Three Purposes Of The Related Paction Between Taiping Bird And Taiping Nest

In order to further improve the brand ecosystem,

Began to seize the opportunity of the fashion home market.

According to the world clothing shoes and hats net, in the evening of January 29th, the local multi brand clothing group Ningbo Taiping bird

Clothing Limited by Share Ltd (hereinafter referred to as Taiping bird or company) issued a notice to plan to sign the capital increase agreement with Ningbo Taiping bird nest Art Culture Communication Co., Ltd., with its own capital of 23 million 250 thousand yuan to increase its stake in Taiping bird nest. After the completion of the capital increase, the company will hold a 51% stake in Taiping bird nest.

In addition, the Board agreed to merge the original "AP business unit" into the company's strategic development needs.

After the completion of the industrial and commercial registration of Ningbo Taiping bird nest Arts Culture Communication Co., Ltd., the company added "bird nest business unit", and the appointment office building is the general manager of the bird nest business department.

The announcement shows that Taiping's related paction has three purposes:

(1) improve the Taiping bird brand ecosystem.

With the rapid development of the Internet and logistics system and the application of advanced technology such as big data and artificial intelligence, the pace of new retail sales is accelerating. The shopping habits of the new generation of consumer groups have changed significantly. They are no longer just satisfied with the traditional quality, convenience and price, but also pay more attention to the expression of their own life concepts, ways, values, aesthetics and emotions in the consumption process. Therefore, the demand for emotional, cultural and symbolic meanings of brands is getting higher and higher.

Against this background, traditional clothing brands build brand ecosystem around their core brands, extend their brand tentacles while concentrating on their main businesses, provide customers with a comprehensive and unique consumption experience and value, and help to enhance the customers' cognition and stickiness to brands, so as to cope with increasingly fierce market competition.

Under the above background, the company intends to provide home decoration products with decorative, practical and fashionable features through the establishment of a unified home product line with clothing brand style, and further enlarge the coverage of the Taiping bird brand ecosystem, enhance the affinity and customer experience of the Taiping bird brand, and enhance customer stickiness.

Taiping bird nest as a controlling shareholder, Taiping bird group's home brand has been well developed after years of development. It has the same reputation as Taiping bird clothing brand, and has a high consistency with the company's brand in terms of brand mission, corporate culture and business philosophy.

The acquisition of Taiping bird nest can not only reduce the risk of failure of self created brand or acquisition of unfamiliar brands, but also avoid competition with controlling shareholders and constantly improve the ecosystem of Pacific bird brand.

(2) seize the opportunity of the fashion home market.

With the acceleration of urbanization and the increase of residents' income year by year, the demand for fashion homes with high quality and design is also increasing year by year.

Compared with the broad market prospect, the concentration of the home market is still at a low level.

Entering the home market at this time will help the company take advantage of the popularity and product development advantages of the Taiping bird brand and quickly occupy the market share through the differentiated fashion household products and occupy a place in the home market.

(3) bring the synergy effect of brand management into full play.

As the Taiping bird nest and Taiping bird clothing brand have a high similarity in positioning and customer groups, they can play a synergistic role in market expansion, product development, customer experience enhancement, supply chain and logistics management.

In terms of market development, Taiping bird nest will take advantage of the strong channel and promotion ability of the company's clothing brand to realize the rapid development of the market while maximizing the cost of developing the market.

In terms of product development, Taiping bird nest will maintain a unified style with the company's clothing brand, and provide more personalized fashion products to customers through the development of cooperative product series.

In terms of customer experience, Taiping bird nest will jointly set up a unified style store with the company's clothing brand in shopping malls, shopping centers and other venues. It will not only increase the bargaining power of the company in its location and price, but also help the company to enrich its products and enhance its shopping experience.

In terms of supply chain and logistics, the purchase of Taiping bird nest will also be integrated into the supply chain system of the company. At the same time, we can get the system support from cloud storage, O2O, store big data and so on, so as to enhance the overall business efficiency of the company.

Statistics show that Taiping bird nest Art Culture Communication Co., Ltd. was registered in Ningbo industrial and commercial bureau in January 1, 2011, mainly engaged in home furnishing, home textiles, aromatherapy essential oils, food, bathroom and so on.

As of December 31, 2017, the total assets of Taiping bird nest were 19 million 655 thousand and 800 yuan, net assets of 14 million 334 thousand and 400 yuan, and operating income of 13 million 468 thousand and 300 yuan in 2017, with net profit of -1201.34 million yuan.

Taiping bird nest has 6 self operated stores, with a total business area of 800 square meters and 80 employees. In 2017, the retail sales amounted to 15 million 450 thousand yuan, an increase of 19% over the same period last year.

The home industry has a strong correlation with the apparel industry in customer groups, fashion design, raw materials, supply chain, and so on. It has become the priority choice for every major clothing brand to build brand ecosystem.

As a matter of fact, clothing companies have already had a precedent for entering the home market, and MUJI has adopted this mode for a long time, and ZARA has also opened ZARA HOME.

At present, no matter the mainstream fashion brands such as ZARA, H&M, etc., or domestic famous clothing brands such as Hai Lan home and Jiangnan Buyi have already entered the domestic household industry.

According to the reporters' information, as early as the second half of 2011, Taiping bird launched the "Taiping bird nest" program, and began to copy "fast fashion" to the household products industry.

At that time, the Taiping bird said that under the premise that the economic fundamentals at home and abroad had not improved, the group hoped that household products could become a breakthrough for the sustainable development of enterprises and become a new profit growth point.

According to data from Euro monitor, IKEA accounts for 4.8% of the domestic market, while the share of ZARA HOME is less than 0.5%.

The broad market prospects and low market concentration means that entering the fashion home market still has a strong potential for development.

The bulletin also showed that as of September 30, 2017, the total assets of Taiping bird group were 12 billion 154 million yuan, and the net assets were 3 billion 69 million yuan; in the first three quarters of 2017, the operating income was 10 billion 946 million yuan, and the net profit was 19 million 426 thousand and 800 yuan.

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