Metersbonwe Clothing: The Road to China's ZARA

Just as the Spanish brand ZARA, known for its “fast fashion”, has a huge influence on the global casual wear market, the beauty apparel industry in China’s casual wear market also has an extraordinary impact – “fashion,” “newness,” “personality,” and “vigor.” To meet the various needs of consumer groups, ranking first in China's major casual wear brands.

Metersbonwe and ZARA have more similarities: they have a keen grasp of the trend of global casual wear development, use stores as the most important media, and stimulate the consumption of customers through the most direct channel of stores. Desire and so on.

Leading domestic casual wear industry

Meibang Apparel manufactures and sells brand casual apparel and apparel through a combination of outsourced production and franchising. The main products are the series of casual apparel products of the MTS Bonwe brand, which is based on the target consumer groups aged 18-35. The occasions and needs are divided into two series: "Urban" and "Campus".

According to statistics of Euromonitor, a world-renowned information consulting company, in 2006, the occupancy rate of the MTS Bonville brand casual wear products in the domestic casual wear retail industry reached 0.95%, ranking first among the 12 major leisure wear brands in the domestic market. Has a strong market awareness and brand appeal.

As of March 31, 2008, Memphis had 2,211 stores and franchised stores nationwide, with 1,927 franchised stores and 284 franchised stores. From 2001 to 2007, the compound annual growth rate of direct sales stores and franchise stores was 33.44% and 29.95%, respectively. From 2005 to the first quarter of 2008, direct sales revenue accounted for 5.92%, 30.08%, 33.54%, and 37.78% of the company's main business income.

From the first quarter of 2005 to the first quarter of 2008, Meibang Apparel achieved operating income of 91,682 million yuan, 19836.9 million yuan, 3,165,220,000 yuan and 9,568,800,000 yuan respectively. In 2007 and 2006, the year-on-year growth rate reached 59.12% and 116.37% respectively; during the same period, the company's net profit Reached 7.34 million yuan, 67.84 million yuan, 363.99 million yuan, and 14.052 million yuan, respectively, and the weighted average net assets return rate reached 5%, 32%, 75%, and 19% respectively.

During the same period, the gross profit margin of Smith Barn apparel was 16.35%, 27.92%, 38.39%, and 41.98%, respectively. In 2007, the average gross profit margin of listed companies in China's apparel industry was 33.83%, and the average ROE was 8.56%. Both the interest rate and return on net assets are higher than the industry average.

In 2007, Metersbonwe's accounts receivable turnover rate, inventory turnover rate, and total asset turnover rate reached 29.53 times/year, 5.14 times/year, and 2.05 times/year, respectively, which were far higher than those of similar listed companies by 9.20. Times/year, 5.01 times/year, 0.99 times/year average.

Global casual wear development trend

Globally, brand competition gradually replaced price competition. Casual wear consumers increasingly dress as a means of expressing their personalities, and their sensitivity to brands continues to increase. ZARA attaches great importance to brand building and implements a full range of marketing strategies from product design, product display, store design to advertising, brand endorsement and marketing activities.

Casual clothing retail companies need to maintain the depth and breadth of channel construction, and constantly narrow the distance with consumers. Channels have become one of the focuses of competition. Among them, stores have become the most important sales channels. ZARA does not even rely on advertising, but inspires the desire of the target customer base through the most direct channel of the store.

The importance of supply chain integration capabilities such as production and sales is also emerging. Take ZARA again as an example. The design and planning link is mainly in their own hands; the production and procurement link is outsourced by 50%; the transportation and distribution link has its own distribution center and outsources the transportation link; the sales link, 90% is self-operated and 10% is through franchise. Or a joint venture.

ZARA's business model represents the development trend of the global casual wear market and reflects the core competitiveness of casual wear manufacturers. However, this model requires prominent integration capabilities, and this is precisely the advantage of Meibang Clothing. Its business model and ZARA There are many similarities.