Increased Difficulty In Success Of Sub Brand Strategy

Obviously, more and more enterprises want to layout in each segment of the clothing industry through multi brand strategy. However, industry insiders point out that from the round of brand wave launched by Minpai Men's Wear four or five years ago, there are few successful cases in its multi brand strategy, such as the acquisition of Aidu by Seven Wolves.

"The inventory crisis of shoes and clothing has gone through more than two years. After deep adjustment and pain, many enterprises have a clearer and deeper understanding of the increasingly obvious personalized demand of the market, so there is a new wave of wheel brands." Quanzhou Shi Zhengzhi, Secretary General of the Textile and Garment Chamber of Commerce, believes that this wave may be an in-depth transformation and upgrading of the industry.

Compared with a single brand, the multi brand strategy can better adapt to market differentiation, shape brand personality and improve the overall market share of enterprises. However, unlike many brands of international companies that operate independently, "domestic sub brands operate basically according to the management model of the parent brand, which belongs to the imitative operation". When many companies launch sub brands, there are still many overlaps with the parent brand's positioning and consumer groups, which results in the mutual interaction of brands compete 。

"Acquisition or self creation Subbrand The key to success lies in resource integration and fast fashion response after acquisition or self creation. " Zhang Fasong, a local marketing expert familiar with Quanzhou garment enterprises, pointed out that at the moment of overall downturn in retail, multi brand management integration will become more and more difficult, the cost of building new brands will become higher and higher, and the success rate will become lower and lower.

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According to the recent internal records of Norge Group, there are 37 civil actions and 32 arbitration cases against Norge Group, respectively, pending the judgment of relevant Chinese courts and arbitration commissions. Since the announcement in January, there has been no significant progress in the civil action against Ding Hui and Ding Canyang.

As far as the directors are well aware, there is a civil lawsuit filed by an independent loan policy against the executive directors Ding Hui and Ding Canyang. The two executive directors are alleged to guarantee the loan provided by the independent lender. The relevant civil lawsuit is pending the judgment of the relevant Chinese court. KPMG must provide sufficient financial records and supporting documents before it can estimate the time required for the analysis of the Group's assets and liabilities. In view of the current situation, the Company has appointed an accounting company to assist in preparing its accounts for the six months ended June 30, 2014 and the year ended December 31, 2014, and is looking for qualified financial personnel for its Finance Department.

Since the last quarter of 2014, Norge has been consulting with local government officials and Quanzhou Intermediate People's Court on the petition of restructuring the group. In the recent communication with the relevant authorities, the company noticed that the Quanzhou Court seemed to be willing to accept the petition for restructuring the group. However, up to now, the company has not received the formal reply from Quanzhou Court. The acceptance of the petition by the Quanzhou court is a necessary condition for the reorganization of the group, and is also important for the enterprise and financial planning of the group. It is expected that after receiving the petition accepted by the Quanzhou Court, the company will be able to formulate and implement a specific and feasible plan to resume the trading of shares in the Stock Exchange, and appoint forensic accountants and internal control consultants. Except as disclosed above, there was no significant progress in the company's proposed plan for resumption of trading, delayed payment of final dividends and announcement of 2014 interim results. Since the announcement in January, there has been no significant progress in the business operation of the Group, and the total number of retail stores operated by the Group is still 92; In addition, the proposal to formally remove Ding Hui as a director of the company has not made significant progress. The trading of shares continued to be suspended.