There are no roads in the world and many people have gone, and they have become roads. "In the domestic apparel industry, Meters Bonwe was once the most powerful interpreter of this sentence. It is precisely that its slogan is also a "not an unusual way."
“There is no way in the world. There are many people who have gone and it has become a road.†In the domestic apparel industry, MTS Bonwe was once the most powerful interpreter of this sentence. Just as its slogan is “ Take an unusual step".
At the beginning of its founding in 1995, it was devalued as a “bag company†and was predicted by industry insiders to “stay for three years.†After a decade of rapid development, it has already become a leading brand in domestic casual wear. At this time, the market knew that the road it used to go was similar to Nike, a famous global sports brand, and could be summarized as a "virtual business model under the light asset strategy."
Today, the United States is changing again. Meibang Garments, which successfully grafted with the capital market, is no longer lightly loaded. In the first year of listing, it opened direct image stores and flagship stores, bought buildings, and bought land, and began to carry forward with weight. Did everyone understand the "light asset" road, then the United States has completed the negation of negation and decided to give up this "unusual road"?
Smithsonian’s "light asset" brand
What is "virtual business model"? We illustrate it with classic joke about resource integration.
In the American countryside, an old man lives with his younger son. Suddenly one day, a man found an old man and said that he would take his young son to the city and let him become the son-in-law of Rockefeller. This person found the American oil king Rockefeller and said that he would introduce his boyfriend to his daughter and said: "Your future son-in-law will be the vice president of the World Bank." Rockefeller agreed. Later, the person found the president of the World Bank and asked him to immediately appoint a vice president and said: "You appointed this vice president is the son-in-law of Rockefeller." The president also agreed. The poor farmer's younger son became a wealthy woman and a vice president of the Bank.
What Smith did at the beginning of the venture was somewhat similar to the above story. That year, the founder Zhou Chengjian did not have much money. He found a clothing OEM. He said that you came to help me produce clothing. My clothes were called “Meters Bonweâ€. At the same time, he found another group of people. I give you clothes, you go to sell, and the clothes you sell are called "Metersbonwe." He also did some things that ordinary people did not easily do, including designing their clothes to be fashionable, promoting “Mettersbonwe†to a very well-known name, and making the production and sales ups and downs smoothly. The first brand of domestic leisure apparel, MTS Bonwe, was successful. Zhou Chengjian was also dubbed the title of “Marketing Geniusâ€.
Theoretically speaking, virtual companies are mainly engaged in brands and channels. Their greatest feature is "light assets", which means they can achieve higher growth with less capital expenditure. With the adoption of the production outsourcing model, the company does not need to invest in plant and equipment, and has little investment in the sales network expansion. From the perspective of fixed asset investment, before the listing, as of the end of March last year, the company's fixed assets accounted for only 15.53% of the total assets; by the end of June this year, fixed assets plus construction-in-progress totaled no more than 20% of total assets.
The distinctive characteristics of light assets and fast turnover have enabled Smith Barney to gain a favor in the capital market. In August 2008, the company issued 70 million shares and actually raised more than 1.3 billion yuan in funds, and successfully landed the small and medium-sized boards.
Gradually change from light to heavy
One year passed, and with the release of semi-annual report and series of announcements by Smith Barney this year, we discovered that the company was becoming lighter and stronger.
The semi-annual report shows that in the first half of the year, the company's total operating revenue and operating profit grew at a rate of 11.29% and -42.86% year-on-year, respectively, and the net profit attributable to listed companies increased by 28.02% year-on-year. Why does net profit still increase year-on-year when operating profit drops sharply year-on-year? A closer look at the semi-annual report found that it was an important contribution to financial subsidies and income tax concessions. Discarding the impact of these non-sustainable incomes, the growth rate of the main business of Smith Barney has actually slowed down in the short term.
Securities analysts believe that the operation of franchise business in the first half of the year was not satisfactory, which dragged down the company’s overall revenue growth. In the first half of the year, the company's franchise and direct operating income grew at -7.39% and 42.05% year-on-year, and direct operating revenue accounted for 48.18% of the company's main business revenue from a sharp increase of 10.41 percentage points from 37.18% in the same period last year. The accelerated progress of direct business led to a period of cost increase of 9.74 percentage points from 27.08% in the same period last year to 36.83%; of which, rental and lease deposits and advertising expenses increased by 252.66% and 183.28%, respectively, resulting in a sales expense ratio of 31.32. %, the high cost of direct marketing business engulfed the current profits, making the company's operating profit fell 42.86% year-on-year. This is the "load" of the lease fee.
In addition, the company also started to purchase properties for the development of direct-operated stores. According to the announcement this year, the company has purchased shops in Nanchang, Jiangxi, Dandong, Liaoning, Zhejiang, Hangzhou, Xiamen, Fujian, Pingdingshan, Henan, and Chengdu, Sichuan. The accumulated (planned) investment is about 780 million yuan.
In addition to opening direct-operated stores, the company disclosed another plan for buying land this month. The Board of Directors agreed that the subsidiary Shanghai Minstare Information Technology Co., Ltd. will look for a suitable land plot for the new brand and office space construction projects for IT services within the next 12 months. How much money do you plan to use to buy land? The announcement was unclear and only mentioned that the board of directors had agreed to request the general meeting of shareholders to authorize Mian Sidi to handle the entire amount within the amount of 1.294 billion yuan.
"There are big difficulties."
Why "heavily weighted"? After the China Securities Journal reporter interviewed industry analysts and related persons of Smith Barney Clothing, they found that, to some extent, this may be an inevitable choice for the industry to develop to a certain stage and after the expansion of Smith Barney to a certain extent. Apply the words of Wang Xifeng in "Dream of Red Mansions" - "There are big difficulties."
“The company has never said anything about its 'light assets', which is what the outside world helped us to sum up.
According to the company, they have been adjusting their strategies based on changes in the market environment and their own strength. Like multiple outlets, the company made such plans as early as the listing and disclosed it as a fund-raising project. The purchase of a property opened a direct-store business, and the company started to do so because it felt deeply about the lack of self-owned property. "(Shanghai) Huaihai Road has encountered such a situation, and the store opened well. For various reasons, the lease was suddenly forced to be interrupted. If we do not have our own property, such things will happen frequently."
In the opinion of Smith Barney, the current practice is natural and well-established, and many times it is "had to be". Previously, they did not know that their business model was called “light assetsâ€; how they would benefit the company's development in the future, what they would do, would not have to worry about the name of the so-called “light assetsâ€.
Li Zhixian, chief researcher of Guotai Junan Securities Research Institute, who has been in the textile industry for 25 years, also agrees with the company's statement. He said that as the number one casual wear chain in China, it is crucial for Smith Barney to continuously increase brand value. The upgrading of the brand's grade and status depends on direct flagship stores and image stores. The characteristics of large stores are large investment in decoration, long operating period, and high risk of operating by lease. For this reason, many companies will initially adopt the method of purchasing property rights to obtain stable store resources. In addition, the expansion of mid-to-high-end new brands (the company launched “Me&City†in the fourth quarter of last year), the development of an Enterprise Resource Planning (ERP) system, and the development of e-commerce have also become the need for further development of Mebon. "Heavy assets" support.
At the beginning of its founding in 1995, it was devalued as a “bag company†and was predicted by industry insiders to “stay for three years.†After a decade of rapid development, it has already become a leading brand in domestic casual wear. At this time, the market knew that the road it used to go was similar to Nike, a famous global sports brand, and could be summarized as a "virtual business model under the light asset strategy."
Today, the United States is changing again. Meibang Garments, which successfully grafted with the capital market, is no longer lightly loaded. In the first year of listing, it opened direct image stores and flagship stores, bought buildings, and bought land, and began to carry forward with weight. Did everyone understand the "light asset" road, then the United States has completed the negation of negation and decided to give up this "unusual road"?
Smithsonian’s "light asset" brand
What is "virtual business model"? We illustrate it with classic joke about resource integration.
In the American countryside, an old man lives with his younger son. Suddenly one day, a man found an old man and said that he would take his young son to the city and let him become the son-in-law of Rockefeller. This person found the American oil king Rockefeller and said that he would introduce his boyfriend to his daughter and said: "Your future son-in-law will be the vice president of the World Bank." Rockefeller agreed. Later, the person found the president of the World Bank and asked him to immediately appoint a vice president and said: "You appointed this vice president is the son-in-law of Rockefeller." The president also agreed. The poor farmer's younger son became a wealthy woman and a vice president of the Bank.
What Smith did at the beginning of the venture was somewhat similar to the above story. That year, the founder Zhou Chengjian did not have much money. He found a clothing OEM. He said that you came to help me produce clothing. My clothes were called “Meters Bonweâ€. At the same time, he found another group of people. I give you clothes, you go to sell, and the clothes you sell are called "Metersbonwe." He also did some things that ordinary people did not easily do, including designing their clothes to be fashionable, promoting “Mettersbonwe†to a very well-known name, and making the production and sales ups and downs smoothly. The first brand of domestic leisure apparel, MTS Bonwe, was successful. Zhou Chengjian was also dubbed the title of “Marketing Geniusâ€.
Theoretically speaking, virtual companies are mainly engaged in brands and channels. Their greatest feature is "light assets", which means they can achieve higher growth with less capital expenditure. With the adoption of the production outsourcing model, the company does not need to invest in plant and equipment, and has little investment in the sales network expansion. From the perspective of fixed asset investment, before the listing, as of the end of March last year, the company's fixed assets accounted for only 15.53% of the total assets; by the end of June this year, fixed assets plus construction-in-progress totaled no more than 20% of total assets.
The distinctive characteristics of light assets and fast turnover have enabled Smith Barney to gain a favor in the capital market. In August 2008, the company issued 70 million shares and actually raised more than 1.3 billion yuan in funds, and successfully landed the small and medium-sized boards.
Gradually change from light to heavy
One year passed, and with the release of semi-annual report and series of announcements by Smith Barney this year, we discovered that the company was becoming lighter and stronger.
The semi-annual report shows that in the first half of the year, the company's total operating revenue and operating profit grew at a rate of 11.29% and -42.86% year-on-year, respectively, and the net profit attributable to listed companies increased by 28.02% year-on-year. Why does net profit still increase year-on-year when operating profit drops sharply year-on-year? A closer look at the semi-annual report found that it was an important contribution to financial subsidies and income tax concessions. Discarding the impact of these non-sustainable incomes, the growth rate of the main business of Smith Barney has actually slowed down in the short term.
Securities analysts believe that the operation of franchise business in the first half of the year was not satisfactory, which dragged down the company’s overall revenue growth. In the first half of the year, the company's franchise and direct operating income grew at -7.39% and 42.05% year-on-year, and direct operating revenue accounted for 48.18% of the company's main business revenue from a sharp increase of 10.41 percentage points from 37.18% in the same period last year. The accelerated progress of direct business led to a period of cost increase of 9.74 percentage points from 27.08% in the same period last year to 36.83%; of which, rental and lease deposits and advertising expenses increased by 252.66% and 183.28%, respectively, resulting in a sales expense ratio of 31.32. %, the high cost of direct marketing business engulfed the current profits, making the company's operating profit fell 42.86% year-on-year. This is the "load" of the lease fee.
In addition, the company also started to purchase properties for the development of direct-operated stores. According to the announcement this year, the company has purchased shops in Nanchang, Jiangxi, Dandong, Liaoning, Zhejiang, Hangzhou, Xiamen, Fujian, Pingdingshan, Henan, and Chengdu, Sichuan. The accumulated (planned) investment is about 780 million yuan.
In addition to opening direct-operated stores, the company disclosed another plan for buying land this month. The Board of Directors agreed that the subsidiary Shanghai Minstare Information Technology Co., Ltd. will look for a suitable land plot for the new brand and office space construction projects for IT services within the next 12 months. How much money do you plan to use to buy land? The announcement was unclear and only mentioned that the board of directors had agreed to request the general meeting of shareholders to authorize Mian Sidi to handle the entire amount within the amount of 1.294 billion yuan.
"There are big difficulties."
Why "heavily weighted"? After the China Securities Journal reporter interviewed industry analysts and related persons of Smith Barney Clothing, they found that, to some extent, this may be an inevitable choice for the industry to develop to a certain stage and after the expansion of Smith Barney to a certain extent. Apply the words of Wang Xifeng in "Dream of Red Mansions" - "There are big difficulties."
“The company has never said anything about its 'light assets', which is what the outside world helped us to sum up.
According to the company, they have been adjusting their strategies based on changes in the market environment and their own strength. Like multiple outlets, the company made such plans as early as the listing and disclosed it as a fund-raising project. The purchase of a property opened a direct-store business, and the company started to do so because it felt deeply about the lack of self-owned property. "(Shanghai) Huaihai Road has encountered such a situation, and the store opened well. For various reasons, the lease was suddenly forced to be interrupted. If we do not have our own property, such things will happen frequently."
In the opinion of Smith Barney, the current practice is natural and well-established, and many times it is "had to be". Previously, they did not know that their business model was called “light assetsâ€; how they would benefit the company's development in the future, what they would do, would not have to worry about the name of the so-called “light assetsâ€.
Li Zhixian, chief researcher of Guotai Junan Securities Research Institute, who has been in the textile industry for 25 years, also agrees with the company's statement. He said that as the number one casual wear chain in China, it is crucial for Smith Barney to continuously increase brand value. The upgrading of the brand's grade and status depends on direct flagship stores and image stores. The characteristics of large stores are large investment in decoration, long operating period, and high risk of operating by lease. For this reason, many companies will initially adopt the method of purchasing property rights to obtain stable store resources. In addition, the expansion of mid-to-high-end new brands (the company launched “Me&City†in the fourth quarter of last year), the development of an Enterprise Resource Planning (ERP) system, and the development of e-commerce have also become the need for further development of Mebon. "Heavy assets" support.
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