Wu Zhize, Chairman Of Nearly 100 Million News Birds, Rushed To High-End Customization, Internet Finance Is All Fashionable Stuff.

First loss of nearly billion

(002154, stock bar) chairman Wu Zhize rushed into high-end customization, Internet finance is all fashionable stuff.

The annual revenue and profit keep 10% growth, the two indicators began to decline in 2013, to the first half of this year there was a huge loss. What happened to the company? Can Wu Zhize's series of pformation actions turn the tide?

This year, Wu Zhize, the 56 year old director of wedding bird, has had a hard time.

Despite the decline in profits in previous years, it did not occur to me that in the first half of this year, there was a big slide in performance and a loss of up to 97 million yuan, the first loss since its listing in 2007.

Of course, as the founder of a clothing enterprise, Wu Zhize's experience is not unique.

His rival seven wolves (002029, stock bar), Hinur (002485, stock bar), nine Mu Wang (601566, stock bar) and other garment enterprises in the first half of this year also showed a sharp decline in performance.

However, Wu Zhize will face more difficulties if the news birds turn their profits directly into losses.

Faced with the plight of development, Wu Zhize also made various attempts to reverse the situation. He took the initiative in shutting down clothing stores, instead of actively developing e-commerce platforms, investing in Internet finance, seeking diversified development, stepping into the C2B private custom industry, and promoting industrial upgrading and development, but at present, these measures are "only input but no output".

It has been staying here

Can Wu Zhize succeed in this pformation? Is he confident? Is there any new progress in the new development strategy?

In September 6th, the reporter called the report Office of the news bird's office and sent the interview outline to the designated mailbox according to the needs of the other party. The other side indicated that it had received it, but regretted that there was no further information after that.

Brand awareness has been very advanced.

In the clothing industry, Wu Zhize's development thinking has been in the forefront of the market, and because of this, the company has been able to develop.

In 1977, after graduating from Wu Zhize high school in Yongjia, Zhejiang, he embarked on the road of business by selling small items such as hairpins and buttons.

At that time, Wenzhou was a wholesale clothing market, and all the garment traders in the whole country rushed to Wenzhou to buy goods.

Wu Zhize is also optimistic about this opportunity. In 1980, he joined the Wenzhou fashion army with his brother with 500 yuan.

At that time, China's clothing consumption market is rising, and demand is constantly expanding. Almost all garment factories in Wenzhou are mainly clothing manufacturers. They are not concerned about trademarks and brands. Wu Zhize was keen to observe this point.

In 1987, the state set up the Bureau of industry and commerce, and began to regulate intellectual property. Wu Zhize also followed the trend and registered the trademark of clothing industry - Carrie, which is the first clothing trademark registered in Wenzhou.

Because of trademark registration and brand promotion, Wu Zhize earned about 20000000 yuan in the next ten years, which is the first pot of gold he prepared for the expansion of enterprises.

Wu Zhize's brand consciousness was ahead of the year, which was the main reason why the birds could stand out in the "million armies".

In the 90s of last century, Wu Zhize went abroad for an inspection tour. He found that the brand of the same texture could sell for 3000 yuan, while the 300 yuan made in China was not bought. This prompted him to make up his mind to create his own brand.

Due to the importance of brand building and brand image communication, Wu Zhize hired spokesmen for the birds, which made the company the "first garment company to employ celebrities as spokesmen".

In 1999, eight years in ~2006, Simon Yam, a famous actor in Hongkong, won a strong repercussion at that time.

In 2006, the news birds began to take the road of internationalization, instead of being the spokesperson of Richie Ren. The brand image of the wedding bird was further strengthened through its global tour.

Nowadays, Louis Koo, the star of Hongkong, is the spokesman. Indeed, he has many fans in the entertainment circle for many years. However, with the diversification of the way of communication, the mode of publicity just limited to hiring spokesperson has been slightly thinner. Although Wu Zhize pioneered the brand as "pioneer", he obviously "walked early", but after 20 years of rapid change, his pace of brand promotion has gradually slowed down, which seems to be inadequate.

He was good at combining strength with strength.

Breakthroughs often bring opportunities. Wu Zhize has a lot of practice in business.

In the 90s of last century, Wu Zhize owned his own garment factory, called the clothing company. At that time, Wu Zhize, who had only more than 2000 yuan of money, realized the importance of creating the brand. But he had enough and insufficient strength. He hoped that he could co invest and create the brand.

The way of "strong alliance" is quite common today, but in the 90s of last century, it was not easy to persuade companies to join forces in Wenzhou.

At that time, the idea of Wenzhou people doing business was "better for the chickens than the cows," and insisted on the family business model.

But in the end, Wu Zhize still persuaded two private clothing enterprises, Zhejiang wedding bird Clothing Co., Ltd. and Zhejiang OSS Clothing Co., Ltd. to invest in the establishment of clothing brand. Three enterprises formally joined together in 1996, and set up a wedding bird group which is located in high-end men's clothing. This is also the first Wenzhou fashion group to break the family business mode and jointly organize it.

After the establishment of the group, Wu Zhize gradually pformed the family business management to a more standardized professional manager management mode.

He first dismissal his relatives, and announced that the ladies of the shareholders can not join the newspaper bird group, or even do business. Some family members who have direct family ties with their shareholders can not serve in the company's main posts, and can not engage in related pactions with the company.

Wu Zhize, who is chairman of the company and owns a large share of the company, does not want his children to pick up their classes.

He said, "my two daughters are going to be professors and lawyers, and I support them."

It is understood that the company's senior management is also mostly professional managers.

From the wind to the water to the plight

After determining the positioning of the high-end men's clothing brand of the wedding bird, how to catch the marketing psychology of consumers has become a big problem. At that time, because of the fierce competition, most of the clothing companies took the discount way to promote sales, but Wu Zhize did the opposite thing, and launched a regulation: the birds of good luck had unified pricing and never discount.

"Basically no business in the first three months, agents think I'm crazy."

However, Wu Zhize still withstood the pressure of sales and insisted on the principle. Slowly, the discount birds had successfully entered the high-end clothing market.

In the first ten years of the establishment of the news bird, it has developed smoothly. The relevant data show that in 2006 ~2012, the company's operating income and net profit had at least 10% increase each year.

The real predicament began in 2013. The impact of the electricity supplier channel on the traditional clothing and textile industry was reflected in its performance. In those days, the company's operating income was 2 billion yuan, down 10% compared to the same period last year, with net profit of 160 million yuan, down 66% from the same period last year.

Over the next two or three years, the performance of the birds has also declined.

Public information shows that in 2014 ~2015, the net profit of the company was 130 million yuan and 100 million yuan respectively, down 17% and 25% respectively from the same period last year.

Corresponding to this is that the online stores of the wedding bird show a slowing down state, and the number of individual brand stores has plummeted.

Wu Zhize is also actively adapting to the development of the electricity supplier era, expanding the business of e-commerce.

In 2014, the Tmall flagship store was officially opened for sale.

In 2015, it was more frequent. In February, the company invested 45 million yuan in Shanghai small ghost Network Technology Co., Ltd., and set up an e-commerce business.

In March, the company invested 25 million yuan to increase Renren technology. Its main business scope is mobile Internet O2O and big data marketing. In June, it also spent 20 million yuan to increase the Jim brothers fashion customization technology and develop cross-border electricity supplier business. However, the layout of the company's electricity supplier channel is still "no output" state. The data show that the total loss of the above three companies in 2015 amounted to 1 million 990 thousand yuan.

It is understood that in 2014, the sales volume of the company in the electricity supplier channel was about 100 million yuan, and it was about 300 million yuan in 2015. Although it rose sharply last year, it accounts for only about 15% of the total revenue.

What we need to consider now is whether the sales of e-commerce channels are enough to cover the drop in sales brought by the decline in the number of stores. If it can be covered, how long will this take? Wu Zhize himself has not mentioned the above problems in public.

"Do nothing serious" step by step Internet Finance

In 2015, along with the pressure of declining performance and the rise of Internet finance, Wu Zhize announced in many public occasions that Internet finance will be the second main business of the group.

In May last year, the company decided to expand the Internet banking business, invest in the establishment of small fish and gold clothing, operate Wenzhou loan platform and pocket financial platform.

Wu Zhize said at a news conference that the investment of this bird will not only achieve a certain synergy effect with the investment of Renren stages, shares of Yongjia Hengsheng village bank, etc., but also will continue to accelerate investment in the Internet finance.

In March this year, on the interactive platform of panorama network, the company said that the Internet financial business participated by the company is in the investment stage and has no contribution to the company's performance.

Wu Zhize's practice of entering the Internet financial industry has caused some controversy. Some people think he has caught the capital draught and entered the new field, which will increase the profit growth point of the company, but more people think Wu Zhize is "not doing his job properly".

From the clothing industry to the Internet finance, the span is very small. In addition, the development of the Internet financial industry also needs early capital investment. It is understood that the above Internet financial projects have consumed about 200 million yuan, which may have a certain impact on the investment in industrial development, and whether the two can achieve coordinated development or compete on resources remains to be seen.

I want to return to the private sector.

In July 2015, Wu Zhize also announced in a high-profile manner that he would focus on developing C2B private ordering business and diversify the company's O2O and C2B business models.

Wu Zhize himself has publicly stated that the company is optimistic about its customized business. It is estimated that business sales will account for 50% of the production scale in 2018. Data show that this proportion is only about 20% in the first half of this year.

At present, the relevant cooperation and investment have been launched. In August of this year, SAP signed a memorandum of strategic cooperation with the wedding birds. SAP said it would help the birds realize the pformation from traditional manufacturing to intelligent manufacturing.

However, many people in the industry believe that at present, the domestic men's wear brands have entered the private custom and high-end custom market. The blue ocean has gradually become red. If the enterprises can not launch differentiated products, it will be very difficult to control the market initiative.

In the pformation of traditional clothing and textile industry, Wu Zhize is not alone. The predicament he faces is almost a microcosm of the predicament faced by the leading textile and textile companies. When the clothing industry can not get optimistic revenue through expanding barbaric ways, the relevant reform measures are forced to be carried out. Wu Zhize, 56, is faced with the challenge of changing times and has to make changes.

Change is universal, while solid is perish.

The cards in hand are still changing, but will he still be a pioneer in the pformation of the industry after 20 years? It is still worth looking forward to.