Metersbonwe Intends To Upgrade Its Brand By 1 Billion 500 Million Yuan

On the evening of January 31st, Metersbonwe issued a non-public offering plan. It said that a total of no more than 1 billion 500 million yuan would be issued for brand upgrading and product supply chain pformation projects and repayment of bank loans.

Among them, the brand upgrade and product supply chain pformation projects amounted to 1 billion 195 million yuan; the amount used to repay bank loans was 305 million yuan.

Brand upgrading and product supply chain pformation project is an important way to upgrade and upgrade Metersbonwe's brand from leisure fashion style to multiple fashion style brand based on the background of consumption upgrading and new retail development.

Through brand promotion, the company will change the brand impression of the company's brand and leisure fashion style in the eyes of consumers, and create the brand branding of Metersbonwe's multi fashion style.

At the same time, Metersbonwe also needs to pform its product supply chain mode, with the help of social innovation capability, to cooperate extensively with the brand suppliers with independent R & D capability to ensure diversified brand supply and meet the needs of consumers.

In order to better support this pformation and upgrading, Metersbonwe also pointed out that it needs upgrading through the information technology management system and the retail big data platform, supporting the company to realize diversified fashion brand style management, new supply chain mode management, intelligent retail management and other targets.

At the same time, Metersbonwe also needs to upgrade the existing stores and set up new outlets directly, so as to promote the implementation of Shopping Center store construction and the strategy of "100 cities and thousands of stores" by realizing the wisdom of stores and brand diversification.

In addition, Metersbonwe said in its announcement that the fund-raising is based on the upgrading of the brand in the new era of consumer promotion, the opportunity brought by the changes in the apparel retail industry to the pformation of the company, and the company's clear development strategy. It is committed to pformation and upgrading. Smith Barney said that the non-public offering could further implement the company's development strategy needs, capital operation helps the company's strategy implementation, enhance the overall ability to resist risks, gradually release the potential of social brands, and reduce the backlog risk of the company.

It is noteworthy that Metersbonwe has begun to focus on brand upgrading, product upgrading and retail upgrading in recent years.

In the brand innovation, Metersbonwe brand has changed from a single leisure style to five styles. In the aspect of channel deepening, Metersbonwe began to focus on the huge growth space brought by urban consumption upgrading, with the help of the radiation effect of the core market, the development strategy of "100 City thousand stores", and the establishment of full coverage marketing channel from the first city to the county town market; at the same time, Metersbonwe will further strengthen the construction of the smart stores, use the Internet technology and intelligent equipment to digitize the store passenger flow, and rebuild the connection between the store and the consumer.

Starting in December 2018, Metersbonwe opened 5 new stores on average every day in emerging channels. It opened more than 100 new stores nationwide in a weekend, mainly in Shanghai, Beijing and other three or four provincial capitals.

Zhou Chengjian, founder of Metersbonwe, said in an interview earlier: "the United States has signed a 200 thousand square meter cooperation agreement with the commercial shopping center in China, and it will speed up in 2019."

In fact, the layout of the 35 line city is also a helpless choice after Metersbonwe's losses in successive years.

Data show that from 2015, Metersbonwe's net profit began to suffer losses.

In 2015, Metersbonwe's operating income was 6 billion 295 million yuan, down 4.92% compared to the same period last year. The net loss of non net profit was 431 million yuan, down 396.57% compared with the same period last year. In 2016, it continued to slide; by 2017, Metersbonwe's business revenue fell 0.72% to 6 billion 472 million yuan; the net loss of non net profit narrowed to 321 million 100 thousand yuan, up 37.98% over the same period last year.

In response, Metersbonwe said in response to the Shenzhen stock exchange that the main reason for the slight decrease in operating income and the increase in gross profit was the promotion of brand and product upgrading in 2017, and the enhancement of the added value of products.

In the eyes of the industry, Metersbonwe's biggest problem is brand aging. How to make the old brand glow is not only Metersbonwe, but also a pressing problem for every local brand.