Modern Avenue: New Business Is A Drag On Sales And Losses.

According to the world clothing shoes and hats net, it is on the modern Avenue.

Group Limited by Share Ltd (hereinafter referred to as "modern Avenue") has just announced the huge loss last year, the first quarter results of modern Avenue show that asset sales temporarily solve the urgent need.

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Brand card slave road changed to fashion platform

After the new business continued to burn money, the loss of the original men's clothing business made the company still in deep water.

Sell a child and turn a deficit

The sale of the subsidiary gave the modern avenue a sigh of relief.

The latest quarterly results of modern Avenue show that the net profit of modern Avenue has increased by 1017%, thanks to the impact of the sale of subsidiaries.

In the recent annual report, the performance of modern Avenue was overstretched, with a net loss of 287 million yuan last year, down 2908% from the same period last year.

Looking through the financial data of the past two years, it is easy to find that the subsidiary company of Cafu and Hengyang Commercial Plaza Limited has a business income of 2015 yuan in the year of 76 million 380 thousand, a net profit loss of 27 million 440 thousand yuan, and a net loss of 59 million 820 thousand yuan in 2016.

Selling the loss company becomes the first step in the self salvation of the modern Avenue.

Modern Avenue in February 20th through equity pfer, the sale of a controlling subsidiary even Cafu (Hengyang) commercial plaza limited, the paction will be completed after the yield of nearly 100 million yuan.

In the first quarter, the modern Boulevard also stripped Guangzhou's famous brand management Co., Ltd., which lost 50 million 90 thousand yuan in.

In view of the development of the main industry, the situation is still sticky.

The retailer and wholesale fashion's card slave Road International Limited lost 60 million 390 thousand yuan last year, which has become the most serious subsidiary of modern Avenue.

Min Guangya, chief consultant of Guangzhou blue Olympic retail consulting and clothing marketing expert, said that there is a certain problem in the brand positioning of men's clothing brand "Nu Di Lu". The brand image and service mode do not match the needs of consumers.

New business drag

Last year, morden Avenue purchased the LEVITAS 51% equity of the owner of Dirk Bikkembergs, Italy's top fashion sport brand, and gained the operation authorization and marketing network construction project in Greater China, and gradually imported the existing global resources.

The modern Avenue has raised 852 million yuan to invest in the fashionable buyer shop O2O project and Italy LEVITASS.P.A. equity acquisition and DirkBikkembergs expansion.

Modern Avenue has also acquired 100% stake in mobile Internet application development and operation company.

However, at present, the number of raise investment projects in modern Avenue is at a loss.

The fashion buyer's O2O project has a net loss of 41 million 460 thousand yuan, and the project of LEVITAS S.P.A.51% equity purchase and DirkBikkembergs brand marketing network construction in Italy is adjusted due to the running in period with the Italy team, with a net loss of 17 million 580 thousand yuan.

Since there was no experience in the operation of new business areas, the loss of new business is undoubtedly adding to the burden of modern Boulevard.

Cheng Weixiong, general manager of the clothing industry senior observer and Shanghai Liang Qi Brand Management Co., Ltd., said that at present, the field of light luxury business platform in China can rarely be successful. Modern Avenue has no experience in this regard. If there is no big change, the future prospect is very worrying.

Unpredictable ahead

In the context of the continuous cold clothing market, investment overseas mergers and acquisitions and pformation has become the choice of most Chinese clothing brands.

The modern Boulevard, which runs in the senior men's wear, has its own brands including card slave Road, CANUDILOH HOLIDAY, buyer's shop 01MEN and DIRK BIKKEMBERGS. At the same time, it also has many international brands such as HUGO BOSS, Burberry, Ferragamo, Estee Lauder, and so on. It also owns physical terminals such as 100 stores and independent brand stores.

Judging from the current performance, the future development of modern Avenue is very worrying.

Cheng Weixiong analysis said that the modern Boulevard pferred the company's business center to light luxury business platform business. There was no operation experience in this area. Under the current domestic development trend, the light luxury electricity supplier is not in line with the current development trend. The so-called light luxury positioning needs to pay more attention to the sense of dignity, and needs to improve the service environment and consciousness. It is not a global fashion brand operator who has only upgraded to the whole channel, so it continues to develop.

From a certain point of view, there are still some problems in brand positioning of modern Avenue. Brand positioning determines the location of products and channels.

At present, men's clothing market can not be done according to traditional thinking.

Modern Avenue in the Internet industry burn money, or do global fashion positioning, it is better to return to the industry pragmatic, detailed research and analysis of brand positioning, truly do product research and development changes, as well as product style recognition.

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