Pay more attention to brand promotion than production research and development.
Jiaman Clothing adopts multi-brand operation strategy, including its own brand, authorized brand and international retail agent brand. Hu children's wear and Haggis children's wear are two authorized brands of Jiaman clothing, which are positioned in the middle and high end. It is reported that Jiaman Clothing obtained the exclusive authorization of Hushi Children's Wear and Haggis Children's Wear in Chinese mainland (excluding Hong Kong, Macao and Taiwan) on 20 13 and 20 15 respectively, and the company can independently design, produce, manage, promote and sell the above-mentioned brands of children's wear. Among them, Hushi is an American casual clothing brand founded in 1958, and Haggis is a fashion brand spun off by South Korea's LG Group, both of which are internationally renowned fashion brands.
Hushboy children's wear and Haggis children's wear have good sales performance, accounting for a high proportion of the company's revenue, and are also the company's flagship brands. In recent years, the brand image of Hu children's wear and Haggis children's wear has been gradually established, which is attributed to the brand operation and promotion strategy of Jiaman Clothing. Jiaman Clothing has repeatedly emphasized the role of brand operation and promotion in the prospectus, and its investment in this area is also increasing. China Business Daily reporter noted that since 20 19, the brand promotion expenses of Jiaman Clothing have increased year by year.
It is reported that a large part of the funds raised by Jiaman Clothing in this IPO is also planned to be used for brand operation. According to the prospectus, the raised funds are mainly invested in four projects, except the construction project of e-commerce operation center with the largest investment is the marketing system construction project, with the investment exceeding 654.38 billion yuan. The marketing system construction project is a further improvement of the existing marketing system of Jiaman Clothing. By expanding the construction of offline flagship stores, collection stores and specialty stores, including the construction of Husby children's wear and Haggis children's wear direct stores, the company's brand image, market coverage and direct sales ability will be enhanced. And it has played an obvious role in enhancing the company's brand image. This point is also mentioned in the prospectus-this project will further expand the flagship store, collection store and specialty store, further strengthen the market coverage, and increase the opportunities for consumers to understand the enterprise and brand, especially by arranging the flagship store and collection store with high-end image, which can fully display the brand image and explain and convey the brand culture.
In addition to focusing on brand operation and promotion, Jiaman Clothing also emphasizes the development of R&D and design capabilities to promote brand image building. Jiaman Clothing said in the prospectus that strong design and R&D capabilities are the company's core strengths, and the company has an experienced design team. The company's design center has set up different design groups for its own brand "Shuihaier" and authorized brands "Hushi" and "Haggis". During the reporting period, the number of SKUs designed, put into production and sold by the issuer each year was 5037, 7503, 7696 and 4399 respectively.
However, enterprises and brands that attach so much importance to R&D capability actually have low R&D investment. Although Jiaman Apparel IPO had a meeting, the Shanghai Municipal Committee made an on-site inquiry during the meeting. During the reporting period, the revenue generated by the authorized brand operation of Jiaman Clothing accounted for about 565,438+0%-62% of the operating income. Jiaman Clothing R&D investment accounts for about 1% of operating income, which is lower than that of comparable companies in the same industry. Shanghai Municipal Committee asked it to explain the concrete embodiment of innovation in combination with business model, innovation ability and R&D transformation ability, as well as the reasons and rationality of R&D investment being lower than that of comparable companies in the same industry.
Not only the R&D investment ratio is not high, but also Jiaman Clothing attaches great importance to cost control in the production process, and all of them adopt the light asset mode of outsourcing and OEM, as do Hu's children's wear and Haggis children's wear. According to the prospectus, Jiaman clothing itself is not produced, and the products of the company's own brands, such as Shuihai, Festin, Hu's and Haggis, mainly adopt the way of purchasing clothing directly from domestic OEMs or purchasing raw materials from publishing houses and then entrusting processing. Although this method has advantages in capital occupation and cost control, it also bears certain risks. The production organization ability, management level and quality control of the main engine factory directly affect the quality and delivery date of the company's products. Once the corresponding problems appear in the main engine factory, it will bring risks to the company's operation.
Huashang Daily reporter contacted Jiaman Clothing on many issues concerning R&D investment and light production management strategy, but as of press time, no reply was received.
Can perennial discounts support high-end positioning?
Jiaman Clothing adheres to the multi-level and multi-brand operation strategy and adopts the marketing mode of simultaneous development of offline and online. With the development of e-commerce, the online business of Jiaman Clothing has gradually become the mainstream. According to the prospectus, Jiaman Clothing has established online direct sales channels through e-commerce platforms such as Vipshop, Tmall, JD.COM, etc. During the reporting period, the proportion of the company's online sales revenue to its main business income was 42.75%, 52.9 1%, 6 1.59% and 62. 17% respectively. Jiaman Clothing is a company with the highest proportion of online sales among comparable listed companies in the same industry, realizing the deep integration of children's wear sales and e-commerce.
Perhaps it is precisely because of focusing on online channels that the promotion strategies of Hu's children's wear and Haggis's children's wear are also very e-commerce-keen on discount promotion.
Vipshop will be an e-commerce joint venture platform for Jiaman Clothing. Compared with Taobao and JD.COM, their cooperation is closer. In Vipshop's self-operated children's clothing store, the reporter noticed that the retail price of goods is 20% off the tag price everywhere, some T-shirts and pants are discounted within 100 yuan, while jackets are within 200 yuan. In addition, at present, Hushboy children's wear Tmall flagship store is also promoting profits, with 20% discount for 2 pieces and 30% discount for 3 pieces, as well as various full discount coupons from 300 yuan, 600 yuan and 900 yuan. Finally, the hand price of a product is equivalent to 5-6 fold of the label price.
Compared with Hu's children's wear, Haggis children's wear has a higher price positioning, and the discount of Haggis children's wear on Vipshop platform is mostly around 60% off. In summer, T-shirts are around 200 yuan, jackets are around 400 yuan, skirts for girls range from 500 to 600 yuan, and down jackets cost thousands of dollars. Haggis children's wear Tmall flagship store is also on sale, with 20% discount for 2 pieces, 50% discount for 600 yuan, 999 yuan 100 discount, 200% discount for 1899 yuan and so on. , can be superimposed.
Not only online discounts, but also offline stores have higher discounts. The reporter saw in the children's clothing store of Xuanwu Store, a shopping mall above Rainbow, that the information of discount promotion was posted everywhere on the clothes shelves. The old products in the off-season were 50% off the tag price, and even the new products in the season were 6.5% off the tag price. After the discount, the prices of the sweaters and trousers of Hu's children's wear are mostly within 100-200 yuan, and the coats are within 200-300 yuan. The clerk told the reporter that Hu's children's wear is basically discounted all the year round, and the discount intensity is slightly different in different periods.
In fact, discount is also a marketing strategy advocated by Jiaman Clothing. According to the prospectus, when the company's products are sold abroad, a certain commercial discount is given according to the marked price. The main sales discounts under different sales models are different: offline direct stores, the discount for new products in the current season is 5-8 fold of the label price, and the discount for off-season or off-season styles is 3-5 fold of the label price; For franchisees, the discount for new products in the current season is 3-4 fold of the tag price, and the discount for off-season or off-season styles is de 1.5-3 fold of the tag price; E-commerce direct sales, the discount for new products in the current season is 3-6 fold of the label price, and the discount for off-season or off-season styles is 2-4 fold of the label price.
In the eyes of the industry, setting a higher price tag and then reducing the price through discount promotion will be attractive to consumers in the short term, but there are also many disadvantages of discount promotion, the most obvious of which is to affect the brand image. As high-end brands, can Hu children's wear and Haggis children's wear adopt this promotion strategy to support the brand image for a long time?