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    Clothing And Love Adopt Multi Brand Strategy, Vertically And Horizontally Chinese Market.

    2016/2/23 9:32:00 40

    ClothingLoveBrandStrategyClothing

    From Korea

    Clothes and love

    The group learned that since its entry into the Chinese market in 1994, the group has been in large department stores and shopping centers in major domestic cities and operates more than 8000 direct outlets.

    What does the 8000 direct store mean? Compared with the current popular UNIQLO, UNIQLO may have an intuitive feeling.

    The latter has not yet opened more than 500 stores in China. According to the plan of UNIQLO, the number of stores in mainland China will reach 1000 by 2020.

    In terms of body size, the clothing and love group has a strong advantage even in the face of strong international fast fashion brands.

    After 22 years of deep ploughing China, this low-key Korea Companies has become a leader in the fashion industry, and has become a multinational group through mergers and acquisitions and business expansion.

      

    Multi brand March

    clothing

    market

    In the 90s of last century, the clothing and love group, which already had a large scale in South Korea, realized that it should be overseas.

    In 1993, Pu Shengxiu, President of the clothing and love group, called the staff from the lecture of Peking University, and said, "I see whether professors or students are all dressed in Chinese tunic suits. If they start to pay attention to fashion clothes, China will be a huge market."

    The Korea Companies acted quickly after identifying China as the preferred market.

    In 1994, clothes and love began to enter the Chinese market. China's headquarters was set up in Shanghai. It was one of the few foreign brands in China.

    Since then, several brands of clothing and love have developed well. For example, the brand name Eland of the British college style has been successful in China's first tier cities, and its design style has filled the gap of domestic clothing at that time, and has been popular among many young people.

    Like most Korean businesses, China does not use Chinese to be executives.

    In an interview with Chosun Ilbo, Cui Zhongliang, a legal person in China, said that Pu Shengxiu, the chairman of clothes and love, asked him not only to learn Chinese, but also to read 100 books about China, and Cui Zhongliang was appointed to the Chinese legal person in 2001 after 8 years of studying China.

    According to clothing and love, its performance in China has been good.

    From the first year of its establishment, only 6 billion 600 million won (equivalent to 34 million 980 thousand yuan) started sales, and grew rapidly from 200% to 300% per year in the next few years.

    In the 2003~2007 years after SARS, the total annual sales growth of China's clothing and love group reached an average annual growth rate of 79%.

    There are public reports that the annual total sales of clothing and love in China reached 2 trillion and 500 billion won (equivalent to 1 billion 325 million yuan).

    Because it is not a listed company, the clothing and love side has not disclosed the company's specific sales in China at present.

    However, reporters found that in the latest list of Shanghai top 100 taxpayers in 2015, the registered name is clothing and love (Shanghai) Fashion Trading Co., Ltd., ranking fifty-third, paying 815 million yuan last year. It is also the most tax paying enterprise in the field of dress.

    "It is a very good company and is also very famous in the industry."

    Wang Yong, executive vice president of La Natsu Bell (06116.HK), told reporters that in today's Chinese apparel industry, clothing and love rank second in size, second only to the Danish Lingzhi company, but "brand positioning is higher than that of our customers."

    In Wang Yong's view, the core reason for the success of clothing and love in the Chinese market is direct and multi brand businesses.

    These two points are the key to success in the field of popular fashion.

    According to his observation, today's clothing retail market in China has entered the era of big group "separation". When people enter shopping malls, although they see different brands, they actually come from a parent company.

    For example, JACK&JONES, ONLY and VERYMODE are all from the Lingzhi group, while ZARA, Pulland Bear, Massimo Dutti and Bershka come from Inditex group.

    In order to survive in the future, only the multi brand strategy can continue to develop.

    This reporter learned from clothing and love, at present, the company's Eland, Scofield, Teenie Weenie, Roem, Scat, Prich, Pawin Paw, SPAO, WHO.A.U more than 10 brands have all entered China.

      

    Multi domain crossover

    Management

    In 1980, fashion and clothing industry started to win praise and popularity among young people and college students through their black and white fashion, gorgeous colors, prominent letter patterns and practical leisure design.

    In the 90s of last century, with the rapid development of Korean economy, the clothing and love group had expanded rapidly with the chain operation mode, and had become the condition of the fashion group, and was also known as the Korean national brand.

    In the most prosperous Ming Dong, bell road and other streets in Seoul, South Korea, clothes and love shops are lined up.

    Ye Qizheng, founder of the fashion industry, which has long been concerned about the trend of fashion industry, visited the Korean headquarters of the clothing and love group in December 2015.

    "Clothes and love are really well known in Korea."

    He told the newspaper reporter, but the group's business scope is not just clothing. "In Korea, we eat clothes and restaurants, live in clothes and open hotels, visit clothes stores and department stores with love clothes, and see the performance is also a project of clothing and love management."

    As Ye Qizheng said, in South Korea, the clothing and love group is no longer a company that only sells clothes, but a cross domain group.

    The opening of the authentic Italy pizza shop "PIZZAMALL" in 1994 marked the official entry into the fast food industry.

    Since the acquisition of New Snow Hotel in 1995 (now snow yuehill Kensington Hotel), clothing and love have brought hotels into the business area and continue to start mergers and acquisitions, and have acquired more than 20 companies in fashion and circulation leisure areas.

    M & A is regarded as the most important growth strategy in the clothing and love group.

    Clothing and love group also believes that the secret of rapid growth in the short term is to expand enterprises through mergers and acquisitions and diversify their careers.

    According to the clothing and love side, unlike the acquisition of those companies that are cost-effective but expensive, the love affair favors the acquisition of temporary acquisition or structural problems.

    With the rapid growth of enterprises, the clothing and love group has been aiming at overseas markets in recent years.

    During the financial crisis in 2008, Yao Yi bought the Thanh Cong, a troubled Vietnamese listed company, and normalized its operation, and subsequently acquired BELFE and LARIO from Italy's fashion industry.

    Since then, the acquisition of international brands such as the US sports brand K-SWISS and Italy's Coccinelle and Mandarinaduck marks the beginning of the path of global mergers and acquisitions.

    After the acquisition of international brands, clothing and love began to pform personnel and production, stores and commodities in a large scale in China, in order to enhance the competitiveness of enterprises.

    In view of the operation of overseas enterprises, the company persists in maximizing the talent management concept of local human resources, and selects and deploys local staff in a large number, so that the buyout enterprises can recover and operate more quickly.

    The healthy development of domestic diversification supports the continued expansion of the group.

    There is no doubt that the company's apparel sector is far ahead of its business in Korea.

    Nowadays, the traditional clothing industry is constantly impacted by the Internet, and more and more brands are entering the Chinese market like tide.

    But the relevant person in charge of clothing and love company said that the company's future growth momentum lies in its SPA brand expansion in the world, using the "1/2 price to provide customers two times the value of" business philosophy, to compete with large multinational clothing enterprises, to maintain their seats.

    At the same time, clothing and love also seek various kinds of cooperation in China: for example, in 2011, they obtained the NEWBALANCE (China) management agency power. In the same year, they collaborate with KATESPADE parent company to run KATESPADE brand and enter the Chinese famous brand market.


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