Can Baozi Reorganize The Drum?

As one of the first international brands to enter the Chinese market, Baozhuang's beautifully designed dress and dress were loved by white collar women in the 90s.

This brand, founded in 1961 in Toronto, Canada, was acquired by Kenneth Chan, a businessman in Hongkong in 1989. Subsequently, the company was headquartered in Xiamen, and its business focus was also moved to the mainland.

When Hongkong was listed in 2003, as a leader in high-end women's clothing, Baozi was regarded as a star in the Hong Kong stock market.

But starting in 2012

The performance continued to decline, in contrast to baozi's share price performance in the H-share market in recent years.

At the time of listing, HK $3 soared to HK $31.5 in 2008, and by 2010, Baozi's share price began to fall all the way. At the end of 2014, it fell to HK $2.34, while June 8, 2015's closing price was only HK $5.63.

Think of baozi in

It is seriously underestimated, or is Kenneth Chan's important reason for wanting to go to A shares.

He said that the market value of baozi "in the H-share market is about 3 billion 100 million Hong Kong dollars, less than 2 billion 600 million yuan."

And "A - share fashion companies, their price earnings ratio can reach 50~80 times, if you are conservatively estimated at 50 times, (baozi) market value of about 13 billion 700 million yuan.

about

Returning to the expectations of A shares, Zhang Ling told the first Financial Daily reporters that the price earnings ratio of 50~80 times in the fashion industry is based on the bull market at present, but it is hard to predict how long the stock market dividends will continue for 5000 points in the current stock market. Secondly, such as the stock price of the group can reach a high price earnings ratio, which is a big story about the capital market, for example, the layout of the Internet and the mobile Internet fashion culture industry, etc., it is hard to say whether baozi can tell his story well.

More importantly, the situation of the women's clothing market in the past few years is no longer in place. Excessive competition in the high-end women's clothing market has left baozi with its previous advantages.

As an international brand of high-end women's clothing, Baozi has the first advantage in the domestic market in the past more than 10 years, but now the first line and second tier brands in the international market are entering the Chinese market through agency or direct marketing. Meanwhile, Chinese high-end women's clothing brands such as 603808.SH and Mass Phil compete in the market and squeeze their market share.

But baozi's products and brands are also facing the dilemma of aging.

Zhang Ling believes that women's clothing needs to be updated rapidly, but the old customers of baozi are losing their old age and unable to catch the needs of young consumers.

In the announcement, Baozi also said, "the future of traditional fashion dress business is difficult and challenging", so we need active diversification.

"Baozi's mind is not in the clothing business. If you can't focus on innovation, even if you return to A shares, you will not be favored by investors."

Zhang Ling said.