Seven Wolf Zhou Shaoxiong Roared The New Battlefield: Not Only To Consume &Nbsp, But Also To Upgrade.

Zhou Shaoxiong, chairman of Fujian seven wolves industrial Limited by Share Ltd, wears Suit To tie, then to leather shoes are "seven wolves" series. The golden yellow wolf icon on the chest glitters.

In 2011, the first seven wolves of the small and medium-sized board clothing business income reached 2 billion 193 million yuan, an increase of 10.38% over the same period last year, and net profit of 280 million yuan, an increase of 37.43% over the same period last year. Earnings per share were 0.99 yuan. In March 28th, "2010 China market commodity sales statistics information conference" revealed that the market share of the seven wolf jacket was the first in 2010. This is the first seven years wolf jacket for 11 consecutive years.

On March 29, 2011, at 11 a.m., Beijing China International Exhibition Center (New Museum). Zhou Shaoxiong told a new story about seven wolves in Putonghua in Fujian: the seven wolves bought 100% stake in Hangzhou Kenna clothing limited at 70 million yuan to enter the luxury market.

Set foot in international brands agent business

Hangzhou Kenna Fashion Co., Ltd. is a well-known international brand agency in China. Founded in March 2008, it is mainly engaged in the agency business of the world's top fashion brands Connally (Canali) and Versace collection (Versace) in mainland China. In addition, Hangzhou Kenna also has the world famous jewelry brand George Jason Georg Jensen and other brands in China's proxy.

After nearly two years of acquisition and integration, Hangzhou Kenna's agency business has developed rapidly and has become one of the two largest agents of Canali in China. At present, Hangzhou Kenna has set up 15 Canali brand outlets nationwide, and 4 Versace outlets. The main business areas are concentrated in Northeast and East China.

It is understood that Hangzhou Kenna has been playing an important role in the international luxury brand business in China in recent years, and has gradually become an important platform for international brand development in China. As of December 31, 2010, in just two or three years, Kenna apparel achieved operating income of 66 million 370 thousand yuan, with a net profit of 7 million 840 thousand yuan.

After purchasing Kenna Hangzhou, the seven wolves will retain the original Kenna Hangzhou Kenna team with international brand operation experience.

Zhang Jianmin, general manager of Hangzhou Kenna, said, acting as an international brand. business More investment is needed, and the acquisition of seven wolves has solved the capital bottleneck for Hangzhou Kenna. Hangzhou Kenna will have a series of market expansion plans. Canali will expand from 15 to 18 this year, and Versace collection will rapidly grow from 11 stores to 4 stores. In Zhang Jianmin's view, with the full support of seven wolves, the development of Kenna in Hangzhou will speed up, and it is expected to seize the commanding heights of the international brand market in China in the short term.

The acquisition reflects the strategic thinking of "seven wolves" on the upgrading and subdivision of China's domestic consumer market in the future. The huge consumption potential of China's luxury goods market is an important factor for the seven wolves to buy Hangzhou Kenna.

Zhou Shaoxiong told financial weekly newspaper that China will be the largest market for luxury goods in the future. After the financial crisis, consumers in Europe and America tend to be more rational about luxury consumption. But look at Japan, Hongkong, China, Taiwan, Singapore and other places to know the potential of China's future market. BRIC is the only country that can achieve two digit annual growth rate of luxury consumption, while China has the highest growth rate in four countries.

Statistics show that China's luxury consumption accounts for less than 1% of the world's market share from 1998 to 10% in 2010, ten times in 12 years, and will continue to grow rapidly in the next 5 years. According to McKinsey, sales of luxury goods in China reached $12 billion in 2010, and sales of luxury goods in China will reach $27 billion in 2015. By then, China will surpass Japan as the world's largest luxury market.

"Canali and Versace collection, as internationally renowned brands, have great potential for growth." Zhou Shaoxiong said, "there are some indications that the state may take some measures to further reduce the cost of luxury imports, which is a good news for the luxury market, and the development of China's luxury market will usher in a new spring."

Zhou Shaoxiong's judgement is that it is impossible for all international brands to be managed directly by market orientation, because their local social, economic, cultural and even consumer's grasp and management are not as good as those of domestic companies. They are more willing to find some management and financial strength companies to act as their agents. The addition of seven wolves can enhance Hangzhou Kenna's voice and attractiveness in the agency of international brands.

"Acquisition of Hangzhou Kenna is of great significance. First, strengthen international brand cooperation; two, seven wolves create international luxury brands to enter the Chinese market agent platform, and the three is to offer seven wolves brand access to the international arena to provide opportunities for communication." Zhou Shaoxiong said, "through this cooperation, the seven wolves can provide more opportunities for Chinese consumers to contact with international luxury brands, and the seven wolves will also rely on their own capital advantages, channel advantages, resource advantages [2977.21 1.23%] and management experience to provide services for more international clothing brands to enter the Chinese market."

"Through international brand cooperation with Canali, we can promote the internationalization of the seven wolves brand, and better integrate the world and create fashion." Zhou Shaoxiong said that the acquisition of Hangzhou Kenna not only helps the seven wolves to enter the Chinese luxury market, but also absorbs the advanced experience of international famous brands in product design, organization order, terminal management and so on, and improves the overall management level of the seven wolves by participating in the operation of international famous brands.

Zhou Shaoxiong said that in addition to the existing "Saint worth" series of clothing, the seven wolves will launch more high-end brand in the future.

As mentioned above, the acquisition of Hangzhou Kenna not only brought the lucrative luxury agency revenue to the seven wolves, but also opened up the strategic space for the seven wolves to sell their products.

Since the listing of the seven wolves in 2004, Zhou Shaoxiong has been looking for opportunities to enter the international brand agency business. The international brand agency business is regarded as an important field by Zhou Shaoxiong.

What Zhou Shaoxiong also values is that the international brand represented by Kenna Hangzhou has a strong initiative in entering the channels of high-end department stores. This intangible resource will create high-end brands for the seven wolves and enter the high-end channels.

Undoubtedly, it is a great help. The Hangzhou Kenna revenue capsule provides a feasible channel for the implementation of the high-end strategy of the seven wolves.

"What makes many garment companies miserable is that they can't find a good stage to show their brand. The future integration of seven wolves and Hangzhou Kenna in products, channels and other aspects is all-around. Zhou Shaoxiong said.

The principle of channel is also applicable in garment industry. The seven wolves have always attached importance to and led the renovation of the sales channel system of the garment industry. {page_ Break}

As early as 1992, the main selling channels of most garment manufacturers in China were individual wholesale markets. But at that time, seven wolves began to seek the transformation from individual wholesale market to shopping mall mode.

This history makes Zhou Shaoxiong remember vividly. At that time, the products of the seven wolf company entered into the well-known department stores in Beijing, Xidan, Wangfujing, [39.49 0.41% shares, Shanghai Hualian, etc. Now, the sales mode of the seven wolves is two years earlier than that of their counterparts.

In 1995, when many clothing companies followed up the implementation of the shopping mall mode, the seven wolves took the lead to learn from overseas experience and implemented franchisee sales mode in China. As a result, the seven wolves have become the earliest manufacturers in the domestic garment industry to implement the sales mode of franchised stores by dealers. Until today, this mode is the main selling mode of major brand clothing.

2001 is an important year for the seven wolves. According to the authoritative statistics of the relevant departments of the state, the market share of the seven wolves is ranked first in the country. In the YOUNGOR [12.15 -0.57% stock bar, Shanshan and other clothing enterprises, more people know the seven wolves, know Zhou Shaoxiong.

In 2007, the seven wolves faced the problem of brand aging, low added value and endless competition brands. At the same time, some foreign brands have gradually pushed China's low-end brands out of large department stores. At this point, the seven wolves also rely on distributors and franchisees to sell goods.

After three years of transition from 2008 to 2010, the seven wolves are constantly innovating in channel construction. Zhou Shaoxiong told reporters that for today's seven wolves, the overall upgrading of the market and channels is more robust and important than blindly expanding other products. Now put the research and development in the cabinet. When the time is right, push it again. "

From Zhou Shaoxiong's position, he can see the importance of channel upgrading. He positioned the seven wolves in 2011 as "image integration and upgrading year", hoping to create new opportunities in terminal management and channel transformation.

At present, there are more than 3000 terminal outlets of the seven wolves, and the three logistics and information centers in Fujian, Beijing and Shanghai are set up nationwide. More than 20 provincial logistics and information departments, through the information network system, provide timely logistics distribution services and information exchange services to the sales outlets, and finally pass the products and values to the end customers through the terminal network.

In the existing sales terminals of the seven wolves, the proportion of Direct stores (commonly run by joint ventures or other cooperative ways) is 20 percent, and most of the others belong to franchisees.

Zhou Shaoxiong said: "from the perspective of brand upgrading and strengthening management, we should increase the proportion of direct outlets in the first tier cities in the future. After all, when managing franchisees, the management of shop assistants, clerks and goods is not direct enough. At the same time, we will increase the number of outlets and improve the franchisees of the two or three tier cities, and pass the standardized terminal management to the transmission of the seven wolves' brand philosophy and image.

Zhou Shaoxiong hopes that from 2011, the seven wolves will change from the parallel growth mode brought by the past stores to the vertical growth mode of single store sales increase, so as to cope with the pressure of rising labor costs, rising store rents and increasingly fierce competition in the industry.

In 2011, seven wolves will invest a lot of money in the transformation of channels. Future channels will maintain the growth of 10%-20% shops, but more capital and energy will be used for shop renovation, including increasing single store area and improving services.

Zhou Shaoxiong is optimistic about the seven wolves' e-commerce channels. In 2009, the sales revenue of the seven wolves was only 3 million 900 thousand yuan, and the sales revenue of e-commerce in 2010 was expected to reach 100 million yuan. In 2011, e-commerce sales revenue accounted for 10% of the total revenue.

In May last year, the e-commerce project launched by the seven wolves and IBM officially launched the first business cloud platform solution in the industry. Zhou Shaoxiong revealed that the second stage of the seven wolves business cloud platform is "independent mall construction" - to build its own e-commerce platform, which is better than the previous Taobao platform to reflect the unique brand concept, commodity concept and service concept of the wolves. It is expected to be completed within the year.

The story of Zhou Shaoxiong's resignation from public service and going into business and business in his early years has spread widely. In the wolf nature, "march forward" was seen in Zhou Shaoxiong at that time.

In 1985, in Jinjing, Jinjiang, a seaside town in Southern Fujian, Zhou Shaoxiong set up a garment factory in Jinjiang county. This small business is the prototype of seven wolves. In 1990, Zhou Shaoxiong founded the "seven wolves" clothing brand. In 2004, Fujian seven wolves industrial Limited by Share Ltd became the first stock in Shenzhen small and medium-sized board.

"China's garment industry is developing from simple manufacturing to creative fashion industry." Zhou Shaoxiong said, "the impact of the financial crisis, the transformation and upgrading of economic development and the improvement of the national income level will bring about a revolutionary change in China's textile and garment industry."

Zhou Shaoxiong's ultimate goal is to build the seven wolves into an internationally famous brand, and turn the seven wolf company into a world-class garment enterprise. Though ambitious, he needs to face many challenges. "Management, talent and many other aspects need to be perfected. The designer team is not a problem, but there is still a need to improve design management." Zhou Shaoxiong said.

In addition to the increasingly fierce competition in the domestic industry, more foreign brands are accelerating the expansion of the Chinese market and further advancing to the two or three tier market in China.

In addition, rising costs will also be a long-term trend for seven wolves. Zhou Shaoxiong admits that the price of seven wolves will increase this year. "Raw materials, labor and so on are rising prices, products can not be no price increases, more than 10% of the increase will certainly be there." Zhou Shaoxiong said.

"We will not pursue low gross profit or pursue high margin." Zhou Shaoxiong said, "we want to reduce the middle cost through our service creation or the creation of supply chain. This is the future trend of men's clothing.

At present, investment in finance, real estate and Yunfeng fund is concentrated on seven wolves group. The chairman of the seven wolf group is Zhou Shaoxiong's brother Zhou Yongwei. Yunfeng fund is jointly sponsored by Ma Yun, chairman of Alibaba [14.38 2.28%] group and Yu Feng, founder of mass media. Zhou Shaoxiong once admitted that participating in Yunfeng fund is not his personal behavior but on behalf of the seven wolf group. "Seven wolves industry will concentrate on making clothes." Zhou Shaoxiong said.

"The future does not exclude the possibility of acquiring other agents selling international clothing brands, nor does it exclude the possibility of acquiring international clothing brands. We are also actively contacting relevant information. We will be cautious, not aggressive, and consider the integration of management culture. " When it comes to takeover, Zhou Shaoxiong's "wolf nature" reveals.