How Difficult Is It For The Local High-End Clothing Brand To Pform Itself Into An International Brand?

Those high-end local fashion brands now find it hard to find consumers who "pay" for them.

Even though they were popular in their early years.

For example, 00589.HK, a fashion company.

The company announced its annual performance in 2015, showing that its turnover decreased by 15.2% from 1 billion 879 million yuan in 2014 to 1 billion 594 million yuan in 2015 as at the end of December last year, and the profit deficit was 72 million yuan.

The public may be more familiar with its other name.

Before the official rename in July last year, Bao Guo international is called Ports Design Ltd, and its core brand is women's clothing Ports1961.

The sale company failed.

If we go back to more than 10 years ago, consumers who are keen on shopping in high-end stores will surely know baozi.

Baozi was once regarded as a foreign brand.

Although this understanding is not wrong, it is not comprehensive.

According to the company's official website, the brand was founded in Canada in 1961, and its founder is Luke Tanabe.

In 1989, when Luke Tanabe planned to retire, the Hongkong businessman Kenneth Chan family finally decided to buy the brand.

In 1993, Baozi began to promote the brand in the Chinese market from the outside to the Xiamen.

According to the pronunciation of PORTS, the brand is called "baozi" directly.

Undoubtedly, Baozi has been a great success since then.

In many high-end shopping malls, people often see the brand's figure, which was once regarded as the leader of high-end women's clothing in China.

At the same time, Baozi's performance in the capital market is also good.

The company went public at the end of 2003, and its profit rose nearly 390% in the 7 years. During the period, it continued to pay dividends. Its share price soared from HK $3 in 2003 to HK $31.5 in 2008.

However, this price has become the highest historical price of baozi.

Starting from 2010, Baozi's share price began to fall all the way.

As of March 29th, its share price was only HK $2.71.

"At the moment, it is indeed a very difficult time."

In the 2014 earnings report, CEO Kenneth Chan of the company said frankly that the luxury market will continue to be weak due to the economic environment, advocating simple lifestyle and online shopping, and it will look for more promising opportunities.

And this new opportunity is "selling".

In May 2015, Bao International and the East Fuhai signed a selling agreement, selling 420 million yuan for 20% shares, of which 6% of the initial trading.

At the same time, in the trading statement, the remaining 80% stake is also likely to be sold to the East Fuhai at a price of 2 billion 400 million yuan.

The move was heated in the industry, and was interpreted as the company may be in trouble, and forced to withdraw from fashion and apparel business.

Kenneth Chan did not withdraw from the fashion industry when he interviewed in the media shortly afterwards. He said the sale of shares was aimed at fighting A shares.

In his view, his company has been seriously underestimated in the Hong Kong stock market.

At that time, A shares were in good market position.

Kenneth Chan said that many overseas listed companies have launched the return plan, and baozi is also one of them.

Reference to the industry's average price earnings ratio after the war on A shares, Kenneth Chan's view predicts that the market value of baozi can exceed 20 billion yuan.

However, this statement has no more in the A share crash.

Dramatic changes took place in October of 2015. Baoguo International announced that the sale and purchase contract of Baozhuang women's clothing brand was disbanded, and the 6% equity trading that had been traded was also returned. Baoguo international will return to the East Fuhai 180 million yuan trading amount in 7 working days. Ports

Consumers do not pay?

"(domestic) retail of women's clothing is becoming increasingly tight under international brand competition."

Yang Dayun, President of UTA Fashion Management Group, concluded that the reason why local high-end women's wear brands such as baozi had gone down was that the large scale entry of foreign brands and the replacement of China's new generation of consumer groups made the brand aging.

"At least until 2010, Baozi was the darling of the mall, the Chanel of some consumers."

Yang recalled that with the convenience of leaving the country and the arrival of "flat" global information, consumers are no longer surrounded by surface information. They need real international brands to spend.

The spring of international luxury goods grew savagely in China after 2005.

At least, what Chinese people know is brand name.

Yang's argument really reflects some of the people's consumption view.

For example, Gu Ying, the founder of dressing assistant.

"The domestic brand of a down jacket is sold for over 10 thousand yuan. Who buys it?"

The young entrepreneurial woman is definitely not buying without economic strength.

In fact, she sold a company before she was 25 years old, earning tens of millions of money, and earning the first pot of gold in her life.

She told the first financial daily that she just couldn't figure out the pricing strategy of some high-end women's clothing and its audiences.

Gu Yingying mentioned several times to run the market to understand the market situation for the company's business. After knowing several high-end brands and prices of domestic high-end women, she exclaimed, "this price is not as good as buying a certain brand in Hongkong".

As Yang Dayun said, like Gu Yingying, the post-80s or even post-90s generation of young people, they do not agree with the domestic high-end clothing brand.

These people's consumption concept is about two extremes, or the purchase of affordable fast fashion brands or enough to buy famous international brands.

In their view, some domestic high priced brands are actually the price of Audi sold by Alto, and the local soil seems to lack the training of a large number of genes.

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The new generation of consumer groups has encountered many embarrassments and bottlenecks in many domestic high-end brands that have risen over the past 20 years.

Yang, even "pessimistic", believes that the implementation of the strategic positioning of luxury brands in domestic brands proves to be a failure. Baozi is a microcosm of the past glory of Chinese women's wear brands. With the fading of baozi, other brands of similar brands will enter the retirement stage in the next 5 years, and at the end, they will carry on at the most.

Search for breakthroughs

Of course, there are also optimistic people.

"The brand with a price of more than 3000-4000 yuan per passenger is considered a high-end brand in our industry."

Xia Guoxin, chairman of Shenzhen's Limited by Share Ltd (603808), admitted that the market in recent two years has been in a bad position due to the short-term economic environment. Earlier, the annual growth of the market was over 20%, and now it is about 10%.

"Not only high-end women's clothing, but also the price of other inexpensive clothing is not good."

He added.

Xia Guoxin thinks clothes are also necessities, just like food.

In his view, the clothing industry is a "sunset" industry, "there is a low tide in the short term, but in the long run is good."

In addition, he does not agree with the theory of brand aging. "Like those overseas brands, there is no aging.

In fact, the key is to see whether the product can fit the audience.

The strategy of George's is to target advanced career women.

In the interview, the first financial daily learned that the audience of the brand in the Southern China market is mostly executives, lawyers, civil servants and so on. The age of positioning is 30-45 years old.

"In this group, we are highly recognized."

Xia kingdom said that it must have a pluralistic group to make high-end or even luxury brands.

The company acquired two overseas high-end brands last year, and there will be other acquisitions in the future.

"But the target must be high quality and high-end, consistent with the positioning of the whole group."

Xia Guoxin emphasized that his company will only specialize in fashion industry now and in the future.

And another equally positioned LAN Zi (002612), after two years of decline in performance, is to find other ways to break through.

The company has been buying or buying some Internet Co since last year, and announced that it will expand its business in the future to mother and baby, beauty, cosmetic, stylistic education and other fashion businesses, and create a "Pan fashion ecosystem" covering the lifestyle of "clothing, food, shelter, beauty and medicine".

These traditional high-end local brands continue to adjust their development strategies and direction after being hit.

The result is difficult to decide.

After observing the successful fashion industry in foreign countries for a period of time, Gu Yingying concluded that if a company wants to be a centenary brand, earn people's respect and market recognition, it must learn to "restrain" in opening and expanding its scale.

"Large-scale marketing is not a good thing for high-end brands."

She said.