Seven Wolves Announced The Termination Of The "Marketing Network Optimization Project" To Adjust The Channel Positioning

It is reported that in January 5th Seven wolves The industrial Limited by Share Ltd announced that based on the changes in the macroeconomic environment and the market environment of the garment industry, it fully considered the actual situation faced by the company. Combined with the current progress of the "marketing network optimization project", in order to raise the efficiency of the fund raising, it decided to terminate the "marketing network optimization project" of the non-public offering of the fund-raising investment project, and used all the remaining funds and interest and financial income of the above projects for permanent supplementary liquidity. Next, follow the world clothing shoes and hat net Xiaobian together to find out the details.

In June 13, 2012, the seven wolves raised 1 billion 798 million yuan for investment and construction of the "marketing network optimization project". The main funds were invested in the purchase of commercial property, and 1200 additional sales terminals were added. Among them, 60 flagship stores and 300 stores were set up by direct operation, and 140 flagship stores and 700 exclusive stores were joined through franchising.

However, influenced by the environment and various reasons, seven wolves. Marketing network optimization The progress of the project is slow, and the fundraising funds are invested in the decoration and matching of the shops, while the shops purchase is not invested because of the risk. Seven wolves admitted frankly that in the face of rapid changes in the channel, in the case of commercial property prices at a high level, the implementation of the original plan to implement investment projects purchase shop risk is too large, will increase the risk of raising funds, does not meet the interests of shareholders. And at this stage, commercial channels are facing a complex external environment. Shops purchase faces greater risks and does not meet the interests of shareholders. Therefore, seven wolves did not buy new stores since they raised funds in 2012.

The decline of the performance of the seven wolves is related to the transformation of the garment industry development mode. The industry analyst Lei Yu said earlier that the seven wolves had a good foundation in the brand, products, channels and supply chain, which could withstand the adverse external environment to a certain extent and ensure that the company had more time to carry out the transformation of the business mode. However, over the years, over reliance on the extensive expansion of channel expansion has made the seven wolves transformation tied down by their own size, which has affected the progress of the seven wolves for retail adjustment.

Except for February and May, the volume of retail sales of clothing increased every month in 2016, but the retail environment has not yet recovered significantly. The pressure of terminal promotion is still relatively large. Retail prices have declined in 1-5 months, and retail prices have rebounded in 6-9 months.

The clothing brand represented by seven wolves and benefited from the upgrading of consumption, the consumer in the process of rising is mainly 70. With the 1980s and 1990s becoming the mainstream consumer of social consumption, the consumption trend is changing. After 80, especially after 90, in the era of material safety, the growth of material wealth, the understanding of social form and the experience of individuality are totally different from those after 70. These differences are converging into the mainstream trend and have a potential impact on the rules of the business world.

Seven wolves also pointed out that at present Garment industry In the past, the extensive mode of growth that has been relying too much on channel expansion has been difficult to sustain. Its "marketing network upgrading" has shifted from "extension expansion" to "endogenous growth", upgrading the "product strength" and "channel power", adjusting the positioning of the channel, carrying out the channel classification and upgrading, and actively exploring new online and offline interactive mode.

However, Cheng Weixiong, a senior observer in the clothing industry, said that analyzing a successful clothing brand must have the three forces, such as brand power, product strength and channel power. The combination of three forces can achieve the popularity and reputation of the brand. From the development of the clothing retail market in recent years, if we want to turn the brand from the role of the banner into a servant for the channel, we must start from the angle of enhancing competitiveness.

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