A probe into inner dialogue with Fang Jianhua, chairman of Hui Mei Group

The hearts of Internet brand entrepreneurs have recently been scratched-after 2014 years of pressure and cooling, the German and the first-language parent company group to create a new hot topic, recently announced that the traditional clothing companies to search 324 million strategic investment, and launched a A-share listing application. As the first Internet brand company to announce the launch of the IPO plan, the Fund has also updated the industry record. This makes Internet brand entrepreneurs such as Chong, founder of South Korea, a bit of a compliment, and a lot more traditional brands that want to shift their attention to their progress.

Lively, the industry is concerned about is the United States group after the financing of what to consider, and then what will be fresh and revolutionary play to make the company value-added. To this end, billion power network exclusive contact with the United States Group chairman, founder Fang Jianhua, and he conducted a search for inner-style dialogue.

Both sides of the dialogue

Fang Jianhua, chairman and founder of Hui Mei Group

Billion Power network

Fang Jianhua: Jiangxi People, founded in 1998, Guangzhou Hui Mei Garment Factory, 2005 led the company from the Foreign Trade processing business transformation, the creation of Guangzhou Hui Mei Garments Co., Ltd., and became the first batch of Guangzhou Alibaba Business-to-business International Business. 2008 founded Cotton and hemp brand "Mann" from foreign trade wholesale business into the domestic online retail, become the first day of the cat's clothing retail brand. 2011, the Mann won the double 11 women's clothing sales champion. January 2013 Hui Mei Group acquisition of the first language, and began to vigorously train the sub-brand group.

324 million considerations behind

Billion power network: Hui Mei Group has been seized 324 million yuan strategic investment, these are all cash investment? When do I get the account?

Fang Jianhua: All is cash, the contract is signed 10 days after all into the account.

Billion Power network: Search in the private equity accounted for more than 25.2038%, the financing process is how to the U.S. group valuation?

Fang Jianhua: 2014 in a-shares listed clothing companies general market value is 40 times times the net profit, we are a unlisted company, valuation standards and listed companies have differences, this time to the U.S. group's valuation is about 2014 net profit of 33 times times.

Billion power network: In the process of negotiation, the ownership of the search is based on what consideration is set down?

Fang Jianhua: They want to make up more than 20% per cent of the equity, and to further their cooperation.

Billion power network: It is said that there is an intention to invest in the United States Group of traditional clothing brand a lot, how do you search for it?

Fang Jianhua: Last year, more than 10 traditional clothing brands found us, including search. I've known my boss for two years, and they expressed their investment intention at the beginning of last year, but I didn't know them well enough, so I didn't immediately agree to it. Later on both sides of the depth of the communication between the various dimensions, I was aware of the search in special boss thinking very internet, and attaches great importance to the layout of Internet channels. In addition to vote for us, but also cast other internet brands, is definitely not to play with the Internet. The second is to understand that the owner of the special boss of the big, can cooperate, willing to achieve others, very trustworthy. Considering the future we will also go under the line, completely on their own speed too slow, the other side has experience and resources can help us. Therefore, the two sides spent a period of time to understand each other's work style after hit.

Billion Power network: Search in the special main brand trend online, style bias Han Feng, young, campus, this and the group's brand style will have a conflict?

Fang Jianhua: Search in the special has more than 10 brands, the style is very many. Hui Mei Group's positioning is to create the most influential fashion eco-circle, clothing style personality and diversification, follow-up brand will be more and more. Now the group's young fashion brands and trends online users are very consistent, such as our group of younger brand in the positioning and consumer groups and the "trend front" is relatively similar, the opportunity to borrow power is relatively large.

Billion power network: Some Internet brands hope that the brand group after the establishment of the listing, and some Internet brand conditions once the maturity of the launch of the listing as soon as possible. Why did Inman choose to start the IPO this year?

Fang Jianhua: Listing is a company's starting point is not the end point, each company on the listing of the morning and evening is not the same, each business owner of when the understanding of the listing is not the same. For the group, we choose this point of view is that the company's management level and financial situation, has reached a certain level, so the IPO is also a matter of time.

Billion power network: After the listing of all of a sudden put the United States group in the public eye, which will also cause pressure on your operational decisions.

Fang Jianhua: There is no secret in the interconnected micro-era, even if we are not listed, there are ways to know our business data.

New gameplay and imaginary space

Billion power network: The outside world is very concerned about, the United States group after the financing of what new play? Will there be a new space for imagination?

Fang Jianhua: One is to find a small and beautiful brand with hardcore fans, acquisition or investment, and also spend a lot of effort to do the sub-brand group. There may also be the introduction of international brands, the establishment of joint ventures in the country, both sides take out resources to operate the brand.

The second is to explore with the search line under the linkage of the business model. I judged that the next 3-5 years, the retail business model will be a new transformation, online and offline will inevitably come together. Now I and the search only decided a big direction, the future concrete how to do also need further communication, also inconvenient to announce prematurely.

Billion Power network: Search for these years of offline business development? How much can his offline channel actually be used by the United States?

Fang Jianhua: Sinks The United States the user in 123 cities have, three or four line city user growth speed is also very fast, searches the line a total of nearly 2000 stores all over the country, among them 1000 square meters of direct shop has 100 around, our handle brand on-line operation Mature, Will consider putting the tide card which conforms to the special channel modulation to the opposite line channel. In addition, the United States Group will be built from the shop, such as the recent initial language in Guangzhou opened the flagship store 1000 square meters, the layout of the offline channel need to slow down, anxious not to.

Billion power network: Exploration line under the linkage process, the two sides will establish a joint venture team?

Fang Jianhua: We will help them to increase their online share, they will also help us to lay down the line. The team will maintain the relative independence, the team's cooperation way does not adhere to some form, we attach great importance to the communication between the two teams. Therefore, this time the group to obtain investment is industrial investment, not only bring capital, but also bring resources, will promote the overall competitiveness of enterprises to a new level.

Billion Power network: This cooperation is powerful union? According to the data released by the two sides, the United States in 2014 although the turnover rate of growth, but the profit is falling, the search for the 2014 offline performance is also falling.

Fang Jianhua: Of course, strong alliances, the United States group in the Internet brand in the leading position, in 2014, we have made a lot of new brand incubation investment, in the existing brand promotion of a lot of kung Fu. This is a long-term investment, especially the development of a child brand more investment, which is to burn money, so it will affect the profits of short-term statements, this is not surprising. But it will also enhance the long-term competitiveness of the US and China. About the search, with my general understanding of the horse, I believe that he overcame these difficulties, there is no problem.

Figure: Financial data of the group

Billion Power network: you plan to 2015 years of net profit and turnover to do how much?

Fang Jianhua: The 2015 plan came out, the net profit is about 70 million, at the same time the operating income also will maintain the steady growth.

Billion power network: You said the financing will increase the mobile end of investment, push their own app. In some new mobile channels, you will be how to layout, such as the recent discussion of a lot of micro-business channels.

Fang Jianhua: You in Hangzhou's micro-business conference, in fact, indicated an industry vane, I asked the assistant to organize the meeting content for me, I am a piece of digestion. I judge the micro-quotient is the next hot spot, no category, nor industry, who dares to hug who is the next wave of the king. Very simple truth, a person like cotton linen style clothes, her mobile phone has 300 fans, she came to her favorite things to push friends value is very high.

In the field of micro-business, clothing has not been particularly big. But I think, a single cosmetics a year to wholesale more than 1 billion, indicating the existence of a large number of micro-business women groups, clothing why not, the single brand monthly sales reached 5 million and 10 million certainly can be achieved. The micro-quotient is still in an early stage and the future development space is huge.

Billion power network: Some people say that the micro-business channel is more suitable for small and beautiful brands to survive. What do you expect from the micro-business channel?

Fang Jianhua: I think the size of the brand is appropriate, the United States Group will not develop new brands for the micro-business, but will do some of the products will be differentiated. We have been exploring the micro-quotient since June 2014, and the team now has more than 10 people. Sales are good, is also the use of distribution and the introduction of micro-business platform in the operation, we are currently planning to go public, the data on the micro-business channel is not convenient to say, but it is certain that we do not just as a channel, the future of this piece in our overall development strategy is very important.

Local brands in the industry shuffle

Billion Power network: Search in special investment in the United States Group, La Raleigh buy seven, the home textile injection, the recent traditional brand actively embrace the Internet brand, do you think this will be a trend? is the listing path for the group of US companies replicable for other internet brands?

Fang Jianhua: These two years the traditional brand is very happy with the Internet brand to walk together, I am happy to see the group listing can lead another batch of Internet brand listing.

Billion power network: traditional brands actively close to the Internet brand, one of the very direct reason is that their sense of crisis is very strong. In the international brand influx and the double attack of the Internet, you optimistic about the future development of domestic traditional clothing brands? What is the future trend of the local clothing brand in your eyes?

Fang Jianhua: These two years domestic traditional clothing brand pressure is indeed very large, an estimated 80% downhill, 20% on the slope road. This is a natural phase-out process, from the last century 90 's to 2005, the market is in short supply stage, as long as there is a brand can sell goods. Domestic traditional clothing brand most of the birth in this stage, now consumers more and more personalized, the market more and more brands, but also more and more subdivided, consumers have changed, the brand itself has not changed of course the days are not good. And now the era of global competition, not the competition between Internet brands, or the Internet brand and traditional brand competition, but also make a group of traditional local clothing brands are anxious. But I think the local brands that have done well have great space for development and go abroad, but now it is only in a primary stage of development.

Part of the group's sub-brand collection

Billion Power network: You judge local minority brands will be more and more?

Fang Jianhua: There will be more and more. But I said small, not to say how small, but positioning group is very accurate, only responsible for a small number of people do good products. I think in the internet age, small and beautiful instead can make large-scale, and small and beautiful brand more and more safe, big brand instead meet the challenge will be bigger.

Billion power network: Small and beautiful, single brand size can do what level?

Fang Jianhua: Small and beautiful brand annual sales to do 200 million or 300 million can live well, in future, the Mass brand will certainly be subject to many small brands in the future, from the point of view of integrating resources, the group will certainly have a large brand out, but most of the brand is to take a small and beautiful route, like last year we launched the high-end brand " Living in the left ", March 8 this year, a day of turnover reached millions, customer unit price in 700~1000 yuan, and most of the customers are newly developed, visible small and beautiful new brand growth how fast.