Take Nike Supplier, This Anhui Enterprise Hit 200 Million Dry Clothes Crazily.

Anhui Kai Run Limited by Share Ltd, which is committed to research and development, design, manufacture and sale of bags, has recently announced that the wholly owned subsidiary of Ningbo Purun investment partnership (limited partnership) (hereinafter referred to as "Ningbo Purun") is intended to be a limited partner, with its own capital subscribed to invest RMB 200 million yuan to participate in the establishment of Anhui Taihe intelligent travel equity investment partnership (limited partnership).

Kai Run shares said that the investment is aimed at implementing relevant policies of Anhui's industrial development, and actively responds to Anhui's strategic goal of building a sophisticated industrial structure. It adopts a market-oriented approach, focusing on the field of travel and consumer goods, such as luggage and functional clothing, in the field of travel and consumption, which is highly coordinated with the company's main business, and contributes to the promotion and implementation of the company's strategy. With the help of professional expertise, experience and resources of investment management institutions, the company will expand investment channels, improve the efficiency of capital use, give full play to the role of investment platform, reduce the financial risks of foreign investment and enhance the company's overall competitiveness.

Since its establishment in 2009, the company has been focusing on bags and bags, providing OEM/ODM services for many well-known international brands including Lenovo, ASUS, Decathlon and many other well-known brands. The well-known brands have strict requirements for the production scale, production process, quality management, R & D and design of the partners. The company has many years of foundry experience, which has excellent product design and manufacturing capabilities. For the external categories that do not have the capacity to produce, the company has established a strict evaluation and assessment system for the external manufacturers, and has controlled the plant jointly, and will regularly eliminate the final products according to the results of the assessment, so as to ensure the quality of the manufacturers. At the same time, the company has a supply chain system with outstanding Internet and technology attributes. It has established a stable and deep cooperative relationship with famous suppliers such as Alcoa, COSCO, DuPont, Dongli, Japan, YKK, Segway and so on. With cross boundary thinking and technological innovation, stable and high-quality supplier resources and supply chain management capabilities have been formed.

As a leading luggage manufacturer in China, the sales channel of the opening shares has diversified, but it has a higher dependence on millet, and has developed rapidly in recent years. The company's products include business bags, outdoor leisure bags, travel suitcases, shoes and clothing, etc., with the majority of male customers. At the beginning of the company, the company provided products for travel bags by entering ASUS, Lenovo, DELL, Decathlon and other major customer supply chains. In 2015, the company and millet set up "run rice technology" to launch its own brand "90 points" to open the market. The company's top five sales customers in recent years were about 70%, while sales to millet were close to 30%.

In the first three quarters of 2019, the profit reached 1 billion 954 million yuan, an increase of 35% compared with the same period last year, and the net profit of the company was 163 million yuan, an increase of 43% over the same period last year, continuing the high growth momentum. In 2019, the "90 points" brand won the first sales of luggage and bags products.

In December 2018, the announcement of $22 million 800 thousand in the announcement of the shares in the opening of the Indonesian company was awarded to all the two items in Indonesia, and the foundry workshop was one of Nike's core suppliers. After eliminating the combined factors in 2019, the 2B revenue growth of the company slowed down compared with the previous year. Purchasing Indonesian factories and entering the Nike supply chain constituted certain advantages for the company to develop the global sales network and reduce the risk of trade export. The company's sales expenses are mainly composed of logistics fees (about 50%), staff salaries, market development fees and platform operating expenses. The first three quarters of the company's sales expenses rate increased by 1.2% over the same period last year, mainly due to the rapid growth of logistics costs.

Lv Ming, an analyst at Tianfeng securities, said that the 90 cent brand of B2C business has entered the 2 era. With the gradual efforts of the company in product, category, channel and brand promotion, it is expected that B2C business will continue to grow about 30% in the future, and its profitability will continue to improve.

1, in terms of channels, apart from the direct channel of Xiaomi, the company has been expanding its own channels, such as product channels, 90 points Tmall flagship stores, 90 points Jingdong flagship stores, and so on. The proportion is gradually increasing. It is estimated that in 2019, the share of its own channel can reach about 50%. Meanwhile, the growth of the company's own channels will also speed up the growth of B2C business. In addition, 2019 is the year of storage for offline channels and overseas channels, and will also provide a follow-up growth momentum for the 90 points in the future.

2, category, 90 positioning "travel consumer goods", in addition to the core category of luggage, is also actively developing pan travel products, such as functional footwear, travel accessories and other products, can increase the frequency of customer purchase, rich 90 points of brand connotation.

3, brand marketing: since the beginning of 2019, the 90 cent brand has begun to shape brand image and conduct brand publicity, breaking the current situation of product popularity over brand awareness. Kai Run shares increase brand marketing efforts, and enrich the brand connotation and create a clear brand image through the traditional marketing strategies such as hard broad, online social media promotion, event marketing, KOL grass planting and hot pursuit.

4, B2B, the B2B OEM business of Kai Run shares has cut into the NIKE supply chain system, and through the purchase of land for overseas production expansion, it will provide the subsequent growth power for the B2B business development of the company. Indonesia's factory is expected to achieve rapid growth of 35%-40% in the future, and the original B2B business can achieve about 20% growth. In addition, with the improvement of Indonesian plant efficiency and the gradual increase of net interest rate, it is expected that the net interest rate of B2B will still have room for improvement. What we need to see is that the Indonesian Treasure Island company has purchased 44 million 210 thousand square meters of land in Indonesia with a purchase price of $14 thousand and 300, and the subsidiary company of Jinlin has purchased 18 million square meters of land for 18 million yuan. This part of the land is mainly used as the reserve land for the expansion of the overseas production base of the company, which is conducive to enhancing the scale of the production capacity of the company's overseas production base.

There is also a view that from the price point of view, the success of the 90 point brand has several factors: first, locate the main price band of the electricity supplier channel. From panning data show that the overall pull rod box market transaction performance, the main market price band concentrated in 100-500 yuan, the price range accounted for nearly 80% of the total online proportion. 90 points of the 299 yuan, the highest price of a single product, the main transaction price concentrated at 300-400 yuan, located in the main price band of electricity providers, to achieve the most widely consumed crowd coverage. Two is to achieve differentiated competition with the industry leader. The price of 300-400 yuan is brought into competition with the industry leader at thousands of prices, and the endorsement of millet brand has also given the crackdown of the small and medium-sized brands and other brands with other brands but weaker brands.

The above mentioned Tianfeng securities analyst Lv Ming also pointed out that the B2C business revenue growth of the three quarter of 2019 was about 20%. The growth of the Xiaomi channel was expected to decline as a result of the 7/8 month's growth, but it has resumed in September. It is estimated that the revenue growth of the B2C business in the fourth quarter will achieve about 40% or 1 billion 400 million of the revenue.