Metersbonwe Lets "Light Assets" Become Business Heavy

The Meters & Bonwes, which has benefited from the asset-light strategy, launched ME&CITY, a mid- to high-end business casual brand, and purchased and held commercial properties to strengthen the weight of its direct-operated stores and began to increase assets.

Nike, the world's largest sports shoe manufacturer, does not own a shoe factory. Philips, the Netherlands, does not have its own production line. The aircraft manufacturer Boeing itself produces cockpits and wingtips.... 1991 American Roger Nege This function of virtual design, production, finance and marketing was summarized in various ways by means of externally compensated operating forms, and the concept of “virtual operation” was proposed. Zhou Chengjian from Zhejiang didn't know this concept in 1996, but Mets-Bonwe, the earliest casual wear group he founded in the Mainland, began to use it intuitively. Zhou Chengjian outsourced the production-related heavy asset business to various types of processing companies. , The product sales will be handed over to the chain operation channels in various places, and it will mainly concentrate its resources and efforts on product design, development and brand marketing, and avoid the risks in production and sales.

Today, the virtual business model under the asset-light strategy allows Metersbonwe to be listed on the Shenzhen Stock Exchange on August 28, 2008. Zhou Chengjian’s family has also become the richest person in the “Hurun Garment Rich List” with RMB 17 billion in assets. . Logically, Metersbonwe's cash flow is healthy. Before its listing, its existing bank deposits amounted to 470 million yuan and liquidity was about 1.3 billion yuan. According to its group financial report, in 2007 it achieved sales of 3.157 billion yuan, total profit of 433 million yuan, and gross profit margin of 38.8%, which was higher than the average of 34.39% of the A-listed companies in the apparel industry and comparable companies in the Hong Kong stocks. Its 0.95% market share ranks first among 20 major leisure apparel companies in China. Why is Zhou Chengjian's IPO? “In the 80% capital raised by the listing, 15% of the funds will be invested in the construction of information systems, and 85% will be used for channel construction.” The MTR Bentley prospectus shows that it has to go against the market to expand. Zhou Chengjian believes that this is aggravating. Assets are a good time.

"A lot of Chinese companies are tightening this year, and it is the time when they are short of money. Funds are not abundant from the entire society. Things will be relatively cheap at this time. But when Metersbonwe is the most wealthy, it is Our advantage, we have to do is to make every penny use." Zhou Chengjian told this reporter. His ideal is to become a global tailor, but Metersbonwe is the first in the casual wear market, but its share is less than 1%, and the market share gap between second and third place and Metersbonwe is only At 0.3%, the entire industry is still in complete competition, and there is no leading brand that has an absolute advantage.

“China's garment industry and traditional Chinese industries have static advantages over any Other country. Upstream is the manufacturing power of the world, and the downstream is the largest consumer of the world's 1/5 population. No country has such good resources and opportunities. However, there is no brand in China that has become an influential brand in the world. Most of China’s markets are occupied by those brands that are made in China by 90%. This is both an opportunity and a challenge.” Zhou Chengjian told the correspondent that Meite Spangwe's goal is a compound growth rate of more than 30%.

He explained the target of 30% compound growth rate: "A good brand, the market share must reach a proportion of 3% to 4%, it is a continuous brand that can be recognized by consumers, from 1% to 3% At 4%, the space is very large. From a static point of view, sales of 5 billion yuan will be achieved today, and 15 billion yuan will be needed in the future to reach 3%. From the perspective of dynamic market development, the Chinese garment industry has seen several The compound annual growth rate is about 15%, and the composite growth rate of casual wear is even higher. At the same time, the consumer demand of the young consumer groups in the 1980s and the 1990s has a strong natural demand, whether it is located in 18-25 years old. The 'Metersbon-Bonwe' brand is still located in the 22-35-year-old 'ME&CITY' brand. The market potential is huge. The statistics of Euromonitor, a well-known market research company, show that the retail sales of the domestic leisure apparel market in 2006 About 357.1 billion yuan, accounting for 59.70% of the total domestic apparel market, from 2001 to 2006 the compound annual growth rate of 15.31%. It is estimated that the annual compound annual growth rate of total retail sales in China's casual wear market will be 14.10%, and it will reach a scale of 605.3 billion yuan in 2010, which will account for 58.97% of the overall scale of the domestic apparel market.

In 2007, with the endogenous growth of the domestic market and the multiple unfavorable factors of apparel trade, the growth rate of China's apparel domestic trade exceeded that of foreign trade for the first time in 15 years, and 70% of the national apparel and textile industry's profits came from the domestic trade market. Has become the main battlefield of Chinese clothing. The consensus reached within the apparel industry is that under the influence of uncertainties in international trade, rising raw material costs, weakened labor cost advantages, adjustments in export economic policies, and appreciation of the renminbi, the apparel industry is now mainly engaged in brand processing and processing. Trade-type transformation. The characteristics of this new stage are: On the one hand, due to the increasingly close connection between the apparel industry market and the capital market, the domestic apparel industry has the tendency of resource concentration and market concentration, and on the other hand, due to the development of the national economy and the unbalanced internal development of the garment industry. There are plenty of new opportunities to be tapped in the industry.

In 2005, the external environment of China's textile and clothing industry also experienced a change: frequent international trade frictions, a large number of export orders lag behind, some companies underemployed, and some small factories even went bankrupt. However, Metersbonwe realized an annual sales income of nearly RMB 3 billion, relying on the effective integration of resources by virtual operations. But now Metersbonwe's "virtual channel" business model is facing challenges. The entire apparel industry has evolved as a whole to an era of light assets, with no difference, and competition has intensified. Today, with chain operations increasingly becoming the mainstream channel for market channels, Metersbonwe's uncovered rate in the secondary market is 33%, and the non-coverage rate in the tertiary market is 64%. Metersbonwe is on the channel value chain. There is still huge space. However, in 2007, Metersbonwe joined the franchise system with a weighting of 87.16%, which contributed only 62.2%.

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