Meibang Apparel accelerates expansion of rental stores to expand the market

Meibang Apparel recently announced that the company plans to use approximately RMB 29.53 million of raised funds to open 5 stores in 5 cities in China through leasing.

"The 80% investment in the company's IPO is used to expand terminals, so the pace of expansion since its listing last year has basically not stopped." According to reports, for the expansion of franchise stores, Smith Barn apparel has always taken one Second, third-tier cities comprehensive promotion strategy. In the first three quarters of this year, Meibang Fashion purchased 6,997.66 square meters of 6 commercial real estates in six provinces including Zhejiang, Fujian and Jiangxi, involving an amount of 785 million yuan. In addition to the increase in the number of stores, the size of the company's stores has also continued to expand, with 215 large stores of 500 square meters or more, an increase of 111% compared to the end of 2007, and the average area of ​​shops across the entire marketing network has also increased to some extent.

In addition, the proportion of company-operated stores has increased year by year. It has now increased from 8.51% in 2002 to 15% at the end of last year. According to the planning of the company when it went public, this result means that half of the expansion plan has been completed.

Analysts said that since the pessimistic economic situation since last year, competitors have slowed down the pace of expansion, which also provided a good opportunity for the expansion of the company. The main reason for the company's revenue growth in the realization phase is the expansion of terminal stores. As these new stores are all located in the prosperous business district of the city, they have played a positive role in promoting local sales of the company's products and improving the company's operating performance. They have also had a positive impact on improving the company's brand image and brand awareness.

"The characteristics of Meibang Garments are not to take the unusual road." The company has always believed that only by focusing on the domestic market, can it be managed steadily, and at the same time, it will bring rapid growth to the company through unremitting channel expansion. It is reported that as the economy recovers, some franchisees of Smith Barney have begun to take the initiative to demand more orders in the third quarter, and the sales trend is clearly improving. It is predicted that in 2010, the total retail sales of the domestic leisure apparel market will reach 605.3 billion yuan.

"This time the fierce international financial crisis has not only brought no unscathed damage to the company. Instead, it has provided an unprecedented opportunity for the company to acquire and lease commercial real estate on a large scale in the Mainland." The company’s responsible person stated that the apparel industry is In a completely competitive industry, entry barriers are low, and there are various domestic and international brands on the market. Under such circumstances, strengthening brand promotion and increasing product gross margin are the key factors for garment enterprises to win.