Semir Has Opened Shop For French Children'S Wear Kidiliz In China. Shops Are Open Now.

In March 1st, Zhejiang Semir apparel Limited by Share Ltd (hereinafter referred to as Semir) answered investors' questions about group development strategy. About Semir's acquisition of Kidiliz group in October 2018, how does it plan to integrate Kidiliz overseas business company? Semir's responsible person said that the merger and acquisition of Kidiliz is conducive to the cooperation and common development of the two sides. The project is based on the retention of management team. After the completion of the merger, the Kidiliz group's original management team will continue to be responsible for the operation and management of the company and promote the development of overseas business. It is noteworthy that Semir's relevant officials mentioned that the development of business in China has been jointly funded by Semir and Kidiliz France. The joint venture is responsible for the opening of the business and will continue to promote the development of the business in the future.

For Kidiliz to join Semir brand matrix, Semir leadership pointed out: "French children's clothing business to join, bring new opportunities to the company's business development, and speed up the process of internationalization of the company. We can learn from each other and promote each other in product development, brand operation, supply chain management and retail management. In R & D, we have established a product R & D studio in France to spanmit the international fashion information to China for the first time, to serve our existing business and to promote the quality and capability of our business. In the supply chain, we use French companies to better understand the global supply chain resources, help companies integrate more extensive supply chain resources and reduce procurement costs; in market development, we have established a joint venture to operate domestic business in China and develop the domestic market.

In fact, the rapid development of children's clothing business in recent years in Semir has become one of the main sources of group performance growth. In the 2017 earnings report, Semir also admitted that the main reason for the increase of company revenue is to strengthen the research and development efforts, optimize the sales system, deepen the channel reform, and continue the development of online e-commerce business and children's business. At present, Semir's most famous children's wear brand is Barbara, and its market share has become the first in China.

According to the latest report released by Euromonitor, a market research firm, in 2018, the market size of children's wear children's clothing increased by 6.8% to 155 billion 900 million US dollars in 2017, and children's wear has become one of the fastest growing sectors in the international apparel market.

Although the market potential is huge, will Kidiliz's brand compete with Barbara after the merger? Semir relevant responsible person said, the two groups of brands are divided into different segments of the market, both competition and synergy. We believe that the growth rate of single brand development is not as fast as that of multi brand development. As an excellent brand of children's clothing, Barbara's operation capacity can spill over into new brands and have the opportunity to expand more business, so we choose multi brand development strategy.

"According to the data from the third party consultancy, balbara market share increased from 4.9% in 2017 to 5.6% in -2018, ranking first in the industry, and in the same period, second cities accounted for about 1.1% from 1.2% to 1.2%. This has verified our judgement on the further improvement of market concentration, reflecting the upgrading of the resources integration ability of the leading brands and the redistribution of market share to the development of the leading brands."

It is reported that Kidiliz group was founded in France in 1962. In 2016, the group name was changed from Zannier to Kidiliz, with 15 children's clothing brands including Catimini, Z, Absorba and so on. In 2017, group sales amounted to 427 million euros, more than half of which came from the international market outside France.