Fang Jianhua: What Else Will Be Done After The Listing Of The Women?

It costs 450 million to invest in three big projects.

Reporter: Hui Mei

Fang Jianhua: our group intends to issue 80 million shares to the society. After issuing, the total share capital will be 320 million shares.

After the listing of the group, the fund will be put into three major projects, including the paction and interaction channel upgrading project (O2O project) and fashion.

Incubation projects and information construction projects.

The total investment of the three major projects is 450 million yuan, all of which come from the listed capital.

Fang Jianhua: I think at any time and in any market environment, as long as an excellent enterprise can find the right opportunity to go public.

Moreover, during the reporting period, our company has good continuous profitability.

In 2015, in search of special way, the company collects the original shares and subscribe for new equity, and shares 324 million yuan with its own capital.

Therefore, the group chose to be listed at this time, not a tight capital, but a natural course.

This listing is mainly aimed at raising funds to expand business and promoting the construction of three major projects, including paction and interaction channel upgrading project (O2O project), fashion brand incubation construction project and information construction project.

In addition, listing can enhance the brand awareness of the company, increase the tools and capabilities of expanding business, attract talents, and also reduce the operational risk of the company.

Reporter: what kind of development plan and strategy will be introduced after the listing of Yin man? What kind of new stage will it enter?

Fang Jianhua: the combination of offline and online will be the trend of the future. Hui Mei Group will create the "most influential fashion ecosystem" to achieve multi brand, multi category, multi-channel strategic upgrading, and establish the first mover advantage in a number of Internet brand enterprises.

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Reporter: to achieve the goals and challenges of the new stage, what is the biggest difficulty the group has to face?

Fang Jianhua: in our prospectus, we also clearly wrote some risks that the group may face. Of course, it does not mean that these risks will happen in turn.

A.'s new brand's rapid hatching has a certain impact on its performance: new brands need to invest a lot of operating costs in the initial stage of incubation. Meanwhile, new brands should be gradual in terms of market acceptance and acceptance.

In the future, if the new brand fails to achieve the established target in the market cultivation effect, it may lead to further decline of the company's performance.

B.: the risk of dividend reduction in online shopping: from the development stage, 2000~2010 is the high growth stage of online shopping. With the gradual decline of online shopping dividends and the stabilization of the main commodity commodity pattern, the marginal effect of traditional price war diminishing, and the growth rate of online sales has slowed down, and the economic development of e-commerce has gradually entered the new normal stage.

In the past, the company conformed to the development trend of e-commerce and the opportunity to grasp the bonus of online shopping. The company successfully built a series of domestic brand reputation brands, such as "Yin man", "Chu Yu" and "left on the left".

C.: the management and operation risk of multi brand strategy: 80 and 90's are becoming the main consumers of fashion apparel products. Their consumption attitude towards fashion apparel has been upgraded from simple acquisition of daily necessities to highlight their personality and taste.

If the clothing brand of the company can not be cut off in the design and the concept of the consumer group's pain points, or can not keep up with the trend in the design and operation level, it may cause the sales growth to slow down and then have a negative impact on the performance.

Reporter: what is the profit status of Hui Mei fashion group in recent years? What are the specific measures to promote the steady growth of earnings?

Fang Jianhua: I have just checked our data: in 2013, the main business income of Hui Mei was about 500 million yuan, about 537 million yuan in 2014, and about 538 million yuan in 2015.

In addition, over the past three years, the operating income of the group has increased steadily, about 590 million yuan in 2013, about 949 million 800 thousand yuan in 2014, and 1 billion 141 million yuan in 2015, and 60.73% and 20.35% respectively in 2014 and 2015.

In 2015, the profit of Hui Mei Group declined compared with the same period last year. The main reason is that the United States seeks long-term development rather than short-term profits.

In 2015, the O2O group launched three major projects, including the upgrading of paction and interaction channels (i.e. the O2O project), the fashion brand incubation and construction projects, and the information construction projects. The operation cost and promotion cost of the early stage of brand incubation were all high, so the overall performance of the company in 2014 and 2015 was lowered. On the other hand, the group launched the three major projects, and at the same time, it invested a lot in the personnel team building, and also had a certain impact on the total profits.

However, the strategy of multi brand development will be conducive to the continuous development of Sini group in the future. In the early stage of development, the investment will be greater because the group has maintained a long-term development strategy, and the initial investment is to bring about steady growth in the future.

Reporter: how does EMMAN See listing?

Fang Jianhua: after the listing, the company can also have more opportunities for mergers and acquisitions in the future, and use capital market to expand the company's business.

Listing is a new starting point for Hui Mei Group.

Internet brand to enhance customer price depends on "rich"?

Reporter: is online brand facing the dilemma of price linen?

Fang Jianhua: online shopping platform is not only the soil of cheap products, as long as the products with high cost performance will be loved by consumers, good sales are good products.

Hui Mei Group also has a high-end brand with high price per unit, and its performance on the platform is also good. Taking "living on the left" as an example, the customer unit price is mainly around 700-1000 yuan. Since its establishment in 2014, the development of the brand has been very fast, and the repeat purchase rate of the brand has reached 37.5%, which is at a higher level in the industry.

This shows that online shopping platform is also suitable for the development of high-end brand of soil.

As the pursuer of traditional handicraft, the high-end cotton and flax brand of Hui Mei Group has lived on the left. Since its establishment, it has been committed to building a platform for artisans, helping artisans to make a market oriented attempt to protect and inherit traditional crafts that are about to disappear.

In May 2016, the United States and the China Fashion Designers Association jointly launched the "Shou Yi China" action.

By joining the project plan, the artisans in the traditional industry can gain the market experience and support of the "left" supply chain resources, platform sales channels and big data management.

In addition, "living on the left" plans to create "millions of craftsmen" and open cooperative lines to craftsmen. In the official website, WeChat public number, micro-blog and other platforms, specialized communication channels and thematic pages are specially designed for handcraftsmen, and special mailboxes and 24 hours of opening channels are opened.

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Reporter: how does the Internet brand try to improve the unit price? What is the effect and whether there is room for improvement?

Fang Jianhua: Internet brands have enough space to cultivate high-end brands and raise the price of customers.

Hui Mei group chose the strategy of precision marketing, and through the deep operation of the consumer groups, "rich" Internet brand to enhance the customer unit price.

Do not blindly pursue sales scale, do not blindly follow suit discount sales promotion, drive brand power with products.

Take "living on the left" as an example, through customer research, around the "non replicable manual" to create high-end cotton and flax brand, and based on the precise customer preferences, for the customers often attend the banquet, meetings, art exhibitions and other occasions, do the scene style design.

In addition, "rich" does not mean spending money to smash advertisements, but aims at the high customer price displayed in the online shopping market. Starting from the psychological and consumption needs of high-end customers, it develops a high degree of brand loyalty, such as increasing the color of products, widening the age circle of target consumer groups, inviting a few VIP core customers and their friends, and high-end consumer groups to participate in activities, offering non promotional activities such as collocation courses, handcraft courses and excellent fitting experience, so that customers can feel interesting and atmosphere and pry the circle economy.

Reporter: how does the offline store face the difference between the online and offline prices? Is the online and offline prices really reliable?

Fang Jianhua: Innovation in business mode of "Yin man + thousand city stores" has changed the traditional sales way of traditional clothing industry, and has also subverted the traditional roles and relationships between enterprises and consumers.

In the past traditional shops, there was a conflict of interests between online and offline businesses.

The strategy of the same price under line and line is to solve this problem, let the offline store carry more user experience function, improve the brand space image and optimize the scene consumption experience.

The O2O experience marketing model of Hui Mei Group is compared with the traditional fashion enterprise, and the biggest innovation feature is:

A. franchisee candidates are generated by fans of the brand.

B. online and offline share the same price.

C. "three zeros": franchisee's "zero inventory", "zero affiliate fee" and "zero soft loading".

D. realizes all channels to get through online and offline.

E. in the O2O franchise experience store customer scanning code marks, even in the experience shop offline consumption, but in the future online shopping online also let franchisees share sales commission.

Through the innovative business mode, so as to achieve the same price online and offline, the O2O experience marketing mode of "Yin man" creatively combines the growth of the company's performance with the fans' interests, and at the same time, inspires the enthusiasm of the fans' independent brand marketing, and effectively promotes the experience shop under the line to actively develop members for the company.

Finally, the three party interests of the company, customers, franchisees (brand fans) are win-win, and the traditional fashion retailing mode is reconstructed, which integrates the traditional store business, e-commerce business and fans economy together, and improves the efficiency of the commercial retail business.

Reporter: can the opening shop be able to achieve the purpose of raising the unit price?

Fang Jianhua: opening line stores, the goal of this stage is to enhance fans' experience, enhance brand awareness and accumulate more new fans.

The O2O project of the Hui Mei Group "Yin man + thousand cities and ten thousand stores" can achieve the purpose of resource interoperability, information interconnection and mutual appreciation on line and online.

Secondly, the electricity shopping mode combines the experience of offline vision, touch and fitting to optimize the scene consumption experience, and online shopping mode increases online payment, express home consumption experience and information system big data collection and analysis function.

Under the background of the gradual decline of online shopping dividends and the rapid promotion of online brand promotion costs, offline experience shops play a scale effect for brand promotion, effectively reduce the overall brand promotion cost, enhance the added value of products, and build up a high performance price ratio product reputation.

In addition, offline location stores are located in different geographical locations to provide users with more advantage of localized differentiation services, and quickly establish consumer reputation in the region.

Insist on walking on two legs: offline stores can also be zero inventories.

Reporter: what is the core problem of opening the shop?

Fang Jianhua: unlike the traditional clothing industry franchise store, "O2O" is not a simple way to invest in offline stores. It's a traditional way to expand the brand and scale, but to build a slow life circle based on fans.

At present, the traditional offline fashion brands are faced with problems such as rental ratio, inventory and so on.

The innovative business model of "Yin man + thousand city stores" can effectively solve these problems.

A. "Yin man + thousand city stores" makes full use of the advantages of traditional channels, and reconstructs its functions, so that it can make online face-to-face emotional exchanges, fitting experience and various fans activities on line, and integrate different advantages of virtual technology and entity experience to create the ultimate user experience.

B. buys and pays online, so that offline channels do not need to occupy funds and backlog stocks, from "heavy channel" to "light channel".

Each store's experience shop is "zero inventory". The products in the store are mainly used for user experience. Customers can place orders on the spot or purchase online, and the goods are delivered directly to the customers.

C. "Yin man + thousand city stores" in the first tier cities in the way of direct operation, and large department stores cooperation; 234 line cities will be open to join.

The main purpose is to reduce the rental pressure of franchisees and increase the ratio of rental to sale.

Reporter: what is the key point of competition among Internet clothing brands?

Fang Jianhua: because the pricing strategy and cost structure of different brands are different.

The multi brand development mode adopted by Hui Mei Group is different from other traditional brands. Our innovation lies in the following aspects: relying on the brand effect of "Yin man", the management advantages of the supply chain and the accumulation of millions of users, through the independent creation, capital operation and "partner building", we will constantly hatch out more unique and original fashion brands with unique characteristics, so as to meet the fashionable consumption demands of different people nowadays and in the future.

At present, the company's choice of incubator brand includes three main considerations:

The potential customers of the A. brand incubator brand need to be matched with the existing customers.

Take "living on the left" brand as an example. The brand belongs to the high-end cotton and hemp brand. It will fill and continue the dedication of the customers to cotton and ramie products along with the improvement of the income and taste of the main brand customers.

B. incubation brand must match the future demand of consumers.

C. is the selection standard for collaborators of original brand designers.

First of all, the original brand designers who want to cooperate with them have strong love for their designs.

Second, the designer should have certain enterprise management ability gene, because as a founder and partner of the brand, the designer not only takes the role of the design director, but also deeply participates in the operation management of the whole brand subsidiary.

Third, designers need to have a certain amount of capital investment, because they join the Sina brand incubator as a brand partner. For them, this is another business, which requires the pressure and motivation of entrepreneurship.

Reporter: will the relationship between the Internet clothing brand and traditional clothing brand enter a new stage?

Fang Jianhua: in the future, there will be no labels that are strictly distinguishable from "online brand" and "offline brand".

Hui Mei Group started the project of "Yin man + thousand city stores", the same price as online and offline, the "zero inventory", "zero affiliate fee" and "zero soft load" of franchisees to achieve the full access to online and offline businesses. This innovative business model will cater to the needs of market development and bring sustained and stable business growth to the group.