Meibang costume transformation pains continue

April 26th, just five months ago, Zhou Chengjian, Chairman of Meibang Apparel, released a hymn at the opening of its flagship store in Hangzhou. To realize the goal of achieving the global 100 billion wealth dream, he now has to worry about this business strategy. How long will it take for the transformation to continue?

On the evening of April 24, Mebon Fashion (hereinafter referred to as "Mebon") announced the 2013 annual report. The report shows that its operating income and net profit attributable to shareholders of listed companies fell for three consecutive years. In 2013, operating income fell by 17%, operating profit decreased by 42% year-on-year, and net profit attributable to shareholders of listed companies decreased by 52% year-on-year. -New Express reporter Huang Xueping

Direct franchise business income fell by over 15%

As early as 2009, Smith Barney attempted to build an online shopping platform. However, this vigorous e-commerce attempt stopped after three years because “the investment was huge and financial risks were uncontrollable.” Soon after, the company took out its e-commerce strategy centered on O2O, but it was only last year that it found a way to start the concept of O2O through a direct experience shop.

In 2013, Smith Barney reconstructed a number of well-located and large-scale direct sales stores in first-tier cities in accordance with the requirements of “one city, one culture, one store, one story” and local characteristics. In Guangzhou, the flagship store of Beijing's Mimpi flagship store featured “Flower City”, which is also the fifth experience store in the country after Xiamen’s southern Fujian style, Chengdu Kuanzhai Alley and Hangzhou Central Station concept.

In the upgraded direct-operated store, on the walls of the posters and clothes on the label can be seen everywhere the purchase network LOGO, there is a direct connection to the online shopping address of the two-dimensional code, Smith Barney's approach is to upgrade the physical store to experience better The online shopping fitting room, "If you want to continue shopping, do not want to carry the clothes purchased in the store, you can place orders directly on the state purchasing network, if you have to place an order on the state purchasing network, physical stores will also become online The customer's pick-up point for the order." This is explained by the store's salesperson.

In performance assessment, Smith Barney also began to change its strategy. As long as the order is placed on the state procurement website, the final destination will be the performance assessment. If the receiving address belongs to the scope of the franchisee, it will be divided by the franchisees to obtain 10%~20% of the income. If it is a direct-operated store, it will be divided into direct sales stores.

Zhou Chengjian believes that with the return of the state purchasing network, the upgrading of physical stores, and the support of big data, Smithsonian’s O2O strategy is well-placed. These fashionable ideas look beautiful, but the data reflecting the performance is frustrating.

The 2013 annual report shows that both direct sales and franchise revenues have fallen by more than 15%. In addition, there are more than 200 stores in the nation, and it is understood that most of the stores closed are directly operated stores. Affected by this, the company's direct sales stores' gross profit margin rose year-on-year, which is an increase of 4 points compared to last year.

At present, the upgraded new experience shop accounts for only 0.5% of the 5,000 stores nationwide. Mebon says that store upgrades will gradually advance after 2014, and that 100 such stores will be established in the provincial capitals.

Efficient foreign capital fast fashion brand has not yet appeared

More fierce than the impact of electricity providers is the arrival of foreign fast fashion brands. As a veteran clothing company in the country, Smith Barney had to face the fact that the original customers are slowly shifting with age and consumption habits. A new generation of young people could not seize it. Foreign fast fashion brands are using fashion words This part of the group.

Under the situation that domestic apparel brands are under-stocking and closed down, foreign fast fashion brands represented by ZARA and Uniqlo are rapidly expanding.

Smith Barney is considered by industry to be the most loyal learner of ZARA in China, but its inventory is criticized. In 2013, Smith Barney's stocks improved. After deintervening for three consecutive years, the current inventory was approximately RMB 1.58 billion, and the inventory ratio accounted for 23.55% of total assets, a decrease of 5.05% from 2012.

In October last year, Zhou Chengjian wore a home-made orange waistcoat at the new product launch of Smith Barn. The company announced that this new product contains new thermal nano-velvet. Contact Memphon earlier to extend the product line to provide products suitable for different age groups. A series of behaviors were interpreted by the outside world as Smith Barney’s transformation of the Uniqlo model. According to industry insiders, Smithsonian’s transformation intentions in recent years are obvious to all. It is the hope that Meibang, which is not dominant in the fast-fashion competition with foreign companies such as ZARA and H&M, hopes to find another way. That is to copy the successful model of UNIQLO. However, as soon as new products were launched, Yao Xiaoman, chairman of the Down Industry Association, publicly questioned false propaganda. The latter publicly stated that the cashmere is actually a polyester fiber and the price is relatively low.

Everbright Securities Research reported that since 2013, benchmarking companies in the study of Smith Barney have turned to Uniqlo, which includes operating O2O, forming a store-led operating mechanism, compressing the scale of suppliers, and overseas procurement. Analyst Li Xin believes that the bottom line of the company's operations in 2012 will be bottomed out in 2013, and the year 2014 will usher in a reversal. However, due to the slow recovery of the terminal, it is estimated that 2014 will be reflected as more recovery growth.

According to analysts Guo Rui and Guo Haiyan of CICC, according to the order analysis of spring and summer orders, it is expected that the growth rate of Smith Barney’s revenue in the first quarter will not improve, but the turning point of the autumn ordering meeting has already emerged, and orders have increased by about 10% year-on-year.