Semir Favored, LV Holdings, 12 Years Of Entrepreneurship, GXG Clothing Listed Inspiration

Chinese men's wear brand GXG has been hitting the market for a long time.

Now that boots are landing, they finally get what they want.

In May 27th, the GXG parent company, mosang Group Holdings Limited, was listed on the HKEx and its stock code 1817.HK was issued at HK $4.39 per share, with an opening price of HK $4.45 and a market value of HK $4 billion 200 million.

It is reported that the sale of 200 million shares of the group is about 1 billion 176 million Hong Kong dollars.

In May 28th, the shares closed at HK $4.29, down 2.5%, and HK $4 billion 76 million.

On the same day, the market value of the lucky birds listed on the Hong Kong stock market was about 5 billion 200 million Hong Kong dollars, the Taiping bird market value was 3 billion 480 million yuan, the market value of American bond was 6 billion 700 million yuan, the market value of Shanshan stock was 13 billion 400 million yuan, and the market value of Semir clothing was 20 billion 100 million yuan.

Founded in 2007, the moshang group has 12 super labels on its body in the past two years, namely "men's new retail leader" and "global luxury goods giant LVMH holding company".

In 2016, 2017 and 2018, the sales of Mu Shang group were 3 billion 17 million, 3 billion 510 million and 3 billion 787 million yuan respectively. Correspondingly, the net profit of three years was 275 million, 381 million and 380 million RMB respectively.

According to the burning consultation, in 2018, with the total online retail revenue, the mosang group was the first in the country, with an online penetration rate of 36%, ranking second in China's fashion men's clothing market total retail revenue, and occupying about 3.26% of the market share.

Only 12 years after its establishment, how can it break out of the tight encirclement of the clothing industry like clouds?

The annual sales revenue is 2 billion 500 million, GXG's past and present life.

Mu Shang Group is located in the "holy land" of Zhejiang's clothing brand gathering, Ningbo, which is also the birthplace of YOUNGOR, Shanshan stock and Taiping bird.

However, compared to many peers, many years ago, apart from clothing counterparts, the name of the mosang group was rarely known.

But when it comes to its brand GXG, it is almost unknown.

GXG is the cash cow of Mu Shang Group. In 2018, GXG earned 2 billion 500 million yuan, accounting for 66% of the total revenue of the group. In the previous 2016 and 2017, the sales revenue of GXG accounted for 66% and 67.2% of the total revenue respectively.

In fact, the emergence of GXG brand came from an encounter of two Ningbo costumes.

One day in 2006, Yu Yong, sales director of Taiping bird, 28, met Yang Herong in a regular coffee shop in Yinzhou District, Ningbo.

The latter worked in a bank and resigned from its own business to make OEM for foreign brand clothes.

Yu Yong at that time accumulated experience in clothing. At this time, Yang Herong accumulated some fortune and thought of investing.

The two sides chime in with each other and meet for the second time.

There are two reasons: first, they found that there were no men's casual clothes and traditional men's clothing in the market; secondly, Yu Yong was not good at women's clothing.

Not long after that, Yu Yong, an old colleague of Taiping bird, joined Tu Guangjun, Mao Chunhua and Wang Xianming.

Yu Yong will become CEO of Mu Shang Group in the future, and Tu Guangjun will become COO of the moshang group.

The average age of the team is less than 29 years old.

Despite the high morale, the opening was not smooth.

They once sold a few dollars and a piece of stock clothes.

After several months of low tide, GXG finally opened its first brand store.

This is a street store that is pferred from a cigarette shop.

Yu Yong recalled that at that time, because of the new brand, the volume of goods was small, and no factories were willing to process.

It is in this more than 70 square meter Street shop that GXG gradually groped out its own set of positioning and playing methods -- aiming at urban men aged 20 to 35, with the main fashion and elegant design, and friends' marketing ten, ten Chuan hundred, 'and sales and word of mouth rose. By the end of 2007, there had been nearly 4 million yuan sales.

At the end of 2007, GXG entered Yintai.

At that time, it was less than half a year since the brand was founded.

A few years later, GXG gained a firm foothold in the market, and Mu began to diversify and launch a new sub brand every two or three years.

In 2010, gxg.jeans was on the line, playing the streets, the trend and the cowboys. In 2012, gxg.kids was on the line, targeting 4-10 year old children, playing the main role of comfort. In 2014, targeting 18 to 38 years old crowd, launched the sports leisure brand Yatlas; in 2017, introduced the Australian sports brand 2XU, and opened the 2XU flagship store in Tmall.

In just a few years, Mu Shang established a brand matrix covering 4 to 46 years old, including sports, men's wear and children's wear.

At present, Mu Shang has opened 2250 stores, of which only GXG has opened 1216 stores, occupying more than half of them.

From "electricity bonus" to "new retail concept"

In the 12 year, it was listed as a dark horse in the clothing industry, and the outstanding achievements behind the existing lines are also incapable of breaking the line.

In 2010, GXG entered Taobao mall, which is Tmall later.

That year, "double 11" entered GXG for only three months, setting a record of single store sales of tens of millions per day.

In the next nine years, its prosperity and glory are closely related to Tmall.

So in the future, Mr Mu admitted that "entering Tmall is the most important step."

After 2010, GXG, who has tasted the sweetness of the electricity supplier, has become a "double 11" fan and actively participates every year.

From 2011 to 2018, in the "double 11", it ranked the top three of Tmall men's clothing brand merchandise trading volume.

In the three years of 2011, 2016 and 2018, they all won the first place in the turnover of Tmall men's clothing.

The rise of Mu Shang is to seize the bonus of the electricity supplier.

In 2010, local clothing companies such as Taiping bird and Metersbonwe, which were founded in 80s and 90s of last century, have not yet attached importance to the channel of e-commerce, but mu Shang has regarded it as an equally important channel.

In 2016, 2017 and 2018, the proportion of online sales increased year by year, 23.7%, 34.5% and 35.7% respectively.

In contrast, the total sales volume of the three major stores in the offline stores, partnership stores and distribution stores decreased year by year.

Seven years later, when the opportunity of the age came again, Mu Shang once again seized the opportunity without hesitation.

At the end of 2016, Ma Yun proposed "new retail", which became the biggest consensus of online retailing and offline retailing.

In 2017, Yu Yong, a CEO of mosang group, said publicly: "the integration of online and offline channels has become a form of the past, and the integration of internal structure is the real factor that determines a company's realization of new retail pformation."

Under the new retail strategy, the Mochen group first cancelled the "electricity supplier Department", merged the brand marketing and information technology center into a team, then digitized the goods and stores, opened up online and offline data, and finally realized the "online and offline parity", and "allowing online payment on the customer line, and the product directly shipped from offline stores".

In addition, Mu Shang Group has done a lot of work in warehouse management, membership and so on.

For example, since 2016, the cloud stock sharing and distribution system has been established, and the retail store has been upgraded to intelligent store in 2018.

In November 2018, Nanjing's Jianye Wanda Plaza, the first new retail experience store in GXG, was officially opened.

It is reported that new retail devices such as "intelligent fitting glasses" and "interactive game screens" have been set up in the store. It is worth mentioning a "smile discount machine" - a smile that only needs to be displayed in front of the machine and will be matched to a discount red package.

According to statistics, at present, GXG has 93 smart stores in the whole country, of which 30 stores have access to Tmall's new retail system, and another 11 stores have achieved the digitalization of passenger flow and goods.

This has brought about 5%-10% sales growth.

Capital Bureau Central Bureau: Semir withdraws, LV is in charge

The group is able to go on the market smoothly. In addition to the electricity supplier bonus, GXG and other brands maintain rapid growth.

In fact, as a late industry, Mu Shang has won many industrial capital favor by his rapid growth.

In 2013, Semir threw olive branch to buy 71% stake in Mu Shang.

At that time, Semir expected to produce 1 billion 980 million to 2 billion 260 million yuan.

In this calculation, the overall equity value of Mu Shang Group is between 2 billion 789 million yuan and 3 billion 183 million yuan.

In 2012, the net assets were only 272 million yuan, and the valuation was equivalent to 10 times of net assets.

At that time, the market share of domestic textile and apparel listed companies was around 5 times.

Take the male wedding listed company as an example, its net profit in 2012 was 469 million yuan, and its market value was 3 billion 500 million yuan.

Semir's 10 times market price purchase price is clearly beyond the reasonable value expected by the market.

Therefore, since the announcement of the takeover, Semir's stock price has dropped repeatedly.

In 2014, due to price differences, the most popular takeover of the domestic garment industry ended up breaking up.

In December 2015, the international luxury goods giant LVMH group's private equity L Capital Asia, looking for $130 million loan, was mainly used to acquire 70% stake in mousse.

The paction price is almost half that of Semir.

After the LVMH became a shareholder, the mosang group speeded up the listing process and finally landed in the HKEx in 2019.

Listed, and then?

Compared with a publicly listed Zhejiang garment enterprise, the price and market value of the group are not very bright.

YOUNGOR listed in 1998 has a market value of 33 billion 630 million yuan; the market value of the US bond market in 2008 is 6 billion 708 million yuan; the market value of Semir listed in 2011 is 29 billion 590 million yuan; the total market value of the Pacific bird listed in 2017 is 8 billion 336 million yuan.

The total market capitalization is only HK $about 4000000000, and in the future rising space, men's clothing in the core business will bear the brunt.

According to the burning advisory, in 2018, China's five largest fashion men's clothing brand, the first place's total retail market share was only 4.8%, while GXG and gxg.jeans ranked second, but the market share was only 3.26%.

Because of the stronger brand stickiness of male consumers, there is still a lot of room for improvement in designing the clothing that suits the new generation of male beauty and upgrading the core business share.

Secondly, develop women's clothing brand.

A few days ago, it announced to the outside world: "we do not rule out that the future will continue to expand women's clothing and other categories."

Because women's demand for clothing is varied, the concentration of women's clothing industry is relatively low.

In this respect, Mu Shang is not necessarily able to do it; even if it is done, the share may not be bigger.

In the past three years, the listed clothing brands have been polarized.

For example, the Pacific bird has fallen by 63% in the past year, and La Natsu Bell has fallen by 72%.

But Bosideng, another listed company in Hongkong, has risen two times its market value.

Under the background of increasingly fierce market competition, what kind of answer can the listed mohsun group give to the capital market?