Do The Seven Wolves Expect The Brand Name Of The Same Buddha To Drive Clothing Sales?

In August 21st,

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During the period, the performance increased by 13.83% to 1 billion 459 million yuan, and the net profit attributable to shareholders of listed companies was 135 million yuan.

But after deducting non recurring gains and losses, net profit figures dropped to 80 million yuan.

Among them, the French wolf luxury brand Karl Lagerfeld, which bought the Greater China business in 2017, lost about 22 million 800 thousand yuan, and its revenue was less than half of its losses.

At this point, the paction has been completed for nearly a year. According to the seven wolves plan, it is necessary to promote the integration of different business modules in 2018, optimize the business mode of Karl Lagerfeld, and make it more pragmatic.

Now it looks bad.

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The popularity of the brand in the fashion industry is booming, but the brand of the same name he founded in 1984 was in a doldrums, and he withdrew from the US market in 2006, and then returned to North America with the opportunity to establish a joint venture with G-III, an American Apparel Group.

In 2013, Karl Lagerfeld entered China and operated 6 retail outlets and 1 outlets outlets in Beijing, Shanghai and some first tier cities.

After losing second in China in the past second years, it has been in a state of deficit for many years. Even now, Chinese consumers' recognition of the brand is still low.

In fact, he sold Karl Lagerfeld in 2005.

In the years before the seven wolves bought the proxy in Greater China, Cao Qifeng, an entrepreneur in Hongkong, had been the largest controlling shareholder of Karl Lagerfeld, who thought the brand was saved.

In 2003, Cao Qifeng and her business partner Lawrence Stroll bought the Michael Kors 85% stake of light luxury brand, and later opted to withdraw 930 million dollars when the share price of Michael Kors gained three times.

However, he failed to bring back the performance of Karl Lagerfeld.

Sindy Liu, a fashion business lecturer at University of Manchester, said: "I think Karl Lagerfeld is not very interested in its brand. It seems very easy to authorize others to do all kinds of products."

This is not difficult to understand. For most of the energy devoted to Chanel and Fendi, he is more than 80 years old. He is afraid it will be difficult to take into account a sluggish luxury brand, even with its own name.

When the seven wolves spent 240 million of the 80.1% stake in the Karl Lagerfeld Greater China Development Limited, they probably didn't care about their participation in the brand. It might be the golden signboard of Lord Buddha.

Seven wolves have announced that Lord Buddha will be responsible for the management and control of Karl Lagerfeld's overall creativity. The daily product design is completed by experienced design team and has formed a stable design style.

But it also admits: "Karl Lagerfeld is one of the strongest IP in the fashion world.

In the field of licensing, the company will carry out its business in the field of Pan fashion, fully promote the authorized cooperation between brands and other categories, and increase cross-border cooperation.

From the long-term strategic level, the seven wolves hope to participate in the fashion and light luxury brand's business mode and format through this paction, thus promoting the long-term development direction of "creating seven wolves fashion group".

The seven wolves, founded in 1990, entered the golden age around 2000. In 2012, there were about more than 4000 stores in the country, and the year's performance was as high as 3 billion 477 million.

But after that, the growth rate slowed down, and net profit in 2016 was less than 1/4 in 2012.

This is because the seven wolves who are no longer looking are old and unfashionable.

In order to reverse the brand image, the seven wolves began to pform in recent years.

Besides expanding online channels, store digitalization, new media marketing and internal brand incubation, it may be the most important step to acquire Karl Lagerfeld and make the brand image more internationalized.

This is not the first time the seven wolves have approached internationalization.

In 2011, seven wolves bought Hangzhou Kenna Garments Co., Ltd., which was responsible for Italy luxury brand Versace, Connally and Danish famous jewellery brand Jason George in mainland China.

But in 2016, Kenna sold to Zhejiang Yi Tang Industrial Co., Ltd. because of its continuous losses after the acquisition.

Some people in the industry called the seven wolves a "fetch" and questioned the ability of the group to operate an international brand.