"The First Brand Of Children'S Clothing Online", Where Is The Future Of Green Box Bankruptcy?

Recently, "network" Children's wear first brand The green box is surrounded by various negative rumors, including the application for bankruptcy. In December 30, 2016, the company's CEO Wu Fangfang acknowledged the matter to the media. It had created numerous green boxes with brilliant achievements and ended in 2016 with a miserable situation.

By the end of the press release, Green box Bankruptcy continues to ferment. The reporter tried to contact the green box company by telephone, email and QQ. Eventually, all of these contacts were suspended.

Forced by suppliers to lead bankruptcy crisis

According to relevant reports, the head of the green box supply chain suddenly lost contact with the company for a week, which caused the collective panic of the supplier to become the fuse of the crisis. After that, the suppliers went to the company to recover the money and appeal, which resulted in the Alipay account being frozen on the second day after "double 11".

Since then, events have been developing at a faster pace than expected: the company was bursting into a dilemma of capital chain breaking, unable to repay the suppliers' money, but was unable to apply for bankruptcy to the government.

It needs to be pointed out that in addition to the bankruptcy crisis, the green box is still entangled in all kinds of negative news. In December 28, 2016, a company known as the company openly questioned Wu Fangfang's spanfer of company assets on micro-blog, defrauding suppliers and defrauding loans. In response to this, Wu Fangfang responded to his personal micro-blog account, denied the spanfer of property, and also pointed out that "the company recently encountered great difficulties".

In the view of Li Chengdong, an e-commerce analyst, these negative rumors that green boxes are facing can actually be seen as a common problem facing the clothing business operators. "These problems are more common and more, and not a single one. The situation of clothing seller's failure on the e-commerce platform has occurred frequently."

Lu Zhenwang, a senior businessman in the electricity industry, pointed out that the green box is indeed in a major financial crisis. "In 2015, the green box already had arrears. At that time, there was a problem in the capital chain. On the one hand, the company failed in financing. On the other hand, the company was also investing in the store. The two phase effect aggravated its financial pressure."

For the former "children's clothing brand No.1" how to go bankrupt today, Lu Zhenwang thinks, "the company's operation strategy is very chaotic, and the direction of business development has been changing. This is the key to this step." in the past few years, the development of green box has changed direction many times. B2C, multi brand, entity store, generation operation and so on have been involved. The result is a big but not strong situation, that is, the company has several businesses, but no one is profitable, and the brand is not solid, which is the most dangerous for the development of enterprises.

Where does the green box go from?

In the last few days of 2016, the green box ushered in another crisis in its development for more than ten years, and there seemed to be only two ways in front of it: bankruptcy liquidation or bankruptcy reorganization.

Wu Fangfang, CEO of the company, once said: "bankruptcy liquidation is the simplest way, but I want to fight for bankruptcy reorganization. I desperately saved the green box because I was afraid that the supplier would suffer losses, and I would not want the brand that I built by myself would go bankrupt."

Some market participants pointed out that the green box has many potential value at present. It has advantages in brand value, product design, online operation and so on. At the same time, there are many brands of its green brand, with 3 private brands and 7 international brand authorized cooperative brands.

Lu Zhenwang does not agree with this view. "At present, the whole business situation of green box is not very ideal. The sales of its own brand is not very high. Now it is still selling Disney's children's clothing to support the facade, so it is not a profitable business at present, and the value is not great. It is difficult to find partners in the reorganization."

"The most optimistic case is that the green box has paid off the supplier's debts and continues to operate. But because of its reputation has been damaged, there are few suppliers willing to cooperate with it. Under such circumstances, it is more difficult to make its own brand, unless it is co operated with the big brands, but the current operation market is not optimistic. So whether it is this situation or finally going to bankruptcy and liquidation, we can say that the green box has already faced a desperate situation. Lu Zhen Wang said.

Li Chengdong also believes that the possibility of liquidation is greater, and restructuring will be faced with greater difficulty. "Green box's reputation is relatively poor now, and the whole garment technology development team has not, and restructuring is very difficult."

In addition, from the perspective of suppliers who played an important role in the bankruptcy of the brand green box, it is likely that they will lose their money if they finally get the money they owed. Lu said, "the amount of arrears is not small. It is very difficult for the green box to sell at a loss while still losing money. It can be said that even if the operation is good, it will be difficult for 10 years to earn the money. From another point of view, even if the green box finally applied for bankruptcy, the processing flow is also very long, and the overall situation is not optimistic.

Amoy brand development returns to reason

The bankruptcy of the green box has set the alarm bell for the current online and offline layout of the Amoy brand, and has also led the industry to think about whether the once glorious brand has already ushered in the turning point, and where is the way for its future development.

At present, the development of Amoy brands seems to have some signs of encountering the ceiling: on the one hand, the online traffic dividends are disappearing, and the cost of customers has increased. On the other hand, the traditional brands have been hit hard by the net. Under the internal and external troubles, many Amoy brands have started the O2O layout. Lu Zhenwang pointed out that 2015 was the year of O2O, and that the concept of enterprise could easily attract investors' attention. However, it is very difficult to carry out large-scale business layout according to the actual situation. "If it is within the scope of its own financial control, it is possible to try it, but if it is due to the loss of online business, it will be unrealistic to switch to offline business in order to make profits."

Lu Zhenwang said: "the layout under the online spanfer line can be carried out on a large scale, and at the same time, it can be done very well without basically. This is different from a lot of physical stores in the spanition to electricity providers, because that is a supplement. However, it is difficult to turn online and face many factors. It can be said that most of the Amoy brands are not suitable for offline business, and green boxes do not possess this capability.

Li Chengdong holds similar views, he told reporters, "online and offline business models are not the same. It can be said that online business is more fragile. If the supply side and the capital side are not strong enough, online business is often difficult to resist, while offline operation is relatively stable. It is precisely because of the difference between the two, online business bottlenecks after the battle line is also difficult.

Li Chengdong pointed out that "at present, including Amoy brand Internal Online retailers The industry can be said to develop to a rational stage, without stunt public relations, promotions and other gimmicks, rational operation of enterprises, long-term development to return to normal, and ultimately achieve sustainable development.

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