Urban Beauty Expands Market Penetration Of Personal Clothing

In recent months, the 9 year old Shanghai city beauty company announced that it will purchase the famous intimate clothing retailer and manufacturer Ordifen Shanghai from the net proceeds from the prospectus, and the purchase price will be 92 million yuan (about HK $113 million). The reporter understands that this is the first large-scale brand acquisition in recent years after the city beauty came into the market last year. Its expansion intention in the market of high-end body clothing is obvious.

According to the announcement, the urban beauty will buy the design, research, development, sales and manufacturing business of the brand intimate clothing products owned by the seller, including Ordifen, ruby and Yi Xia brand and several assets related to the business. In addition, the group will provide Shenzhen Shanghai with entrusted loans of RMB 105 million yuan through the China Merchants Bank Shenzhen branch.

Zheng Yaonan, chairman of the city beauty, said the acquisition is consistent with our group's strategy to optimize product and brand mix, enhance product quality and expand sales channels, retail network and area coverage. "After the acquisition, the urban beauty can be established in the high-end clothing market in Shanghai through the perfect sales network and famous brands of Ordifen, and it is expected to expand its penetration in China's personal clothing market."

Public information shows that Ordifen brand Originated in Taiwan and entered the mainland market in 1993, it is one of the old brand of high-end clothing. Shanghai Ordifen won the "China well known trademark" in 2012, and its retail sales of bra and women's underwear in 2014 ranked fifth and seven respectively. At present, Shanghai Ordifen has 614 retail outlets, including about 250 self operated stores and 364 franchised stores, and has comprehensive sales channels in China's first and second tier cities. In addition, the company also has many Intimates Intellectual property rights such as product patents and trademarks.

In June last year, the city beauty Underwear The first landing of Hong Kong stocks was soon handed over to the first interim results after listing: the total income was 1 billion 736 million yuan, an increase of 33.6% over the same period last year, and gross profit margin increased by 3.9 percentage points from the previous year's 36.2% to 40.1%. However, because the city beauty starts from the two or three line cities, the positioning of the parity and fast fashion makes its brand premium slightly less. So in recent years, the urban beauty is also trying to improve its brand value. By improving sales channels and product mix, advertising image publicity and so on, it will expand the share of the high-end brand market and improve the gross profit margin.

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In the era of Internet, new technology and new thinking impact the original economic form and business mode. The traditional sales mode of clothing industry is being impacted by the e-commerce mode of higher circulation efficiency, faster information transmission and richer product display function. The outbreak of electric business has intensified the competition of online retail channels. To this end, the company will further tap the potential of online channel development, focus on precision marketing, product development, information feedback and other aspects of two-way interaction, to achieve the rapid integration of online and offline sales development.

Sales of clothing products are constantly influenced by tastes and preferences of consumers. The company's products require accurate prediction of market trends and changes in consumer demand, and can continuously develop marketable products. If the company's products can not meet the needs of consumers, the company's lack of accuracy in the development of clothing market demand will directly affect the company's business performance. To this end, the company will increase market research by joint suppliers, fully understand the market demand information, improve R & D design capabilities, and introduce products with high cost performance and diverse styles to meet the diversified market demands of consumers.