Wenzhou Men's Clothing Brand Announcement: Creating an Annunciation Bird "Hi Culture"

The Anniversary Bird is a magpie. His "Golden List title" and other meanings mean that the "Hi culture" has a market in China. Therefore, Baoxiu Bird upgraded its brand publicity in the first half of the year and made every effort to create the “Happy Culture” of newspapers and birds through new advertising slogans, promotional videos, official website communities, and official Weibo.

In the first half of this year, the company reported revenue of 732 million yuan, up 56.5% year-on-year, operating profit of 110 million yuan, up 72.56% year-on-year, net profit attributable to shareholders of the company was 92.65 million yuan, up 65% year-on-year, corresponding to basic earnings per share 0.16 yuan. At the same time, the Anniversary Announces its expected performance in the third quarter, with a net profit growth rate of between 40% and 60%.

The Annunciation is a joint venture established by three Wenzhou private garment enterprises in 1996. Its semi-annual report shows that in the main business, tops, trousers, T-shirts, and shirts accounted for the top four revenues, a total of 78.10%; these four businesses The gross profit margins were over 50%, mainly in terms of domestic sales in China. The overall operating conditions were better than that of export-oriented apparel companies, with a greater brand effect.

Huatai Securities believes that the gross profit margin of Announcement Bird has continued to increase, and the cost has increased slightly. The main reason is that the company's continuous price increase in recent years has been accepted by the end consumer market. The gross profit rate of products has gradually increased. The gross profit rate in the first half of the year continued to increase by 4.76 percentage points year-on-year.

As a result of the increased marketing efforts, the sales fee rate of the Announcement has increased by 0.67 percentage points; the increase in the administrative expense ratio of 1.72 percentage points was mainly due to the increase in expenditures on maintenance of the newly-acquired office buildings, labor costs, and expenditures on the San Geral brand R&D expenses. . However, the rapid development of the San Jello casual wear market is also in line with the overall trend of the industry's development.

As a traditional industry, the overall operation of the Annunciation is slightly better than that of its peers. It has increased investment in customer relationship management, provided richer VIP activities and services, and deepened its brand image.

In terms of channels, the company implemented a regional market expansion plan and insisted on opening large stores while promoting regional giant strategy. In the first half of the year, there were 44 new zodiac stores and 31 San Jello shops. Steady expansion of channels and continuous improvement of product prices have led to rapid growth in performance.

In addition, since the self-reported Hibird proposed the idea of ​​“second-time entrepreneurship”, it has continuously strengthened its support for franchisees. The mid-year report shows that there are 759 and 172 stores in “Good News” and “San Vicente”, an increase of 11.8% over the same period of last year. 57.8%; Terminal business area totaled 136,000 square meters, a year-on-year increase of 24.77%; same-store growth was approximately 20%.

In terms of sales revenue, Baoxi Bird plans to double its revenue in the next three years. The way to grow is mainly to speed up the pace of development of stores and multi-brand, multi-series.

However, the reality of the apparel industry is that consumers’ loyalty to brands is rapidly declining. Many brands are facing the problem of aging brands (women’s situation is more prominent). For example, Shunmei, Rossini, and other men’s clothes, and the Annunciation also do not In addition, the company prepares in advance for the future aging of the company's existing brands by nurturing new brands and serialization extensions.

One of the main countermeasures to prevent brand aging is to use brand extension strategies. The advantage is that they can use the brand identity and brand preference that consumers have accumulated over a long period of time to create new brands and continue the brand life.

Currently, Baoxiu has acquired the agency rights and operating rights of some new brands through acquisitions and equity participations. This process will continue in the future, and the selected targets will still be mainly concentrated in the men's field where they are good at. More series, mainly in the horizontal extension of the brand, such as leather shoes business, women's business.

In addition, although the Annunciation was only listed for four years, the Annunciation has been selected as the “TZ50” in 2011, which shows that the company’s performance can be profitable for three consecutive years and is willing to make dividends. The dividend distribution rate from 2008 to 2010 is 15.30. %, 11.41%, 10.54%.