The open letter is sincere, but it hides a torrent. Zhou Shaoxiong reiterated the transformation road of the seven wolves, took stock of financial reports one by one, and emphasized channel integration and product innovation, with only one purpose-to restore the truth to the public.
Prior to this, media reports such as "the market value evaporated by 20 billion, 2,000 stores closed down, and the first brand of men's wear in China closed down" spread all over the network in a viral way.
This is not the first time that seven wolves have been maliciously attacked. Two years ago, due to the rise of e-commerce platform, clothing stores entered a shrinking era, and domestic brands such as Li Ning, Anta, Seven Wolves, Metersbonwe, Bang Wei, Bang Wei and Jiu Wang Mu put down their guns one after another. At that time, the seven wolves met with malicious public opinion.
As the saying goes, facts speak louder than words. This time, under the pressure of the public opinion of the seven wolves, many false reports were deleted from the media, and the truth finally came out. Nowadays, the power of the seven wolves to respond positively to the news event of resumption of trading comes from the power that real gold is not afraid of fire.
This is the best time and the worst time. Dickens' opening remarks in A Tale of Two Cities are the most appropriate to describe domestic clothing brands such as the Seven Wolves.
At present, the tide of the country is rising strongly. With Topshop, Forever 2 1 and other well-known fast fashion brands withdrawing from the China market, ZARA has set off a wave of closing stores, and domestic clothing brands have accelerated their encroachment on the market space; This is also the era of the end of a giant. The impact of e-commerce is still there, and the pressure of high inventory is difficult to solve. Well-known brands such as La Chapelle and Iger Clothing have fallen down one after another, and the news of the closure of Metersbonwe in Bang Wei and Bang Wei has also exploded the circle of friends of clothing people 202 1.
The new journey of the old brand is the market environment faced by the seven wolves. With the slowdown of domestic demand market, rising costs and expenses, the marginal profit of clothing enterprises is further reduced, and channel integration is imperative.
There are more than one character image, and the Seven Wolves Store has been completely renewed and upgraded.
"Fixed sales by production", the wholesale mode of wide-spread channels, and the expansion mode of offline stores with hierarchical agents and franchises gradually gave way to online channels, brand direct sales and live e-commerce.
At the same time, the purchase choice of most consumers has moved from planting grass, buying to experiencing to the combination mode of "online+offline", and the drastic change of consumption characteristics has also made flat "omni-channel" the only choice for clothing brands.
Mason and Metersbonwe Bang Wei Bang Wei, which pay attention to cost performance, closed hundreds of offline stores and gradually laid out online channels; Anta, on the other hand, reduced sales network links, implemented flat channel reform, realized centralized management of brand owners and reduced supply chain costs. Under this wave, the seven wolves have also changed their extensive business model and started the strategic transformation of "wholesale to retail".
With the goal of revitalizing the stock and improving the quality, the operation of Seven Wolves Store has expanded from a single offline store to a refined development. Seven wolves get rid of their burdens one by one by "slimming" inefficient stores and realize "going into battle lightly"; Open a high-end image store that pays attention to consumer experience, and the seven wolves upgrade their brand image and enter the high-end men's wear market.
In addition to the multi-level store layout, the seven wolves simultaneously started digital transformation, accelerated the construction of online channels, and successively offered "cloud sales" matrix marketing and "thousands of stores and thousands of faces" applet, and the online and offline "omni-channel" integration was unprecedentedly strengthened.
Seven wolves boutique club image shop has diversified services to meet customer needs.
A diversified and omni-channel sales model has been established, and the "overlord" of men's wear has formed a top-down channel construction system, which has greatly strengthened the right to speak in all aspects of the channel, and the number of its stores has increased instead of decreasing, achieving a contrarian rise. The data shows that at present, the seven wolves have nearly 2,000 stores, and the number of stores and the operating income of stores have shown a healthy and stable growth trend. At the beginning of May this year, the image shop of Seven Wolves Boutique Club opened, further upgrading the brand stores, which was favored by consumers.
It can be said that channel integration is the most realistic, pragmatic and wise choice of the seven wolves. Maximize the mobilization of supply chain resources, seven wolves reshape channels, enhance centralized management capabilities, promote the upgrading of supply chain to value chain, and make their own way.
Seven wolves men's clothing store opened, based on long-term value, providing user services and creating cultural landmarks.
The mission of a good brand is not to seek return value for short-term benefits, but to continuously provide consumers with good product experience and service experience. This is the foundation of a good brand. However, in today's self-media era, people do their best to attract attention, make gimmicks with one-sided short-term financial performance, and pursue flow economy. The case of "the market value evaporated by 20 billion yuan, 2,000 stores were closed, and the first brand of men's wear in China was greatly defeated" is by no means an isolated case. As long as we carefully sort out the seven wolves 202 1Q 1 financial report data, everything will be judged by ourselves.
The latest quarterly financial report shows that Seven Wolves Company has total assets of 9.32 billion, liabilities of 3.258 billion, net assets of 6.062 billion, asset-liability ratio of 35% and good assets. Since the media took the debt out of context and exaggerated it, it created the stereotype that "seven wolves are trapped in business".
So, what is the debt ratio of the seven wolves in the industry?
Combing the debt ratio of some domestic clothing brands, the 35% debt ratio of Seven Wolves is not "shocking". For example, Anta, which has successfully transformed and performed well in recent years, has a debt ratio of over 50% in its 2020 financial report (the same below); Li Ning, who actively plans brand upgrading and seizes foreign brands such as Adidas and Nike, has a debt ratio of over 40%. In recent years, Mu Shang Group Holdings, which is sought after by various capitals, has a debt ratio as high as 74.72%, far exceeding the industry average.
Mu Shang Group, like the Seven Wolves, also chose to cultivate long-term value brands, and finally ushered in an outbreak of performance after the epidemic.
What's more, for high-quality clothing brands represented by "Seven Wolves", it is very easy to choose between long-term value and short-term benefit, and actively rush to the new track in the future and bravely embrace long-term value.
In 2020, due to the epidemic situation in COVID-19 and the complicated and changeable domestic and international environment, the clothing industry was hit hard. According to the data of the National Bureau of Statistics, only in the first half of that year, the retail sales of clothing, shoes, hats and textiles above designated size in China decreased by 19.6% year-on-year. In the "darkest hour" of the whole industry, it is inevitable that the financial reports of many brands in China's fashion industry will generally decline.
However, with the improvement of domestic epidemic prevention and control and the efforts of macro-control policies, the clothing industry has entered the fast lane of accelerated recovery. Mu Shang Group Holdings, which laid out online channels in advance, stepped out of a deep V market and rushed back to the high platform before the epidemic. Seven wolves also ushered in strength in 202 1Q 1, with performance growth exceeding market expectations and outstanding long-term value.
In fact, for clothing brands that pay attention to long-term value, brands are not one-night fast food consumption. Only by slow and steady steps can we build a century-old empire, which is a quality and a brand's ability.
Seven wolves 202 1 spring and summer new products, defining a new generation of coats.
It is precisely because of its long-term value and persistence and ability to work quietly that the seven wolves finally ushered in a moment of great success in the latest quarterly report.
According to public information, the revenue of Seven Wolves 202 1Q 1 was about 934 million yuan, up 40 12% year-on-year, the net profit was about 64.55 million yuan, up 253.49% year-on-year, and the monetary assets were close to 4 billion yuan. The financial indicators are healthy and high-quality, and the assets are abundant, which has the economic foundation to support the transformation and upgrading of enterprises. The first "report card" handed over by the seven wolves after the epidemic revived the confidence of the market.
The topic around the Seven Wolves is not only the increase or decrease in the number of offline stores, but also the resignation of former general manager Li Shujun and chairman Zhou Shaoxiong as general managers. The media has thus over-interpreted "the strategic development or obstruction of the seven wolves".
In fact, in the fast-moving areas such as clothing, the flow of executives is the norm. As early as 20 12, the official media "China Textile News" published the news of "China Garment Industry: Executives Coming and Going". The article points out that the dazzling exchange of executives makes the clothing industry show the characteristics of "high mobility".
The resignation of Li Shujun, the former general manager, was officially declared as "normal personnel flow" by the Seven Wolves, which was in line with the consistent trend of high-frequency talent flow in the industry and did not stir up much waves in the clothing industry.
But looking at the development of the seven wolves, we can easily find that how to stimulate the effectiveness of talents has always been one of the strategic highlands that the seven wolves have thoroughly implemented for many years. Especially in the talent incentive mechanism, the seven wolves are hard-working, willing to reuse, good at motivating, attracting industry talents with high material returns, and stimulating the internal "wolf" potential.
In 20 10, Seven Wolves proposed an equity incentive scheme accounting for 1.5438+0% of the total share capital; Nowadays, the seven wolves are more actively promoting the talent strategy of "ecological evolution"-from the traditional pyramid organizational structure to the decentralized empowerment structure. Seven wolves combine talent incentive with top-level design and organizational optimization, build a business strategy system driven by external resource integration and coordinated development and internal fission incubation and entrepreneurship, realize the diversification of talent strategy, and finally achieve the seven wolves that are still enduring for 3 1 year.
Based on the scientific management of talents, Seven Wolves have also started digital transformation, creating a brand-new user experience and serving users.
Seven wolves won the first place in the comprehensive market share of similar products of jackets.
As a popular menswear brand for more than 30 years, Seven Wolves not only represents the exploration of domestic products on the clothing industry, but also becomes an important symbol of China fashion brands.
At present, the seven wolves focus on their main business, innovate fabric technology, enrich the product category matrix, and lead the fist products into the era of "jacket home". In the past three years, the seven wolves have won more than ten honorary awards from various authoritative organizations including the national level. Among them, the jacket category was awarded the honor of "the first comprehensive market share of similar products" by China Business Federation and China National Business Information Center for 2 1 year in a row. All this proves that even if the performance fluctuates from time to time, the seven wolves never stop to rest, but try to run forward.
Starting from the positioning of the fashion industry group, the Seven Wolves have revived the vitality of the "karl lagerfeld" brand, with sub-brands coming from behind, improved performance and more and more perfect fashion industry ecosystem;
With the return of Zhou Shaoxiong, the chairman and general manager of Fujian Seven Wolves Industrial Co., Ltd., the performance of Seven Wolves has gradually picked up.
In terms of brand, with the theme of "New Me" this year, Seven Wolves started a new journey of brand rejuvenation and transformation, and also implemented a younger and more fashionable transformation and upgrading around consumers, exploring the new trend of national domestic products and becoming the representative of national brands in China.
"We must grasp the pulse of the times and keep innovating. The seven wolves are not backward in this respect. " At the beginning of this year, Zhou Shaoxiong, the chairman and general manager of the company, told netizens when he delivered the goods in person at the scene. As the founder and general manager, Zhou Shaoxiong will once again lead the Seven Wolves to carry forward the spirit of "wolf nature", respond to the 14th Five-Year Plan, make a national brand with unique China characteristics, set a benchmark for national men's wear, and show the world the infinite elegance of China fashionable men's wear.