How Can Fast Fashion Women Wear La Natsu Bell Faster Than H&M And Zara?

Since 1998, xingjiaxing has been running around the world, Paris, Milan, Japan, Korea and all kinds of large scale.

He didn't want to miss it.

"Xing always needs to know the latest trend and have a good idea to come back for discussion.

He also takes into account the location and decoration of every new store in China, and spends a lot of time in market research and shop visits every year.

Shanghai

La Natsu Bell, a joint Secretary of the apparel Limited by Share Ltd (06116.HK), told reporters.

Xing Jiaxing, 44, was born in Fujian. When he was 21 years old, he brought a few hundred yuan from his mother to a family.

After training, he worked in a Taiwanese garment factory.

Public information shows that during the 1992-1996 years, Xing Jiaxing worked in Fuzhou Sophie Fashion Co., Ltd (hereinafter referred to as "Sophie clothing") and Shanghai Best Fashion Co., Ltd., from July 1996 to July 1998, Xing Xing Xing began to do the distribution business for Sophie's costume, and sold Sophie's clothing to Shanghai, which is actually a clothing agent.

However, the brand foundation of Sophie's clothing is not solid, and the agent market is rather limited.

So in 1998, xingjiaxing saw the brand clothing market and decided to create its own brand. He borrowed money to raise 500 thousand yuan of registered capital, and pulled 2 designers and several salesmen to set up La Natsu Bell.

In the first year of entrepreneurship, La Natsu Bell sold about 23 million yuan, but Xing Jiaxing's idea was to "grab the market first".

At that time, domestic commercial real estate was in its infancy. Xingjiaxing saw the development of foreign cities. He planned to expand the scale of the brand at any cost and occupy an important commercial square, laying the foundation for the future.

To this end, Xing Xing Xing even a few months can not send wages, that is the most tense time La Natsu Bell capital chain.

Until 2009, Lenovo invested two dollars to La Natsu Bell for $about 10000000. With abundant capital, the company expanded rapidly, Xing Xing became more busier and more low-key and rarely received media coverage.

At that time, Mao Jian Gang joined La Natsu Bell as manager and deputy director of the investment department. He was responsible for managing the company's investment and financing. He participated in the cooperation process between La Natsu Bell and Lenovo investment (now renamed "Junlian capital").

"At that time, La Natsu Bell's bottleneck was that there was no more money to buy and sell.

Lenovo's investment team has seen many times before and after, they agree with La Natsu Bell's direct camp mode and the learning ability of the team, so they voted for us.

After the funds keep up, we make up the goods in the store, so that the shop can't attract consumers until it is full.

La Natsu Bell's 2015 earnings report showed that the group achieved operating income of 9 billion 96 million yuan during the reporting period, an increase of 16.4% over the same period, and gross profit and net profit of 6 billion 198 million yuan and 658 million yuan respectively.

The report also disclosed that the continued expansion of retail outlets and the rapid growth of online platform revenue were the main reasons for the company's revenue growth.

Last year, La Natsu Bell added 1006 retail outlets in China, which is more than ten times the number of new fast fashion brands such as Zara and H&M.

As of December 31st last year, the number of La Natsu Bell's nationwide retail outlets has reached 7893.

With the growth of China's economy and the slow growth of consumer price index, La Natsu Bell's performance has been called "counter trend".

La Natsu Bell's share price changes over the past year have been in a downward trend.

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In this regard, Mao Jian explained, "in 2009, La Natsu Bell's sales were less than 500 million, and sales and profits grew rapidly in 2009-2013 years.

At that time, the market environment, industry competition and the development stage of the company were different from those of now. The general trend is good. We are also working very hard. We must enlarge the scale first.

So it's not that La Natsu Bell's development has been particularly good in recent years, but that we chose the right business model in 2009. "

Full direct camp pformation

In the view of Mao Jian, La Natsu Bell's brand positioning and target customer groups have never changed, but different business models have brought different future for the development of the company.

A year before the introduction of Lenovo investment, Xing Jiaxing has decided to change the model of the trusteeship agent into a full direct camp.

La Natsu Bell's development track

Mao Jian explained to reporters: "the mode of trusteeship requires brand and trusteeship to cooperate with each other.

If the trustee agents see the market environment sluggish, they will generally be careful not to purchase them. When expanding, if local franchisees are opposed to joining new brands or opening new stores, they will have a great impact on the brand, and the original strategic plan can not proceed smoothly.

The advantage of the whole direct camp mode is that La Natsu Bell Mike directly manages all the retail outlets, including quantity, allocation, pricing, market image and marketing mode, but at the same time, the direct mode has higher requirements for capital demand and supply chain.

After Lenovo's investment was in place, La Natsu Bell immediately implemented the direct camp mode. The change was very obvious.

"We can directly control the store, unify terminal images, get market feedback in time, and adjust the quantity of products directly according to the needs of consumers."

Mao Jian said.

Now, La Natsu Bell's retail outlets are almost all over the country, close to 8000 stores.

As of December 31st last year, the number of retail outlets in Sichuan was 610, and the number of retail outlets in Guangdong, Beijing and Shanghai was 496, 282 and 322 respectively.

Other women's wear brand stores

Last year, La Natsu Bell's distribution in the first tier, second tier, three line and other cities retail outlets total revenues were 1 billion 131 million yuan, 3 billion 757 million yuan, 2 billion 245 million yuan and 1 billion 963 million yuan, of which the second tier cities contributed the most, accounting for 41.3% of the total revenue.

For La Natsu Bell, who positioned the popular brand, the style is updated quickly, inventory turnover is fast, Zara and H&M are good benchmarking enterprises.

Under normal circumstances, La Natsu Bell's brand designers will first design samples of clothing, from which the company selected some styles to the suppliers, and large-scale production, and ultimately pported to the store.

Data show that the average inventory turnover rate of La Natsu Bell in the first half of 2015 was 160 days, compared with the 212 day in the first half of 2014.

At present, the new speed of La Natsu Bell products is 7-15 days, and 270-280 small and medium-sized cooperative suppliers provide products for them, of which more than 70 are core suppliers.

Dong Yan, a former LaChapelle design director and general manager of LaChapelle division, told reporters: "based on La Natsu Bell's supply chain system, our design is more flexible and responsive to the market."

Shen Wan Hongyuan securities research report that La Natsu Bell direct camp mode allows companies to quickly identify hot products.

At the same time, although the company outsourcing all manufacturing, but through the supply chain management system, on the one hand, suppliers can achieve bulk procurement of raw materials, on the other hand, the company can monitor the progress of production.

With the help of the huge retail network and the whole direct camp mode, La Natsu Bell's online sales path has gone smoothly.

In August 2014, La Natsu Bell opened the first Tmall flagship store. In the same year, "double eleven" activities, La Natsu Bell's sales performance ranked third in online brand electric business.

Its unique feature is that the electronic business platform is not in stock, all rely on the full cooperation with offline stores. After the user orders online, the corresponding products will be issued from the shops near the line.

"Electricity supplier is only a supplement to our sales channels. Now consumers like shopping in full channel, so we should make changes for their consumption habits and provide more convenient shopping methods.

But La Natsu Bell is also a Brand Company based on offline channels, and the future is also.

Mao Jian told reporters.

At the same time, La Natsu Bell has tried to run shop partner system, trying to break the original direct camp mode.

The salary of the shop assistant is changed from "fixed wage + commission" to "directly linked to sales performance". The manager and the shop assistant share the total amount of wages and salaries of the shop.

Last year, about 76% of the retail outlets implemented the partnership system, and the annual growth rate of partner stores was 9.25% higher than that of non partner stores.

Men's wear shop

Multi brand strategy

Before the official interview, Mao suggested that he first take reporters to visit Zhongsheng world mall located in Xhenzhuang, Shanghai.

On the first floor, Zara, H&M and GAP were introduced, and on the two floor there were hundreds of brands such as UNIQLO and attachment. Mao pointed to several stores and said: "La Natsu Bell's more than 10 brands are almost here."

Euromonitor International reports of international research institutions found that most of the top ranked companies in the adult casual wear market adopt multi brand strategies to cater for the diversified needs of the clothing market.

For brands, multi brand strategy also helps to reduce the risk of relying on a single brand.

At present, La Natsu Bell's own brand of 10, covering women's wear, men's wear and children's clothing, of which about 7 brands were founded in 2011, in addition to the introduction of 6 brands in the form of investment.

"The purpose of multi brand strategy is to prevent brand aging, the second is to make the market cake bigger and share more." third, we can take advantage of the channel advantage accumulated by La Natsu Bell. When the company has a new brand to enter, the bargaining space with the shopping mall is bigger and the rent can be lower.

Mao Jian said.

Take La Natsu Bell's men's wear as an example.

At present, the group's men's wear includes Vougeek, Pote, O.T.R, JACK WALK and so on.

In fact, apart from the obvious simplicity of O.T.R, the other three men's wear brands have no obvious difference in design style.

Mao told reporters that even if there is competition among subtle brands, there will be competition among different brands of the company, which is more conducive to brand development.

Women's clothing brands are facing a more competitive environment.

Only under the banner of La chal bell, there are LaChapelle with "elegance" as the main body, Puella with "fun and fashion" as the main factor, and Candie "s" dominated by "fresh and sweet".

Last year, La Natsu Bell set up a single brand UlifeStyle, positioning very close to H&M.

"Nowadays, new products are emerging one after another. Compared with men, women are less loyal to brands, and they like variety. We have to provide multiple choices.

We can't rely solely on single brands. The risks are too high. Besides, single brands still have ceilings in China.

Mao Jian analysis.

Dong Yan said that different brands were held by different teams, and there was a difference between the price and age of the brand, but the basic mass consumption level still tended to be consistent. The overall product type of the company was based on the popular fashion of parity.

La Natsu Bell's position on the overall customer group is between 18-35 years old, and LaChapelle based "old brand" is still responsible for the original designer, some new brands or international design teams like Korea and Japan.

It is worth mentioning that in addition to the merger and acquisition of clothing brands, La Natsu Bell's wholly owned subsidiary recently invested $3 million 750 thousand in shares in Hongkong TNPI limited, which owns the franchise rights of Italy coffee brand Segafredo in Korea and China (including Hongkong).

"Now many clothing stores have introduced the concept of life hall, integrating clothing and catering culture to increase customer's consumption experience.

Not only do we want to diversify our clothing, but we also want to diversify in the commercial world of retail consumption and create a quality lifestyle.

Mao Jian said.