Not Expected Decathlon JP Group To Terminate Its New Brand

In January 15th, the ADIDAS, PUMA, NEWBALANCE, UNIQLO, Decathlon, Muji and other OEM Zhejiang Jian Sheng group Limited by Share Ltd (hereinafter referred to as "Jen Sheng group") issued a notice, saying that because the project failed to reach the expected date, it was intended to terminate the "Jian Sheng's personal clothing O2O marketing network construction project". The remaining 285 million yuan will be used to raise funds for permanent supplementary liquidity.

It is reported that the total investment of Jenson group's termination investment project is 310 million yuan, of which 180 million yuan invested in the construction of Direct stores, 80 million yuan invested in the construction of its own e-commerce platform and the three party platform, 20 million yuan for the construction of O2O information management platform, and 30 million yuan for brand promotion. At the same time, at the early stage, 300 Direct stores are planned to be established, and through the e-commerce platform such as domestic electricity suppliers, cross-border electricity providers, and micro businesses, the marketing network system of seamless online and offline business is built.

As of December 31, 2018, Jian Sheng group has actually invested in the project 2087.45 million yuan, accounting for 6.96% of the planned use of raised funds, has invested funds for direct store rental, decoration and advertising investment and other purposes.

For this change, in the announcement, Jian Sheng group said that the project has not been able to achieve its expectations in recent years. If there is a plan to continue to raise funds to carry out the project, the corresponding return on investment will be more uncertain.

In fact, in recent years, with the continuous development and popularization of Internet technology, residents' consumption habits have changed, and socks, underwear and other fast food products are generally purchased through Taobao, Jingdong and other network platforms. In this regard, Jian Sheng group also said in the announcement that as the company's products belong to the daily use of personal clothing, with the characteristics of high replacement frequency, low unit value and strong privacy, it is more difficult to give full play to the advantages of online consumption under the O2O mode. Under the current competitive environment of domestic clothing, the company has difficulty in entering the market development and promotion with its own brand, so it decides to change the project.

In view of the influence of Jian Sheng Group on the permanent supplementary liquidity, Jian Sheng group pointed out in the announcement that this change will help to alleviate the demand for liquidity and increase the efficiency of capital use in the main business development of the company, which will help to reduce the company's financial cost and improve its operating efficiency.