Busen'S Net Profit In 2017 Dropped By 612.26%. Implementation Of The Strategy Of "Fashion Industry New Retail + New Chain Fusion" Is Imminent.

Zhejiang Busen apparel Limited by Share Ltd (hereinafter referred to as "Busen shares") fell again.

In April 23rd, Busen shares announced that net profit fell by 612.26% over the same period last year.

On the same day, Busen shares also issued a strategic plan for 2018-2022 years, and plans to implement the strategy of "fashion industry new retail + new chain integration" in the next five years.

Beijing Business Daily reporter noted that in recent years, Busen brand competitiveness in the clothing market is weak, especially in recent years did not keep up.

The escalation of consumption and the sharp contraction of fronts have led to such embarrassing situations.

However, Busen shares for the "new handsome" is for the layout of pformation.

Busen shares said that the future garment business will be upgraded in an all-round way.

The new retail industry is diversified, and based on the entity fashion industry, with the supply chain finance technology as the tool, we explore the way of integration of industry and finance.

In the industry view, with the increasingly fierce competition in the industry, Busen shares this pformation path is not very easy to go.

Performance continued to fall

According to the results of the financial report, Busen shares closed 344 million yuan in 2017, down 6.95% from the same period last year, and realized net profit of -3380.7 million yuan, representing a decrease of 612.26% compared with the same period last year.

Beijing Business Daily reporter read Busen shares report found that, in addition to

Revenue growth of 33.48% and jacket growth, but other products have declined to varying degrees.

It is worth noting that Busen shares had lost billions of dollars in 2014, and in 2014-2016 years, the performance has been double down for three consecutive years.

In this regard, Busen shares said, because the main camp

The scale of business sales is limited by the pressure of stock in the past and under the background of consumption upgrading. It failed to upgrade and innovate in a timely manner.

Industry analysts believe that since the listing of Busen shares, it has been facing the problem of overcapacity, but failed to find a suitable way to break through, is still the traditional management ideas, and thus plunged into the predicament of enterprise development.

It is reported that Busen shares went public in 2011, and the main business is the design, production and sales of men's brand clothing. With the brand name of Busen men's wear, the multi class and multi style business casual men's wear has been launched. The products include men's shirts, Western-style clothes, trousers and jackets, T-Shirts, professional wear and so on.

Restructuring three defeat

In fact, in the background of the whole garment industry downturn, Busen shares began planning pformation since 2014.

Since then, Busen shares have suffered three failures.

Up to 2017, Zhao Chunxia, chairman of the Technology Co., Ltd., at the time of 1 billion 66 million yuan, was granted 16% of the shares and 13.86% of the voting rights of Busen shares. The company became the largest shareholder of Busen shares, controlling 29.86% of the company's voting rights. Zhao Chunxia became the actual controller of Busen shares.

It is reported that Zhao Chunxia is the founder of P2P platform love investment, and currently serves as chairman of AI investment.

Love investment is different from pleasant loan and other personal payment platform. It is mainly engaged in business borrowing business. It is a P2C trading mode, providing supply chain financial services to the upstream and downstream businesses around the core enterprises.

After taking over the position of Busen's actual controller, Zhao Chunxia continued to play the combined punches. The first action was to terminate the establishment of online small loans. The second move was to sell 0.979% stake in Chou Chou commercial bank. The third move was a major matter of the urgent suspension plan, that is, strategic cooperation with Busen group, mainly to provide supply chain management and financial services around Zhejiang textile industry.

Zhao Chunxia once said that after the change of equity in November 2017, Busen shares set up a supply chain management company in December of the same year, engaged in supply chain finance business. "In December, it has achieved 30 million yuan of business volume". In the future, Busen shares will also be implemented in accordance with the direction of financial technology pformation.

Transformation challenges

In the shoe and clothing industry independent analyst, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., there seems to be a large number of garment enterprises, and competition is also becoming a stalemate.

"Busen men's clothing product innovation is not satisfactory, marketing ideas are more traditional, and urgent need for change."

Beijing Commercial Daily reporter noted that in addition, because of the relatively limited number of target customers in the men's wear area, the market saturation is relatively high.

In the announcement, Busen shares also pointed out that many enterprises adopt discount promotions to improve market competitiveness, leading to the rising cost of enterprises.

At the same time, the development of online shopping and foreign competing products has brought business pressure to Busen shares in recent years.

In order to catch up with the industry, Busen shares began to "walk on two legs". In the next five years, it is planned to start with men's clothing business as the starting point, fashion dress as the core, and fashion industry to integrate and develop new retail businesses.

At the same time, we should develop the financial and technological solutions business with the main direction of supply chain management, and implement the strategy of "fashion industry new retail + new chain integration".

Busen shares hope to achieve the company's pition from the main traditional clothing business to the fashion based industry.

According to the plan, on the basis of firmly grasping the men's wear market, Busen shares will layout in other fields of the fashion industry, excavate the fashion demand and consumption potential of women and children customers, accelerate the adaptation to the needs of fashion industry, market and consumption, and build a "fashion dress platform" for the interconnection of all fashion apparel.

"In fact, many pformation and upgrading of garment enterprises adopt such a path."

Industry analysts said that for Busen shares, such a pformation and upgrading will also promote it to compete in the Red Sea, the prospect is not yet clear.

"In the field of clothing, Busen shares must break away from traditional business ideas and innovate categories to adapt to the upgrading of consumption.

At the same time, the supply chain finance of Busen shares will also face many new challenges.