Chapter 142 Acquisition
"Mr. Chen, let me report to you about the acquisition of the Samo brand!"

After receiving Zhang Shijie's call, Chen Xiao said, "Mr. Zhang, you're welcome. Let's have a chat."

A few days ago, Chen Xiao asked him to communicate about brand acquisition or agency cooperation. He did not dare to neglect it and has been following up on this matter personally in the past two days.

This is also an opportunity for the current Yino Group to break through the bottleneck.

Coincidentally, the SAMO brand has also encountered a bottleneck of weak growth!

SAMO is positioned as a high-end fashion brand, and its average customer spending is almost the same as that of affordable luxury brands. It is also located in the same area as affordable luxury brands in major shopping malls.

But think about how many commercial plazas of light luxury brands there are in each province. It is conceivable that the channel layout of the SAMO brand is restricted!

If there are few terminals and you want to increase your sales share, you can only increase the output of a single store. However, increasing the output of a single store requires a higher level of product richness.

However, Samo now generally operates in a distribution agency model across the country, because this way of operating the group does not require too much cash flow.

This was also a helpless move when the cash flow was not sufficient at the beginning of the development of the Samo brand.

This is the problem. Now that the national dealer model has been formed, the disadvantages have emerged!
On the one hand, dealers are cautious about opening stores and will not open a store that they are not very sure of. On the other hand, dealers are cautious about placing orders. In order to avoid inventory backlogs, dealers like to pursue the depth of goods when placing orders and give up the breadth!
The advantage of doing this is that the goods are not easily out of stock, making it easier to integrate sizes.

The disadvantage is that the product range is not wide enough and customers have limited choices, which leads to poor performance.

However, when it comes to choosing between performance share and inventory pressure, dealers clearly place more emphasis on the latter.

Therefore, up to now, SAMO's channel layout has been progressing very slowly, and the annual increase in dealers' purchases has been limited. The group wants to make drastic changes, but dealers are banding together for support.

In this situation, no one from the SAMO brand dared to act rashly, because once the dealers resisted, someone would have to stand up and take responsibility for the loss of brand performance and profits. Obviously, no one wanted to be the bad guy.

This is the drawback of large companies. They know where the problem lies, but they just do nothing. Everyone is thinking about protecting themselves first.

Therefore, traders are worried about being held accountable for reduced investor returns, and even though they know there are problems in this regard, they have no choice but to stick to the rules.

At this time, Zhang Shijie came to the door. The difference between Yino Group and Samo happened to be in their business model.

Yino Group is a completely direct-operated model and does not have the same troubles as Samo. Of course, direct operation also has its disadvantages.

It takes up too much capital, and all the inventory becomes the company's, putting pressure on inventory turnover, unlike Samo where dealers pay for it.

But is the occupation of funds a problem for Enno Group?
Zhang Shijie joked with them, "Now the Yinuo Group is so poor that all it has left is money!"

With 20 billion yuan in my account, I can stand up straight. Money is much more useful than any kidney medicine!
If Samo accepts Yinuo's investment, it can fully use Yinuo's direct sales channels to check and balance dealers, or directly acquire them.

Anyway, every province has a management team, and the funding problem has been solved. Taking over dealers can further maximize profits.

Because of this, Zhang Shijie's idea of ​​acquiring Samo made Samo a little tempted! And Zhang Shijie promised them that after the acquisition, the Samo team would still operate independently!
His idea is right. Brands with different positioning need to be managed by dedicated people. If the person in charge of "Yi Rui" is allowed to manage Samo, Samo will soon be managed into another "Yi Rui".

If Yino Company completes its absolute control over Samo through equity acquisition, it can adjust its business management methods, optimize resource allocation, and enhance its market competitiveness after the acquisition. Both companies can break through the existing bottlenecks and achieve a win-win situation.

"Mr. Zhang, I don't understand retail, so I can't give you any advice, but I can offer you some support!"

"Sama is now considered a leading fashion brand in the domestic market and is very well-known. If the acquisition is completed, I can take the lead in having Chanel and Sama develop one or two joint products to enhance the brand's influence!"

What? Zhang Shijie suspected he had misheard.

"Mr. Chen, the Chanel you're talking about is the Chanel from the international luxury giant?"

After getting Chen Xiao's affirmative answer, Zhang Shijie was shocked beyond words. That was Chanel!

Being able to collaborate with her will boost the brand's influence much more effectively than spending hundreds of millions on advertising. It's such a cool thing.

He didn't mention whether he could cooperate with Yinuo, because he knew Yinuo was not worthy!

The two brands owned by the Yino Group, "Yirui" targets the mid-range market, and "Yino" has little influence. Even if Chanel belongs to Mr. Chen's family, it is impossible to cooperate in this way. It will damage the Chanel brand, and that is not a little bit.

SAMO has at least established itself as a leading domestic fashion brand and has a considerable market size.

If Mr. Chen hadn't said it himself, Zhang Shijie would have thought it was a fairy tale.

He knew Mr. Chen's strength and knew that he would not boast easily. Since he said it, he must be sure!

He is now confident that if he uses this news as a bargaining chip, the actual controller of Samo may cry and beg to cooperate with him. After all, this is an opportunity to push the brand value of Samo to a peak.

They wouldn't even dare to dream of such an opportunity.

With this promise, Zhang Shijie is full of confidence and is also full of ambition for the development of Yino Group!

You know, the brand value of Samo will be improved, but Samo will also become one of the brands under Yino Group, so Yino's strength will naturally increase!

The lights are just coming on, the streets are jammed with cars and it's rush hour!
But in the small meeting room outside the general manager's office of Four Seasons Clothing, the communication between the two negotiating parties was a bit unpleasant!
Jack Zhang, the national sales director of Samo, listened with displeasure as the development manager of Four Seasons Clothing reported on the channel layout of the Samo brand.

After Four Seasons Clothing finished their report, Xia Bin said politely, "Jack, the Jiangzhou Wansheng store we're about to open is one of the best in Jiangzhou. We estimate its annual sales to be no less than 1000 million!"

Jack Zhang said calmly, "I have no objection to Samo entering Jiangzhou Wansheng Plaza, but I want to say that we can't lose this store at Honglong International. This isn't just a matter of closing down a store and opening another one in Jiangzhou Wansheng Plaza!"

"The strategic significance of Hong Kong Dragon International is irreplaceable. If Samo doesn't have a store here, where will the brand's reputation be?"

(End of this chapter)

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