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    Who Is Making Money In China'S Clothing Brand?

    2016/2/23 10:33:00 57

    Clothing IndustryClothing IndustryClothing BrandPopularityIndustryInternet

    Nowadays, tradition

    Clothing enterprise

    Life is tough.

    But you know, three companies are still making money.

    Why do they stand out? What is unique and valuable about their business models? Where are the Chinese fashion industry and the ZARA LVMH? Where are the bottlenecks of industrial upgrading? What opportunities will there be in the future?

    Li has long focused on fashion industry investment, and has a deep understanding of the current predicament and future direction of the apparel industry.

    He has deeply explained the current situation and future trend of the garment industry for more than ten investment institutions such as Huaxia Securities, Harvest Fund, Huacheng securities, CITIC Securities and Shenyin Wanguo.

    Next, Li will learn from his whole life to analyze the way out for China's fashion industry.

    Q: where is the difference between China's clothing brand and the international line?

    Li Jinliang: from a comprehensive perspective, China's entire fashion industry or narrow sense of clothing industry is in a stage of industrial change or shift.

    At this stage, there is an industrial loss. The combination of cultural industry, media industry, Internet and fashion industry is not very close.

    Europe's industrial ecology is very close. For example, LV will have many media groups, many retail outlets, and also have its own industrial ecology. In addition, its docking with capital market is also very close.

    It is not lack of capital nor lack of resources, but our Chinese fashion industry is often alone.

    Q: there are few customers in the mall, who are making money every day.

    Li Jinliang: let me talk about a couple of companies that make money or say that they will have good momentum in the future.

    Youngor

    Although it doesn't look very popular, it has been making profits.

    The reason for YOUNGOR's profit lies in the fact that the amortization of design fees is not large on the one hand; in the second aspect, because most of YOUNGOR's stores are bought many years ago rather than renting them, housing prices have been rising, so they can ignore the amortization of the rent. Besides, YOUNGOR can save a lot of publicity expenses because of its good location.

    Another two years of rapid growth and even 50% growth last year is the Taiping bird group. Taiping bird group has benefited from several aspects: first, South Korea.

    Popular

    The influence of culture is very great, because its clothing style is very close to Korean popular culture elements. This makes the Taiping bird group able to share a lot of design and communication expenses, and consumers are naturally close to it. In the second place, its store location and storefront operation are similar to those of ZARA and H.M. The store is bigger and the location is better, so it is easier to amortize the sales cost; the third aspect is the supply chain.

    The supply chain of Taiping bird is what I have seen. The domestic enterprises should be the most complete, powerful and highly efficient.

    Though not as good as ZARA or UNIQLO, it has begun to take shape.

    It may become an enterprise representative who can walk out in the process of the next industrial upgrading.

    {page_break}

    The third is to start the pformation now. In the right direction of Semir, Semir originally made casual wear, and later began to create "balbala" brand to do children's wear, and the speed of development was very fast.

    In recent years, with the upgrading of industries and upgrading of consumption, Semir has begun to build a children's industrial ecosystem, such as buying early education, making cartoons, making toys and so on.

    Semir is actually building a new ecosystem around the upgrading of children's consumption. This ecosystem is very similar to what LV did in Europe and Vitoria secretly in the United States.

    With time, such as three to five years of effort, Semir will probably form its own unique ecological chain.

    Q: what are the opportunities for China's fashion industry? Where are the bottlenecks of industrial upgrading?

    Li Jinliang: from a comprehensive perspective, the next step in upgrading China's fashion industry must face these three problems.

    First, how to grasp the source of culture, so that the cost of design can be better amortized.

    China does not have the dominant culture and values. Our culture and values, including cultural symbols, are imported from Europe, resulting in insufficient originality. Therefore, it is difficult for us to share the design cost.

    We are plagiarizing, but we must plagiarize ZARA and H&M in speed and quality.

    Second, because of the solution.

    Design

    The problem of source can be amortized for a lot of communication costs under the situation of relatively mainstream Internet dissemination.

    Third, it can reduce or to some extent reduce the amortization cost of the physical storefront and the purchase flow on the Internet.

    These three are the problems that must be solved to form the new fashion industry ecology in the future.

    If these three problems can not be solved, to some extent, they can not constitute the business form of the next generation or the format of the next era of fashion industry.

    Q: what kind of fashion industry venture capital do you want to focus on?

    Li Jinliang: Hejun capital has always been paying close attention to the fashion industry, and is willing to invest in the entrepreneurial team that can solve the three kinds of expenses (design, dissemination, sale). It is also like the entrepreneurial team based on the new technology of graphic search.

    But unfortunately, the combination of the fashion industry and the cultural industry, the combination of the Internet and the integration of new technologies is not very close at present. We have just met a relatively good team in the field of graphic search technology.

    We have several criteria for the requirements of entrepreneurs. The first is the age problem. We welcome them after 80. Second, let's see if his team is able to have cross industry, such as fashion and Internet, culture and capital.


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    Read the next article

    What Else Can Semir Do After Its Growth?

    Shortly after the start of the Spring Festival, Semir, the clothing brand, disclosed that in January 2016, Semir achieved a total sales of 2 billion 298 million yuan, up 49.42% over the same period last year.

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