Angel City's sales fell sharply and multi-brand strategy met resistance

On March 28, according to industry sources, after the acquisition of City of Angels by Angela, the sales of Angel City fell sharply. Sales in 2013 fell nearly 40% year-on-year in 2012, causing the acquirer to appear to be struggling and seriously damaged.

The data Rubik's Cube shows that Angel City’s 2013 total sales on the Taobao and Tmall platforms were approximately 151 million.

According to Yibang Power Network, the city of angels sold about 60 million yuan in the Tmall platform in 2012. Since the C store did not add the Angel City brand to the Taobao product shelves, the Angel City C store’s 2012 sales could not be viewed through related tools. Prior to the acquisition of Angel City, the media revealed that its C store sales were 170 million. Calculated in this way, the total sales of the Tmall flagship store and Taobao C store in 2012 were 230 million, which was 80 million more than in 2013.

Tmall and Taobao only two platforms

"The most ridiculous strategy after the acquisition of the City of Angels was to introduce a large number of existing customers in the City of Angels store into the Tmall shop and split the store. It was just to decorate the home page, and all jumps were entered into the Tmall. This is not a reasonable idea for operating a sub-brand.” Some people in the industry believe that in the absence of adequate resources to support the situation, the brand value of the City of Angels has been exhausted. The vitality and color are almost closed.

Too eager for the city of angels to transfer from the big C into the Tmall deal, it was revealed that Xie hoped to include it in the company's ambition to sprint the listing.

On the other hand, when the cracks were acquired in Angel City, the latter held tens of millions of stocks, which delayed the aircraft. From the second half of 2013, the City of Angels became powerless in the development of new products. Until the beginning of 2014, it was still selling inventory for nearly three or four years.

In fact, when it was acquired at the beginning of 2013 in the city of angels, the fissure was controversial. The City of Angels as a brand to be acquired has a certain gap between genetics and cracks. According to industry sources, from the business philosophy, team formation to design and production, the city of angels has undergone tremendous changes. A user puts it: "The city of angels without the small A (Founder of the City of Angels) has lost its soul."

After Cracker spent 80 million to acquire Angel City, an online women's brand, the two founders of Shan Jiaming and Xiao A, although holding 20% ​​of their founding shares, gradually faded out of management and the whole team was forced to move to Beijing and split the split team. . In the process, employees also took banners and protests.

For these problems, the founder Tang Dafeng was disapproved from the beginning to the end. In addition to properly handling the employees of Angel City, they also actively communicated with Shan Jiaming.

However, its open-minded attitude cannot cover up the status quo. Once Tmall's largest women's scouring brand, the City of Angels has fallen all the way, causing serious injuries.

According to Yibang Power Network, in addition to the city of angels, the company also owns sub-brands such as Xiaokou Chilli, Wherein, Non-Chihseng, and Liancan. In addition, there are rumors that Rift is about to buy online men's brand NOP.

The data cube shows that the sales volume of Xiaokou Xiaochi in 2013 was approximately RMB 85,000, and the transaction amount, number of transactions, brand conversion rate, and customer unit price all decreased. In 2013, its sales amounted to approximately 46 million, and there was no significant increase in transaction amount, number of transactions, and brand conversion rate.

Xiaokou Chilli Pepper 2013 Sales (Tmall + Taobao)

Sales in 2013 (Tmall + Taobao)

Non-pool 2013 sales (Tmall + Taobao)

Cracked 2013 Sales (Tmall + Taobao)

Tang Dafeng, the founder of Rift, had disclosed in an interview that in 2013, Rift had been doing the internal integration of the new brand. The group has made great adjustments in terms of organizational structure, warehouse, and channels. Now different brands are different designers responsible for product development and design, and the supply chain is divided. Operators of each new brand will be drawn from the original team and will be responsible for large-scale co-ordination.

“The cracking sub-brands are too many and the steps are too big.” In the eyes of peers, the fissure is now being burdened by capital power. It quickly expands its scale through mergers and acquisitions, but breaks the original rhythm of development. From the perspective of the operating conditions of the sub-brands under the cracks, the internal integration of the new brand of Fissures is not successful.

The cracks in the cracks not only come from internal bottlenecks, but also from external competition. The same brand of Amoy and Han’s clothing development also used the multi-brand strategy to occupy the market and increase the share. The sub-brands were used to segment the market and segmented the women’s market. In addition, new brands with similar concepts are constantly on the line, and the influence of offline traditional clothing brands on the online market is also increasing. Double 11 in 2013, the sales ranking of fissures fell out of the top three for the first time, ranking fourth in the women's wear industry.

Cracking, this first Amoy brand clamoring to go public, is drifting away from the women’s first echelon.

However, Angel City's sub-brand Lady Angel had a turnover of 57 million in 2012. After entering 2013, it entered a fast-growing track, often tying up with the City of Scared Angels, and even surpassing the City of Angels. Head office.

In addition, although the city of cracks and angels folded the Tmall, the sales volume at Vipshop and Jingdong improved greatly. At the same time, in order to restore the initial trend of the merger, the cracks began in December 2013, focusing on the power of the city of the angels, currently almost every month can be split twice in the same period on the poly cost.

“From the perspective of sales of spring and summer outfits in the city of Angels in the past two months, the effect of destocking is more assured. However, it is difficult to achieve success in the first half of this year. The focus is on the second half of 2014, especially in October. Afterwards, how could the cracking and angel city further break through? If not, the advantages of the old city customer base of Angel City will be exhausted this year,” said the industry insider.

(Note: When publishing this article last night, Yibang WeChat public account mistakenly wrote the brand name “Ladyangel” as “angellady” and apologized.)