What Is The Development Strategy Of Internet Clothing Brand After The Listing Of Silk And Silk Products?

Coping with performance fluctuations: vigorously promoting multi brand and multi category

Tang Feng Feng: the number of IPO to be issued and sold is no more than 41 million shares, accounting for 25% of the total share capital issued and issued, and the total share capital after issuance is not more than 164 million shares.

Reporter: can you tell us about the shareholding structure of the company?

Tang Feng Feng: at present, there are 4 natural shareholders and 5 institutional shareholders. Among them, 4 are natural shareholders, namely, the 4 founders of the company are Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng. They are also the controlling shareholders and common actual controllers of the company.

Among the 5 institutional shareholders, Tianjin Xin Wu Cracking Technology Co., Ltd., Tianjin Xin Wu Technology Co., Ltd. and Tianjin Angel City Technology Co., Ltd. are three shareholding platforms established for the implementation of employee equity incentive plan, and the remaining 2 are venture capital funds Matrix Partners China II Hong Kong Limited (Jingwei Hongkong) and SCC Venture 2010 (HK) Limited (Sequoia Hongkong), shareholder structure is more reasonable.

As of the date of signing the prospectus, Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng respectively hold 13.96% of the company's shares directly.

In addition, Tang Xianfeng holds 61.86% of Tianjin's heart and material and silk and silks, and Tianjin shares 9.61% of the company's shares. Tang Xiao Feng holds 71.07% of Tianjin's heart goods, and Tianjin owns 7.13% of the company's holdings. Zeng Hua Yong owns 94.60% of Tianjin's Angel City, and Tianjin's angel city owns 4.89% of the company's shareholding.

Tang Xianfeng, Tang Xiaofeng, Ceng Huayong and Xiang Feng jointly hold 77.48% of the direct holding and indirect control of the company; Jingwei owns 13.51% of the Hongkong holding company, and Sequoia Hongkong owns 9.01% of the company's shareholding.

Reporter: can you tell us about the relevant revenue situation? During the reporting period, the company's business performance fluctuated. What are the future plans for the company?

Tang Feng Feng: since 2014, under the traditional domestic line

As well as internationally renowned clothing brands (such as UNIQLO, ZARA, etc.) have been stationed in the major domestic e-commerce platforms, and continue to increase sales strength of online channels, while the new brand of online clothing has increased significantly, and constantly diverted the consumption of female consumer clothing from the e-commerce platform.

Affected by the increasing competition in online apparel sales market and the trend of fragmentation of online traffic, China's macroeconomic slowdown in recent years has also had a negative impact on the overall consumer willingness and consumption ability, resulting in a decline in operating income in 2014.

At the same time, the company pays attention to the long-term training and encouragement of core employees, and has formulated and implemented tens of thousands of equity incentive plans, which further led to larger fluctuations in net profit in 2014.

In response to the changes in the macro economic environment and the competitive pattern of the industry, various strategies have been taken to break up the silk and silk products, such as vigorously promoting multi brand and multi category business strategies, and further focusing on the high value-added links such as design, R & D, operation and sales, outsourcing the warehouse management and customer service links.

The above measures have achieved some success in 2015, and the total paction volume has picked up slightly, while the main business income has dropped by 5.64% over the previous year. The main reason is that the company's sales revenue on vip.com platform has increased considerably over the previous year (because the company's vip.com sales revenue needs to be deducted from the point of payment to vip.com, so the net income of the main revenue has declined).

At the same time, the net profit of the company after deducting non recurring gains and losses in 2015 also rose to 32 million 160 thousand yuan.

The future will continue to promote the development strategy of multi brand, multi category and open cooperation, so as to widen the source of corporate income and profits and enhance the company's ability to resist risks.

Listing is only the beginning: design is king and go down the line.

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Reporter: what kind of development strategy do we have as an Internet clothing brand after the listing of the silk and silks? Is there a plan to raise funds for this IPO? Is there any plan to purchase and invest?

Tang Feng Feng: Cracking the silk and raising funds for this issue will be applied to five aspects.

First, R & D center design;

Second, sub brand building;

Third, offline brand channel construction;

Fourth, update and upgrade the information system;

Fifth, replenish the main business liquidity.

These are both our fundraising purposes and our future development strategy.

In addition, we will continue to invest or acquire brands that have specific characteristics, no matter how small you are, no matter when they are listed or queued up now.

Reporter: Tmall online started the layout, led the Amoy brand to open shop offline, what is the attitude towards this policy? What kind of layout will there be under the Internet?

Tang Feng: part of the fund-raising financing of the listed companies is for offline expansion.

The company plans to invest 70 million yuan to open 15 offline stores in two years.

Among them, in Beijing, Shanghai and Hangzhou, the core business circle set up 3 flagship stores with 1000 square meters, offering 12 outlets of 80-120 square meters in the core business circle of the first tier cities and the second tier cities with strong consumption.

Since 2011, Internet brands have tried to try offline stores.

After 5 years of exploration, we have gradually found some patterns.

Online and offline consumers' shopping paths are different, resulting in a low degree of coincidence. There is still a large market for online brands to be developed.

China's online shopping construction over the past decade has basically broken into the online brand.

Because there is a certain threshold for the offline channels, it also needs a certain amount of funds, and in the advanced management level of the world, there has also been a new model. From the former agent to the direct battalion and the semi direct battalion mode, it takes a certain time to precipitate.

At the same time, the offline commercial complex is also undergoing changes, and all new brands will emerge and develop in the process of change.

At the right time, the offline complex needs the flow of online brands, needs the crowd, and needs the contributions of young groups, not just the international luxury layer of the dining room and the first floor.

Offline comprehensive experience reduces the deduction point; Internet brand will bring young group, cost-effective products, every week, new and even every day on the new good experience, O2O convenient and quick, as well as the high viscosity of customer interaction.

Each win is the future.

Reporter: how do we see the form of attracting new traffic such as net red and live broadcast? Will we find the link between these new formats and our businesses? What are the specific plans?

Tang Feng Feng: net red, live broadcast and other new forms of attracting traffic are the inevitable trend of personalized development.

Of course, we must use this new way.

Enterprises are basically products, while net red and live broadcast are a way of brand communication and operation.

Just like newspapers, magazines, advertisements, CCTV advertising and celebrity endorsements.

Apart from the new drainage mode, the combination of cracking and silking and its brand is also exploring some new ways of business and cooperation.

Reporter: after a long period of development, how will the multi brand strategy be adjusted? How do we arrange the brand matrix in the future?

Tang Feng Feng: the Beijing e-commerce is the core business of Limited by Share Ltd. It is an e-commerce company based on the original designer brand, which meets and leads diversified fashion needs, and is committed to creating the Internet fashion brand incubation ecosystem.

The company's "crack and silk" brand is the original designer brand that has already set foot in the garment business in China. With its distinctive design style, it has created the first of its kind in China.

On this basis, with reference to the successful experience of the "crack and silk" brand, relying on the mature management concept and operation mode, the company has nurtured and developed new brands such as "non pond", "location", "Lotus", "split silk and children's clothing", "Fang outside", "fan Ge", "new clothes" and "Tian Shi Zhi Cheng kids".

Plus the acquisition of angel city and ladyangel, forming a variety of brand matrix.

At present, the company mainly sells through more than ten mainstream e-commerce platforms such as Tmall, Taobao, vip.com, Jingdong mall and so on.

The multi brand, multi category and multi-channel layout of the company meets the personalized fashion demand of different consumers.

The multi brand strategy will continue, so long as there are unique designers with different styles, they will support the creation of new brands.

The future is a personalized market segment.

Reporter: what kind of collaborators will be found in the future?

Tang Feng Feng: breaking the silk is now working with partners in various fields to create a new brand, or to set up a joint venture company.

Or work together to win a project.

Designers, net red, offline brand cooperation, generation operation cooperation, new brand partners, film and television programs, we all welcome.

The spirit of the Internet is openness and sharing, and the spirit of this practice will continue to practice.

Reporter: after the listing, will there be any adjustment to the strategy of each e-commerce platform? Is there a problem of channel dependence?

Tang Feng: the company is closely following the development trend of the clothing e-commerce industry, and actively develops a competitive e-commerce platform. At present, there are more than ten mainstream e-commerce platforms in China.

Because the company mainly sells clothing and apparel products, the online consumption of clothing and apparel is mainly concentrated in the three e-commerce sales platforms of Taobao (including Tmall), vip.com and Jingdong mall, which are in line with the company's current income distribution according to the channel.

We adjust the various cooperation states according to the constantly changing or the input-output ratio of each electronic business platform. All of them are based on the principle of win win, instead of being listed as an adjustment condition.

In the future, the company will continue to optimize the channels of existing lines, and continue to cooperate with the potential business platform. In line with the development of offline channels, it will expand the offline channels in a timely manner, and provide consumers with better experience of consumption through online and offline integration, so as to further expand the scale of online business based on the steady growth of online sales.

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Whether it's on the market or not, be a healthy company.

Reporter: why do we choose the gem on this time node? What preparations have been made before the listing?

Tang Feng Feng: our four founders did not plan to go public when they started cracking up. Even listing was nothing.

At that time, we wanted to sell the new shelves on sale. Fresh vegetables will also be listed? We are not elites. There is no concept of angel investment. There is no concept of entrepreneurship. It is just very simple -- I want to do what I like to wear.

I want to share our favorite style with you on the other side of the Internet.

Let you be confident, be brave and have a strong sense of character.

The change of our Slogon also shows our inner changes: life needs courage to break up and silk! - walking inward - believing in a beautiful and tough struggle.

From outside to inside, from high spirited to focus on internal strength, from small to large, in all kinds of competition still believe in beauty.

After 12 years of accepting investment from longitude and latitude and Sequoia, it decided to make listing as the goal of its efforts. Since then, it has begun to standardize the business, finance, taxation and management, and has invested a lot of energy and resources in the regulation.

As a result, with a strong financial team, our senior management team is familiar with the thousands of rows of figures, and constantly innovating and improving the budget system.

The rolling budget of Matthew effect controls the risk of inventory very well, so that the turnover rate of the group accelerates continuously, and the turnover rate of single brand can reach 4-5 times.

It means that every two months, the goods are all new.

Once the goods arrive at the warehouse, they have been sold in their life cycle, and they can form good cash flow.

A virtuous circle.

Don't look at this small number. It needs a few hundred chains of clothing. It must have good control and speed.

Similarly, in the past, we broke through to find a system that conforms to the electricity supplier's gene and Internet attributes. At the same time, we visited many homes with the traditional clothing production and supply chain. We found that it was a blank market. In the end, we spent four years building our own IT team, and developed a full supply chain system including planning, research and development, production, sale on the shelves, docking of various platforms, warehousing and distribution, including intelligent BI system.

We have built up an information system that is strictly in line with auditing.

In the past few years, hundreds of millions of taxes have been paid. Even though the Internet competition is fierce, several generations of Internet Co have been rising and falling down.

Listing is not a simple thing that can be done. It is not at this point that we decide to go public.

After several years of efforts, it has been ready for listing in all aspects, and it needs capital to expand.

As for the choice of gem, the main reason is that the company is an electric business enterprise, which promotes consumption upgrading and channel innovation in the traditional clothing field, which is more consistent with the positioning of the pioneering version.

Before the various compliance work has become a daily requirement, therefore, in the 15 year after the formal launch of the preparatory work, the company needs to do the standardization and rectification work is not too much.

At this stage, the preparatory work of the company includes shareholding system reform, establishment of corporate governance structure and governance system in accordance with the requirements of listed companies, and preparation of application materials in accordance with relevant requirements of the SFC on listing application.

Reporter: how does the listing have a effect on the split? How do you have the impact on the same batch of listed brands?

Tang Da Feng: we have a profound understanding in many years of business management, only the product is done well, focus on focus, the customer service is good, can the brand grow green.

The brand is evergreen, the enterprise manages the good, only has the profit, has the good profit to be able to continue continuously.

Whether or not listed, it is meaningful to be a healthy enterprise.

You can be good to your team, customers happy, if listed, then do a good business, shareholders share dividends, share prices will be more happy.

So it's not a chicken and egg problem. Do you honestly do a product, do you honestly treat your business, earn money or run away, or no matter how bad the market drives bad money out, we stick to the principle and continue to work hard.

If you don't work hard enough for one hundred times, try hard one thousand times, ten thousand times, and the process will be the result.

In fact, we have not been a brand name. We are an Internet brand and an e-commerce brand.

The future is not just an Internet brand, it will be a Chinese brand. If we work hard enough, it will be a world brand.

The same brand that we have grown up on the Internet has received investment in the same period of time, and will also seek listing at similar times.

It has been 12 years since its beginning, because its unique style has always been the benchmark of the clothing brand of electric power providers, and its ranking has always been in the forefront of the industry.

We are not the largest, nor the most profitable, but the company has been a very healthy and open enterprise. The team learning ability is very tough, the execution is very strong, and does not like to repeat the old road, even if the new road is not comfortable, but also quietly continue to work hard a company.

We like to constantly subvert ourselves.

Or toss.

Keeping innovation and constantly exploring new fields is one of the characteristics of breaking up and silking.

Just like the beginning of the creation, it has created a national style.

In this world, there was no Chinese folk style.

According to the monitoring data of Beijing Otto Europe International Consulting Co., Ltd., the sales volume of "crack and silk" brand ranked sixth in the first half of 2015.

If we do not consider the clothing brand dominated by offline channels, the sales volume of "cracking the silk" brand ranks fourth in the industry.

In the past 618 years, Tmall has made great progress. In the women's wear top30, only five Internet brands including "crack and silk" brands are still listed, and the rest are big names and big brands under the international market.

From now on, breaking the silk is the first to declare the gem business clothing brand.

Reporter: will the external environment facing the Internet brand change? Will the relationship between the Internet brand and traditional brand enter a new stage? How will they compete or cooperate? What kind of impact will this change have on the apparel industry?

Tang Feng Feng: no company exists independently. It always needs to survive in numerous competitions.

Consumers will vote with their mouse or fingers.

From the emergence of e-commerce platform in China, it has gone through the Internet brand stage, the brand entry stage, the international brand stage, the network red man stage, and the factory brand is also rooted in it.

In the future, there are bound to be more stages.

Clothing is a very trivial business. A brand will not erupt as quickly as some concept, but it will not die in an instant.

In fact, every brand, good products, still have the opportunity to enter the hearts of consumers.

In economics, there is no such thing as confrontation.

Openness and cooperation are inevitable and inevitable for enterprises.

An enterprise follows the laws of the market, and the economy is promoting the development of society.

Constantly discard the redundancy, constantly adapt to the market competition for you, take all the problems as a gift, do better products and profits with higher requirements, share the advantages of breaking the silk with the industry.

Reporter: how to view the status quo of the entire clothing brand in China?

Tang Da Feng: China's strong economic development can be seen from the recent Hollywood blockbuster. Chinese Putonghua and various Chinese brands are constantly being implanted.

And China's clothing brand has only a few decades of development, and there will be huge room for the future.

This space may be larger than we thought.

As long as there are people, there will be consumption.

And every industry shuffle is an opportunity for new brands and new businesses.

Although reform is difficult, enterprises with courage will not stop and will not be willing to follow the beaten track.

Not making progress is self defeating.

Our Internet brand is groping for growth, and no one teaches us how to do it.

Continue to respect the market, respect the customers and respect their original dreams.

Do not be confused by ambition, nor be bound by the status quo.

I believe that many of our Internet brand comrades will go to IPO one by one.

Together, we represent a new business format.

Even though our scale is not very large for the time being, we will only give people who are brave enough to change and explore, and those who work hard and persist.

Believe in beauty and fight hard.