Erdos Fundraising 430 Million For Channel Expansion And Brand Upgrading

Ordos, started with cashmere products, is rebuilding its brand.

In August 1st,

The announcement issued a preplan for non-public offering of A shares.

The company plans to raise 430 million yuan for channel expansion and brand upgrading.

As a traditional brand of cashmere dress, Erdos wants to break up the brand and create new brand to attract more consumer groups.

According to the content disclosed in the announcement, the total number of shares of the non-public offering is no more than 62 million 950 thousand shares, and the total amount of raised funds is not more than 437 million yuan. The net proceeds raised after deducting the issuance cost will be invested in marketing channel expansion, brand upgrading project, R & D production system upgrading project and information system upgrading project.

As a traditional cashmere

Erdos wants to strengthen the construction of outlets and e-commerce channels, and attract more young consumers.

The largest investment in the fund-raising has been marketing channels to expand the brand upgrading project. The total investment of the project is about 2 billion 600 million yuan, and it is about to invest 137 million yuan.

Erdos said that the project to raise funds was also designed to conform to the strategy of separation and reshaping of the Ordos brand.

In order to adapt to the change of the consumer market, the pformation of Ordos is imminent.

By the end of 2015, the brand launched a multi brand strategy consisting of "ERDOS", "Ordos 1980" and "BLUE ERDOS".

As a traditional brand of cashmere dress, Erdos hopes to divide the brand into three. Among them, the new brand "BLUE ERDOS" will be specifically aimed at young customer groups. "ERDOS" and "Ordos 1980" are the resolution and reconstruction of Ordos brand.

In addition, in terms of audience size, "BLUE ERDOS" is more prone to urban youth customers, while the other two brands are more inclined to the brand of traditional familiar customers.

In order to get rid of the old cashmere products in the past, Ordos has launched a brand that prefers young customers in cities, and has announced a large investment plan.

Many clothing brands have cut down the number of physical stores in the face of the tough environment of clothing, but Erdos still says it will continue to open stores.

The fund will be opened in 298 stores in China and 26 overseas. The total cost will be 2 billion 290 million yuan, with a construction period of three years, including shopping centers and street stores.

As for the reasons for opening stores and the adjustment of the number of stores, the Beijing business daily contacted the Ordos group to interview the outline, but no reply was received as of the date of issue.

In addition, Ordos also through the online multi-channel layout, plus Tmall, vip.com, Jingdong and other platforms.

In the process of expanding sales channels, Ordos undoubtedly showed the intention of pushing traditional cashmere products to young consumer groups.

Min Guangya, chief consultant of Guangzhou blue Olympic retail consultancy and clothing marketing expert, told the Beijing Commercial Daily reporter that Ordos extended the whole category with the single product as the core. Under this premise, the reconstruction of the Ordos brand should be cashmere as the core product and the core competitiveness of the product.

However, some analysts believe that there are certain seasonal attributes of cashmere clothing products and down garment products. There are some seasonal sales in the off-season, which will further lead to some barriers in the promotion of products and brands.

The total operating income of Erdos in 2016 was 16 billion 590 million yuan, including the electroforming plate and

The two main business of garment plate.

By the end of 2016, the number of Ordos national stores was 1141, of which 493 were direct stores, and the cashmere clothing sector had only 2 billion 470 million yuan in 2016.

As of the first quarter of 2017, the number of stores in the company amounted to 1121, of which 486 were direct and holding stores, and 635 were franchises.

For more information, please pay attention to the world clothing shoe and hat net information report.