Why Did The Seven Wolves Of The "Jacket King" Fail? Six Less Than 18 Billion

In order to sell the jackets to young people, the seven wolves invited the little fresh meat to be the spokesperson. The sales cost in the first half of this year spent 339 million yuan, an increase of more than 30% over the same period last year.

But young people do not seem to be buying it.

The semi annual report released in August 22nd showed that seven wolves sold 1 billion 555 million yuan in the first half of this year, an increase of 6.55% over the same period last year, and net profit of 123 million yuan, down 8.42% from the same period last year.

At present, the price of the seven wolves is 5.85 yuan, the market value is only 4 billion 420 million yuan, and has fallen 80% from the peak.

Once upon a time, the seven wolves were almost the same as "National Men's clothing". After falling to the bottom of the valley in 2013, it had been working for six years, and there was no sign of revival.

The rise of the king of jackets

The seven wolves originated in Jinjiang, Fujian, the hometown of Chinese clothing.

In the 80s of last century, Zhou Shaoxiong, a librarian, was infected by the textile and clothing atmosphere of his hometown. He resigned and worked as a clothing factory for Jinjiang Jinjing labor overseas Chinese hometown.

Soon, Zhou Shaoxiong developed a brand awareness.

In those years, Chyi Chin, "I am a wolf from the north", sang all over the streets and alleys. Zhou Shaoxiong and his entrepreneurial partners decided to use wolf as a brand name.

Seven people started their business, so they named it "seven wolves".

It was the time when jackets became popular. Zhou Shaoxiong asked the designer to develop a color change jacket, and the color will change with the light and angle. First, the factory became popular and sold a record of 80 thousand pieces sold in a month. Subsequently, the double-sided jacket, collar collar jacket and style jacket came out one after another. The seven wolf's jacket occupies the first place in the same industry all the year round, and has become the "king of jackets".

Zhou Shaoxiong's marketing ability is outstanding, and the slogan "men is more than one side" has once become the brand name of the seven wolves.

In 2002, seven wolves invited Chyi Chin to be the brand spokesperson. Later, Honglei Sun, Hu Jun, Zhang Hanyu, Chang Chen and other movie stars joined in.

Fujian merchants have always regarded "channel as king" as a criterion, such as Anta, XTEP and seven wolves. At its height, its number of stores nationwide was more than 4000.

Relying on products, marketing, channels three axes, seven wolves officially become "National Men's clothing".

Valley bottom wandering

The most beautiful time is usually the most dangerous time.

In 2012, the performance of the seven wolves was double high: the total business income was 3 billion 473 million yuan, and the net profit was 563 million yuan.

But then, the Chinese garment industry has a turning point, and the seven wolves have ushered in Waterloo.

In 2013, the annual revenue of the seven wolves was 2 billion 772 million yuan, down 20.23% compared to the same period, and the net profit level was 379 million yuan, down 33.44% compared with the same period. Its net profit continued to slide in the next few years, and has not yet returned to its original position after hitting the bottom in 2016.

Why did seven wolves suddenly face such a big turn?

The devil hides in the details.

First look at the outside world. After more than ten years of development, the electricity supplier has matured and quickly penetrated into the garment industry. By 2014, the size of China's online shopping market had reached 280 million yuan, of which clothing exceeded 610 billion yuan, becoming the largest category. That year, double eleven, sales of clothing brand, none from the traditional clothing industry.

At the same time, fast fashion brands abroad are also accelerating. UNIQLO, H&M, Zara and so on set off a craze for opening stores in China.

When the seven wolves rose, 70 and 80 came on the stage, and the demand for business men's clothing was strong. But in 2014, after 90, gradually entered the community. Different from their parents' preferences, they prefer the fast fashion of comfort and freedom, and the seven wolves do not touch the doors of these new consumers.

Over the years, the traditional clothing industry has been a brand manufacturer, dealer ordering, retailer sales mode. This mode made all the participants on the chain earn enough money in the early years, especially the upstream brands, who were comfortable with good days, lacked terminal control capabilities, and were far apart from consumers.

Between the seven wolves and consumers, it is difficult to know the preferences of consumers through a large number of distributors, let alone product development based on preferences.

Slowly, the seven wolves, which are widespread in the stores, have also come to a critical juncture because of the sharp decline in store revenue.

　　 A marathon redemption

The seven wolves realized the problem. Since 2013, reforms have been carried out to break the deadlock.

First of all, we need to sort out the channels. In the first half of 2015, there were 2636 stores. In three years, 1400 stores were closed. The rest of the shops are also transformed into "brand stores" and "parity stores", and are operated in a direct battalion mode.

The seven wolves also tried to improve their performance through diversification of products.

In 2014, seven wolves set up a stock control company, mainly engaged in men's underwear, underwear, socks and other needle spinning products. This really did some good. In 2016, other products in the seven wolves revenue increased by 30.79% over the same period last year. The main reason is the growth of the needle spinning business, including underwear, underwear and socks.

But for garment enterprises, such growth is only a drop in the bucket.

So the seven wolves moved their focus back to the costumes and decided to make the brand younger.

In 2018, this! The first season champion, Han Yu, became the spokesperson of the seven wolf men's clothing. He co worked with Zhang Hanyu in the advertising film "men more than one side". There is a small meat in the spokesman of the tough guy, and the goal of younger is obvious.

On the other hand, the seven wolves are also investing in mergers and acquisitions. In 2016, it bought the French brand 16N, and in 2017, 320 million yuan bought the international light luxury brand "Karl Lagerfeld", accounting for 80.1% of the shares.

But their development path in China is not smooth. According to the results of the report, 16N and Wolf Totem brand subsidiary Shanghai Qi He Garments Co. Ltd. and Shanghai Holt culture and creative Co., Ltd. lost 17 million 100 thousand yuan and 16 million 380 thousand yuan in the first half of 2019 respectively.

Karl Lagerfeld Greater China Development Limited revenue of 31 million 390 thousand yuan, a net loss of 40 million 140 thousand yuan, and with the founder of "Buddha's" death, brand appeal will be greatly reduced, profitability is far from being expected.

The characteristic of wolves is that they will become fiercer if they are irritated. In the increasingly fierce market competition, can Zhou Shaoxiong lead the lost seven wolves to thrive again?