Clothing Giant Cultivates Multi Series Business&Nbsp; Will Enter The Underwear Field

Even from three Wenzhou Private garment enterprises Since 1996, when Baoxiniao Group was jointly established, "Baoxiniao" has also been flying for 14 years. With the help of the capital market since 2007, will the company's expansion speed be accelerated? When is it expected that the new brand and multi series businesses that have begun to expand will inject new vitality into the company?

With these questions in mind, China Securities Journal interviewed Wu Zhize, chairman of Baoxibird Group and director of Baoxibird Group. He said that the company will steadily promote the expansion of multi brand and multi series businesses, and it is expected that the company will enter a new round of development cycle in about three years.

Steadily develop outlets

China Securities News: In the first half of the year, the number of outlets of the Baoxiniao brand and the San Gioro brand, as well as the expansion speed of the total area of the company's stores, were slightly lower than the market expectations. Will the expansion speed increase next?

Wu Zhize: We believe that the quality of outlets is more important than the quantity. On the one hand, we adhere to the strategy of opening large stores, and pay more attention to the area of a single store than the number of stores. In the current commercial ecological environment, shopping malls are relatively strong, so the company basically requires to open large flagship stores of more than 500 square meters in the past two years.

On the other hand, the company made structural adjustment to the distribution of stores in the first half of the year. The number in the semi annual report is the final net increase in the number of outlets. This adjustment will continue in the future to fully tap the performance of individual stores.

China Securities Journal: San Jero brand The network expansion speed of is obviously faster than that of the Baoxibird brand. Does the company intend to follow the trend of the rapid development of the casual wear market? Will you increase the investment in the brand of San Gioro in the future?

Wu Zhize: Baoxiniao and Shengjieluo are two completely different operating modes: Baoxiniao is a formal dress and takes the value-added route; And San Jero is casual wear and fast moving consumer goods. The suit market has shown a negative growth trend in recent years. It is not easy for us to withstand and achieve positive growth. Therefore, the Baoxiniao brand needs to achieve a breakthrough in value mining.

The rapid development of the casual wear market is the current trend. Of course, increasing investment in the next 2-3 years will restrain the growth of the company's performance, and the casual wear market is also facing fierce market competition; However, the market capacity of suits is limited after all. We will make a decision on the specific investment intensity and expansion speed after further investigation and demonstration. If you choose to increase investment, it is expected that the company will enter a new round of development cycle in 2-3 years.

China Securities Journal: You expected Business Suits How will the group buying business develop in the future?

Wu Zhize: In the first half of the year, the business of group buying of professional clothes picked up because of the poor market in the same period of 2009. In the first half of this year, the business recovered to the normal level in the same period of 2008. It is expected that the development trend in the second half of the year will be similar to that in the first half of the year. In the future, the competition in the group buying business of professional clothes will be very fierce, and the gross profit margin will be lower and lower. On the one hand, the bidding method will reduce profits, and on the other hand, the labor cost will rise rapidly. Our several factories are in Shanghai and Wenzhou, where the cost of living is relatively high, so the company will face relatively large labor cost pressure in the short term. Now we are also looking for production bases in other places, but the transfer can not be completed in one day or two. It must take several years to achieve.

Explore multiple products

China Securities News: At present, the company is also vigorously developing leather goods series, testing women's wear series, and actively exploring underwear series and sports series products. Please introduce the development of these businesses and the goals you hope to achieve?

Wu Zhize: In the plan, Baoxiniao brand will include eight series, namely classic, business, leisure, leather goods, leather shoes, women's wear, underwear and sports. The leather goods business has been carried out since 2009, and the scale has expanded this year; Women's wear business began to design this year, and is now gradually shipping; Underwear and sports series have just started this year and are at the stage of concept and design.

As an early exploration, we have selected dozens of stores to launch these series. If calculated separately, the financial performance of these series needs to wait two or three years; But on the whole, some costs of production and circulation are fixed, and these series can be said to be incremental.