Ke Eli Till Will Buy Three Women'S Clothing Brands With 2 Billion 400 Million To Build Multi Brand Core Competitiveness.

With the growing taste of young consumers, "eggs can not be put in one basket" has become the consensus of the industry. The domestic apparel group is accelerating its own multi brand core competitiveness.

Ke Eli Till is the beneficiary of this trend. Through self incubation and acquisition, the group currently owns 7 brands, and its sales volume has exceeded 2 billion 500 million yuan in 2018, and this matrix is still expanding.

After announcements of the expected financial results, Ke Eli Till group recently issued a notice of purchase, which will purchase all the issued shares of Keen Reach from the Apex Noble Holdings Limited at a price of HK $2 billion 390 million, a discount of 10% compared with the overall assessment value given by the evaluation institutions, of which HK $500 million is cash, and the remaining part is paid by the listed companies issuing shares, and the price is HK $9.5 per share, issuing 198 million new shares, accounting for 29.01% of the total share capital.

According to statistics, Apex Noble is directly owned by Jin Rui 100%, the chairman of the Ke Eli Till group, chief executive officer and executive director Kim Ming, and Keen Reach is a limited company incorporated in the British Virgin Islands, mainly engaged in investment holding. It is owned by Shenzhen orenna Fashion Co., Ltd. through the Warren and domestic Affiliated Companies.

Nals Fashion Co., Ltd. was founded by mother Chen Lingmei in 1994. It owns 3 private brands, including NAERSI Nals, NAERSILING en Ling and NEXY.Co naikou, which correspond to the three styles of "urban elite", "fashion workplace" and "simple modern". For women who have financial strength from 30 to 45 years old, they have won the awards of Chinese female consumers familiar with the favorite brands, and 2017 Shenzhen chain store 50 strong enterprises.

According to the announcement, the average annual growth rate of the group rose by more than 40%. The profit after tax rose 56% to 162 million yuan last year. After the completion of the acquisition, Keen Reach will become Ke Eli Till's Affiliated Companies. Its performance, assets and liabilities will be merged into the group account. Ke Eli Till holding limited company has officially changed its name to winner fashion Holding Co., which seems to mean that the group is ready to enter the new stage of scale. Insiders expect that once the successful takeover, the winner's fashion holdings is expected to enter the 5 billion club in the next few years, which means that the pattern of the domestic women's wear market is changing.

It is surprising that behind the multiple relations, Nals and the same are all from the Shenzhen winner clothing group.

In 1999, 8 years after joining the winning group, Kim Ming, who had enough resources in his hands, founded the second brand Letil in 2007 and pferred all the elite of the original brand to Ke Eli Till to form a new team.

Ke Eli Till products include skirts, skirts, trousers, sweaters and accessories. The average price is more than 1500 yuan, focusing on 30 to 45 years old women who have certain economic strength. Subsequently, they gradually launched their own brands such as Koradior, La Koradior, Koradior Elsewhere and DE KORA. In June 27, 2014, they successfully landed on the Hongkong motherboard and became the first high-end female garment company in Shenzhen.

In 2015, he asked international supermodel Miranda Kerr as a brand spokesperson to further enhance the brand image.

In January 2016, Fosun international became Ke Eli Till's strategic investor through its subsidiary Fosun Ruizhe.

In July 13, 2016, the company acquired 65% stake in Shenzhen's Industrial Co., Ltd., the latter's brand was CADIDL.

In 2017, the group also signed exclusive distribution and marketing agreements with high-end women's clothing Obzee and O'2nd for 5 years, aiming to better cover target customers with consumption ability from 25 to 50 years old.

According to the latest information of Sullivan, the consulting company, according to the average hanging price of clothes, the Chinese women's clothing market is divided into three grades, the price of the winter clothing tag is below 3000 yuan, the summer wear is below 1500 yuan, the middle and low end, the winter clothing is between 3000 and 10000 yuan, and the summer wear is between 1500 and 5000 yuan, which is a high-end brand.

According to the above standards, the brand of Letil and winner clothing belongs to the high-end women's clothing category.

Ke Eli Till group said that the business structure of the group is very similar, and the goal is to become the leader of China's high-end women's clothing industry. The acquisition is of great significance for the development strategy of the group diversification and multi brand matrix. By integrating the strong design and product development capabilities of the two groups and the synergy effect of the appropriate retail management system, it helps the group to save operating costs, enhance profitability and enhance its recognition and popularity in the high-end women's clothing industry in China.

In terms of products, Ke Eli Till mainly works with renowned designers at home and abroad, invites them to be the creative directors of the three major brands, and ultimately is designed by the brand teams.

By the end of 2018, there were 241 members in the research and design team of the company, and 193 in 2017.

The winners dress up with foreign trade processing business, and have strong supply chain and huge direct store network.

In terms of marketing, Ke Eli Till group mainly through airport advertising, in Vogue and other fashion magazines, advertising, film sponsorship, etc., after its core brand also sponsored by Tang Wei and Liao Fan starring in the movie "doomed", as well as Yang Mi and Huang Xuan starring in the TV drama "Dear plator".

In 2018, the expenditure of brand marketing promotion of the group increased by 12% to 61 million 540 thousand yuan.

Thanks to the promotion of multi brand matrix, the company's total revenue in 2018 rose 14.39% to 2 billion 520 million yuan, gross profit increased 15.5% to 1 billion 803 million yuan, and profit increased 7.59% to 273 million yuan.

Direct retail channel revenue accounted for 81.08% of total sales, of which core brand Ke Eli Till was still the main force of sales, sales rose by 10.77% to 1 billion 635 million yuan, accounting for 67% of total revenue, while sales of other brands far exceeded that of Ke Eli Till, but the share was not large.

As of last December 31st, Ke Eli Till group's brand has 862 sales outlets in 31 cities nationwide, of which 641 are direct retail outlets.

However, the common point of the two is that most of the products are targeted at consumers aged 25 to 45, which are contrary to the brand of younger brands.

For investors who believe that the target customers of the two groups are not young enough to be questioned, Chen Lingmei, who founded Nals in an interview, has put forward the cultural concept of "the prime of life" in an interview, and defined all the women who lived through life in the most beautiful state of life, and their emotions, minds, wealth and careers entered the best place.

Kim Ming believes that the similarity between brands is too high, which is not necessarily a good thing.

Not blindly pursuing young consumers seems to be a meeting point between Ke Eli Till group and Nals.

It is reported that the combination of the winning fashion group will have Koradior, La Koradior, Koradior Elsewhere, DE KORA, CADIDL, Nals, naikou and en Ling 8 private brands, as well as Obzee, O'2nd two proxy brands, brand distinction and complement each other, through extended development will be able to more effectively lock the target group.

In the announcement, Ke Eli Till group emphasized that under the environment of the continuous expansion of China's consumer goods market, the constant adjustment of structure and the continuous consumption upgrading, multi brand group operation development is the only way for high-end women's clothing enterprises.

With the rapid rise and spread of new social platforms, AI, AR and other new things, consumers will pay more attention to the experience of consumer scenarios. In the future, the winner will rely on the Internet, precision marketing through big data and artificial intelligence, optimize brand operation and disseminate brand value, and promote the quality upgrading of the industry ecosystem.

In 2019, the group said it would implement a multi brand strategy through quality and scale mergers and acquisitions to cover more styles and consumers, while offering more diversified and cost-effective products.

In addition, the group will use the online e-commerce resources to promote the construction of the whole channel, and concentrate resources to promote its brand through overseas fashion week, airport flagship store and new media, and plan to open new stores in Hongkong and Macao.

It is noteworthy that both Ke Eli Till and Nals have started in Shenzhen, a city regarded as a benchmark for the domestic apparel industry.

With the geographical advantages of neighboring Hongkong, the fashion industry in Shenzhen, a southern city that has always been in the forefront of China's development, is quietly rising. Whether it is high-end brands, fashion consumption and display pactions, the fashion industry has become a new label for Shenzhen.

As of last October, there were over 2000 fashion enterprises in Shenzhen, more than 95% were private brands, 300 thousand employees, and 2 designers. In 2017, the total sales volume was 29 billion 300 million euros, and exports amounted to 8 billion 600 million euros. Among them, fashion women's brands accounted for more than 60% of the high-end high-end shopping malls in large and medium-sized cities in China.

Some people in the industry believe that, as the most typical two groups in Shenzhen's high-end women's clothing industry, behind the merger of Nals and her, it is a milestone in the awakening of domestic clothing enterprises to further scale and win-win cooperation. This paction can bring more opportunities for Ke Eli Till.

In addition to codle, Jiangnan cloth clothing, Mass Phil, Vigna S and MO&Co. parent company EPO group are all accelerating the multi brand layout, but the congestion of the track confirms the great potential of the domestic clothing industry from the side.

At present, the Chinese consumer and apparel market has undergone tremendous changes. Although the luxury brands are coming to the mainland market to intensify the competition of high-end clothing, IFM has pointed out earlier that the Chinese professional women have become the key driving force for the growth of global luxury consumption. Besides the luxury brands such as Gucci and Louis Vuitton, some high-end domestic brands have become the first choice for them to buy clothes.

In the nearly saturated apparel industry, the growth of single clothing brands is weak. Even the performance of Zara, H&M and other fast fashion giants has slowed down. Topshop and New Look have lost the Chinese market one after another, which is a new turning point for the high-end women's clothing group in China.

Some analysts predict that the size of the domestic women's clothing market in 2018 will reach 952 billion 200 million yuan, which is a steady growth industry with a large volume in the overall garment market.

From the initial 90s yearning for the "fashion Bible" aesthetic enlightenment to Chinese consumers, to the first ten years of twenty-first Century, looking forward to the luxury mentality, and now to the rational choice of personality, domestic high-end women's clothing seems to finally usher in a good time.

As of Thursday's end, the price of the company fell by 0.11% to HK $9.5, which has increased by 14% in the past year, and its current market value is HK $4 billion 600 million.