The Annunciation Investment Fashion Sportswear Market wants a share

The Annunciation Invested 15.3 Million Yuan to Hold the Fashion Company

The Annunciation announced on the evening of November 17 that it had invested in a fashion sports apparel manufacturer and distributor. Market observers believe that the relative growth of the men's apparel industry has been slow in recent years, while the sporting goods industry has grown at a rapid rate. A cup of cake, but the competition is expected to be fierce.

According to the Announcement of the Annunciation's evening, the company invested RMB 15.3 million in the share of Shanghai Biluite Fashion Co., Ltd. (hereinafter referred to as “Biluite”), which accounted for 51% of the registered capital of the company after capital increase. The company will join natural persons Ge Wujing, Su Libin, Liu Zebin, Xiao Changbing, Chen Zhangwen, Wu Yunwei, and Shi Xiaodong to increase the capital of the company. After the completion of the capital increase, the registered capital of the company will increase to 30 million yuan.

Biluot was established on October 22, 2010. Its business scope is mainly the production and sales of low-end fashion sportswear, but it has not yet begun its actual operation. The company's investment helps to expand the original product category, use its own advantages of chain marketing network management, and form a new growth point of performance.

In this regard, market watcher Chen Shixin told reporters: "In recent years, the sporting goods industry can be described as leaps and bounds, the overall growth of the men's clothing market is relatively slow, and the domestic low-end fashion sportswear as a whole there are still some opportunities, the Anglo-Birds involved in this industry can With the original channels to achieve the expansion of sports business."

The Anniversary Birds and the Seven Wolves are the two major men’s listed companies in China. In 2008, the company’s operating income and net profit increased significantly. In 2008, the company’s operating income was 938 million yuan, up 100.4% year-on-year. Seven wolves’ income was 1.653 billion yuan. 88.7% increase. However, by 2009, the income growth of Announcement Birds and Seven Worms had slipped to 16.2% and 20.24%, respectively.

Compared with menswear enterprises, Xtep's revenue growth in production of sports fashion products in 2007 and 2008 was 181% and 111%, respectively. Performance in 2009 fell, revenue growth still reached 23.6%, and revenue was 3.55 billion yuan.

Chen Shixin said that the sporting goods industry has good prospects, but the intensity is much higher than that of men's wear, and the risk of entry is high. Xtep's annual growth rate in 2006-2008 is above 60%, and the growth rate has dropped to 24% in 2009. In addition, multinational sports brand Adidas and others are intensifying their efforts to compete in the sports fashion product market. Adidas' new low-price “NEO” series target market It is the consumers of small and medium-sized cities in China.

The Annunciation Company acknowledged that “Since the company does not have experience in running fashion sportswear, and the domestic fashion sportswear market also has the unique characteristics of low investment in the apparel market, quick results, and low barriers to the industry, competition is fierce and homogeneity is serious. The company's operation is not good, which makes it difficult to raise the product's popularity. If the sales network does not expand as expected, it may have a negative impact on the company's performance."