Domestic Men'S Wear GXG Shares Hit A High Market Value Breaking 7 Billion

According to consulting consulting data, in 2018, the market share of mousse group in China's fashion men's clothing market was about 3.3%, ranking second in the whole country and 36% in online penetration rate, the highest in the country.

Despite the ups and downs of the fashion retail capital market, the stock market of GXG, the domestic menswear group, which was listed in Hongkong in May this year, reached a record high of HK $7.49 last Friday. Its market value exceeded 7 billion Hong Kong dollars to HK $7 billion 116 million, and it has surged by more than 40% since its launch.

The group was established in 2007. In addition to its core brand GXG, the group also operates five brands, including GXG jeans, gxg.kids, Yatlas and 2XU, but GXG is still the group's largest performance engine. Its main competitors include Pacific bird menswear and CABBEEN, and the latter two have been listed on A shares and Hongkong.

It is noteworthy that, due to the continuous overtaking of GXG and the bold attempt of new retail, the market value of the group is 10 times that of CABBEEN's menswear. At present, the market value of CABBEEN is about HK $1 billion.

CABBEEN went public in Hongkong in October 2013, and there was almost no increase in revenue in the first half of this year. According to the fashion business news, CABBEEN's revenue in the first half of the year rose 0.3% to 560 million yuan, and net profit increased 0.8% to 110 million yuan over the same period. The core brand CABBEEN's leisure income was 460 million yuan, accounting for 81.5% of the total income of the group.

During the period, the proportion of physical store revenue decreased to 64.1% from 68.6% in the same period last year. As of June 30, 2019, CABBEEN operates 912 retail outlets in the mainland of China.

In the 6 months ending June 30, 2019, the group achieved a total revenue of 1 billion 686 million 100 thousand yuan, an increase of 10.6% over the previous year, a gross profit of 838 million yuan, and a net profit of 89 million 670 thousand yuan.

The group said that the growth of its performance was mainly due to the development of the new retail business mode, especially the electricity supplier business. The company is also committed to further promoting joint fund marketing activities to enhance customer loyalty.

By the end of 2018, the company had 2250 retail outlets nationwide, including 720 self operated stores, 532 partnership shops and 998 outlets, and incorporated into Tmall three, WeChat vip.com and other three business platform. Since the launch of the VIP membership plan in 2009, the total membership of the group has exceeded 10 million last year and recorded 11 million 200 thousand people.

For the continuous overtaking of GXG, Mu Shang Group earlier admitted that entering Tmall became the most crucial step. In 2010, GXG settled in Tmall, which set a record of tens of millions of sales of single day sales in double eleven after 3 months of online Tmall.

Last year, Tmall's double eleven, GXG exceeded UNIQLO as the highest sales menswear brand, and its 12 hour sales volume reached 335 million yuan, exceeding the total sales of double eleven in the previous year, leading the industry for ten consecutive years.

The rapid development momentum has attracted the attention of investors.

In fact, the investment giant in the industry has long turned its attention to the dark horse of the mohsun group. In 2013, there were media reports that Semir, a domestic casual wear brand, had approached with zhe Mu Shang for acquisition. It was reported that Semir planned to purchase 71% stake in zhe mu 71% at the price of 1 billion 980 million to 2 billion 260 million yuan, but the two sides finally failed to conclude the transaction due to price differences.

Three years later, GXG found a new buyer. LVMH's L Capital Asia (L Catterton predecessor) and Crescent Point purchased 70% GXG shares with nearly 4 billion RMB yuan, L Catterton and GXG were independent of each other, and their shareholding ratio was 73% and 27%, which means that the company completed the holding of the company, and became the sole brand in Asia holding more than 51% of its private equity fund.