is understood that baozi was successfully listed in Hongkong in 2003 and was once regarded as the leader of high-end women's clothing. After the listing, the company's stock price increased by 12 times.

In 2008, Baozi's share price soared to HK $31.5 / share.

Since then, the stock market has been declining, and its performance has declined continuously in recent years. The company's share price also dropped to the lowest level of HK $2.34 / share in 2014, and as of July 10, 2015, the company's share price was only HK $3.84 / share.

Referring to Baoji, which is a high-end women's clothing brand, it was listed on the Shanghai Stock Exchange in April 22nd. The issue price was 19.16 yuan / share. After the listing, the price of the company rose to 91.81 yuan / share.

Considering that the revenue of 2014 was 744 million yuan, the net profit was 139 million yuan.

For baozi, whose size is larger than that of George's, its industry is optimistic after its return to A shares.

According to Kenneth Chan told the media, Baoji fashion is carrying out a planned capital reorganization, and is currently conducting due diligence. If it goes smoothly, it will be completed in about three months to four months, and then it can return to A shares.

However, by the recent collapse of the A share market, as of July 7th, the price of the company has fallen to 33.44 yuan / share, up to July 10th, the company is still in the suspension.

Under such circumstances, will baozi return to A shares step by step?

Recently, the reporter asked the relevant departments of baozi Hongkong to inquire about this problem, but was told that the company secretaries in Xiamen office, hoped that the reporter and Xiamen aspect will relate.

Unfortunately, when the reporter telephoned Xiamen, he was told that because of the real name system, the reporter's name of Dong Mihuang was not found.

Finally, the reporter said he wanted to interview, while Xiamen told him that he should contact Shanghai's external advertising department.

Because no one answered the meeting at that time, the reporters had to leave the phone, but no reply was received before the deadline.

Downturn in industry performance

In fact, the reason why baozi was misunderstood to quit the fashion industry is mainly because the performance of baozi's clothing industry has declined.

According to baozi financial report, from 2011 to 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 profit was 566 million yuan, 481 million yuan, 411 million yuan and 170 million yuan respectively, and the profit attributable to shareholders of the company was 430 million yuan, 351 million yuan, 293 million yuan, and 293 million yuan.

From baozi announcement, the total sales volume of the company in 2014 decreased by 12.1% to 1 billion 879 million yuan compared with the same period in 2013.

Although gross margins remained at 80.8%, profits fell by 75% to 73 million 200 thousand yuan.

At the same time, the company has closed 42 stores throughout the year, and currently operates 310 retail outlets in mainland China, Hongkong, the United States and Canada.

The industry believes that the decline in performance is mainly due to the weakness of China's luxury market.

In recent years, the high-end fashion and clothing industry has begun to become colder. In order to return the funds, some famous international clothing brands such as Gucci and Chanel have begun to sell at a discount, and some companies have declined in performance.

With the constant entry of fast fashion and light luxury brands, Baozi has had a hard time as a representative of the high-end women's clothing in China.

Some analysts said, "baozi brand is superior to those of foreign luxury brands, but its price performance is less expensive."

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

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

It is worth noting that with the lowering of tariff on imported garments and the increasing entry of more and more international brands into the Chinese market, the problem of the high price of domestic brands will gradually become prominent.

And baozi will face a shuffle of high-end clothing market.

Price bubbles for high-end clothing

In recent days, in order to further understand the sales situation of baozi brand, the reporter visited the front-line shopping malls in Beijing.

According to a bazaar salesperson in a shopping mall, the clothing stores mainly face 25 to 40 years old.

Reporters in the store to observe, Baozi brand clothing prices are mostly from 4000 yuan to 5000 yuan.

For example, the price of half dress is also between 2000 yuan and 3000 yuan.

Reporters also went to the high-end women's clothing brand Mass Phil with Baozhuang on the same level, found that the clothing price of the brand is about 3000 yuan to 4000 yuan, although the brand is also lack of 4000 yuan of clothing, but according to the reporter to sales personnel understand, Mass Phil's members will enjoy 10 percent off discount.

In addition, the reporter also inspected other brands which are on the same level with baozi. Although the brands are different, there are many products similar to baozi, but the price is lower than that of baozi.

High price for baozi

There is an analysis of the industry, "baozi clothing prices have a bubble.

Baozi is only two or three streams abroad, and it can become a luxury brand in China. It can be seen that there has been a period of abnormal consumption in China.

Now that consumers are setting up their consumption concept, it is very difficult for them to restore their profits.

According to a reporter's investigation, Bao's so-called discount is not entirely true.

Although baozi did not carry out large-scale discounts and clearance activities in Beijing's shopping malls, reporters learned from consumers that baozi has two large-scale sales events in Beijing every year, which are in November and the end of April.

The sale site is uncertain.

There are also consumers who have held a limited time offer in Beijing in April 2015.

According to the promotion of SMS content, "respected members, from now until April 19th, Baozi 70 percent off to 40 percent off limited time special offer, by SMS, enjoy 5% off, location: Beijing Chaoyangmen North Avenue 2 Hongkong and Macao Center Swissotel Hotel."

So it can be seen that the discount activity of baozi is not not, but it is restricted in a certain consumption circle.

In fact, when interviewed by relevant journalists of O2O company, he was told that some high-end brands in China could be compared with international brands, but their after-sales service and related software were far behind those big brands.

This has also led to the fact that domestic brands are not branded as international brands, even being attacked by electric providers.

"Buying a product is not about buying a home. It's not related to businesses. Domestic brands should consider how to strengthen after-sales service."

According to the reporter's advice to baozi sales staff, the company can change the number of the products sold, but it did not respond to the request made by reporters to make some modifications according to their physical condition.

When the reporter put forward the problem of too big clothes to another brand, which is far from the price of baozi, the sales staff of the brand even proposed that the garment should be revised to the factory according to the request of the reporter.

The above O2O company responsible person believes that the domestic

To compete with international brands, we need not only to improve our hardware, but also to improve the shopping environment and after-sales service software for consumers.

It is a long way to run if prices are to match the value.