Card Slave Road: Layout Core Scarce Channel &Nbsp; Strengthen The High-End Brand Image

Coming to the small board Canal Road Pinch the high pulse of the high-end men's wear market.

According to the Euromonitor Research Report, senior men's clothing sold by senior department stores in 2009 accounted for senior. Men's wear The total retail sales reached 74.3% yuan, reaching 43 billion 770 million yuan. With the development of economy, some high-end brands gradually expand the market of the two or three tier cities through franchising, utilize the resources of local distributors, save investment and expand the scale of enterprises.

At present, high-end men's wear. market On the one hand, the card and nu Road, which will continue to expand, will raise 380 million yuan and raise funds mainly for marketing network construction projects and information system technology transformation projects, with a total investment of 344 million yuan and 35 million yuan respectively.

Carndi road said that after the successful fund-raising, it will further expand the average store area, increase investment in store decoration and display, and meet the requirements of exhibition space for the constantly enriched business and holiday products, and further enhance the long-term profitability of the company.

　　 Cake keeps growing

There is no doubt that China's senior men's wear market is a cake that is constantly being made bigger.

According to Euromonitor's research report, it is estimated that the market size of domestic senior men's clothing will reach 146 billion 408 million yuan in 2014, and the average annual compound growth rate in 2010 will be about 19.6% in 2014. In the future, as domestic male population continues to grow and male consumers' preferences for clothing consumption and purchasing power increase significantly, the domestic men's wear market will usher in a rapid growth.

In the past 2011, it was also a year when many listed companies continued to finance their horse race.

The growth of card slave road performance is inextricably linked to its rapid expansion and increasing number of stores. The business mode of the company is to develop direct outlets in the second tier cities, and other three or four tier cities mainly develop franchised stores. As of December 31, 2011, the company opened 318 terminal stores in the country, including 175 Direct stores and 143 franchised stores. The average annual compound growth rate of the number of stores has been 36.88% since 2008.

For the choice of shops, the card slave road also focuses on the layout of the core scarce channels. In 318 shops, the number of stores opened in high-end department stores and high-end shopping centers is 230, and the number of stores opened at major airports in China is 22, accounting for 72.33% and 6.92% of the total number of chain stores respectively. For example, its brand department stores include Guangzhou friendship store, Beijing sate shopping center, Nanjing Golden Eagle International Shopping Center, Beijing Xinguang world and contemporary shopping mall. These are all benchmark stores in high-end or high-end department stores in China, and can be the best in men's clothing sales in such department stores, which is enough to prove the market performance of the brand.

　　 Expansion of high-end shops channels

When the rapid growth of high-end men's wear market has become the established fact, the high-end shops channel has become the battleground of many brands.

Department stores are important sales channels for the first tier cities. The department stores, through their continuous traffic, good shopping environment and high-end store image, become the important choice for brand clothing to establish retail terminals in the first tier cities with extremely scarce store resources.

But sales channels, especially high-end men's clothing channel resources are very scarce. "Channel is king" is particularly suitable for high-end men's wear market. Owning high-end stores, we can have our own position in the future competition.

On the other hand, men's clothing industry has low barriers to entry, and the style and quality of clothing products are easy to imitate. Therefore, clothing brands and channels have become effective competitive barriers. UBS Securities said that the clothing industry belongs to the labor-intensive industry, the technical difficulties and mechanical requirements are not high, fixed assets investment accounts for only about 35% of the total assets, and the industry's payoff cycle is shorter than other industries, so the clothing industry has become the choice of many small entrepreneurs.

Under such circumstances, the number and layout of original channels of garment companies become potential barriers to competition. Fortunately, in the past twelve years, kno road has built up a competitive barrier for industries. According to the prospectus, the location of the card slave road location is mainly located in the core business circle of the economically developed cities. The marketing network covers the senior department stores, the high-end shopping centers, the main airports and the five star hotels in the large and medium-sized cities of the mainland and Hong Kong and Macao.

At present, the card slave road has become one of the few high-end men's clothing brand retailers in China. It has a stable long-term cooperative relationship with the high-end high-end chain stores including Renhe Spring Department store, Wangfujing department store, new world department store, Shanghai Bailian, Guangzhou friendship, Hunan friendship Apollo, Zhuo exhibition group, Yintai department store, Shenzhen the Mixc, Nanjing Golden Eagle, Paris spring and so on. {page_break}

　 Consolidate competitive advantage

Card slave Road, which has already established its position in the industry, hopes to further consolidate its advantages through the capital market.

According to the prospectus, as of December 31, 2011, the company opened 318 terminal stores in 155 cities in 31 provinces, autonomous regions, municipalities directly under the central government and Hong Kong and Macao, including 175 Direct stores (including 5 international brand agencies) and 143 franchised stores. From 2009 to 2011, the net profit of canal NDI road was 40 million 135 thousand and 600 yuan, 65 million 199 thousand and 900 yuan and 109 million 352 thousand and 100 yuan respectively, with an average annual compound growth rate reaching 79.36%.

And the IPO of Carlo NDI road is about to raise 380 million yuan, which is mainly used for marketing network construction projects and information system technology transformation projects, with a total investment of 344 million yuan and 35 million yuan respectively.

Card Nu Di Lu said that the company will continue to focus on the construction of terminal network channels on the basis of maintaining the existing store resources, and set up flagship stores and image standard stores in the core business district of senior department stores, high-end shopping centers, major airports, five star hotels and economically developed cities, so as to provide consumers with a high level of consumption experience. The investment marketing network construction project will build 186 stores, including 15 direct flagship stores, 161 direct run standard stores and 10 agency stores. This will help strengthen the radiation and penetration of the company's brand image, further consolidate the national marketing network, and ensure the company's channel advantage. The company will further expand the average store area, increase investment in store decoration and display, meet the demand of exhibition space for the constantly enriched business and holiday products, enhance consumer shopping experience and provide a full range of fashion consultant services at the same time, enhance the efficiency of single store, narrow the gap with major foreign competition brands, and further enhance the long-term profitability of the company.

Insiders believe that the card road. Management The main reason for the growth of efficiency lies in the enhancement of capital strength and integration of assets, enhancing the overall strength of the company and the ability to open new stores. "At present, the high-end men's wear market is still in a situation of" fighting in a crowd ". As long as the company continues to increase its brand marketing efforts, with the continuous improvement of brand awareness and the continuous increase of the sales volume of comprehensive single store, the card slave road will be more powerful.