Zhou Chengjian cry in front of a people. August 28, 2008 Shanghai Metersbonwe Apparel Co., Ltd. (No. 127) (hereinafter referred to as Smith Barney apparel) landed on a small board and raised 1.4 billion yuan. Evening reception to celebrate, usually very low profile, cautious chairman Zhou Chengjian shouted on stage "get the whole Chinese market, get all consumers in China." It now appears that Zhou Chengjian has basically "get" it. As of May 13, 2009 closing, Smith Barney costumes closing price of 28.14 yuan, the total market capitalization of 20 billion yuan. According to the data can be found, from 2005 to 2008, four years, Smith Barney clothing's main revenue growth is rapid. 917 million yuan in 2005, 1.984 billion yuan in 2006, doubling over the same period last year, an increase of net profit of 824.25%, not surprisingly. 3.16 billion yuan in 2007, an increase of 60%. In 2008, the operating income was 4.47 billion yuan and the total profit was 841 million yuan, up by 41.73% and 94.48% respectively over the previous year. In assets, 4 years, Smith Barney costumes from 820 million yuan surge to 4.58 billion yuan, up 6 times. In contrast, Youngor's total assets in the four years from 11.7 billion yuan to 34.4 billion yuan now, only increased by 2 times. Smith Barney clothing by what rise? Smith Barney to "Zheshang" reporter's statement is: "Our company's core competitiveness mainly in the brand, supply chain management, marketing network, etc." Product extension brand differentiation From the point of view of the development of enterprises, Smith Barney costumes have been from The brand "toddler" has been developed to the current stage of "independent innovation". In 2007, Smith Barney apparel began to divide its products into two major series, "Campus" and "City", while designing completely different design teams to design products. Such initiatives also made Smith Barney garments get a good income, Mites Bonwe brand in the 14-35-year-old consumer groups are familiar with 157 casual wear brand first mentioned rate of 35.6%, much higher than the industry Other competitors. Metersbonwe is also at the forefront of the industry in terms of popularity, purchase rate and brand loyalty. August 2008, Smith Barney costumes listed on the same day, Smith Barney costumes decided to launch its high-end brand "ME & CITY". From a single brand to multi-brand transformation, Smith Barney fashion apparel retailers are also the same as the international market segment, the outside world that this marks the Smith Barney played a high-end licensing. Haitong Securities analyst Pan He said: "It can not be said that Smith Barney apparel is entirely in the development of high-end, the establishment of the brand can help Smith Barney clothing to seize more target groups, or rather an extension of the product." Test water brands, It is also the first step toward internationalization. This step also makes Smith Barney apparel to effectively tap the more affordability 23-25 ​​age group consumer market, lengthen the product line, increase the product differentiation characteristics and product pricing ability. What does this mean for Smith Barney? "Metersbonwe has more than 10 years to do today's scale, with the accumulation, ME & CITY only takes 3 to 5 years to be able to do today's Smith Barney." Zhou Chengjian said the two brands will be operating through two divisions , They share management platform, supply chain platform, risk control system, but have independent store system and different brand strategy and business strategy. A Different Value Chain Marketing channel is the ultimate source of apparel sales and the most powerful weapon for apparel branding. In recent years, Smith Barney's terminal sales channels continue to expand, the number of outlets and franchise stores have increased. As of the first quarter of this year, Smith Barney in the country has a total of direct sales stores and franchise stores a total of 2211, of which 1927 franchise stores, direct sales outlets only 284. In 2009, in order to rapidly increase sales growth, Smith Barney began to increase the layout and expansion of second- and third-tier cities and solved the cross-selling phenomenon of the existing Me & City and Metersbonwe brands. Zhou Chengjian also limited the logistics outsourcing to the logistics company, the entire deployment of data by the company themselves. Zhou Chengjian believes that now the core competitiveness is not how much resources in the hand, but how much capacity to integrate resources. However, in the early days of its establishment, Smith Barney's business model caused heated controversy in Wenzhou. Many people think that Smith Barney's model is a leather bag company, but in Zhou Chengjian's view, "This is my chance." Jiang Hengjie, executive vice president of China National Garment Association, said: "He (Zhou Chengjian) clever use of the characteristics of China's garment manufacturing, to avoid the risk of production and sales." The fact is true, and Zhou Chengjian also started some Wenzhou garment enterprises are now Caught in the "Red Sea", but Zhou Chengjian has already led to another "Blue Ocean." In 2008, there were some changes in the external environment of China's textile and garment industry: frequent international trade frictions, laggard export orders, lack of start-up by some enterprises, and some small-scale factories even went bankrupt. "Compared with the same period of last year, the production cost of textile and garment enterprises increased by 30% to 35% and the labor cost increased by 25% to 35%." Jiang Hengjie believes that the impact of the global financial crisis will create a time lag for garment enterprises, The real "winter" will be after September 2009. "Without their own brand, sales channels, garment enterprises that do not have certain control over the market, they may all be forced out of the market." From Light to Heavy, Reinforcing the Industrial Chain Smith Barney relies on effective integration of virtual operations for resources to achieve rapid growth. But now, the "virtual channel" business model is facing challenges. In China, Smith Barney costumes not only still face domestic brands such as Baleno, Jeanswest, Semir, Pure and Giordano, but also international competitive brands. These include international casual wear such as ZARA, H & M and UNIQLO which have gradually entered China in recent years Retail giant. In this confrontation, Smith Barney does not yet have an absolute advantage and can even claim to be obviously disadvantaged. In Smith Barney costumes, "light asset" growth model will also be tested. First, most stores at Smith Barney are leased, and the continued growth of rents in domestic stores may affect it in recent years. Second, as the brand promotion and advertising, more open big shop, flagship store or the image shop has become the mainstream, while the large shop decoration into large, long operating period, leasing business risk. Well-known brand expert Ai Feng reminded this "light asset" of the virtual business is "buy short." Ai Feng believes that the virtual business is not as simple as ordinary people imagine, companies have to bear the great R & D and circulation risk investment. It is reported that the next step Smith Barney plans to purchase property rights way to get a stable store resources. After the project is implemented, the scale of fixed assets of Smith Barney costumes will increase substantially and the model of "light asset" will be gradually changed. In other words, Smith Barney costumes will gradually shift from mainly relying on brands and channels to growth driven by capital investment. The growth rate will gradually slow down and the CAGR will be reduced to about 40% over the next three years. For the shop, Zhou Chengjian's explanation is: "want to do clothing retail century-old, a fixed place of business indispensable to buy a store more favorable than the lease, which did not focus on the possibility of future value-added business shops." The establishment of large-scale direct sales stores also help to enhance the brand image, Zhou Chengjian that "Although large-scale direct sales shop alone return on investment is not high, long payback period, but to establish a brand image to provide customers a more perfect consumer experience, As well as enhance the confidence of neighboring franchisees helpful. "Changes in the channel has become inevitable. From spring and summer of 2009, ME & CITY has its own independent store. At the end of 2009, Smith Barney will open 25 to 50 ME & CITY stores. The investment costs of such stores are not ordinary agents can afford, taking into account the initial spread of the brand effect, at present Smith Barney can only be self-oriented; and in enhancing brand re-input, it is bound to gradually " Light asset "aggravate