Domestic Underwear Brand City Beauty (China) Holdings Limited Sells CLGIII 95% Stake

China's underwear brand city beauty (China) Holdings Limited (hereinafter referred to as "urban beauty") issued the latest announcement that its indirect wholly-owned Affiliated Companies Guangdong city beauty industry invested 10 million 809 thousand and 100 yuan to develop the CLGIII 95% stake in Guangdong Zheng Ji Innovation Industrial Park.

The sale of the city beauty is to give underwear and other main industries blood pfusion.

The announcement shows that CLGIII owns the right to use land in the Phoenix Phoenix Industrial Area of Fenggang Town, Dongguan City, Guangdong Province, China, and plans to develop it into an industrial complex.

The total area of the land is 34959 square meters, which is industrial land.

CLGIII was bought by auction in March 2017, and the original cost of land acquisition was 47 million 200 thousand yuan.

Public information shows that urban beauty is the first domestic focus.

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Founded in 1998, as of 2014, there are more than 6000 urban beauty stores in the country.

It owns women's underwear, city beauty, men's underwear, and city front is still the two brand.

According to the 2016 earnings report of urban beauty, the income in the reporting period was 4 billion 953 million yuan, down 8.9% from last year, and realized gross profit of 2 billion 115 million yuan, down 5.3% from last year.

For the decline in revenue, urban beauty is affected by the slowdown in the economic development of the mainland of China, and the overall consumer climate is prudent.

Due to the structural adjustment of the clothing industry in mainland China and the further diversification of sales channels, the sales structure of the market has changed, and the sales performance of the shops is weak.

On the other hand, in order to cope with business development, the operating expenses of urban beauty increased in 2016.

The chairman of the city beauty said that in 2017, various measures will be taken to reorganize the business and actively seek suitable acquisitions and equity participation opportunities to develop business.

For the sale of CLGIII 95% equity, city beauty said that the sale can be cash for urban beauty, so that it can redistribute more financial resources to support the further development of existing businesses, expand the market share of urban beauty clothing and clothing industry, and bring more returns to shareholders.

According to the world clothing shoes and hats net,

The strategic focus of 2017 has been clear, that is, to increase profits and reduce inventories.

In the view of urban beauty, the balance between the two needs to be balanced, and clear inventory will affect profit margins.

The following half a year's opening up profits increased optimism, can increase the intensity of inventory clearance.

At present, the city beauty clearance inventory mainly through three ways: first, overseas sales, two discounts, and three through the electricity supplier holiday promotion.

As far as overseas market development is concerned, the handling of the urban beauty in the Indonesian market has started in June, and will gradually enter the market of Burma, Vietnam and Philippines. Its market operation mode begins with wholesale mode and sells to local partners.

The main reason is that there are a series of restrictions on the opening of foreign stores in Indonesia and other countries. Therefore, the wholesale mode is the main stage in the trial stage, and the initial stage is relatively small, because the discount is large (wholesale price is around 70 percent off), so the gross margin is relatively low, and even does not exclude the situation of partial loss. But the advantage of this is that the return rate is relatively small.

In terms of channel adjustment, urban beauty is promoting.

In order to change the image of the shop front after changing the market, we hope that the future development of the store will be focused on community stores and shopping center stores, so that there will be 4-5 franchises in each direct camp.

In addition, the urban beauty is also exploring the concept of the collection store, through the cooperation with overseas brands, combined with its own channel + overseas brand brand strength, the agent brand will be introduced into the storefront.

Mi Hanjie believes that the number of urban beauty has increased rapidly over the past few years, and the number of shops has increased from more than 3000 stores at the end of 2011 to over 8000 at the end of 2015. However, the analysis shows that the efforts of urban beauty to reform offline channels will help the sales of the terminal to pick up.

For more information, please pay attention to the world clothing shoes and hats net.