Brand Bulletin: Smith Barney Plans To Raise More Than 1 Billion 500 Million Yuan Of ", And " After 90.

Recently, the Shanghai Metersbonwe apparel Limited by Share Ltd (short for "Mei Bang dress") issued a non-public offering plan. It intends to raise the total amount of funds to no more than 1 billion 500 million yuan for brand upgrading and product supply chain pformation projects and repay bank loans.

Once the news came out, there was heated debate in the industry.

With the slogan "do not take the unusual road", Metersbonwe brand and spokesperson Jay Chou are rooted in people's hearts. However, under the tide of the Internet age, one of the two most beautiful costumes has fallen behind.

And this is the leisure brand of 80 and 90's memory from peak to low. In recent years, it has been difficult to have a foothold in the major clothing brands. Can the Bon dress resplendence in the new retail wave?

Public information shows that Smith Barney was founded in 1995.

Since its inception, it has adopted the virtual asset supply chain mode of light assets, and has adopted the business mode of product independent design, production outsourcing, direct sales and franchising, which has become a representative enterprise of the garment industry.

By the year 2001, the sales revenue of Mei Bang clothing has reached 800 million yuan, which is 80 times of the initial stage.

Since then, Smith Barney was listed on the Shenzhen stock exchange in 2008, and once became the first stock of clothing market value. At the ceremony of listing, Zhou Chengjian, the founder of the American state dress, presented a small gold plated sewing machine to the Shenzhen Stock Exchange.

In 2008, the business revenue and net profit of Mei Bang dress were 4 billion 474 million yuan and 588 million yuan respectively.

In 2011, the United States and its clothing industry ushered in the peak of its performance. In the year, the United States apparel business income reached 9 billion 945 million yuan, an increase of 32.59% over the same period, and the net profit reached 1 billion 206 million yuan, an increase of 59.13% over the same period last year.

In the same year, Zhou Chengjian even shouted at the shareholders' meeting that in the first half of this year, net profit growth of 600% would be achieved.

At the same time, the United States has started a rapid expansion mode of clothing, in the next four years, the company has more than 5000 stores nationwide.

At that time, as long as the bustling streets, we must be able to see the shop of American barrack.

Thanks to the star effect of the ubiquitous large stores and the rapidly expanding Jay Chou, american apparel has quickly become one of the most famous clothing brands in China.

Since then, Miller, the hero of the prison break, has been endorsed, and has been advertising in Transformers 3, becoming the biggest sponsor of the TV drama "go to see meteor shower together".

But when the United States and costumes were in high spirits, the situation turned rapidly.

2012 was the fifth year of the listing of Smith Barney apparel.

This year, the United States apparel business income of 9 billion 509 million yuan, down 4% compared with the same period last year, net profit of 849 million yuan, down 30% compared to the same period last year, this is also the first time the performance of the United States has fallen.

According to the results of the year's report, the decline of performance may come from the backlog of inventory commodities, the decline of franchise income, the pressure of competitive brands at home and abroad, and the change of people's consumption habits.

Since then, these problems have become fatal injuries to American Apparel.

In 2015, Smith Barney's net profit loss was 432 million yuan, becoming the most dismal year after the listing. In the first half of 2016, the net profit loss of American Apparel is still more than 60 million yuan.

With the dismal performance, the stores were also affected. In 2015 alone, the number of stores in the United States declined by more than 1500.

The annual report of the China Commercial Daily reporter found that from 2013 to 2016, the number of shops that had been specifically counted to a single digit was counted as a vague general figure, and the stores were reduced from nearly 5000 to more than 3700.

It is worth noting that in the same time, when the performance of the US apparel industry is down, in order to save the internal expenses, both the American Apparel management staff and the ordinary employees have seen the average salary cut.

The first wave of layoffs for American Apparel began at the end of December 2012, cutting about 1000 people.

In the first performance decline of Smith Barney clothing, it was mentioned that the reasons for the recession may be the backlog of inventory, the decline in revenue from franchising channels, the pressure of brand competition, and the online shopping attacks on physical stores.

As mentioned before, the operation mode of American bond clothing is mainly light assets. The independent design and production outsourcing are helpful in the initial stage of the company, and become a burden over time.

But with the constant changes of consumer demand, the fashion trend of clothing is also changing. Because of the long supply chain between the design and landing, the fashion style is gradually lagging behind, and the clothing styles are relatively backward.

In the case of the decline of US state clothing and inventory backlog, we put forward the operation mode of learning fast fashion brand Zara, which further exacerbated the company's inventory pressure.

Compared with Zara, which can be completed within 15 days from the design, production and delivery of garments, the whole process of American Apparel takes two or three months. In this process, the fashion trend has changed, and goods can only be reduced to a backlog.

Different from Zara, the sales mode of Direct stores is different, and the United States has adopted the franchised store mode for a long time.

Some retail experts have pointed out that Smith Barney clothing is a way of joining agents. The initiative of ordering is in the franchisee, and what kind of style is the franchisee's choice, and the style that is not chosen becomes a backlog of stock.

In order to perfect the operation mode of Zara, Mei Bang costumes cost a lot of money to build a direct store, but drawing a tiger can not turn a dog into a dog, and it has lowered its brand value.

In order to solve the problem of franchisee inventory, Smith Barney clothing began to discount sales, half off and twenty percent off sales have become the long selling strategy of American Apparel, but the brand image is also greatly reduced.

The problem of inventory has not been solved, the brand image has declined, and the competitive strength has also declined.

Since UNIQLO entered the Chinese market in 2002, foreign fashion clothing brands began to expand their plans in China, and then ushered in the fast developing period of fast fashion brands.

Coupled with the rapid development of Semir and Taiping bird's local clothing, the external competition pressure of American border clothing can be imagined.

Meanwhile, the management team also has problems.

Smith Barney's share price soared during the stock market crash in 2015. At last, it received the inquiry letter from the Shenzhen Stock Exchange. Zhou Chengjian involved in the Xu Xiang case and fell into a "lost contact" rumor, which led to turbulence in the capital market and the management team left one after another.

On the downhill road, the American state clothing, which has internal and external troubles, seems to be equipped with motors, and the downward trend is hard to change.

American Apparel struggled, but with little success.

In 2008, Smith Barney aimed at fast fashion, launched ME&CITY brand in a high-profile fashion, and focused on high-end casual wear.

However, in 2009, the ME&CITY reported only 350 million yuan of revenue, which contributed 7.29% to its sales performance in the same year.

Moreover, the independent operation of the two brands of Metersbonwe and ME&CITY has significantly increased operating costs in the short run.

The Chinese Commercial Daily reporters found on the major websites that consumers did not have a high degree of interest in the two major brands of the United States and the United States. "The quality of low-end products is poor and the positioning of high-end products is too high," a netizen message said.

"Metersbonwe has not bought it in its own shopping range long ago. It was too poor to buy it again," a consumer told reporters.

When asked if they would buy ME&CITY products, many consumers said they were not keen on this brand.

The development of the entity store is not smooth. The United States and the costumes want to conform to the times and embrace the electricity supplier.

At the end of 2010, the United States Bon apparel launched the state purchase network to test the water electricity supplier business, but it lost about 60000000 yuan in the operation for 10 months or so.

In 2013, the United States tried to create a situational shopping experience for consumers, rapidly expanding the offline experience store to more than 1000, but exacerbated the contradiction between Direct stores and franchisees, resulting in an increase in inventories.

In April 2015, Smith Barney launched the online shopping platform called "fan" APP, which was the main fashion trend. Ji Guanming sponsored the online variety show "wonderful flower" for three consecutive years. What's worth noting is that in the 2015 fiscal year, the investment in American Apparel has reached 117 million yuan.

However, according to statistics, the average cost of advertising is 1 yuan, and net profit is 3.7 yuan.

At the end of August 2017, "fan" APP was offline, which means that the US Federal electric business test failed completely.

After the new generation of Hu Jiajia takes over the company, it is a step to make a comprehensive strategic upgrading of the brand and replace the spokesperson.

However, the fans who bought products were not very small because of Jay Chou's endorsement. The weakening of fans effect made this step somewhat "chicken ribs".

Cheng Weixiong, former vice president of Mei Bang dress, wrote in the book "not to go the unusual way: my thirteen years in Metersbonwe", that the sales volume of Smith Barney and other companies in recent years has plummeted, mainly from the concern of the market.

Cheng Weixiong believes that it is inevitable to stick to its own brand direction and not deliberately raise its brand positioning, which is the challenge that local brands including American Apparel must face.

As for the development of self-help of American barrack, Cheng Weixiong said that in recent years, the US bond measures seem to be desperate for success. From the Internet to the sale of subsidiaries to the shopping mall channels under the Tropic of cancer, any pformation and upgrading are accompanied by certain risks, which means high investment and a long profit cycle. It is hard to say whether investment can be directly proportional to earnings.

It is undeniable that in one and another pformation, the clothing of American state is gradually lost.

New opportunities have not been seized and all kinds of advantages have been lost.

Once the scenery of the United States has been plunged into the endless loss of clothing, the news of the delisting has also been heard from time to time. Few people are optimistic about the United States can dress back to the main battlefield of casual wear.

At this time, 1 billion 500 million yuan to invest in the development of the company, how much ripple is still unknown, not eliminated by the market may be the last struggle of the 1 billion 500 million yuan.