Chapter 335: Competition (Asking for a Monthly Pass)
After the establishment of Huayou Group, there is no clothing company in China that can compete with it.
Whether it is the size of the company or the market share, the three brands of Huayou Group needless to say combined, and they are all killed by other domestic clothing brands in seconds.
However, at present, it can only be called the king and hegemony in China, and looking at the world, it is not a real giant.
Even if you only look at clothing brands, there are now several giants that are far from being able to reach the current Huayou Group.
According to the 2011 Global 2000 list released by Forbes a few days ago, the French luxury goods company Christian Dior topped the list with an overall ranking of 150, becoming the world's largest clothing retailer.
According to data released by Forbes, Dior's sales recorded double-digit growth to $49 billion last year, with a market value of about $76.4 billion, and it far surpassed other similar brands in the market in terms of profitability and assets.
Dior's relationship with LVMH has always been complicated: Dior owns 46% of LVMH, and LVMH has acquired Dior's fragrance, beauty and fashion divisions.
In addition, according to LVMH Group's financial report last year, the growth of the core brand LV performance and the Group's acquisition of the Dior fashion business for 6.5 billion euros last year directly led to a year-on-year increase of 13% to 15.472 billion euros in sales of the group's fashion and leather goods division.
The second largest apparel group on the list is Spanish retail giant Inditex Group, the parent company of fast-fashion brand ZARA.
Fast fashion has always been popular with consumers for its trend-keeping designs and relatively low prices, and ZARA's sales grew by 9% to $29 billion last year. Inditex currently has a market capitalization of about $99.5 billion, ranking 289th overall.
It is followed by Nike, the largest sportswear group in the United States, with a market capitalization of $91 billion and ranking 344th on the overall list. Of course, Nike is actually mainly selling shoes, and it is not a real clothing company.
Swedish clothing retailer H& Fashion, also a fast-fashion giant, Fast Retailing, the parent company of M and Uniqlo, is ranked behind the top 500, with Fast Retailing ranking 578th, with revenue of $18.2 billion last year and a current market capitalization of about $45.7 billion.
H& Group M fell to 583rd place in the overall ranking due to its continued sluggish performance, with sales of $23.71 billion last year and a market capitalization of about $26.7 billion.
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It can be seen from this list that the annual revenue of real clothing giant companies is hundreds of billions of yuan, or even hundreds of billions!
And the market capitalization, the highest Dio, has reached nearly 500 billion yuan!
Garment enterprises, because it is a traditional industry, the industry competition is fierce. Therefore, the company's valuation is significantly inferior to that of technology companies.
Like Dior, the annual revenue is 49 billion, and the market value has only reached more than 70 billion US dollars.
The market value is not twice the revenue, if this performance is put on the Internet company, then the stock price is not directly soaring?
Just like Meigo.com, it's just that it can make a profit, and its annual revenue is actually less than $10 billion, or even $5 or 6 billion.
But what is the market capitalization after listing?
It has already exceeded 100 billion US dollars!
Is this because investors are stupid? Apparently not.
The potential of Internet companies is far greater than that of traditional companies, and even if the revenue of Internet companies is only 10 billion US dollars this year, it may be 20 billion or even tens of billions next year!
It's that it's easy to have explosive growth, but that's simply not possible with traditional businesses.
This is the difference between Internet companies and traditional enterprises, and it is also the reason why the market value of traditional enterprises is generally low.
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Since Wang Ye wants to be the top in the fashion industry, he will inevitably compete with these giants in the future.
Of course, he is not able to compete with giants like Dior, let alone LVMH and Kering.
His goal at this stage is just to defeat ZARA and Uniqlo in the domestic market first!
As for HM, it has been tepid in China, the quality is too rubbish, and the Chinese people are not so easy to deceive.
With the arrival of the trend of consumption grading, after entering the second half of 2012, the trend of consumption polarization is becoming more and more obvious in large cities, especially in first-tier cities.
Of course, the real rich people buy clothes and are luxury brands, so in the past two years, luxury brands have also begun to open stores in a big way and seize the market.
Low- and middle-income earners, on the other hand, have passed the stage of pursuing brands and are beginning to seek individuality and affordability.
That's when fast fashion brands came into their sights.
The style is good, the quality is passable, and the price is very cheap, which is the characteristic of ZARA and UNIQLO.
Of course, it is also the feature of the best products!
Take Yangcheng Tianhe City as an example, Uniqlo, ZARA, HM, Youxuan, and even another domestic fast fashion brand UR have all set up stores here, and the competition has entered the white heat.
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In fact, some time ago, that is, during the National Day holiday, these fast fashion brand stores in Tianhe City set off a "war", a promotion war!
ZARA launched the "2 pieces 90% off, 3 pieces 80% off, five pieces 6% off!" campaign. This brand used to be relatively high-profile, and it rarely engaged in this kind of direct discount activity except for the broken code special price.
However, the birth of the best products has made ZARA feel what is called strong competitiveness.
In the first month of the opening of the Yangcheng Tianhe City store, the sales of ZARA's Tianhe City store plummeted, from the original monthly sales of more than 20 million yuan, plummeting by half!
Now this store, the monthly sales are about 10 million, which is no longer comparable to the sales of the best products.
To this end, the person in charge of ZARA South China Branch specially applied to the Greater China headquarters to do a promotion, which is to compete with the best products during the November Golden Week to suppress its momentum.
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Needless to say, HM has always had great discount promotions, and this time it directly launched the "T-shirt crew neck 29 yuan! slacks 59 yuan!" activity.
Oh, but his clothes are really only worth the price.
Uniqlo has also made efforts, but his clothes are not expensive in the first place, and the quality is okay, so the profit margin is not much.
Therefore, the promotion efforts are naturally not as strong as those of ZARA and HM.
UNIQLO's campaign is "Designated Models, 6% Off for a Limited Time!"
This is a gimmick, it looks like a 6% discount is quite tempting, but it is only available in designated items, and it is a limited time, while stocks last.
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But no matter what, several major competitors are engaged in activities, and how to deal with the best products.
Regarding this issue, Liu Wenjuan also discussed it with Wang Ye.
In Wang Ye's office, Liu Wenjuan put forward her suggestion: "We also have to do the activity, otherwise we will be overpowered by our opponents in terms of store entry rate." But I don't recommend going too far with this activity. ”
Wang Ye didn't express his opinion, but just asked her, "What do you think?"
"The quality of our products far exceeds those competitors, and the price is low, so we are very competitive. So there is no need to follow them to do such a big activity, my idea is to refer to Uniqlo's practice and specify the profit. Liu Wenjuan replied.
Wang Ye nodded slightly, indeed, as Liu Wenjuan said, the best products are originally very cost-effective. If you carry out large-scale promotions, you will really lose money.
Moreover, Wang Ye also takes into account one point, that is, the impact of promotional activities on the brand itself.
If a brand often engages in promotions, then consumers will be labeled as "cheap goods" and "promotional goods", which will cause great damage to the brand in the long run.
On the contrary, those brands with strong prices tend to live longer and live more nourishingly.
How to do an activity that has its own characteristics and will not hurt the vitality of the brand, Wang Ye is also thinking.
Liu Wenjuan said that Wang Ye was not satisfied with the plan of the designated money concession, because this plan was too ordinary, and it could not impress consumers.
Wang Ye's fingers unconsciously tapped lightly on the table, wondering if there were any novel tricks.
His eyes inadvertently swept over the tabletop, and he was suddenly drawn to something.
It was a pair of dolls, and it was the little gift he gave to the guests at the engagement ceremony.
A doll where he and Isabella are holding hands.
This one is made of ceramic, with fine workmanship and lifelikeness. At that time, he gave it to his old colleagues in the Huashang Brand Division, and everyone liked it very much.
Of course, he didn't want to use this as a promotion, but it gave him an idea!
Although the products are aimed at consumers of most ages, according to statistics, the main force is still young men and women.
This is also normal, young people, it is the period of peak consumption.
For older people, you can wear a piece of clothing for several years, but for young people, you may only wear it for one season, and then you have to buy a new one next year, because the old clothes are outdated.
To attract these young consumers, it is not very attractive to simply be cheaper, and the price of the best clothes is very low, and it is not cheaper to discount.
Therefore, if the price is more than ten or twenty yuan, or ten or twenty yuan less, will it affect the shopping choice of consumers?
So in this way, Liu Wenjuan said that the discount effect of the designated model will not be good.
And what Wang Ye thought of will be much more attractive to young consumers, and it will have its own brand characteristics and characteristics, which others can't imitate!
And this plan has to start with the fire of the entertainment show "Run, Brother!".
It was launched in September, and only a few episodes have been broadcast, and Run Brothers has become a phenomenal entertainment program.
And the seven regular guests in the show are also familiar to all young people across the country. As the only female guest, the young and beautiful Ling Fei has now become a real "traffic leader".
Her popularity may have been relatively weak before, because it was all driven by hype and even a water army.
But after the broadcast of Run, Brother Ran can be regarded as really consolidating her fan base.
Now Ling Fei's Weibo followers have exceeded 30 million!
This amount has caught up with Xue Yiyi.
What's more, her fans are not very old, in their teens and twenties, and they are all real fanatical fans!