Is Baozi Selling Fashion And Clothing Business Temporarily Or Forever?

For the exit of fashion apparel, Baozi said in the announcement that the future of traditional fashion dress business is very difficult and challenging, which is reflected in the "downward trend of the company's financial performance in the past few years".

The reasons for declining performance include baozi's shift from traditional retail to online shopping and macro environment, so selling fashion business is in the interests of shareholders.

In the past few days, there are three points of view on what the move means.

One is the feeling school.

As a company specializing in fashion accessories, footwear, handbags, scarves and fragrances, Baozi was founded in 1961 by Kenneth Chan and Chen Hanjie of Hongkong. Its products are mainly sold in China, the United States and Canada, and its own brands include Ports International and Ports 1961.

In the early 90s of last century, the company relied on Star strategy to successfully build baozi into a high-end women's clothing brand comparable to Gucci and Burberry in the Chinese market.

However, its market performance has been dissatisfactory in recent years. Net profit in the 2014 fiscal year plunged 75% to HK $73 million 238 thousand (about $58 million 509 thousand and 800).

By the end of 2015, the total number of stores was 310, which was reduced by 42 compared with the previous fiscal year.

In this regard, whether it is familiar with its consumers or peers, there are many sighs: "it is hard to imagine this once known as" China Chanel "brand will go downhill, and even give up the clothing industry one day.

One is suffering.

Some market analysts believe that

As a pioneer of the "fake foreign brands" in mainland China, its exit indicates the end of an era.

The so-called "fake foreign brands" that is: brand registration, designer, brand story may originate in Europe and the United States and other developed areas of design and fashion, but the actual production, manufacture and sales are mainly in the Chinese mainland market.

According to this view, in the 80s and 90s of last century, because of the backwardness of information, the coastal cities of Hongkong and Guangdong, Fujian and other coastal cities created the "false foreign brands" trend, and some of them were completed through acquisitions.

But in the past 10 years, with the opening of China's market, luxury, light luxury, especially fast fashion, China's local women's wear brand is at H&M,

In the face of defeat, the gradual expansion of the European middle end brands such as Sandro and Maje has further defeated the local middle end women's clothing brand which was originally able to perform well.

Some media asserted that the closing of baozi brand foreshadowed the entire mainland of China.

The brand will decline.

For the "decline of Chinese women's clothing", the "insiders" of the "calm" faction were disregarded.

Wu Jianmin, chairman and general manager of Shandong sulang clothing and accessories, said in WeChat's circle of friends that the idea of leaving China's women's clothing only with baozi's business is almost irrelevant. Baozi's withdrawal from the clothing business is entirely an independent choice of the boss's personal reasons.

His statement also represents the general view of the calm faction, that is, "overthrowing a boat man by one pole" is obviously over interpreted.

According to another source, Baozi's move is by no means a liquidation and cash withdrawal from the sluggish but lucrative fashion industry, but in a forward-looking and planned capital restructuring.

The ultimate goal is to withdraw from the HKEx and reopen the domestic retail business at the Shanghai Stock Exchange.

As one of the earliest international fashion brands listed on the Hong Kong stock exchange, Baozi is very experienced in capital operation.

It is said that Baoji's domestic business plan will be listed in Shanghai, and foreign business plans will be listed in Milan.

If we can successfully land in the A share market, we will become the first international fashion brand in mainland China.

It is said that baozi's new store will be opened at the end of October at the golden intersection of Nanjing West Road and Changde Road, Shanghai.

Let's wait and see whether or not baozi is leaving.