Nine Mu Wang Men'S Clothing Industry, Gloomy Pformation, Diversified Cross-Border Education, Focusing On Short-Term Investments

The overall downturn of men's clothing industry is an indisputable fact, but collective pformation education seems somewhat confused.

According to the world clothing shoes and hats net, recently,

(601566.SH) issued a notice that its wholly owned subsidiary, Cci Capital Ltd, signed an agreement with the TH education capital, and the nine Mu Wang retail was intended to act as a limited partner (LP) to participate in the subscription of the TH Education Fund phase 1 Fund (limited partnership).

A year ago, the king of nine had crossed the border.

In April 2017, the king announced that his wholly owned subsidiary would sign a partnership agreement with "Shanghai Mu Hua" to invest in the "Hangzhou Mu Hua" fund with a scale of 1 billion yuan and invest in cultural education and its derivatives industry and emerging industries. The nine largest investment company has signed a partnership agreement.

The investment is to further boost the pformation of the king and accelerate the realization of the company's elite life.

The strategic objectives of industrial groups.

And the participation in the subscription of TH education capital phase I fund has also achieved the cross boundary pformation of nine Mu Wang.

In the context of the continued downturn in the domestic men's wear industry,

The clothing enterprises represented by Semir clothing, Mei Sheng Culture and Shanshan stock have entered the Bureau education. This can not help but arouse many questions. What is the relationship between clothing and education? Can the pformation education be successful? Reporters call the public relations department of the nine Mu Wang, the person in charge of the market said the boss is still abroad, and the interview is not convenient to reply.

Industry gloomy pformation diversification

In recent 5 years, China's men's wear industry can be said to be in a downturn and there is no sign of turning around.

As a representative of China's men's wear industry, the performance of King Mu can explain the problem.

In 2012, the sales revenue of 9 Mu Wang was 2 billion 600 million yuan, and its net profit was 668 million yuan. In 2016, it dropped to 2 billion 271 million yuan and net profit dropped to 423 million yuan.

Along with the decline of performance, it is the reduction of terminal stores. From the expansion of physical stores in the past 3 years, the number of closed stores is more than that of new stores. In 2015, 265 new stores were opened, and 418 were closed. In 2017, 1~9 opened 192 stores, closed 338 stores, and reduced 312 stores in three years.

At the same time, men's clothing enterprises have been pformed.

In 2015, the seven wolves announced the adjustment of development strategy, from "pure industry" company to "industry + investment" company, trying to shift the focus of work to a completely different investment from its business.

Seven wolves responsible person responded to reporters that the company's pformation is the main business upgrading and deepening, the purpose is to improve the main business efficiency.

The company does not carry out diversified operation, but multi brand development and international development.

According to the performance report released by the wolves in March 23rd, the company achieved a revenue of 3 billion 82 million yuan in 2017, an increase of 16.76% over the same period last year.

However, there is still a big gap compared to the 3 billion 500 million revenue in 2012.

As the "clothing first stock" Shanshan shares, in the context of the overall downturn in the apparel industry, quietly stripped the clothing business, and turned into a new energy listed company.

And under the guidance of founder Zheng Yonggang, from the new energy battery material suppliers to the layout of new energy vehicle manufacturing.

However, more men's clothing enterprises have chosen the education industry together. The clothing enterprises represented by Hai Lan's home, Semir dress and Maison culture have entered education in succession.

In the footwear and clothing industry independent analyst, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., it seems that the price of men's clothing is more expensive than traditional business class. These brands have the advantage of first mover, including the first mover advantage of capital listing, universal listing and cross border opportunities.

"There is no uniform path for the pformation of traditional men's clothing. For example, the new energy of Shanshan stock crossing is too far away, and it is not easy to do well. The birds and birds cross the border, but the main business of the company is not necessarily good, not to mention the unfamiliar outdoor industry; and education is a sunrise industry, but also a light asset production. It is easier to extend and the cost of output is different."

"Men's clothing industry has been fiercely competitive in recent years, and the market as a whole is shuffling."

The field of education is a big investment direction. We should match all choices through investment research team and enterprise strategy, willingness and resources. "

Ma Gang, a clothing industry expert, said.

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Cross border education focuses on short-term investments

The earliest clothing companies entering the field of education are Semir costumes.

As early as in July 2014, Semir acquired 70% stake in Yu Han (Shanghai) Information Technology Co., Ltd., which engaged in children's quality and English education for 102 million yuan. In October 2015, it also invested in children's content brand "Kay uncle's story telling".

But Semir is clearly entering the field of education as an investment behavior.

Because Yu Han Shanghai has invested heavily in curriculum development, system upgrading and new store opening, it has an impact on the company's current performance. The business needs further training. It needs to integrate more children's industry resources, increase related inputs, and short-term performance is difficult to perform well. In March 2016, Semir apparel sold to the major shareholder Semir group its stake in Yu Han Shanghai.

In January 2018, Semir costumes also withdrew from "Kay uncle's story telling".

In the men's clothing industry relatively good performance of Hai Lan's home also joined the education industry.

In 2017, Hai Lan's family invested four yuan in total investment of 482 million yuan, and received 24% of Shenzhen Bond Culture Development Co., Ltd. (hereinafter referred to as "education").

Bond education is a K12 education and training enterprise in China. It is planning IPO.

Hai Lan's home has previously declared that it has some synergy with Bond's education.

On the one hand, the terminal customers of Hai Lan home and Bond education are mainly personal customers. The two sides can exchange experiences and marketing experience accumulated over the years. On the other hand, Hai Lan's home has thousands of stores throughout the country, and has rich experience and resources in the development of stores. Especially in East China, Hai Lan's home can give Bond education support in the development of stores.

"This is just an enterprise's idealized rhetoric. In reality, clothing and education are two very difficult industries to cross.

If the cooperation between the two companies is just to exchange experience in customer management and expand the experience of the stores, such a takeover is obviously meaningless.

Li Wengang, general manager of He Sheng brand management (Beijing) Co., Ltd., a senior operation consultant, said.

In Cheng Weixiong's view, many other fields of clothing cross boundary are "not working properly".

Many men's clothing industry owners are the start of the factory, more of the clothing as a business to do.

In the men's clothing industry, there are few enterprises that regard clothing as a brand as a mission. The understanding of brand still stays in the stage of product brand, so they pay more attention to business and seldom consider long-term value.

"The main industry is still so. How can the cross-border education industry focus on long-term development? All these are short-term investments.

But the education industry is a long term investment industry, and their choice is somewhat blind.

However, Xu Qinghua, director general of Hai Lan's home, told reporters that the shares of Bond education were pferred in early March 2018.

Since 2018, the company has further combed the direction of future development, especially after the cooperation with Tencent Technology Company Limited in February 2018 in Linzhi. The company has made clear that it will continue to focus on the garment industry in the future.

In March 2, 2018, the company signed the "equity pfer agreement on Shenzhen Bond Culture Development Co., Ltd.", and agreed to pfer the 24% stake in Bond culture by the 552 million yuan agreement.

And for the future, Xu said, "the future is to concentrate on the main business of clothing".

Returning to the main business to cater to young consumers

Despite the overall downturn in men's clothing industry in recent years, inventory has always been a thorny problem.

But the fast fashion industry, which has a competitive relationship with men's clothing industry, has been surging forward. The fast fashion brands, represented by UNIQLO and H&M, are rapidly distributing in China's first tier cities and second tier cities, and now they have entered many three line cities.

With a variety of SKU and civilian prices, it attracts more young consumers.

"In fact, the men's wear industry has not declined, but the industry is adjusting. The traditional business men's clothing is squeezed. The popular men's clothing and fast fashion clothes represented by the sea LAN home are very good.

Cake is not being small, but bigger.

Traditional men's clothing enterprises are not in pition, so they bring opportunities to emerging brands.

Cheng Weixiong said.

Overcapacity is a big problem for every industry. The old mode is sure to overcapacity, consumers are changing, and there is no growth without fumbling.

With the deepening of consumption upgrading, the concept of male consumption is changing. Male consumers are buying less and less expensive consumer goods. Instead, they tend to buy inexpensive, fast fashion products.

"So men also need changes in color, style and dress to change their lifestyle. Scene marketing has changed the whole ecosystem, specifically the quality of life."

Li Wengang emphasized.

Take "nine herd king" as an example. As a brand name for men's wear made up of trousers, it is very professional to make trousers. The gross profit is relatively high, 3 to 5 times the difference.

If the trousers are made deep and thorough, the king of nine must not worry about the ups and downs of his performance.

Cheng Weixiong said, but the problem with Chinese brands is that when a single product is done, it wants to do everything.

Therefore, Ma Gang feels that the overall problem facing Chinese men's clothing is universal homogenization, how to homogenization, attract young consumers, and attract more consumers through parity products, and make product innovation and marketing innovation. This is the right way out.

As for cross-border education and other areas of diversification, we also face the risk of starting from scratch in the unfamiliar field and face more failures.

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