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    Hui Jie Shares Overseas Market Development Will Usher In A New Breakthrough?

    2019/10/28 11:12:00 3

    Hui Jie

    Hui Jie shares announced that the company plans to invest 20 million Canadian dollars (about 108 million yuan) to set up a wholly owned subsidiary in Canada, which is another overseas layout of Sinai's investment in the US subsidiary. At present, China's underwear market has many brands and fierce competition. Will Hui Jie share a new breakthrough in its overseas market?

    The announcement indicates that the overseas investment of Hui Jie shares is aimed at implementing the overseas development strategy of the company, further promoting the exchange and cooperation between the company and the North American market, speeding up the internationalization process of the company, setting up and enhancing the international image of the company, and enhancing the international competitiveness of the company.

    It is worth noting that in July last year, Hui Jie shares invested 2 million US dollars (about 14 million 130 thousand yuan) to set up a wholly owned subsidiary in the United States. In January this year, the subsidiary company completed the registration and obtained the relevant documents of the state of New York. Earlier, a small shareholder of the company inquired about the specific progress of the US subsidiary to Hui Jie shares, but Hui Jie shares replied only in the form of a notice, but did not elaborate on the specific circumstances. At that time, people in the industry analyzed that the top five underwear brands in the United States accounted for at least 70% of the market share.

    Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., in an interview with the China Daily News, said that the establishment of Canadian subsidiary was based on Sino US trade frictions and the fact that the US subsidiaries had not yet made progress, but the time needed to expand overseas markets and the precipitation of capital investment. At the same time, underwear demand in China and foreign underwear demand are essentially different in dress culture. To develop overseas markets, Hui Jie shares need to locate brand, product, edition type and cup type again.

    It is understood that at present, Hui Jie shares owns eight main brands, such as Manifen, Sang Fulan and Jia Shang Shang. In order to improve the share of underwear market in China, Hui Jie has made various efforts. In June of this year, Hui Jie shares increased 150 million yuan to its wholly owned subsidiary, Jiangxi man Ni Finn Garments Co., Ltd., while the subsidiary invested 42 million yuan to establish Jiangxi eaves subsidiary to promote faster development of the brand. In addition, Zou Yan, Secretary of the board of directors of Hui Jie shares, said in the roadshow that the company is now committed to upgrading the sales scale of single stores and eliminating some of the poor quality direct terminals of various brands and opening new stores with higher requirements. The company will continue to actively explore shopping centers and outlets.

    Last year, after relocating the production base of Manifen brand in Shantou, Guangdong, Hui Jie shares purchased the series of Dalian's San Fu Lan brand for 74 million 990 thousand yuan in Jiangxi. Hui Jie shares said that through the acquisition of Sunderland, the establishment of production base in northern China, is conducive to expanding the scale of business in the northern market, thereby further expanding the influence of the underwear market in the country.

    Regarding the layout of Hui Jie shares in the domestic and foreign markets, Cheng Weixiong indicated that the overseas underwear market is more mature, the head brand occupies the majority of markets, and Hui Jie shares great challenges to enter the foreign market, so it needs to invest a lot of money and energy. Cheng Weixiong believes that instead of spending such a price, it is better to directly strengthen investment in brand products, stores and user experience such as Manifen, and do well in transformation and upgrading. Of course, through in-depth understanding of foreign underwear market and market trial and error, it can provide better version, color, style and fashion design for the domestic market, which may be more beneficial to the development of the company.

    Source: China Commercial Daily writer: Wang Yue

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