Exclusive Interview With Fashion Designer: Analysis Of Brand Extension And Governance Structure

Among the A shares listed companies, the fashion from Shanghai, the devil capital, belongs to one of the youngest listed companies. DAZZLE, the main brand of its fashion brand, has a "glittering" meaning in English. Since its launch, the combination of fashion and fashion has become more and more popular.

Recently, Dong Su Chien Ying, an agent of Dongsu fashion, received an exclusive interview with the Securities Daily reporter to give a detailed answer to the issues of brand extension, governance structure and investors' interests.

Endogenous growth brand extension

Located in Shanghai in 2002, di Su fashion (hereinafter referred to as "Di Su") is a fashion brand that independently develops and designs high-end high-end women's clothing. With the continuous development of the company, the brand style and fashion connotation have been highly recognized by the market, and gradually launched a new brand.

"In 2005, DAZZLE opened its first DA store in Huating, Shanghai. It can be said that the high-end positioning of the company's brand is the first time. After the DA brand, the company believes that R & D and innovation is a long way to do for a fashion brand. It gradually increases R & D investment and brand innovation, and then launches DIAMONDDAZZLE with the inspiration of art, combined with exquisite handwork and excellent material. (hereinafter referred to as "DM"), it is also welcomed by the market. Since then, the company hopes to have a brand that more people can wear and have more vitality, so the company launched the DZ brand in 2011. In the second half of 2017, the RA brand of men's wear was launched on the basis of women's clothing brand. Dongying Jiang Ying told the Securities Daily reporter.

At present, there are four well-known clothing brands including DA, DM, DZ and RA, forming a multi-dimensional and deep-seated penetration into the fashion industry.

Not only is the product recognized by the market, but also the profit index is in the forefront in the industry. According to the list of top 100 apparel companies released by China Apparel Association, the site has been selected for 8 consecutive years (according to total profit and sales profit rate). According to the semi annual report this year, di Su fashion achieved 1 billion 111 million yuan in the first half of 2019, an increase of 14.42% over the same period last year. Net profit of 339 million yuan, an increase of 1.09% over the same period. Net profit after deduction is 296 million yuan, an increase of 21.89% over the same period. The total assets have amounted to 3 billion 479 million yuan.

Improving governance structure and strictly implementing disclosure system

In the face of the transformation and upgrading of the industry, management has its own unique views in perfecting the corporate governance structure.

Jiang Ying analysis: "at present, the high-end brand in the design, market promotion, marketing is more suitable for the consumer's increasing fashion vision and the demand for fashion products, there are more opportunities in the fierce market competition. The personalized demand of the garment industry will increase in the future. Consumers will no longer be a single product price factor, but more importantly, they want to get a higher brand value.

"In the face of these changes, the company will constantly improve its governance structure and enhance its core competitiveness," he said. Mainly from three aspects: product strength, brand power, retail capacity.

In terms of product strength, it mainly aims at the pursuit of innovation ability and quality, and maintains the internationalization of the design team. This year, the company introduced internationally renowned brand designers to further enrich the international elements in product design. The exchange of domestic and foreign designers is also more conducive to the diversification of design elements and keeping the leading edge of brand design in China.

In terms of brand strength, the company will continue to enhance market share, single store revenue and customer parts as core assessment indicators, constantly enhance brand reputation, and consider extending product design to enhance brand added value.

In terms of retailing capacity, we mainly focus on enhancing the level of retail services, enhancing the image and shopping environment of terminal stores, strengthening the management of members and enhancing the customer experience.

In response to the question of how to view the interests of investors, Jiang Ying said: "since the company went public, it has always been the first step to protect investors' interests by truthful, complete, accurate, timely and fair disclosure of information. Because corporate governance is closely related to information disclosure. Most of the small and medium-sized shareholders can not participate in the operation of the company in real time. They often need the information disclosed by the public to realize the supervision of the company. Secondly, the company has always attached great importance to the return of investors, which is reflected in the early dividend plan.

According to the dividend plan previously issued by the prime minister, the company issued a total dividend of 401 million shares in May as the base of the year December 31, 2018, and distributed cash dividends of 10 yuan (including tax) for every 10 shares. The total cash dividend was 401 million yuan, and the dividend payout ratio reached 70%.

Jiang Ying has expressed his confidence in the future development of the company. "The company will consider the brand extension while growing its original brand. It will also look for the target of merger and acquisition in line with the company's strategic objectives, and seek the growth of endogenous and extension driven by two wheels. Striving to become an internationally competitive industry group. " He said.