Seven Wolves Prepare Major Acquisitions To Make New Strategic Adjustments

The clothing brand seven wolves issued a notice at noon, saying that because the company intends to plan a major purchase, the amount involved is relatively large, the stock will be suspended from February 25th, but has not yet disclosed the resumption information.

But according to the trend of the last seven months, the merger is related to the fashion industry.

It is reported that in July 2015, seven wolves company raised funds with 1 billion yuan to set up investment subsidiary company specially.

Various items of fashion consumption ecosystem.

It is reported that

At the beginning of the month, the 2015 annual performance bulletin was released. The report shows that in 2015, the total revenue of seven wolves was over 2 billion 400 million yuan, up 3.02%, achieving a net profit of 272 million 450 thousand and 900 yuan, a decrease of 5.63%.

Seven wolves securities related executives also said at the end of last year, the future seven wolves in maintaining the original brand operation, but also through mergers and acquisitions to overweight.

In 2011, the seven wolves bought a luxury agency to achieve a substantial increase in revenues and net profits.

By the end of 2014, the seven wolves officially entered the ranks of private equity and worked together with Shanghai Hong Zhang Cci Capital Ltd to launch the domestic RMB fund, which is called "Shanghai Hua Shang Hong Zhang consumption investment center". Among them, seven wolves subscribed for 300 million yuan, accounting for 39% of the shares.

There are people in the industry who believe that the seven wolves have been performing poorly on the road to rescue the market and can only save their performance through mergers and acquisitions.

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Yang Xun, chairman of JEANSWEST International (Hongkong) Limited, recently admitted that sales of JEANSWEST entities in 2015 were indeed declining, but its online sales grew rapidly.

Yang Xun also said that in 2015, the clothing industry was sluggish, and sales of many clothing categories were declining, especially sales of casual wear.

Yang Xun believes that this is a normal phenomenon of the development of the industry, no industry can continue to increase.

But he believes casual wear is still the mainstream of the market, but it needs more fashion and fashion.

Garment industry senior industry analyst Wang Qian said in an interview with reporters earlier this morning that the weakening of demand, especially domestic demand, is the biggest problem facing the apparel industry.

In Wang Qian's view, the weakening of market demand is the most important problem affecting many garment enterprises in recent years, including JEANSWEST.

Wang stressed that the clothing industry is undergoing major changes. In fact, consumer demand is growing. However, the demand for the market is shrinking. Under the impact of the great development of the electricity supplier, the large-scale contraction of the traditional business mode has led to the atrophy or even disappearance of the commercial cistern, and the industrial chain has lost its commercial regulatory role. JEANSWEST is directly facing the difficult situation and the new marketing subject.

Wang Qianjin told reporters that in the face of increasing pressure on orders shifting, the domestic market situation is not optimistic.

From 2010 to 2015, the retail sales of clothing commodities of hundreds of major retail enterprises in China slowed down for five consecutive years, with both growth rates reaching a new low.

Wang Qianjin stressed to reporters that, at present, the domestic market growth slowed down, we should also consider the rapid diversion of Internet sales to the huge diversion of physical sales.

According to the statistics of China Electronic Commerce Center, the total size of clothing online shopping will reach 613 billion 500 million US dollars in 2014, compared to 62 billion 900 million yuan in 2009, with an average annual growth rate of 62.35%.

Overall, as consumption upgrading has become the most important feature of domestic demand at this stage, the growth rate of clothing consumption is difficult to increase significantly.