Strategic Turning Point? La Natsu Bell Si, A Chinese Version Of ZARA, Focuses On Women'S Wear.

Today (January 14th) evening, La Natsu Bell announced that the company intends to register the address from 270 Cao Xi Road, Shanghai No. 1, 3, 3300 rooms to the Xinjiang Uygur Autonomous Region Urumqi hi tech Zone (new urban area).

La Natsu Bell explained why the reason for changing the registered address is to respond to the state. The Belt and Road Initiative The development strategy of "western development", with the help of the resource advantages and policy advantages of Xinjiang in the textile and garment industry, will enhance La Natsu Bell's influence in the women's clothing industry, give full play to the competitiveness of the brand and channel, further enhance the integration and coordination with the upstream industry chain, so as to implement the management strategy of "innovative development, reduce the cost and increase efficiency". At the same time, the government of the Xinjiang Uygur Autonomous Region Urumqi hi tech Zone (new urban district) can actively coordinate the resources of the local government and financial institutions in order to register the local companies, so as to provide La Natsu Bell with support for the financing channels and policies, so as to relieve La Natsu Bell's liquidity pressure.

La Natsu Bell said frankly that the registration address of the change is in line with its fundamental interests and long-term development plan, and will not adversely affect its development strategy, business mode and financial situation. If follow-up La Natsu Bell obtains the support of immigration policy and funds, it will help broaden the financing channels, fundamentally relieve liquidity pressure and further enhance the overall competitiveness.

Insiders said that the development of domestic textile industry has been relatively mature, and the improvement of economic level and the decline of the proportion of working age population make it difficult to recruit workers in recent years, labor costs continue to rise, and the cost of industrial land is rising. environmental protection The policy is stricter, and the scale expansion of textile enterprises in China is faced with many restrictive factors. Observing La Natsu Bell's move to Xinjiang westward also shows that how to guide the new production mode, lifestyle and way of thinking that have taken the lead in the southeastern coastal areas of China to spilt into other parts of the country orderly and effectively has become an effective way to accelerate the expansion of local clothing brands in the coming period.

Shi Hongmei, an analyst with Orient Securities, believes that the leading brands of brand clothing and textile manufacturing industry have greater upward elasticity due to higher operating leverage. They have obvious configuration value under the current style preferences and valuation levels. On the other hand, the upgrading of consumption in the low level cities is changing the focus of the industry imperceptibly. Enterprises with both quality and cost performance, brand recognition, local consumers' recognition and perfect channel layout are gradually benefiting from this process, which has brought greater and more sustainable growth space to local brands which are stronger than the two or three line market and are more familiar with domestic consumer demand.

Relevant statistics also show that as of November 2019, Xinjiang's textile and garment industry has accumulated about 170000000000 yuan in fixed assets investment, 18 million 90 thousand cotton textile production capacity, weaving, clothing and apparel, home textiles, knitting and other industries have begun to take shape, and textile and garment record companies have reached 3141. Obtain employment The number is nearly 600 thousand. As Xinjiang's surrounding economies pick up, demand growth and consumption upgrading will drive the development of Xinjiang's textile and garment industry.

At present, the local government of Xinjiang has provided strong subsidies and policy support for the spinning and weaving enterprises in Xinjiang. " The 13th Five-year The key area of the plan is to optimize and consolidate quality. Cotton spinning Industrial foundation, and provide special funds, special subsidies and special financial support for them. According to the notice on the issuance of the action plan for the development of the textile and garment industry to promote employment in 2014 and the relevant regulations, from 2014 onwards, there will be a long-term and stable preferential policy to support the textile and garment enterprises in Xinjiang area by 2023. The policy covers cotton spinning, freight, employee subsidies and preferential support in hydropower, infrastructure and finance.

On the whole, the subsidy policy of Xinjiang's relative policies is relatively large, which involves a wide range and effectively reduces the cost of enterprises. According to the combing of policies, we can see that in a long period of time, the great intensity of preferential policies will continue to be implemented, and I believe La Natsu Bell will benefit from it for a long time. However, it is also necessary to see that policy subsidies are only catalysts for performance, and whether La Natsu Bell himself has strong endogenous growth in the future is the most fundamental factor.

La Natsu Bell also publicly stated that at this stage, the company has established the brand differentiation development direction with the core of the main women's clothing brand as the core. It will shrink the development scale of the men's clothing brand business, retain the core shops and integrate the men's clothing team, so as to improve the investment return of the resources. Other brands will focus on improving profits, actively shrink the scale of business development and reduce the inefficient input of resources. The following companies will continue to strictly manage the budgetary situation of investment projects, and dispose of projects that are not in line with the company's development strategy and low future expectations, so as to ensure the smooth implementation of the company's adjustment and transformation.

Public information shows that La Natsu Bell's main business is engaged in the design, brand promotion and sales of clothing products in China, and the main female casual wear. In the three quarter of 2019, the company achieved operating income of 5 billion 757 million yuan, down 7.16% from the same period last year.