Ordos Pformation Involves Fast Fashion Clothes

In July 14th, the Ordos listed company announced a fixed increase plan, the company proposed to raise 2 billion 900 million yuan, plus cashmere clothing main industry, of which 2 billion 600 million yuan for marketing channel development and brand upgrading project.

As traditional

Brand, Ordos now wants to brand "one divides into three", of which the new brand "BLUE ERDOS" will focus on young customer groups.

In the pformation of brand pformation, Ordos seems to have changed its image before, and favoured the market of young people.

But by

Direct cut into cashmere fashion for young people is like "close combat" with fast fashion products.

Erdos also made a statement in the announcement.

As a fashion product, it has been influenced by the fast fashion consumption concept in recent years, and the trend of popularity is changing faster. If the product can not be launched in time, the brand and sales performance of the company will be adversely affected.

Young people

The market has long been a "Red Sea" full competition. When the company chooses this opportunity to separate the cashmere brand of young people, what kind of consideration do we have? "Will it be possible to add more than 300 physical stores in the next 3 years" and whether it will face potential risks?

Reporters contacted Ordos many times, but as of press time, no reply was received.

In independence

Ma Gang seems that the young brand of cashmere can be regarded as an attempt. The problem of too broad brand positioning of Ordos will probably be solved.

The brand is split into 3 parts.

As a traditional brand of cashmere dress,

It is considered that the previous brand positioning customers are too broad, and there is a big difference in the national terminal image, and the influence on young people needs to be improved.

Erdos said in the above increase plan that it wants to split the brand into 3 brands: "ERDOS", "Ordos 1980" and "BLUE ERDOS".

After the split, "Ordos 1980" is still targeted at traditional mature customers. "ERDOS" wants to attract new middle class people, while the new brand "BLUE ERDOS" is a brand oriented to the young urban customers.

According to the introduction of the fixed increase plan, the "BLUE ERDOS" brand, which is split for young people, focuses on 25 to 40 years old. The brand products are designed to meet the simple, decent and comfortable dress requirements of the consumer group.

tradition

It is also considered an attempt to raise the market for young people in the industry, because cashmere sweaters often seem somewhat out of touch with fashion trends for young people.

Except for young people.

The market expressed its favor. Erdos also announced a "costly" shop plan in the proposed growth plan.

In the background of many clothing brands cutting down physical stores and increasing electricity providers, Erdos said that one of the funds to be raised is new shops, with a construction period of 3 years, plans to open 298 new stores in China, and open 26 stores overseas, which will cost 2 billion 290 million yuan.

At the same time, the Erdos electricity supplier construction is also planning. The specific way of operation is to open the official flagship store on several mainstream e-commerce platforms after the completion of the brand separation, and according to the fixed increase plan, the budget will cost up to 100 million yuan.

In addition, brand promotion will cost about 130 million yuan.

"Close combat" with fast fashion

After the brand is split, cashmere for young people

Business means the future of Ordos.

The brand is "close to each other".

Erdos also made a statement in the announcement.

As a fashion product, it has been influenced by the fast fashion consumption concept in recent years, and the trend of popularity is changing faster.

Therefore, if the product can not be launched in time, the brand and sales performance of the company will be adversely affected.

New young people

"BLUE ERDOS" means

Actively joining young people in the fierce battle of fashion, and this part has long been a fully competitive "Red Sea". Besides satisfying the tastes of young people as soon as possible, fierce market competition also poses challenges to the young brands of Erdos.

The decline in performance and the downward trend in gross margin, and

Now the decision to split the brand is not related.

The 2015 annual report shows that the revenue of the cashmere sector in Ordos is 2 billion 290 million yuan, and its revenue is 2.94% lower than that of last year, and its gross profit margin is 41.29%, a decrease of 2.24 percentage points compared with that of last year. The cashmere sweater and other cashmere products have a gross margin of 42.77%, a decrease of 3.18 percentage points over the previous year.

The average assets and liabilities ratio of the company over the past 3 years has exceeded 68%, leading to higher financial costs, which is one of the reasons for this increase.

The brand in the first half of this year is also not optimistic.

H&M group pre tax net profit fell 22%, GAP group net sales fell 6%, while UNIQLO's parent company Xun marketing group also saw a decline in net profit.

stay

Ma Gang looks like, "if we are engaged in universal fashion, Erdos can hardly give full play to its advantages, but the cashmere category of young people can learn from their own experience of cashmere business, so it is an attempt."

However, to what extent will young consumers accept it?

?

This remains to be answered by the market.