Hai Lan'S Home Billion Stake In "China ZARA" Jointly Launched The First Step In The Integration Of Fashion Industry?

In August 14th, Hai Lan's wholly-owned subsidiary, Jiangyin

The Investment Company Limited (hereinafter referred to as "Hai Lan investment") intends to increase its capital by 100 million yuan for fast fashion fashion (Guangzhou) Co., Ltd., and subscribe for its initial shareholding of not more than 10%.

Fast fashion was founded in 2011 with a registered capital of nearly 116 million yuan.

The company mainly runs fast fashion brand named "URBAN REVIVO" (UR).

The brand was founded in 2006, for 20-40 year old urban white-collar workers, to promote high cost performance and fast new.

At the beginning of the brand, Li Mingguang, the founder of the brand, wanted to make it "China's ZARA".

In the announcement, Hai Lan's home said, "it is beneficial for the company to speed up the layout of high-quality enterprises in the fashion ecosystem, cultivate new profit growth points, and consolidate the leading position of the company in the industry.

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Before that, there was little overseas investment for the local men's wear.

This time, one hundred million yuan, although the amount is not high, but perhaps we can see the two meaning.

First of all, like most of the clothing brands in the industry, Hai Lan's home may have to start multi brand strategy through investment, and form complementary advantages. Secondly, Hai Lan's home has chosen the most fashionable fashion that the young people are most fond of nowadays, and must take the first step in the integration of fashion industry.

From the perspective of industry layout, this is a strong combination of capital and resources, which will bring about structural change.

The home of Hai Lan will change from the original single fight to the joint development of the local high quality brand.

Zhou Lichen, President of Hai Lan group, also said that the marriage with UR further enriched the multi brand matrix of Hai Lan's home.

Through the combination of endogenous and extension development, the development strategy of Hai Lan's home to build a fashion industry ecosystem and brand operation platform has been greatly promoted and will continue to create value for the company and shareholders.

Who is UR?

The Chinese version of ZARA is Li Mingguang's position and vision of his own brand.

Science and technology new media "new economy 100 people" have interviewed Li Mingguang in depth.

In its description, over 40 of Li Mingguang is very fashionable. He likes to buy clothes, and he often wears mousse, and loves music and breakdance.

Before establishing the brand, Li Mingguang had many years of experience in clothing and entrepreneurship, and he was an ambitious entrepreneur.

As early as in 1998, he was just 20 years old, and he rented the stalls at Jingtai street in Guangzhou Baiyun District to sell clothes at the price of 2500 yuan per month.

Allegedly, three years of stall entrepreneurship has brought millions of savings to Li Mingguang.

After that, he acted as a brand name for men's wear brand VJC. After the failure, he founded the Cowboy brand BC jeans, and was inspired by ZARA in Japan in 2003. In 2006, a similar fast fashion brand was set up in China. The company was established in 2011 and began to run corporatization.

"Celebrity endorsement + CCTV advertising + agent sales channels", once let Metersbonwe, Hai Lan's home and Anta successively visit the capital market and become well-known national brands in streets and lanes.

But when international fast fashion brands continue to invade and the needs of young consumers change, these obsolete models start to fail and seek pformation.

However, at the very beginning, ZARA's "apprenticeship" UR was growing rapidly. In 2011, there were only 10 stores in the country, with a revenue of 180 million yuan, and by 2016, UR had grown to 150 stores with a revenue of 2 billion yuan.

Similar to the strategy of foreign fast fashion brands in channel and product selection, UR mostly stores in the second tier cities such as North Shanghai and Guangzhou, with an area of 1100-1500 square meters, two new times a week, more than 12 thousand R & D styles a year, and a single product price range of 300-400 yuan.

Li Mingguang has always emphasized the importance of self employment.

This is why in 2011, when the electricity supplier affected the pformation of the retail industry, Li Mingguang insisted on opening up a self run store first.

After going through the self operation mode, it was not until 2014 that UR began to test the water electricity supplier, and launched a semi self franchise mode, that is, the other side was only responsible for the rent and the clerk's wages. UR controls the store's image design, commodity operation, shop assistant training, and sends store manager's management.

But from the trend of fashion, merchandise planning to store display, store design, supply chain planning, it is now entering the world, but in ten years, UR has developed a completely different path from traditional clothing brand.

Don't forget, Zhou Jianping has always wanted to "kill the UNIQLO".

In terms of brand vision and store management, Li Mingguang and Zhou Jianping, chairman of Hai Lan's home, are not only associated with fast fashion, but also have similar ambitions.

I can not help but add some imagination to this stock market.

Matching ZARA

Began to take a step in Singapore's global journey in Singapore last year, and plans to open a global flagship store in London in 2018 to compete positively with the international fast fashion brand. In September 3, 2014, at the Hai Lan home investors meeting, chairman Zhou Jianping gave a direct appeal to UNIQLO.

The global fashion rich list released earlier this year showed that

Zhou Jianping, the helmsman, ranked thirtieth in the world's fashion rich list with the fortune of $2 billion.

The family of "ambition" Hai Lan is narrowing the distance with the seventh ranked UNIQLO of the list.

In 2016, the overall trend of domestic apparel industry was low. Most of the garment companies were in front of the main business, and the capital market was developing across borders and pluralism.

Among the listed companies in the textile and garment industry, Hai Lan home, which has the largest market value of three, is one of the few brands that still insist on concentrating on the traditional clothing retailing industry.

At least in the management of the store, Hai Lan's home was early.

Shadow.

Since the beginning of 2002, Zhou Jianping went to the Japanese market to investigate. At that time, he was curious about the concept of self purchase clothing.

It is reported that Zhou Jianping is fascinated by the colorful and varied styles of goods in the shop. He especially appreciates three points: first, clothes are clearly classified according to their sex and function, and the layout of their shops is clear at a glance; two, the same styles of clothes provide many kinds of color matching and intimate design; three, customers do their own shopping, the size of the goods is complete, the fitting rooms are full, and there is no pressure to be guided by "tight fitting".

After six months of return, Hai Lan's first store was opened in Nanjing.

The road to shop expansion has begun.

"Headquarters brand management - Production Outsourcing - General Library logistics - chain sales" operation and management mode, so that Hai Lan home in the overall downturn of the industry to achieve sustained and rapid development is also its biggest competitive advantage.

Haitong Securities analyst Yu Xuhui previously thought that from the perspective of Ping efficiency, fast fashion brand short lead time and fast turnover speed brought about high turnover efficiency, which is generally higher than domestic brands.

The efficiency of Hai Lan's home is more than 30 thousand yuan, second only to the fast fashion brands abroad.

This part benefits from Yu Hai Lanjia's store joining mode: upstream credit sale system + downstream financial affiliate system.

In the upstream supply chain, Hai Lan's home is responsible for product planning and brand management. As for design, production and other aspects, all are outsourcing to suppliers, and finally centralized procurement.

What is more interesting is that Hai Lan's home and suppliers form credit cooperation mode, that is to say, I do not pay direct orders, and finally can combine unsalable goods return with two purchases.

In the downstream stores, Hai Lan's home is managed directly.

This is also considered to be an improvement of the traditional franchise mode.

Today, it is no longer obvious that the two local brands that match the most famous fast fashion brands of the world will compete for the younger trend market.

Join hands to take the first step in the integration of fashion industry?

The family of Hai Lan has stepped out of the pace of self pformation.

Contrary to the praising management mode, Hai Lan's home is probably the most criticized style design.

But in recent years, from advertising to product design, Hai Lan's home, founded in 1997, is competing for young people's market.

After 2014, Hai Lan's family began to bid farewell to the traditional rough TV commercials, supported well-known variety shows in the form of clothing sponsorship, tried to communicate with consumers at close range, and realized the pformation from the focus of the program to the brand cognition.

At the same time, Hai Lan's home also raises the amount of Internet video, cinema, subway and high-speed rail every year, and begins to pay attention to the accuracy of crowd positioning.

In 2016, the home of Hai Lan continued to be bundled with the popular variety, and connected with the brand through "the strongest brain", "the great challenge", "masked singing, guess and guess" and "Mars intelligence 2".

With the 80 and 90's becoming the mainstream consumer group, Hai Lan's home gradually adjusts the style of the product, not only in the style design, but also in the business fashion and leisure fashion, insisting on the whole category strategy of men's clothing, and has also made a new attempt in IP cooperation and joint crossover. It also introduces Lin Yue, Chen Xiao and so on.

Last April 8th, Hai Lan's family joined hands with the Oriental dream factory to launch the Madagascar film series derivatives.

Hai Lan's home, which has always been criticized for its old style, takes advantage of IP's ride to try to improve the product's fashion.

As the first brand of menswear in China, while adhering to the high cost performance line, it is also trying to develop products according to the consumer demand of the regional market, further refining product planning, enriching product categories and improving product sales.

In September last year, a series of limited collaboration with Xander Zhou, a men's wear designer, perhaps expressed the goal of entering the second tier market and entering the fashion circle with the joint name.

In July 2017, the home of Hai Lan was held at the overseas store of MyTOWN, Kuala Lumpur, Malaysia, to streamline SKU, add props to visit and increase consumer experience. In August, the Deputy brand HLA Jeans opened in Suzhou Wanda, and the product design was younger and more fashionable than the main brand.

Today, the signing of a formal investment agreement between Hai Lan's home and fast fashion is probably conducive to the formation of complementary and synergistic effects between the two sides, sharing domestic and foreign resources such as design, channels, supply chain and so on, and further improving the market share. On the other hand, UR's accession will also benefit the family of the sea to speed up the layout of the high quality enterprises in the fashion ecological circle and foster a new profit growth point.

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