Multi Brand Strategy Shows Remarkable Results:

In the evening of August 27th, 603808 released semi annual report in 2019. The company achieved an operating income of about 1 billion 266 million yuan, an increase of 17.09% over the same period last year, and realized net profit of about 190 million yuan, an increase of 17.90% over the same period last year. Revenue and net profit have achieved double-digit growth. Under the current consumer market environment, the performance is over expected.

2019 semi annual report shows that the main brand ELLASSAY has achieved operating income of about 477 million yuan, an increase of 7% over the same period last year; VIVIENNE TAM achieved a substantial increase in operating income; IRO Paris achieved a total operating income of about 343 million yuan, an increase of 35.32% over the same period last year, of which IRO Paris China's operating income increased by 208.19% over the same period last year. Other brands, such as IRO Paris, Laur L, VIVIENNE TAM, account for more than half of the total revenue of the company, showing the strong resource integration and operation management capability of the company, and the multi brand strategy is once again verified by the market.

Since its listing, the company has been firmly committed to becoming the strategic goal of an internationally competitive high fashion brand group. Taking investment merger and acquisition as the breakthrough point, the international fashion brand is introduced to form a diversified brand matrix and gradually establish a multi brand group operation mode suitable for it. As of the reporting date, the company has 7 fashion brands, namely, China's top fashion brand ELLASSAY, Germany high-end women's clothing brand Laur L, American light luxury brand Ed Hardy, French designer brand IRO Paris, American designer brand VIVIENNE TAM, Belgian designer brand Jean Paul Knott, British contemporary fashion brand, and has formed many brand attributes including fashion, tide brand, light luxury, net red and so on, covering different market segments. Among them, the British contemporary fashion brand self-portrait, which is newly incorporated into the company in August this year, marks the further enrichment and expansion of the company's high-end brand lineup. The company is closer to becoming an internationally competitive high fashion brand group.

Mr. Xia Guoxin, chairman of the company, analyzed: "from the above half yearly data, the multi brand strategy meets consumers' strong thirst for brand design and product innovation in the new consumption era of brand choice growth and new pattern, and provides direction guarantee for the company's continuous, stable and breakthrough growth."

It is understood that, through the full authorization of the brand departments, geersi will promote the establishment of a flexible and effective operation system for all brands, and further enhance their independent operation capability based on the collaborative group channel development, brand promotion, product design and R & D, and terminal operation. Internally, it can effectively enhance the efficiency of resource allocation, and externally is conducive to strengthening the bargaining power of the company. If the company readjusted its IRO Paris business system last year, it could take over its domestic business by buying IRO Paris brand, the regional operator of mainland China. From the 2019 semi annual data, IRO Paris's performance is outstanding, and its business system adjustment effect is gradually emerging.

In addition, in terms of brand promotion, the company focuses on creating young pop artists, well-known hosts, KOL bloggers and other explosive funds, forming fans economy. For example, the recent hit quality drama "all is good", the custom fashion drama "return the world to you", a lot of costumes to choose the brand clothing of ELLASSAY, the image of the two big hot women in the workplace is consistent with the praise from all walks of life.

It is reflected in the market and supply chain. At present, all brands have kept steady pace, and their business revenue has been expected. It also reflects the enhancement of channel bargaining power and the recognition of the channel side to the company's strength.

In fact, the high-end clothing industry has the characteristics of "deterministic consumption". With the improvement of the knowledge level and income level of the younger generation of high-end consumer groups, social media promotes the trend of information popularization, and consumers' functional demand for clothing weakens to the pursuit of diversity, personalization, quality and so on. The social attributes of fashion will also become the focus factor of high-end consumers. They tend to choose the brand of the head and tend to support it after being selected. While the brands of song's brand have their own unique styles, they have gradually established their own customer groups in their respective market segments.

By constantly expanding the brand lineup and integrating it, the song is gradually reversing the market's inherent impression of its traditional women's clothing brand and transforming into a mature multi brand fashion group. Xia Guoxin, chairman of the board of directors, said that after more than 20 years of development and precipitation, with good talents, he will unswervingly take the strategy of "becoming an internationally competitive high fashion brand group" as the strategic goal and have sufficient confidence and ability to carry out and accomplish this goal.