Dialogue With JEANSWEST Chairman Yang Xun'S Choice Of Market Addition And Subtraction Is A Practice Of JEANSWEST.

Recently,

All kinds of speculation.

This reporter learned from Yang Xun, chairman of JEANSWEST International (Hongkong) Limited, that JEANSWEST's move was to return to the group, not to divestiture the group, but instead to support JEANSWEST.

According to the announcement issued by sun rising enterprise of Hong Kong stock listed company, the mainland garment retail business, which is to be sold for 800 million consecutive years, will be sold to the founder and major shareholder Yang Zhao and Yang Xun brothers of the sunrise group. The sale of the JEANSWEST brand will generate about 31 million 333 thousand yuan.

JEANSWEST also said that the news of "abandonment" was totally untrue. In fact, the rising sun group, the largest shareholder of sun rising enterprise, repurchased JEANSWEST's brand Chinese business from listed companies, which could more flexibly continue to develop JEANSWEST's Chinese business to correspond to the rapidly changing Chinese market. JEANSWEST will continue to become China's Yang's rising sun group.

The main business of the business continues to develop and invest. "

It has been revealed that JEANSWEST has basically shut down its stores and is expected to resume growth next year.

At present, JEANSWEST has "independent accounting and self financing" for every shop, and requires every store to make contributions in principle and continue to develop profitable shops.

In addition, Yang Xun, the head of JEANSWEST, has always adhered to the idea that "the poor are good at themselves, and the people are good at the world." economic benefits are not the primary goal of JEANSWEST at this stage, but rather help more people through stable operations.

At the same time, JEANSWEST is confident that "the clothing business can continue."

Q&A

Asahi group is a group owned by Yang brothers and owns 70% of the largest shareholder of sunrise enterprise.

At the beginning of sunrise group, mainly based on trade, retail and other traditional businesses, it has been gradually adjusted to real estate, financial investment and other businesses.

After more than 40 years of development,

The total assets of the company have been reduced to 10%-15%, while real estate and financial investments have risen to 85%-90%.

The main business is clothing related industries and asset management, of which apparel retail accounts for 59% in 2017.

The operating environment has been changing, in order to help the company to make decisions, and so on, so that it will return to the group, many problems do not need to be dealt with in the way of the listed company.

So, the correct understanding should not be that JEANSWEST has stripped the group, but the JEANSWEST regress group.

Moreover, the purpose of running a company is not the same as before.

Running a company more than 20 years ago, we aim at economic efficiency.

But now JEANSWEST is not the first to manage the economy.

This is also in line with our current business philosophy: "poor people are good at themselves, and they are good at the world."

"For many years, JEANSWEST has insisted on holding the JEANSWEST cup design competition and subsidizing poor college students and so on. But if JEANSWEST carries out these similar things in a listed company's current operating situation under the banner of a listed company, there will be doubts from all sides, and now we peel off the listed companies to return to the group, and all the problems will be solved."

Reporter: can you disclose the current situation of JEANSWEST's operation?

Yang Xun: I can tell you a JEANSWEST's business situation. First, we JEANSWEST do not have bank loans now. Second, our JEANSWEST's inventory is below 10% this year. This is also the lowest point we have been managing JEANSWEST for more than 20 years.

Reporter: How did you do that?

Yang Xun: on the one hand, it comes from the strict management of our company. I will devote most of my time to management.

We must make good sales budgets, add strict sales management and clean up inventory in time, so there is no big problem.

On the other hand, it is also closely related to our planned closure of stores.

Reporter: how do you plan to close the store?

Yang Xun: if a loss shop is not profitable for half a year, we will decide to turn it off.

Turn off the loss stores, they no longer sell, so there is no stock.

Reporter: by the end of this year, what will the total number of shops be maintained?

Yang Xun: we stopped closing stores in the second quarter of this year. We expect that the number of shops will increase again next year.

Reporter: what position does JEANSWEST have in your mind in the future?

Yang Xun: my view has always been that clothes are bought and sold as long as there are people who need them, just to see how you manage them.

Business is high and low, which is normal.

I believe that with our experience, this clothing trade can be carried on.

Reporter: according to the performance of the past two years, what do you think of the subjective and objective factors?

Yang Xun: it is mainly a question of the whole macro environment. First, the growth of China's retail industry is slow, and the growth of clothing is less than 10% of the average growth of the retail industry, of which the sales in the field of electricity business remain at an increase of about 28%.

And the "long" will bring the "disappear", so it will affect the sales momentum of the offline storefront.

The two is to add some foreign brands such as UNIQLO, H&M and Zara to compete in the market.

At present, the whole business environment is like this. We also had shops in the first quarter of this year and stopped in the second quarter.

By the end of this year, there is no shop to shut down, plus the growth of its own stores. Next year, when there is a suitable time, we will open the shop.

Reporter: is there any new expansion plan for JEANSWEST brand image, such as doing some other sub brands, or buying some high-end brands to expand the brand structure.

Yang Xun: JEANSWEST does not advocate expansion of other brands, or advocates centralized development.

It's like holding a fist to play out, or is it powerful to open and play out? Of course, we haven't given up the expansion, for example, the children's clothing we started last year. Sales growth is very good. This year's children's clothing has increased by more than 50% over last year.

Reporter: it is understood that children's clothing is not sold independently, will the future separate independent sales?

Yang Xun: at present, children's clothing is sold together in the shops of JEANSWEST.

Whether we want to sell independently in the future depends on market development. If conditions are satisfied, we will consider selling children's clothing stores separately.

Reporter: are there any layouts in the second tier cities now?

Yang Xun: in the central area of a second tier city, JEANSWEST did not open shops.

But there are shops in the residential areas, supermarkets and other two or three cities in the second tier cities.

It also depends on JEANSWEST's target audience distribution.

Reporter: just mentioned, the sales growth of the future electricity supplier is not as fast as before, but the proportion of the electricity supplier is still higher. Will the JEANSWEST continue to increase investment in the electricity supplier or put the investment in the physical store?

Yang Xun: at present, the proportion of JEANSWEST online sales is about 30%, the proportion is not low in the big environment.

In the future, we will control the proportion of sales on line, because the gross profit of electricity suppliers will be relatively low, and the competition of online brands will be fierce. Many brands will sell on gross margins.

Now, the main purpose is to maintain the image of shops and brands.

Reporter: you just said that now the real economy pressure is bigger. JEANSWEST is positioned in casual clothes. Many domestic enterprises also focus on casual wear. How do you think the future development of casual clothing will change?

Yang Xun: at this stage, no clothing can replace casual clothes, the growth will be slower than before, but there is still room for it.

Casual clothes will not be replaced for the next five or ten years.

Reporter: will there be subversive changes in the brand design and brand image of JEANSWEST in the future?

Yang Xun: since the beginning of the year, our cross border cooperation with Disney Pixar has injected fresh elements into JEANSWEST, and the response is still very good.

And next year, we will cooperate with Man Wai.

Now we can tell you some news that in the recent order meeting, all parties had very good feedback on the winter clothing and spring clothes of the cooperation.

A kind of

Reporter: you just said that JEANSWEST's sales are basically a bottom now. Do you have a time plan for yourself? What will you do if the performance continues?

Yang Xun: I still have confidence in maintaining JEANSWEST.

With my decades of experience and my team, there will be no big problem with maintaining JEANSWEST.

The key is whether the scale can be restored to the past. It depends on how many opportunities the market gives us.

Reporter: if someone wants to buy JEANSWEST, will you sell it?

Yang Xun: I started from the clothing industry. This is a complex of mine.

Besides, you can see that JEANSWEST is not short of money.

JEANSWEST is like my child. Why do I have to sell my children?