National Brand: Guohuzhiguang Hongdou Co., Ltd. Plans To Increase The Speed Of Brand High-End

Recently, Hongdou Shares (600400) disclosed the plan for non-public issuance of A-shares in 2023. The company plans to issue shares to no more than 35 specific objects, raising no more than 1.2 billion yuan in total, of which 450 million yuan will be used for the upgrading and transformation project of Hongdou brand experience store, 350 million yuan will be used for the construction project of Hongdou brand e-commerce center, 110 million yuan will be used for the construction project of Hongdou brand design and research center 290 million yuan was used to supplement working capital.

With regard to the impact of this fixed increase on the company's operation and management, the announcement disclosed that the investment project of the raised funds conforms to the relevant national industrial policies and industry development trends, It fits in with the company's main business and has good market prospects and economic benefits. The successful implementation of the investment project of funds raised through the non-public offering of shares, It can effectively enhance the brand image and influence of the company's products, enhance the comprehensive operation ability of the company's online and offline channels, further improve the company's ability to meet market demand and market position, thus improving the company's overall competitive strength and anti risk ability, maintaining and expanding the company's leading edge in the industry, And then drive the company's profitability and sustainable development ability to improve.

According to public information, Red Bean is mainly engaged in the production and sales of men's clothing. Red bean is one of the earlier rising men's wear brands in China, and has been listed in the Top 100 of China's 500 Most Valuable Brands for eight years. In recent years, with comfortable clothing as the exploration point, Red Bean has clearly defined the brand positioning of "classic comfortable men's clothing". With high-quality men as the core consumer group, Red Bean focuses on the research and development of comfortable men's clothing, and focuses on the whole retail business. In August last year, Red Bean was awarded the title of "Pioneer of Comfortable Men's Wear Track" by the China National Garment Association.

Focus on innovation highland, build two new centers in Shanghai, and grasp the "Yangtze River Delta digital trunk line"

Focusing on the main clothing industry, accelerate the overall construction of the brand, and Red Bean aims to accelerate the high-end transformation! The brand e-commerce center and design and R&D center project disclosed by Red Bean is a new project in different places, which is an important node project of Red Bean's strategic layout in the core area of Shanghai for the first time outside its headquarters in Wuxi.

　　 Focusing on innovation highlands, the new construction of two centers on the "Yangtze River Delta Digital Trunk" undoubtedly brings great development opportunities for the high-end transformation of Red Bean. It is disclosed that the Hongdou E-commerce and Design R&D Center will be located on Huqingping Road, Zhaoxiang Town, Qingpu District, Shanghai, in the Yangtze River Delta Integrated Demonstration Zone, and at the core of the Yangtze River Delta Ecological and Green Integrated Development Demonstration Zone and Hongqiao International Open Hub.

Relying on the geographical location advantage, business environment advantage and Internet industry policy of Qingpu District, Shanghai, the Hongdou brand e-commerce center project to be implemented by Hongdou will bring in high-end e-commerce talents at home and abroad by virtue of Shanghai's talent resources advantage and international advantage, and improve the professional level of the company's e-commerce operation team. At the same time, it is conducive to improving the company's online and offline omni channel sales capability, Expand the breadth and depth of the integration of the company's business and e-commerce; It is conducive to enhancing the company's e-commerce operation capability.

In addition, for the textile and clothing industry, design and R&D is the key link. As the fashion capital of China, Shanghai has gathered a large number of well-known garment enterprises and colleges and research institutes that offer garment design majors, and has a large number of international garment design R&D professionals. The construction project of the red bean brand design R&D center is an important part of promoting the transformation and expansion of the red bean brand strategy to high-end, independent, fashionable, intelligent and other fields. Based on the existing R&D design of the company, The new design R&D center will form four major platforms for collaborative R&D and innovation, including clothing product design, product development, scientific research and development of leisure sports functional materials, intelligent customization and customer consumption behavior research, to further improve the company's R&D conditions and strength.

　 Focusing on the comfortable track, starting the upgrade of brand experience stores, and marching forward in the new consumption

As the first brand focusing on comfort track in China's clothing industry, Hongdou's strategic choice is high-end. Since last year, Red Bean has been upgrading frequently, and disclosed many key actions in relevant financial reports, mainly focusing on products, communication, channels and operations, to comprehensively promote the matching work and create classic comfortable men's clothing.

In the non-public offering project disclosed at the beginning of 2023, Red Bean clearly will focus on increasing investment in research and development, channels and other aspects. Accurately grasp the characteristics and trends of China's new consumption under the "post epidemic situation". In addition to the new Shanghai e-commerce and R&D centers, Red Bean will also raise 450 million yuan to upgrade brand experience stores, optimize the omni channel marketing network system, and enhance the sense of interactive experience. Based on the prudent consideration of channel layout in the post epidemic era, Red Bean Co., Ltd. plans to select 300 existing direct stores with good foundation to upgrade software and hardware to build brand experience stores; In addition, 10 existing high-quality direct stores in key domestic cities are selected for overall design and transformation to create flagship stores for brand experience. The stores are mainly concentrated in the mainstream business districts of Jiangsu, Shanghai, Zhejiang, Anhui and other key provinces and cities. The project will further consolidate the channel advantages of mainstream business districts in key offline provinces and cities, promote the implementation of the company's high-end brand strategy upgrade, and consolidate and enhance the company's industrial position in the men's wear market.

　　 Aiming at "comfort" and breaking the game quickly, Red Bean is accelerating to win the market share of comfortable men's wear! In 2022, through the "Red Bean 0 Sense Comfort Shirt", which has sold 300000 pieces in half a year, won five authoritative design awards and broke the industry record, and through the Wuxi Zhongshan Road Red Bean Men's Wear Flagship Store, which was selected as a national new consumption demonstration project, we can see its new attitude of leading the "comfort" track. Behind the recognition of products and stores, the power of the strategy of "classic comfortable men's clothing" has begun to show. But how to go from "popular products" to everlasting popularity? How to let comfort experience shake consumers' minds? How to make the brand a weapon to mobilize customers? In the follow-up of this non-public project, Red Bean needs to practice more strategic and new "tactics" to create new growth space for brand development.

As a classic national brand, Red Bean, the light of national products, is gaining more and more popularity in the rising trend of national fashion consumption. Especially after focusing on the comfortable new track, it will inject new development opportunities for its transformation and upgrading. Break the boundary with "comfort", continue to upgrade the brand, and ensure the implementation of strategic upgrading through fixed capital raising, The "comfort" that Red Bean shares adhere to will move towards a broader and more high-end field, forming a more determined, long-term and sustainable growth driver.