Signed 5 Years Exclusive Cooperation Can Li Bang Borrow Beckham To Save The Declining Performance?

Beckham David Beckham will release more charm in China.

In September 13th, Beckham's wife Vitoria Beckham (Victoria Beckham) clothing brand was released on the third day after the 2016 spring summer series released in New York fashion week. 00891.HK, a high-end men's clothing company in Hongkong Feng's group, said its Kent&Curwen (Ken Diwen) brand had signed an exclusive cooperation agreement with Beckham Beckham for 5 years, hoping Beckham could promote the global business development of the brand in many ways.

However, a clothing industry told reporters that in recent years

Suffer from high inventory, rising costs, electricity providers and other shocks, and by the downturn of China's economy and retail environment, many domestic high-end market segments men's clothing brands are facing growth pressure this year. So even with the charm and brand appeal of Beckham, whether Li Bang can quickly improve and enhance its performance in the short term remains to be seen.

Gold lettered signboards are still valuable.

As a notable figure in the international sports arena, David Beckham has retired, but his gold medal is still valuable.

The announcement shows that Seven, a wholly owned subsidiary of Li bang, and Seven Global (as an authorized person) and Beckham (as a concessionary owner of property rights) have entered into an authorization agreement, and Seven Global has agreed to grant the exclusive rights and licences of the international group.

Seven Global was founded in May 29, 2015. It is a joint venture founded by Li Biao brand (00787.HK) and Beckham and its business partner Simon Fuler.

The aim is to continuously promote the development of Beckham brand in the world and to cooperate with other famous sports and entertainment giants and brand equity owners to create large global brands.

Li brand and Li Bang are under the banner of Hongkong Feng Shi group.

Li Bang business includes men's garments and accessories retail, and Li mainly engaged in design, development, marketing and sales.

Footwear, fashion accessories and related lifestyle products.

As early as the end of the year, foreign media reported that Beckham followed his wife's footsteps in Vitoria and launched his latest brand with Simon Fuler, and authorized the brand to Hongkong Feng Shi group.

Fuler has become a business partner with the Beckham family since the "Spice Girls" period, and has made Victoria Beckham a world famous brand.

According to the agreement signed by Li Biao brand Co., Ltd. and Beckham and its business partner Simon Fuller, through the establishment of joint venture Seven Global by both sides, Beckham will take part in various areas of Kent &Curwen business, including product development, market development, advertising publicity, and store design and location.

Li Bang also plans to create a new Kent &Curwen product inspired by Beckham's personal charm, launch a series of related marketing activities, and open new flagship stores in China and other markets around the world, and set up e-commerce websites.

"Men's sports fashion has huge growth potential in China and other markets. Beckham will play an important role in Kent&Curwen's future business development and brand management. It will help Kent&Curwen interact with existing customers more deeply and attract more new customers."

Li Bang chief executive officer Richard Cohen said in a statement.

Kent&Curwen was founded in 1926 and started with a gentleman sportswear brand.

Irrespective of

How can Li Bang need to pay royalties? The cost is $3 million 500 thousand in the first year and increased to $7 million 250 thousand in fifth years. If annual sales exceed US $100 million, the state should also pay 5%~10% of its sales as royalties, but the total amount does not exceed HK $60 million.

Can Bei Ye save his achievements?

Li Bang is mainly engaged in the retail and wholesale business of senior men's clothing brand in Greater China and Europe, and operates its own brand globally.

2014 annual report shows that the company's existing Kent&Curwen, Gieves&Hawkes, Cerruti 1881 and D 'URBAN four men's wear brands, currently in the Greater China 65 cities have 390 shops.

However, with the weakness of the retail market in the mainland and the decline in the number of mainland visitors to Hong Kong, the average selling price fell. In the first half of June 30, 2015, the company lost its earnings in the first half of the fiscal year. It was the first half year loss since its launch in 2009, and the management expects its annual performance to be lower than that of 2014.

In the first half of the fiscal year, the profits of the group were HK $1 billion 6 million 400 thousand, down 20.1% from 1 billion 259 million 600 thousand Hong Kong dollars in the same period last year, which accounted for 22% to HK $494 million 900 thousand in the mainland market, while Hongkong's market revenue fell 23.2%, from 385 million 900 thousand Hong Kong dollars in the same period last year to HK $296 million 600 thousand. The group's third market Taiwan market and the four largest market also declined in the UK market.

It is hoped that by this brand authorization to enhance the flagging performance of the Li Bang directors, the authorization agreement, with the participation of Beckham, will make the development of Kent&Curwen brand move forward.

In addition, Beckham is expected to attract a lot of potential franchisees and franchisees to pay attention to the brand of the company and help expand the brand globally.

Although the profit pressure has long been expected, the drop is unexpected. For this reason, the bank international researcher downgraded the company's rating from neutral to selling.

He believes that the structural problems of Li Bang (continuous discount reduction, brand image and value decline, and customer loyalty) may be longer than expected, and also face the slowdown in the whole industry.

Based on the fact that sales have not shown signs of improvement, coupled with the expensive long-term business restructuring (including the new management team, the centralized supply chain that integrates all brands and networks), the researchers believe that Li Bang needs to undergo a longer consolidation period at a profit margin.

Similar to Li bang, other high-end men's clothing brands in China are also under operational pressure.

Taking card road road as an example, in the first half of 2015, the company achieved operating income of 372 million 943 thousand and 200 yuan, an increase of 2.19% over the same period last year, operating profit of 27 million 812 thousand and 900 yuan, an increase of 0.53% over the same period last year, and net profit attributable to shareholders of listed companies was 23 million 944 thousand and 400 yuan, an increase of 18.60% over the same period last year.

And as of June 30, 2015, the total number of stores was 379, representing a net decrease of 88 compared to December 31, 2014.

A brokers clothing industry analyst told reporters that because of the low base last year, the high-end men's clothing such as carndal road did not seem to have fallen too much. But influenced by China's economic and retail environment downturn and anti-corruption policies, the domestic high-end menswear men's clothing market has been facing growth pressure since 2013. With the charm and brand appeal of Beckham, Li Bang can get more attention, but in the short term, the possibility of rapidly improving and improving performance is not large.