Erdos Pformation, Digging Deep Young Consumer Groups

The Ordos fund raising plan is regarded as a game for young consumer groups in the industry.

We can see that Ordos wants to split the brand into 3 brands: "ERDOS", "Ordos 1980" and "BLUE ERDOS".

After the split, "Ordos 1980" is still targeted at traditional mature customers. "ERDOS" wants to attract new middle class people, while the new brand "BLUE ERDOS" is a brand oriented to the young urban customers.

Ordos brand will form a comprehensive brand of cashmere brand from high-end market to mass market, three-dimensional and multi-level.

Except for young people.

The market expressed its favor. Erdos also announced a costly shop plan in the proposed growth plan.

In the background of many clothing brands cutting down physical stores and increasing electricity providers, Ordos said it intends to raise funds for new shops, with a construction period of three years, plans to open 298 new stores in China, and open 26 stores overseas, which will cost 2 billion 290 million yuan.

At the same time, Ordos

Construction is also in the planning stage. The specific way of operation is in the mainstream of the domestic market after the split of the brand is completed.

The official flagship store will be set up, and the budget will be as high as 100 million yuan.

Brand promotion will cost about 130 million yuan.

Whether it is to expand the mass market or expand sales channels, Ordos will undoubtedly show its tradition.

Products to promote the intention of young consumer groups.

But the industry believes that such an attempt has some risks.

Garment industry analyst Zhao Pei told reporters that on the one hand, Ordos products had some seasonal attributes, and the two or three quarter was the off-season sales of cashmere products, which also led to the brand's natural barriers to promote young consumers.

Erdos said that although the company has been making strategic pformation in recent years, it has made the cashmere properties of the company products desalinated by the four seasons of product design and four seasons of product production.

The sales revenue is still dominated by cashmere products, influenced by the natural attributes of cashmere products, and the seasonal fluctuations in this sales model may affect the company's quarterly operating performance.

Another pressure is whether cashmere products can be bought by young groups.

Zhao Pei said that the "BLUE ERDOS" of the younger brand of Ordos is still dominated by cashmere products, which is somewhat out of touch with young consumers.

"The location of Erdos brand has always been the middle and old age group, and the price of cashmere products is relatively high. Whether this category can get a higher awareness of young consumers in the market remains to be seen."

In the two major business segments of Erdos, cashmere business is not optimistic.

Although Ordos invited former Chanel art director Jill Dufour to join in 2010, the annual report of 2015 showed that the income of the cashmere plate of Ordos was 2 billion 290 million yuan, down 2.94% from last year, gross margin was 41.29%, 2.24 percentage points lower than that of last year, and the gross profit rate of cashmere sweaters and other cashmere products was 42.77%, a decrease of 3.18 percentage points over the previous year.

The average assets and liabilities ratio of the company over the past three years has exceeded 68%, leading to higher financial costs, which is one of the reasons for this increase.

At the same time, the development of another big business is not very smooth.

Last year, Erdos's electroforming business decreased by 2.42% compared with the same period last year, with a net profit of 241 million yuan, down 42.75% from the same period last year.