Famous And Good Quality Products Repeatedly Fall Into Tort Door Quality Gate IPO Listing Is Not Expected.

The famous and excellent product, a cheap fashion and leisure department store retailer under the banner of "Japanese fast fashion designer", has been expanding rapidly for nearly 6 years, and has opened 3500 stores in 79 countries and regions around the world.

Recently, media reports reported that the name of IPO was planning for initial public offerings or about $1 billion. The company is inviting banks to compete for the proposed transaction. The IPO may take place in Hongkong or the United States, but the time has not yet been determined.

In July 7th, an insider told reporters that "the IPO planned by the company in January 15, 2018 is steadily advancing, and the company is making full preparations for the listing. At present, the specific listing location and the amount of fund-raising have not yet been determined; if confirmed, it will be announced in a timely manner.

Since its establishment, the famous brand has been playing the leading role in low-end life department stores. At the same time, while the brand name and excellent product mode has aroused concern, whether the selection, quality, or the low repetition rate attribute of the department stores and the low gross profit rate of 8% of the famous and excellent products have all come to question whether the business model can last for a long time.

In addition, according to the data from the sky eye, 68 of the legal cases were involved in the operation of the famous and good quality business operator (Guangdong Bao Yang Cci Capital Ltd), of which six became a tort lawsuit. Mentholatum, LOCK&LOCK, Watsons and other well-known enterprises have taken it to court.

IPO listing site is not yet determined

Recently, it was reported that the name of the best quality product or IPO fund raised by US $1 billion is planned to be listed in Hongkong, China or the United States. However, then, an insider named "good quality products" said, "in January 2018, the name of" IPO "was launched. As for the specific listing, it has not yet been put on the agenda and has not yet been finalized. In addition, no more information was revealed.

Founded in 2013, it was co founded by Hubei businessman Ye Guofu and Japanese designer three Zhai Shun. In November 2013, the first successful product was opened in Guangzhou, because most of the products sold for ten yuan were called "ten yuan shop".

In the random interview, the Changjiang Commercial Daily reporter found that some consumers did not refuse the cheap cosmetics, "students can not afford expensive products, they can only choose cost-effective." Another customer said, "as long as there is no allergy, it will not exclude low-priced products."

People in the industry say frankly that the series of famous and excellent products these years is nothing more than "small profits but quick turnover." In order to support this "small profits but quick turnover" mode, there are two points for the creation of famous brands: first, continue to open stores, open enough stores, and the two is to let consumers spend money at high frequency.

In fact, from the data point of view, compared with "big brother" Muji, the development of famous brands and excellent products has been smooth sailing in recent years. In 2015, there were 1300 stores in China. In 2017, there were 2000 stores and 12 billion yuan in revenue. In 2018, there were 3500 stores in 79 countries and regions in the world, with revenues of 17 billion yuan and more than 30000 employees.

At the same time, Ye Guofu also made a success in the Hurun rich list with 10 billion yuan, ranking the 1693rd in the world. At the group's annual meeting in early 2018, Ye Guofu stressed that the name of the top quality products will be implemented by the 2022 guidelines for the implementation of "100 billion stores in 100 countries", including 7000 overseas stores, with annual revenue reaching RMB 100 billion.

It is worth mentioning that in September 2018, the name of the top quality products announced that it signed a strategic investment agreement with Tencent and high allocating capital. The analysis said that the name of "IPO" was aimed at leveraging capital, and at the same time exerting force online and offline. At the same time, it was also seen as a preparation for the company to sprint the IPO.

"Yesterday," hundreds of millions of shops in the 100 countries "are the medium-term strategic objectives of the company," he said in an interview with reporters yesterday. "In recent years, we have focused our attention on expanding channels, optimizing supply chain, new product design and development, top IP joint names, brand upgrading, talent introduction and so on." We believe that only by constantly enhancing the strength of the enterprises can we gain and maintain the dominant position in the market and lay a solid foundation for the realization of the medium term goals.

However, in the view of economist Song Qinghui, the gross profit of famous brand products is only about 8%. Under the low gross profit mode, there is no sustainability. According to the current development trend, it is difficult to achieve the goal of famous brand products. Under the rapid expansion of low gross profit margins, there may also be the possibility of increasing profits without increasing profits, resulting in unsustainable business. In the future, we need to accelerate the pace of transformation and improve our gross margin.

Repeatedly fall into tort door quality gate

Although the expansion rate of name creation products is very fast, the company is also suspected of plagiarism along with various problems, including the quality of goods being questioned and design.

According to the data from enterprises, the 68 party legal proceedings, including 20 disputes involving infringement of design patents, 4 infringement of trademark rights, and 19 disputes over the right to propagate the information network, have been involved in the investigation of the name of the company (Guangdong Bao Yang Cci Capital Ltd) (currently cancelled). Both Mentholatum and LOCK&LOCK have filed a lawsuit against a brand name product to infringe the patent rights of design.

Combing the previous infringement, in 2016, the illustrator Bai Guan discovered that his "minimalist zoo" series was sold on the book by the name of the best quality product, and he prosecuted the name of the best quality product. In March 2018, Naomi brand sued the trademark infringement of NOME brand. In November 2018, Shen Wenjiao, the founder of furniture brand PIY, published the article entitled "MiniHome" brand, which was copied from PIY's NUDE coat rack.

In addition, its development and manufacture of cosmetics has repeatedly exposed the quality of the problem. Since 2018, three cosmetics have been ordered to "make corrections".

In addition, with the continuous emergence of platforms such as Naomi, the advantages of name creation products have become less and less obvious. The phenomenon of homogenization has become more and more serious, and the price and quality are not very different. There are consumers on the Yangtze River Business Daily reporter said, "a lot of small commodities and daily necessities, many similar products in the shop can be bought, the name of the best quality products is no longer the first choice."

The famous brand has also been thinking about this problem. In 2018, it launched a joint series of products with famous brand products and Sesame Street. In 2019, the first IP product was set up. The move is seen as creating better products to create differentiation and try to harvest more traffic.

In Song Qinghui's view, "name creation and superior products" have repeatedly involved in the infringement, and many products have been detected the quality of commodities, and the future development of the company is not very optimistic. For famous brands, the expansion of low prices and storefronts is not enough to support future development. In the future, it is urgent to start the strategy of transformation and upgrading.