Metersbonwe: ME&CITY, where? (two)

All indications are that Metersbonwe aims to build its own brother ME&CITY into a relatively high-end international brand. However, after Metersbonwe was looking forward to making a big investment in ME&CITY's investment, in the first quarter of 2010, the industry report showed that the company's net profit fell sharply by 90% year-on-year. Me&City failed to achieve its 2009 balance of payments goal. Is still in a loss state. According to media reports, at the beginning of 2010, Zhou Chengjian also expressed frankly that he was too optimistic about the launch of the new brand Me&City, and the current situation was still some distance away from expectations. In the third quarter of 2009, Zhou Chengjian experienced a negative growth in the third quarter for the first time in 15 years. Mr. Zhou Chengjian said frankly that he was “very dissatisfied” with the report.

According to public information, during the whole year of 2009, Metersbonwe’s sales revenue was 4.8 billion yuan, while Me&City was 350 million yuan. The company's annual report disclosed that in 2009, the company spent 820 million yuan in shop purchases and leases, and spent more than 50 million yuan on decoration of stores. This part of terminal construction costs are mostly spent on ME & CITY.

At this time, not only for Mr. Zhou Chengjian, for the management decision-making layer of Metersbonwe and ME&CITY, it is worth considering that after investing so much money and efforts in Me&City, why did the market not buy out? ?

In this regard, the company explained in its annual report that the multi-brand strategy has just started, and both the decision-making team and the business team lack experience. In addition, the obvious lack of planning, the overall cost control is ineffective, and some of the resources are not used efficiently.

The fashion brand's business model is mainly divided into two kinds: direct marketing and franchising. According to public information, all stores of ME&CITY in 2009 were opened in a direct manner and are not open to join. However, for a year, it has already opened more than 70 stores in first- and second-tier cities across the country, and most of them are large stores of 300 square meters or more. In today's commercial real estate sector, the cost of such channel construction is bound to be expensive. In 2009, Meibang Fashion spent 820 million yuan in store purchases and leases, and spent more than 50 million yuan in decorating stores. Or buy or rent, Smith Barney has a large number of shops, and most stores are in a loss-making state.

When ME&CITY launched the market, Metersbonwe Group divided Metersbonwe and Me&City into two brand divisions and operated independently. And in the brand promotion deliberately evaded the background of the ME & CITY brand and Metersbonwe.

In this regard, Mr. Hao Yingli explained that in the apparel industry, some companies starting from low-end brands to seize market share and create high-end brands are taking a “racial segregation” approach, that is, brand creation will deliberately not let the outside world know. The relationship between the new brand and the original brand. Under normal circumstances, high-end brands drive low-end brands easily, and on the basis of low-end brands do high-end, in the operation if you can not "segregate" the relationship between the two brands, the chance of failure will be great. The most successful domestic brand is the seven wolves and their investment in another men's brand, Mark Waffe. Mark Waffy has now grown to become a leading brand in the casual men's field, and more consumers mistakenly believe that this is an out-and-out international fashion brand.

Uniqlo is a well-known fashion casual brand of Fast Retailing Co., Ltd., but Fast Retailing also has another high-end brand, Theory, that has entered China. However, apart from many professionals, not many people know that Theory and Uniqlo are in the same door.