Market Analysis: Why Are Male Wolves Dressed Up?

Speaking of the men's wear market, it seems to have become the world of Hai Lan's home, but to measure from the time dimension, the first brand of men's clothing is still not the seven wolves. When it prevails, Armani and Gucci are still studying how to enter the Chinese market, and Hai Lan's home is not yet born.

Once the seven wolves, one of the absolute hegemony of the men's clothing industry, invited Zhang Hanyu, Hu Jun, Chang Chen, Honglei Sun and many other male gods to endorse, making the tough guy image "dancing with Wolves" popular among the people. A jacket has been popular for nearly twenty years.

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However, with the changing trend of the times, the impact of the Internet dimension reduction and the fast fashion brand, the traditional brands suffered major setbacks, and the seven wolves also fell into the mire of performance.

In order to save themselves, the seven wolves opened the road of pformation, selling socks, selling underwear, and getting involved in real estate. The income of real estate business even exceeded that of the main industry. Later, they began to invest.

All sorts of businesses are complicated, and people can not help but question the "seven wolves in the end what they do."

So, how about the seven wolves' way to save themselves?

Can it win back the hearts of men?

Rise: kill a wolf in the South

Times always belong to those who have foresight.

In 1980s, the spring breeze of reform and opening up took the lead in coastal areas, and Jinjiang was one of them. As a result of allowing the trial of "three to one" joint venture, it gradually became the focus of overseas brand OEM manufacturers. Nike's first foundries were located here.

"Love wins."

The spirit of struggle of Minnan people is most vividly reflected in the founder of the seven wolves. The elder brother Zhou Yongwei works in Jinjiang Bank of China. Zhou Shaoxiong, second brother, works in Xinhua Bookstore, Jinjiang.

In the face of emerging businesses springing up, Zhou brothers decided to abandon their iron rice bowl and go to the sea for gold.

At that time, the Jinjiang enterprises belonged to the barbarous growth stage of extensive development. Because the supplies were scarce at that time, they belonged to the seller's market at that time. As long as the products produced by the enterprises were not sold at all, the vast majority of people did not have the concept of "brand awareness". Crude manufacturing and counterfeiting were common practice, and a pair of shoes could not last for seven days.

The ambitious Chou brothers are not only satisfied with the quick money of making OEM, but also want to make a brand by themselves. They can be famous all over the country and even become famous overseas.

At the end of the 90s, Chyi Chin, "I am a wolf from the north", sang the whole country, and also raised the heart of Zhou brothers. In Minnan dialect, "wolf" and "man" were homophones, so the three brothers of the Zhou and four friends set up the seven wolves, with the jacket as the fulcrum, and began to pry the Chinese men's clothing market.

In 1991, the seven wolves launched the "color changing jacket". This jacket is like "Monalisa's smile", which changes with the light and the angle of observation.

With this innovative product, the seven wolves are booming in the country.

At that time, the salaries of the civil servants were almost forty-five yuan, while the "seven wolves" jacket could sell more than 100 yuan in the mall.

Even if the price is high, products are in short supply, and the "pick-up people often have to queue up to produce one piece and sell one."

Popular: the way of male god harvesting

Zhou brothers not only have a sense of foresight on products, but also take the lead in marketing consciousness, and have planned a series of marketing that can be called textbook level.

One is to crack down on fake and shoddy.

Historically, there have been Shanzhai for exploding money, and the popularity of the seven wolves has brought a series of counterfeiters.

Generally speaking, the victimized enterprises who suffer from infringement often take a difficult attitude because of the difficulty in obtaining evidence.

But Zhou brothers feel that this tort crisis is a great opportunity to expand brand awareness. Therefore, they decided to play it by themselves, and generally took the counterfeiters to court, which attracted numerous media attention.

The second is to invite domestic stars to endorse.

"Seven wolves" named inspiration from Chyi Chin, so in 2002, seven wolves invited Chyi Chin to be the brand spokesperson. At that time, the news wrote: "the cooperation between the seven wolves and Chyi Chin will open the prelude to the brand name era of the domestic clothing industry."

So in 2002, seven wolves invited Chyi Chin to be the brand spokesperson. At that time, the news was written: "the cooperation between the seven wolves and Chyi Chin will open the prelude to the brand endorsement era of the domestic clothing industry.

Carrying the appeal of Chyi Chin, the performance of the seven wolves is high, thus opening the road of "male god harvesting".

The big tough movie stars were invited to be their spokesmen.

Honglei Sun, Chang Chen, Hu Jun and Zhang Hanyu were the four "movie kings" in one breath.

However, judging from today's aesthetic concept, it is indeed full of "local flavor". The hard blood of the screen is inexplicably old with the style of the old town team.

Decline: the dimension reduction of competitors

Just like the late Qing Dynasty, the local big sword spears were defeated under the foreign guns and foreign guns, and seven wolves walking in the forefront of domestic garment enterprises also encountered strong attacks from foreign fast fashion brands.

In 2007, foreign fast fashion brands such as Zara, H&M, UNIQLO, etc. entered China, and quickly opened the market with fast iterative products and efficient and innovative management.

Take ZARA as an example, all the clothes in its headquarters warehouse will not be stored for more than three days. The store will send 2 orders to the headquarters every week to replenish the products, and its products will only take two weeks from design to store sales, while the traditional garment enterprises will have at least 4-6 months in this cycle.

It can be seen that the domestic traditional clothing brand and the overseas fast fashion brand's play is not at the same level, like "three dimensional body" in "reduces dimension attack", has been beaten naturally.

In addition, the rise of the Internet business has also caused a huge impact on the physical store, coupled with the rapid growth of the seven wolves in the past few years, resulting in excessive inventory and difficulty in cost control.

The house is leaking for a rainy night.

In 2013, the cooling of the macroeconomy and the depression of the clothing industry led to the outbreak of the seven wolves.

In 2012, there were 4007 stores of seven wolves, but by 2014, there were only 2821 left.

Profits also plummet.

According to the financial report, in 2013 -2016, the net profit of seven wolves belonging to the parent company was 379 million yuan, 288 million yuan, 273 million yuan and 267 million yuan respectively.

Self help: property becomes the main business?

But how can the ambitious seven wolves be willing to decline?

As a result, faced with the increasingly depressing performance, the seven wolves opened the road of multiple self rescue.

The first is the vertical diversification of business, from selling jackets to selling socks and selling underwear.

In 2014, the seven wolves recalled the original authorized brand of knitting textiles, and began to make men's underwear, underwear, socks and knitted products.

And selling socks does bring more profits for seven wolves.

The results showed that men's underwear, underwear, socks and other products contributed more than 1 billion 100 million yuan revenue to the seven wolves, accounting for 36.34%.

The once hot jacket is less than 10% a year.

The second is cross domain horizontal expansion, which has opened the operation mode of "industry + investment".

One of the important means is real estate management.

In the golden age of the rapid growth of China's property market, the seven wolves have also caught up with the bonus of this era, and real estate revenue has become an important growth point of its performance.

According to the financial reports, in the 2014-2016 years and 1-9 months of 2017, the proportion of the real estate sector's income in the main business of the seven wolf group was 13.77%, 10.34%, 42.48% and 58.29% respectively.

The real estate revenue even exceeds the main business!

Many media began to question whether "seven wolf group" is a man's dress or a real estate.

There are also venture capital industries.

Publicly available data show that seven wolves companies have set up 6 investment companies, such as Xiamen seven wolves equity investment company and so on. They also participated in Daniel ventures, Yunfeng fund and so on. Xiamen bank and ant gold suit also have its shadow behind it.

Zong Qinghou, a well known entrepreneur, has a saying that makes entrepreneurs aware of their mistakes.

In the great commercial history of China, too many enterprises have died of blind expansion, and the industry giants have been unable to do so. For example, once the first brand of local toothpaste, nitidine, the giant group led by Shi Yuzhu...

There are thousands of sails on the side of the sunken boat.

Too many cases tell us that if we go wrong one step at a time, we will lose everything.

Epilogue: reflection from the wolf

Fortunately, the seven wolves have begun to reflect.

In 2018, Zhou Shaoxiong, chairman of the seven wolves, said that after thirty years of development, the seven wolves have realized that only by doing their old business is the most correct choice after they have gone through many detours.

The return of the "seven wolves" to the main industry began to shift to the internationalization and high-end pformation. It swept the past "local flavor" style and embarked on the international stage, went out for Milan fashion week for four consecutive years, and bought the old Buddha's own brand and signed an internationally renowned designer, trying to build a fashion oriented industry group based on clothing.

The seven wolves now seem to have regained some energy.

According to the 2018 earnings report, the net profit of the company has reached 210 million yuan, an increase of 17.3% over the same period last year.

So, will future seven wolves still be able to kill the past scenery?

Can you win back the hearts of men?

Let's wait and see.