La Natsu Bell Serious Loss Also "Big Hand" Mergers And Acquisitions "Big Foot" Shop

In May 22nd, the domestic women's clothing company La Natsu Bell announced a deal. The group's acquisition of the remaining 60% stake in the French clothing brand Naf Naf is about to be completed. NafNaf will become the Affiliated Companies of La Natsu Bell, with a paction volume of 270 million yuan.

At the end of June last year, La Natsu Bell Di bought a stake in Naf Naf40% from 20 million 800 thousand euros (about 160 million yuan) from VIVARTE SAS. Now, through second remaining acquisitions, La Natsu Bell already owns 100% Naf Naf.

But the boom in mergers and acquisitions is accompanied by La Natsu Bell's continuous losses and closet boom. In the past 2018, the net profit attributable to shareholders of La Natsu Bell listed companies was reduced by more than 6 billion over the same period last year, with a loss of 156 million yuan, down 131.24% from the same period last year.

In the first quarter of 2019, La Natsu Bell had closed 1616 stores.

Similar cases occurred in January of this year. Herman group terminated the 100% equity paction with Wenzhou noble department store limited by 155 million yuan. The company received a refund of 250 million yuan equity pfer from Wenzhou noble department store Limited.

Why did La Natsu Bell, who had a serious loss, still need to buy big hands? Why did La Natsu Bell concentrate on "big foot" in 3 months?

First of all, we must make sure that La Xia is still the "strongest channel".

Although La Natsu Bell suffered serious losses and closed more than 1600 stores, La Natsu Bell remained the "strongest channel" for the more than 7600 remaining La Natsu Bell.

The 1234 line of major commercial complexes can be seen everywhere in La Natsu Bell's store.

Moreover, La Natsu Bell's operating income decreased by 269 million yuan over the same period last year, but with 10 billion 176 million yuan of revenue, it is still the leader of domestic women's clothing listed companies.

Most of the other women's clothing companies are on the scale of billions of dollars and many sideline businesses.

Revenue reduced by 269 million yuan, but profit by 600 million?

According to the statistics of the China National Business Information Center, the retail sales of clothing commodities in major retail enterprises nationwide increased by only 0.99% over the same period of 2018 1-12.

H&M and Zara, the $20 billion global fast fashion giant, have slowed to 3-4 in 2018.

Against this background, La Natsu Bell's revenue reduction is inevitable.

La Natsu Bell's 12 brands tell me that I can tell the boys and girls alike.

This has resulted in more than 9000 stores, but the cost is no longer in profit.

We need to know that La Natsu Bell's 10 billion 100 million revenue, gross margin of 65.33%, gross profit of 6 billion 600 million, plus 1.562018 years of loss generated about 6 billion 756 million of operating expenses.

About 75, if the cost of a store is about 1 million 100 thousand of a single store sale, it is very strange not to lose money.

According to legend, before La Natsu Bell got all kinds of shopping malls subsidies, no loss before we can explain.

Fortunately, La Natsu Bell realized that his channel was too saturated. It was a little late to tell the truth, but it was better than not.

From the perspective of enterprises, La Natsu Bell should focus on adjusting the homogenization of its brand products in addition to adjusting the number of stores. Secondly, in the proportion of stores, its participation rate should at least account for more than 50%, so that it is possible to alleviate the current operational pressure.

And what opportunities are there for franchisees?

I have always believed that the fight between husband and wife shops is absolutely not bad, even higher than direct stores.

Especially in the throttling, La Natsu Bell's high cost rate is most appropriate to the agents. The locals know most about the local cultural relations, business contacts and resources.

As an agent, La Natsu Bell's adjustment of affiliate system is not necessarily a bad thing.

In the future, the rash will close shop and turn shop. To tell the truth, a well-known and powerful brand can not play a lot of agents. Turning to La Natsu Bell's franchisee is like "gold rush", and the matter of life cycle should be considered clearly, so we can see the eyes of agents.

Why did La Natsu Bell close 1600 stores?

According to Accenture reports, at present, China has 400 million 20-60 year old female consumers with a scale of over 10 trillion, but from now on, female consumers' awareness of brand aura is getting lower and lower.

And more seriously, female consumption has become more rational from impulse than men.

The women's consumption era, which had been angry before, was gone forever.

In the Internet era, female consumption can stay at home, can be placed before bed, or even 1 minutes, three goods.

You can also try out clothes for a particular store. Of course, you will never visit your brand for a trivial matter.

Therefore, the channel is no better than strengthening consumer trust, so invalid stores and strategic adjustment stores must be launched.

Why did La Natsu Bell focus on 1600 months in 3 months?

La Natsu Bell knows that most of the powerful agents are now involved in the sports market, especially in the two or three line, or do their own regional brands.

So La Natsu Bell's goal is not high, but he is very eager to promote the franchise. He also knows that the current cost of the store is too high for agents to come in.

It can't be closed directly, so the cost is higher.

An agent who can pick up 10 stores is not easy to find, so Guan Guan shop will take the initiative to reduce the threshold for entering the La Natsu Bell system, and reduce its own cost in order to make both ends meet.

What is worth noticing is La Natsu Bell's point. First, the mechanism of its franchise system must be well designed. After all, La Natsu Bell has been away from the agent circle for a long time.

At this time, the promotion of franchise is bound to have the suspicion of pferring risks.

Two, we must balance the conflict of interests between franchisees and direct stores in a multi channel way, and eliminate the contradiction points of the agents ahead of time so as to ensure the smooth development of the franchise system.

Otherwise, it is difficult to achieve the goal.

Why do we need 100% to hold Naf Naf?

The problem is that Anta's FILA operation rights are only part of the global market.

Today, FILA revenue is over 10 billion, and domestic market growth is down from 3 digits to 2 digits.

Saturated and unable to buy all of FILA, Anta was looking for 100% acquisition of the mother of the first parent, amamfin, for its purpose.

If you want to be "free", it will be 100%. In such a loss, it will be risky to take 270 million out of the teeth. But from the long-term cost effect, the 100% holding cost is lower.

Moreover, they belong to one field. Naf Naf is similar to the style of La Natsu Bell's young women's dress. The women in the 25 to 30 age group belong to La Natsu Bell's field.

Secondly, NafNaf has 494 retail outlets in France, Italy, Spain and Belgium.

At present, La Natsu Bell's revenue and running water are very high in domestic women's clothing, which means that he has more capital opportunities.

In the future, the group will close their stores and adjust their affiliate share, while increasing their investment in NafNaf. After all, Naf Naf's launch is not in conflict with China.

At present, La Natsu Bell is more eager for the domestic market.