Semir Adds Keihu: After Children'S Wear, Continue To Exert Efforts In The Junior Clothing Market.

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The youth clothing market is difficult to operate, and has no independent style and professional first-class brand. It is a major feature of China's youth clothing market.

Photo source: COCOTREE official website

Semir has entered a challenging field.

In May 27th, the company announced that it would jointly invest with Wenzhou jaino Garments Co., Ltd. to set up a joint venture, Zhejiang Sloan Clothing Co., Ltd. (hereinafter referred to as "Sen le").

The registered capital of the joint venture is RMB 45 million, including Semir and Wenzhou.

The two party accounts for 51% and 33% of the registered capital respectively, and the remaining 16% is held by the core management team of the joint venture company.

Business scope covers clothing, shoes and hats, knitwear, leather products, down products, bags, toys, glasses (except contact lenses), arts and crafts, paper products, stationery, pens, teaching models and teaching aids manufacture and sale.

In order to put into operation as soon as possible, Sen le will purchase the registered trademark and some equipment of Wenzhou COCOTREE's brand "Ke Keshu".

"COCOTREE" is the main business of Wenzhou gaino Garments Limited. It is a brand founded in 2002, specializing in research and development of juvenile clothing. Its target audience is a 7-16 year old teenager.

Wenzhou has 143 stores, and its Tmall flagship store has a price range of 39-200 yuan.

Semir's most profitable business at present is children's wear. In 2017, the results showed that its children's casual wear category revenue increased by 26.4%, reaching 6 billion 321 million yuan, accounting for 52.56% of the total revenue.

Apart from Sarabanda and uniforms brand Hey Junior, which can be marginally related to juvenile costumes, there is no corresponding brand in the 7-16 year old youth market.

The operation of COCOTREE brand can play a complementary role in Semir.

However, the operation of the juvenile clothing market is more difficult than that of children's clothing. The lack of independent style and professional first-rate brand is a prominent problem in China's youth clothing market.

In addition, the youth group has a fast changing physique and a higher pursuit of dress style and personality.

And mature adult clothing can not fully meet the needs of this group.

On the other hand, sportswear and fast fashion brands can also meet some of the needs of this market segment.

The brand has an impact.

Expanding business through external cooperation has become one of Semir's most commonly used ways.

This year alone, it has acquired the Paris children's wear group Kidiliz for the further development of children's casual wear category, and has reached long-term cooperation with the North American children's wear brand THE CHILDREN 'S PLACE.

Regarding the purpose of foreign investment and asset purchase, Semir explained that the deal was in line with the implementation and development of the company's multi brand strategy, and expanded juvenile clothing.

To enrich the company's brand matrix is also conducive to building a big platform for Semir's development through implementing the partnership mechanism.