Baozi Is Facing Large Share Holdings Or Leading To Delisting.

For more than ten years, Baozhuang fashion company Ports (hereinafter referred to as baozi) is facing large share holdings of major shareholder Bluestone Global Holdings Limited (hereinafter referred to as BGHL), and may result in delisting.

Although such a move gives BGHL greater autonomy to decide the future strategy of baozi, it still needs a question mark to save the old age.

"In 1993, there were not many people who could fly on business. There were few high-end women's clothing in China, and its price was slightly lower than that of international brands, so it's not difficult to build high-end brands."

Yu Ming said.

On the other hand, the international brands at that time were not very familiar with the Chinese market.

Some people even take foreign brands in China, but because they are not their own brands, they are not free in all respects.

"Baozi is a brand bought by Kenneth Chan. The design and development of products can be positioned in accordance with the needs of the mainland market and will not be affected by anyone."

An insider analyzed the new financial reporter.

These are the advantages of baozi, and their marketing methods are also diversified.

According to Yu Ming, seven or eight years ago, he met a person who was a member of baozi's management at a large clothing agency. "I saw their booklet on member management".

Now think of it, Yu Yu felt that the scheme at that time was relatively advanced and had a great impact on him.

"It involves public spending, gift economy and so on. For baozi, there are not many people who can afford its products, but if an ordinary user has high-end demand and can enjoy the services provided by baozi, I believe that most people will be unwittingly interested in this brand and produce user stickiness."

In a market with almost no rivals, Baoji took advantage of the right place, and developed rapidly.

But later, more and more high-end brands came into contact with domestic consumers. Both the international brand and other high-end women's clothing posed a threat to baozi.

"In recent years, Baozi has not done much in the production, and now more and more people like personalized consumption."

The industry insiders said.

Nevertheless, the person is still willing to use "decline" instead of "falling" to describe baozi's high-end women's wear.

In his view, "it is still the first tier in the high-end market, but the influence is not as good as before."

For the sluggish performance, Baozi's CEO report mentioned that "because of the tightening of consumption momentum in mainland China, which led to a decline in demand for high priced luxury goods" and "an increase in expensive rents in the high-end sector and an increase in the cost of employing experienced employees", the business environment has become more difficult and net profit has declined.

On the other hand, "baozi has not changed much in recent years, and the product has not kept pace with the times. Consumers experience, differentiated marketing and business models seem to be slowing down."

The industry insiders mentioned above.

Indeed, the depressed retail environment and the pursuit of many competitors have put baozi in a difficult position.

So, Baozi began to act.

The reason for this increase is "insisting on renovation and opening flagship stores".

In fact, a few months ago, in a semi annual report, Baozi suggested that in order to cope with the difficult times of the retail environment, "the group is striving to optimize the size and distribution of the retail network, so as to enhance the business efficiency of the enterprise.

Setting up flagship stores at suitable locations to demonstrate group design concepts and top shopping experience, setting up retail outlets in crowded department stores and shopping centers, opening discount stores in modern outlets, and conforming to high-end brands that meet our brand positioning are all important elements of our retail distribution strategy.

Although these big changes need real gold and silver, the cost will increase in the short term and affect sales, but in baozi's view, these are all "necessary".

Overall performance is not good, but in the men's clothing brand, sports brand off shop tide to reduce costs, Baozi chose the opposite way.

In Cheng Weixiong's view, this is consistent with the attributes of high-end brand positioning.

He thinks high-end consumption has some limitations, and high-end brands are built at a certain level of consumption. It is unrealistic to set up shop without restraint like mass brands.

"Brand positioning determines the channel strategy. Quality, Gaoping efficiency and image shops are the inevitable direction of high-end brands."

Cheng Weixiong said.

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For example, "if the shop is not refurbished for two or three years and the image is backward, the consumer experience will decline, and this experience is the most valued part of many high-end consumers".

In addition to refurbishing stores and opening flagship stores, Baozi also launched handbag business in Milan fashion week last February, and the industry speculated that it would enter the handbag Market.

From baozi's actions, it is easy to see the courage to make efforts to change the status quo. "At least it will be good for China's high-end market in the future. Now we are doing our best to do this, and the external environment will improve one day, and we will win more opportunities for ourselves."

The industry insiders said.

In his 2014 semi annual report, Baozi also mentioned: "although the policies currently implemented by the Chinese government do not have a positive impact on the retail / service industry, we believe that China's luxury brands have not plunged into a gloomy future.

In the long run, the rapid growth of Chinese family income and the increase in the number of middle class will stimulate people's pursuit of fashion lifestyle.

The pursuit will eventually create healthy demand for the luxury industry. "

In an interview with Canadian media in his early years, Kenneth Chan said to the company's takeover behavior: "we are not blind to making money, but by making money reach its goal."

The long-term goal of baozi is to "continue to grow and become one of the designer brands in China and the world."

This time, Kenneth Chan has used money to increase his stake in baozi, but it remains to be seen whether he can achieve his goal.