Will La Natsu Bell Become The Next UNIQLO Oligarchy?

The first weekend of December,

Xhenzhuang Zhongsheng world mall atrium, a O.T.R (OnTheRoad).

The brand has set up the booth and invited several male models to show.

The event attracted many consumers to watch.

For them, the brand named "Lu Lu" is really strange, and has never heard of its name before.

Nowadays, there are too many new brands in shopping centers.

Every weekend holiday, in order to attract eyeballs, the brand side set up a beautiful booth to do activities at the most populated atrium.

But this does not seem to have any effect.

Now, offline sales are sluggish.

Taking the elevator to the two floor, O.T.R's shop design is refreshing.

500 square meters of shops bright lights, crowded.

The products on the shelves include light goose down clothes, soft colored wool sweaters, dark colored woolen overcoats. The shop brochure on the door shows a sweater 299 yuan, a goose down garment 599 yuan, and a shirt 199 yuan......

But wait a minute, these seem familiar.

It seems to be another UNIQLO?

Liu Changqiao stood at the door, talking loudly for a long time, making his throat somewhat dumb.

The group of Japanese guests who just sent away came from Kaihara, which includes the famous UNIQLO, Levi's and so on.

Zhongsheng world mall is the first store in O.T.R.

Previously, Liu Changqiao's title on the card was CEO of Jack Walker clothing Limited.

The latter was founded by Liu Changqiao in 2007.

Almost more than 100 of the country's scale is now concentrated in 234 line cities.

The current development is good. It is said that sales can reach 1 hundred million annually.

Prior to the establishment of Jack Walker, Liu Changqiao had been working in UNIQLO.

At present, many of his executives also come from UNIQLO's purchasing team.

When it comes to the story, it is not difficult to understand why O.T.R shop has the shadow of UNIQLO and why the top Japanese fabric manufacturers will be in the supplier of this new and unknown clothing brand.

"You know, these suppliers usually do not cooperate directly with domestic enterprises, if you want them to get raw materials.

You need to go through an intermediary. "

But Liu Changqiao said his company could directly look for suppliers to get raw materials and then dye and process them.

The advantage of this is that it is cheaper than second-hand goods in terms of price 15%~30%.

This advantage is also reflected in the tag price of the product.

According to the usual regulations, the retail price of domestic brand clothing is doubled over 4~5 times, but the international fast fashion brand is usually about 3 times.

It is revealed that the rate of increase in O.T.R is about 2.5 times.

In this shop, even in winter clothes, you can hardly see a unit price of more than four digits.

Liu Changqiao said that twenty years ago was a shortage of economic era. At that time, the clothing business was doing well, finding a endorsement, and pulling dozens of regional agents.

"Now it won't work."

He said that superior quality plus reasonable price is the kingly way to open up the market and continue operation.

Liu Changqiao did not think that O.T.R duplicated UNIQLO, but a new business mode -- composite format.

That's why he adds food to his present store and some cross-border sales, such as bikes and books.

His plan is to open 20 new stores in the coming year, all in battalion, in Shanghai.

"Big cities are more able to accept this introverted style and brand of these models."

Once a big city has a solid foothold, it will have a brand effect, and the success rate of radiating to other cities will increase.

Arrival of oligarchy

In fact, it is not easy to develop a new brand under the line, especially when you want to enter some large shopping malls.

Take department stores as an example.

If it is a brand new, not famous brand and large shopping malls, the settlement point can reach 35%.

But if we talk about cooperation in the context of brand groups, the deduction will be reduced to 15%.

The gap between them is evident.

In May this year, Shanghai La Natsu Bell apparel Limited by Share Ltd (06116.HK) announced that it would inject $75 million into Liu Changqiao's Jack Walker, and La Natsu Bell would hold 69.12% of Jack Walker's shares after the paction was completed.

Shortly after the two companies worked together, Liu Changqiao founded O.T.R, a brand new.

A person from the La Natsu Bell investment relations department said the new brand is hard to get a good location, "O.T.R's berth is our (original shop) let it out."

For Liu Changqiao, the choice to cooperate with large groups is obviously a better choice.

For La bell, a new brand is not as good as buying a mature team.

"According to the development of foreign apparel retailing industry, only multi brand strategy can continue to develop."

Wang Yong, executive vice president of La Natsu Bell, thinks.

In recent years, the local clothing Brand Company has been expanding its own brand.

At the end of last year, La Natsu Bell had only 8 brands, and by this year, there were 12 brands.

"If you go shopping, you will see dozens of brands.

And so many brands are actually concentrated in the hands of several large groups.

For example, some old Lingzhi group has JACK&JONES, ONLY, VERYMODE and so on. The clothing and love group owns ELAND, SCOFIELD and TEENIEWEENIE, and the fast fashion of the latter is COS, MONKI and CHEAPMONDAY of H&M group. Inditex, ZARA, CHEAPMONDAY, Qi, Qi and Qi have also entered China.

Wang Yong visited the Zhongsheng world mall with reporters. "In this shopping mall, our group's brand also has 7 or 8, plus a total area of 5000 square meters."

He believes that the trend of the clothing industry is a bit like the pattern of Chinese women's shoes nowadays.

For example, if you buy shoes on the first floor of the shopping mall, there will be more than a dozen brands to choose from, but almost half of the brands are BELLE's.

China's local clothing brands have begun to learn from those successful international brands in recent years.

Take La Natsu Bell as an example, according to the performance report of the company in the first half of 2015, the total number of retail outlets increased to 7147.

The company's plan is to add 1500 retail stores this year.

"All stores are directly run."

Wang Yong said that this requirement is very high, but if we want to be bigger, we must ensure direct operation. The successful cases abroad are all the same. Only in this way can we ensure the retail price of the national stores is synchronized, and the prices on line and offline are consistent.

The number of new stores has enabled La Natsu Bell to expand his market share rapidly in the "cold winter" market and keep the company's leading position.

Data show that in the first half of this year, its revenue amounted to 4 billion 226 million yuan, an increase of 20% over the same period last year.

"In the second half of the year, prices will be higher in autumn and winter, and the income of new brands will be reflected in the consolidated statements."

The investor relations department said, "this year, billions of dollars should be no problem."

This is also the first and only one billion women's clothing brand in Chinese listed companies.

Entrepreneurs like Liu Changqiao may still come out with new brands.

But there is no doubt that the "oligopoly" separatist war in China's apparel industry has started.