Card retail new retail, Jiangnan Cloth appointed female new CEO

The picture shows a store of Jiangnan Cloth's core women's wear JNBY, shooting: fashion headline network

With the continuous expansion of its brand matrix, the internal structure of Jiangnan Buyi Group has also begun to adjust.

Jiangnan Cloth, a domestic apparel group, announced yesterday that starting from March 7, 2019, Wu Huating will succeed Wu Jian as the new CEO, and Wu Jian will continue to serve as chairman and executive director. According to the agreement signed by the two parties, Wu Huating has a term of five years, an annual salary of about 1.14 million yuan and stock dividends.

According to the data, Wu Huating, 44, has nearly 21 years of experience in retail and internet operations management and investment. From 2011 to 2018, she was a partner of Vision Knight Capital General Partners Ltd., a private equity investment fund. Prior to joining Vision Knight Capital General Partners Ltd., Wu Huating was employed by Alibaba (China) Network Technology Co., Ltd. since 2006 as a senior director.

Jiangnan Buyi Group said in a statement that Wu Huating's participation will help the group to integrate the traditional retail industry with Internet thinking, including store experience and terminal consumption services, to better transform into omni-channel retail. Wu Jian will focus more on the overall strategic development of the group, while still paying close attention to core business development. Executive Director Li Lin is still responsible for managing the design and research department, providing guidance on the design concept and bringing the right products to market.

The picture shows the brand portfolio of Jiangnan Buyi Group

Jiangnan Cloth began to accelerate the expansion of its brand portfolio to 10 brands last year, which are mature brands based on JNBY, including the growth brands of CROQUIS, jnby by JNBY and less, as well as Pengma, JNBYHOME, SAMO, REVERB and LASU MIN SOLA. The emerging brands cover almost all ages and become the most fashionable fashion group in China.

With the increasing saturation of the traditional apparel retail market, multi-brands have become the layout strategy commonly adopted by domestic apparel groups. In order to better break through, Jiangnan Cloth is also increasing its development of online business to meet the needs of new consumer groups. Improve member loyalty by improving service quality.

Some analysts believe that the addition of Wu Huating, who has a new retail background, is the second step in the transformation and upgrading of Jiangnan Cloth. After “building the forest”, it is now the “new retail” card competition.

Different from other domestic apparel brands, Jiangnan Cloth's test of new retail is mainly from the online. In August last year, it launched the first “try before you buy” small program “not only the box”. The small program focuses on customized, fresh and imaginative styling with recommendation services. The turnover in the first three months after launch is over 1 million yuan, which means that Jiangnan Cloth is changing from the provider of the product to the provider of the service.

Fashion headline network pointed out in the report earlier that for apparel retail, the most expensive thing used to be the lot, now it is traffic, but the future is a fan. In 2018, the number of mobile e-commerce users in China reached 510 million, and it is expected to be 2019. It has grown to 550 million people and has huge consumption potential. In this regard, Jiangnan cloth has become a front runner.

As of the end of December last year, the total number of members of Jiangnan Cloth has exceeded 3.1 million, of which 2.6 million are from WeChat, and the amount of retail sales contributed by 70% of total revenue. In the past 12 months, the number of active member accounts with more than 2 purchases in 180 consecutive days has increased from 360,000 to 395,000, of which the number of WeChat active member accounts reached 376,000. The total purchase last year exceeded RMB 5,000. The number of members was 182,000, and the retail sales increased by nearly 30% year-on-year, contributing more than 40% of the total offline retail sales.

Driven by multi-brand matrix and online channel performance growth, Jiangnan Buyi Group's sales in the first half of the 2019 fiscal year surged 22.6% year-on-year to 2.03 billion yuan, entering the 2 billion club for the first time, with a gross margin of 61.4%. Net profit surged 22.1% year-on-year to 380 million yuan, both hitting record highs.

During the period, Jiangnan Cloth's new retail sales from online channels accounted for 20% of total retail sales, and online channel revenues also increased from 8.5% in the first half of 2018 to 10.9%, an increase of 50% year-on-year. The size of the Group's offline channels has also expanded to a record high, with 1994 independent physical retail stores and 161 overseas sales outlets in 17 countries around the world.

Jiangnan Cloth emphasized in the financial report that in order to achieve long-term sustainable development, the Group will continue to incubate new brands according to a moderate pace, and will use multi-brand scale to enhance the domestic and international retail network and optimize its use of Internet thinking and technology. The channel interaction platform adheres to the fan economy as the core, encourages operational innovation, and continuously creates and provides value-added services to fans to enhance the fan experience.

From a street shop to a clothing group with 10 brands, Jiangnan Cloth is undoubtedly the witness of the evolution of Chinese consumers' fashion outlook. The online and offline business has a certain scale of the present, how to achieve two channels to achieve quality The upgrade will become a new challenge.

Since the beginning of this year, Jiangnan Buyi Group's share price has increased by more than 30%, and the current market value is about 7.8 billion Hong Kong dollars.