Liu Wen’s endorsement of Erdos said that fashion should be used to defeat the weather.

At 19 o'clock tonight, along with the magnificent symphony, the Erdos Group's ERDOS “Baiguang” 2017 autumn and winter show opened at the Beijing Agricultural Exhibition Hall.

Just like all the classic brands that have lasted for a long time, every turn in the 30-year development of the Chinese cashmere brand Erdos is almost always a stepping on the crisis. Ordos' competitors are no longer just cashmere brands, they must use "fashion to beat the weather."

At 19 o'clock tonight, along with the magnificent symphony, the Erdos Group's ERDOS “Baiguang” 2017 autumn and winter show opened at the Beijing Agricultural Exhibition Hall. On the side of the museum stands the blue-themed wall of this autumn and winter series. The center of the wall is simply printed with "ERDOS" and a chic sheep logo. For the people passing by, it is not difficult for them to identify the brand that has been deeply immersed in the concept of consumers for 30 years, but compared with the slogan that printed "Ordos, warm the world" from black and white TV sets, printed Ordos, the cashmere brand of Chinese logo, is a familiar and unfamiliar brand with visual expression and arranging that is no different from international brands.

This is the second big show after the remodeling of the ERDOS brand. According to the highest level of the current domestic big show, the show's specifications include the star lineup including Yuan Quan and Olivia Palermo. Liu Wen's finale, Jin Dachuan, Wang Xinyu, and Sui Bin also have all the new supermodels. Simultaneously, there is also a live broadcast of the big show and a buy-and-see. With the rise of the domestic apparel brand to the show level, the big show presented by ERDOS is almost impeccable. But for the Ordos Group, the most important thing is not the conference itself, but an important transcript of the brand after one year of reshaping.

Following last year's first rebranding conference, more and more eyes were on ERDOS, which was once marginalized by fashion. The hot-selling "Chong Yao Xin Xin" big show in 798 declared the official transformation of Ordos. The original Erdos brand was split into ERDOS aimed at internationalization and fashion, and focused on cashmere professional and brand heritage. Ordos 1980.

As a result, the Ordos cashmere apparel brand family has four brands for different customer segments, ERDOS, Erdos 1980, 1436 and BLUE ERDOS. 1436 and ERDOS are aimed at high-end and fashion customers, of which 1436 is positioned as a luxury brand, and the two are crowded with people with high consumption power and willingness to consume in the market. Ordos 1980, which is positioned as a professional cashmere brand, follows the brand tradition. Ordos 1980 takes over the traditional mature customers of the brand, but emphasizes that it is not only for mature customers, but also for maintaining the traditional customer base. Under the guidance of Ordos 1980 is also a brand new brand. BLUE ERDOS is aimed at the young generation of “Millennial Generation”. With its design sense, high cost performance and Ordos quality endorsement as its core competitive advantage, BLUE ERDOS has become the key crowbar for the Group to enter the young market.

Thirty years ago, a cashmere sweater was a representative of rare quality. When it comes to cashmere, people can always think of Erdos City in the Inner Mongolia Autonomous Region of China and the cashmere group of the same name. Ten years ago, as Chinese consumers became more and more focused on the fashion of their products, cashmere sweaters with a single style and higher unit price began to become synonymous with “old-fashioned”, and heavy cashmere clothing was mainly suitable for autumn and winter seasons, and down jackets. It is equally susceptible to weather factors. Five years ago, China's macro economy began to enter a turning point, consumption and retail have entered a new stage, consumers are more and more subdivided, consumption concepts tend to be diversified, and competition and reshuffle of apparel brands are intensifying. At this time, Erdos The group felt a strong sense of crisis.

In 2015, Erdos began to launch brand development strategy research. In more than 30 cities across the country, the market survey of more than 5,000 consumers was conducted. The brand found that on the one hand, “Ordos” has become synonymous with high-quality cashmere clothing. It enjoys high popularity and emotional recognition among consumers all over the country. On the other hand, the “Ordos” brand has accumulated a large number of customers over the past 30 years, and it has begun to be too vague and even aging, which is related to today’s consumption. The trend of upgrading does not match, and the brand is particularly lacking in the influence of young consumer groups.

A series of reshaping plans were launched, and the main driving force behind the reshaping plan was Wang Wei, vice president and executive director of Erdos Holding Group and general manager of Ordos Cashmere Group. As the second generation of the Ordos Group's management, Wang Hao, who graduated from the University of Cambridge in the UK, has been injecting international vision into the management of this traditional cashmere industry chain group. The 1436, which is positioned as the top cashmere brand for luxury goods, is owned by her. Founded in 2006.

For Ordos, which has a large volume, it is easy to clarify the concept, but the change that really touches the sales terminal is extremely complicated system engineering, including the differentiation and repositioning of multi-brands, and the reshaping of brand image in various communication paths. The adjustment of the internal management structure and the re-layout of more than 1,000 physical stores and online markets for many years of cashmere floor.

The most direct impression of consumers on the transformed Erdos comes from the communication expression of various communication channels. Gilles Dufour, the artistic director who has worked at Chanel for 15 years, brings ERDOS an aesthetic system with a more international vision and artistic direction. The addition of Chinese supermodel Liu Wen has become the starting point for many consumers to change their ERDOS impressions. Just like Liu Wen's own characteristics and experience, local attributes and internationalization have reached a balance in the advertising image of ERDOS.

In addition, the Group is promoting the fashion of the Ordos brand group through joint cooperation, including the 1436 last year and the first Chinese designer Uma Wang Wang juice who entered the official Milan Fashion Week schedule, ERDOS and cutting-edge designers in Suining and Europe. Ma Kai cooperated jointly to explore the possibility of cashmere through design perspective. ERDOS also cooperated with well-known designer BING XU to start a deeper cross-border cooperation with BING XU in the fall/winter 2017 season, and developed a special series with the theme of the main push series for the season, which will be put on the market.

In order to more clearly define the differentiated positioning of the four brands, ERDOS strengthens cooperation with star fashion KOL in the promotion strategy of each brand, 1436 focuses on cooperation with artists, 1980 emphasizes the emotional relationship and life experience of the new era, BLUE ERDOS It will highlight the individual expression in the digital age.

However, for consumers, the common problem of domestic apparel brand transformation is that the change of brand advertising image is out of touch with physical stores, and the direct impact on consumer behavior is often the experience of terminal stores. Wang Wei told the fashion headline network that in the past year, the Ordos Group has carried out the design and switching implementation of the new VI (visual identification) system and SI terminal store image of ERDOS and Erdos 1980, and simultaneously launched the national brand visual image enhancement plan. Optimize in the direction of brand positioning on every possible contact between the consumer and the brand.

Ordos business brand and company organizational structure have also made great adjustments, and established a system of four brands that are separated but operated in an integrated management system. The four brands have independently operated units, such as product development, promotion, and image management. At the same time, the back office is a shared management system, such as logistics, supply chain, production, service, and information systems. “This is a criss-cross management model. Compared with managing only one brand in the past, everyone can feel great changes and challenges, but after trying to work together, the initial new model has already landed, and we hope to see it. Pursue a balance between efficiency and efficiency in the complex, achieving a balance between brand and business."

Multi-brand strategy has become a new popular practice in the Chinese apparel market. However, some analysts believe that this is a double-edged sword. Compared with doing a good brand, multiple market segments are risked by decentralization and require more energy from the company. Wang Wei believes that multi-brand development must require more energy, which is determined by corporate strategy. More importantly, in China's rapidly changing market, branding based on market segments is the focus of concentration. For a group of customers, they can get their approval by trying to meet their needs. According to Ordos, China's market size is large enough to support multiple market segments. “It’s okay to be a brand, but you can only get a chance in a market segment and you can’t eat the entire consumer market.”

The ambition of Erdos “take all” is indeed big enough. The market segments targeted by the four brands clearly and completely outline the entire Chinese apparel consumer market, whether it is fashion or basic, whether it is young or middle-aged. Whether it is the pursuit of high cost performance or luxury goods, every subdivision needs have the layout of Ordos. Not only that, but Erdos hopes to jump out of the cashmere industry and enter the fashion apparel market with more space.

“Ordos’s current competitors are really not a cashmere brand, but a fashion brand.” Wang Hao further explained that Erdos is doing a brand and product that is related to “the moment” and is fashionable but retains the cashmere attribute label. Erdos’s Cashmere is no longer a cashmere sweater for autumn and winter, but an all-season product covering all categories. Thanks to the advancement of cashmere skills, today's cashmere can also be made into any thin and light product. The summer is not over yet, and the ERDOS clothing worn by the guests tonight is not heavy at all. The continuous innovation of craftsmanship is rooted in the complete cashmere industry chain of Ordos. From the pasture, sheep, and cashmere, the entire industrial chain is exactly where Ordos is.

This has also become the trump card for Ordos in the face of external competition. In the past two years, with the arrival of consumption upgrades, consumers have paid more attention to the quality of fabric materials. The era of cashmere has returned, and the cashmere industry in the world is consistently good. Luxury cashmere brands such as Loro Piana and Brunello Cucinelli have entered the Chinese market. Cashmere products such as Burberry and Max Mara have become classic styles that consumers are willing to invest in, especially after Max Mara's coats continue to sizzle in the fashion WeChat public account. To win the broad recognition of Chinese consumers. Well-known lifestyle consumer guide blogger @反裤衩 position has posted on its WeChat public account called "a cashmere sweater, why is it worth 10,000 yuan" to introduce Chinese consumers to the above brands Top cashmere products. Under the pressure of global luxury brands, the market space has indeed been squeezed, which also confirms Wang Hao’s judgment on Erdos competitors, but Erdos’s entire industry chain has become its differentiated competitive advantage.

In fact, the cashmere industry chain only accounts for a part of the Ordos Group's diversified industrial chain. The business of Ordos Group listed company (600295.SH) is mainly composed of cashmere clothing and electric metallurgy and chemical industry. The cashmere clothing business accounts for a small proportion.

“The business model and characteristics of cashmere and electric smelting business are very different. One 2C (for consumers) one 2B (for business entities), one light asset, one heavy asset, and different periodic characteristics, but the strategy is very Importantly, it is the two pillar businesses of the Ordos Group.” Last year, the group raised 2.9 billion plus yards of cashmere clothing business, mainly for channel construction and brand image upgrade. Cashmere belongs to the consumer market. Obviously, the plus cashmere business stems from the Group's optimism about China's future sustainable consumption upgrade. However, according to Wang Hao, the fashion headline network revealed that due to changes in national policies, the specific amount of the fundraising project may undergo major changes.

In the past year, the Erdos Cashmere Group has achieved remarkable results at an unexpected rate. According to reports, in terms of ordering, after the rebranding of the brand, the order of the four seasons has risen four times. ERDOS and Erdos 1980 total, the autumn and winter of 2016 increased by 11%, the spring and summer of 2017 increased by 17%, and the autumn and winter of 2017 increased by 19%, 2018 spring and summer. Orders grew by more than 40%. On the premise that the order style is reduced by 30%, the increase in order quantity proves that the market is very confident in the product.

At the retail level, sales of new products for the fall and winter of 2016 and spring and summer of 2017 increased by more than 20% year-on-year. The sales rate in the two quarters reached a record high. Since the rebranding of the brand strategy in September 2016, the sales and sales of new products have recorded double-digit growth. Some key stores have increased their sales in autumn and winter of 2016 by more than 30%. The direct feedback from the market is considerable. .

The Group also received positive feedback from the omni-channel layout of the brand reshaping. According to the data, the Erdos brand family's e-commerce growth rate reached 47% last year. "We have no channel now, no matter whether it is online or offline. This is a new attempt this year. Choose one hundred pilot shops online and offline, and continue to follow up and explore new models. And practices, and actively try to develop online and offline strategies that are consistent with the brand positioning objectives."

Tmall, which has been cooperating since 2009, has also become an important partner of Ordos in the process of exploring omnichannel. Erdos said that it is willing to try any new model of Tmall, which closely follows the latest development trend of e-commerce. At present, Erdos cashmere apparel sector e-commerce revenue accounted for more than 10% of the revenue, the development space is still very sufficient, last year Erdos invested tens of millions to upgrade the information system, open up all the inventory, provide hardware support for the development of e-commerce, It is reported that a new membership system and micro-business will be launched this year.

Ordos has been transformed with a lighter attitude. At present, it is still impossible to make a conclusion. However, the Chinese cashmere brand, which is based on the 30-year emotional basis and better understands the pain points of consumers, is obviously more likely to return to the hearts of consumers again.

Reporter: This category of cashmere has distinctive characteristics. How does Erdos overcome the seasonal restrictions of cashmere itself and the stereotype of “aging”?

Wang Wei: The thing Erdos is doing is to make cashmere more fashionable. Cashmere itself has no age attribute, just because the brand used to be homogenized and traditional in the past, so it gives consumers the impression that cashmere is equal to the elderly. But this is actually a misunderstanding because the material itself has no age label. If we can create different brands to deal with different consumers, the age problem can be solved, mainly to see how the brand performs.

All four brands do a full range of products. Erdos 1980 is more professional in cashmere, with a larger proportion of cashmere in the product line, and still contains silk shirts, cotton, and thin products. Of course, the core competitiveness of these brands still has a cashmere label and attributes, because we are the origin, with more than 30 years of craftsmanship and the world's top technical experts, we set the world standard, so we give ourselves the position, It is unique in fashion brands, but it does not mean only cashmere.

The performance of the spring and summer series is also outstanding. The cashmere products in the autumn and winter series account for about 60%, and the non-velvet accounts for 40%. The proportion of non-velvet in the spring and summer series is larger, accounting for more than 75%, and cashmere is only about 25%. From the cashmere itself, new technologies and processes have also spawned many lightweight materials.

Reporter : In September last year, the Ordos brand began to reshape. What kind of crisis did the company feel before 2015? What was the situation at the time?

Wang Wei: From 2013 to 2014, China's macro economy entered a turning point, consumption and retail have entered a new stage, consumers are more and more subdivided, consumption concepts are more diversified and mature, and competition and reshuffling of clothing brands All are intensifying, and we realize that we must understand and serve China's fast-growing and changing consumers more accurately.

In 2015, we launched a brand development strategy research, and more than 5,000 consumers in more than 30 cities across the country, found that, on the one hand, “Ordos” has become synonymous with high-quality cashmere clothing, in the eyes of consumers across the country. Enjoy high visibility and emotional identity. On the other hand, the “Ordos” brand has accumulated a large customer base for more than 30 years, which is slightly ambiguous and aging, which does not match the trend of today's consumption upgrade and the long-term vision of the brand, and the Ordos brand is young. The influence of the post-80s and post-90s is in urgent need of construction. Therefore, we decided to make some major adjustments in the brand strategy, through multi-brand construction, to more accurately access and serve the various segments of the market that have been clearly differentiated in today's market.

Reporter : When I mentioned cashmere, I think of the Ordos Group. At present, the market awareness of Ordos Group in China is very high, but it also means that the rebranding of the brand image will become more difficult. Have you ever wondered if high-age consumers who are slow to accept new things will not buy the remodeled ERDOS?

Wang Wei: We have thought about this issue at the beginning of the brand split. The original intention of Ordos brand strategy remodeling is to more accurately acquire and serve various segments of the market through segmentation of multi-brand portfolios. In the brand family, ERDOS itself is positioned in the mainstream middle-class fashion crowd. This is the crowd with high consumption willingness and spending power in the Chinese market today. With the continuous consumption upgrade, there is a huge market opportunity. This customer group is the ERDOS brand. The main battlefield.

Reporter: Erdos 1980 is a segmentation brand for this group of high-age consumers. Why did you later propose the concept of “ageless”?

Wang Wei: In fact, there has always been a concept of “agelessness”, but it has been emphasized more. Ordos 1980 is the traditional mature customer base of the brand. It does not mean that Erdos 1980 is only for mature customers, nor is it to “maintain” this part of the group that has been with us for a long time, because the brand has to last forever, consumers also To change. Therefore, Erdos 1980 also invited the Italian director to do the age-free products, and the brand itself changed very much.

Secondly, the core position of Erdos 1980 is the professional cashmere brand. For a professional brand, inheritance is inevitable, but inheritance needs development. The Ordos 1980 brand focuses on professionalism and quality. In the core cashmere category, the Erdos 1980 product line will be very deep. For example, the basic model will provide a choice for all age groups, and one color will have multiple collar types.

In addition, there are many basic models in the Erdos 1980 Cashmere Living Home Exhibition, including cashmere bottoming shirts, scarves, gloves, and underwear. It is not the basic talents that need to be used. Erdos 1980 is different in style from Erdos fashion, series and internationalization, but Erdos 1980 is more suitable. Ordos 1980 is about the story of cashmere quality, ERDOS is a fashion story.

Reporter: After splitting Erdos into ERDOS and Erdos 1980, how to reshape the plan, can you share some specific sales data?

Wang Wei: Both the remodeled ERDOS and Ordos 1980 have exceeded our expectations. On the order, after the rebranding of the brand, the order of the four seasons rose four times. ERDOS and Erdos 1980 totaled 16% in the autumn and winter, 17% in the spring and summer, 17% in the autumn and winter, and 19% in the autumn and winter. 40%. The industry is very confident about the product. At the retail level, the sales of new products in the 16 autumn and winter and 17 spring and summer of the country increased by more than 20% year-on-year. The sales rate in the two quarters reached a record high. This is direct market feedback.

Reporter : As part of the rebranding program, how does ERDOS and Erdos 1980 use differentiated terminal store image and advertising image to allow consumers to differentiate the four brands?

Wang Wei: In the past year, we have carried out the design and switching implementation of the new VI system and SI terminal store image of ERDOS and Erdos 1980, and simultaneously launched the national brand visual image enhancement plan, which is possible in every consumer and brand. On the contacts, optimize towards the direction of brand positioning.

The design of each brand VI system and SI system, we are cooperating with the world's top creative and retail space design companies, the brand new store image of each brand, including space, hardware and software and display standards, as well as new retail operating standards and training. The system is also being promoted, aiming to strengthen the brand's unique experience through the integrated brand presentation system and transform it into a differentiated brand awareness of consumers.

Reporter: What happened to the management structure?

Wang Wei: The brand business department and the company's organizational structure have been greatly adjusted, and a system of four brand divisions but integrated management has been established. The four brands have independently operated units, product development, promotion, and image management are independent teams of four brands. But at the same time, there is a comprehensive management system in the background, and logistics, supply chain, production, service, and information systems are shared. This becomes a criss-cross management mode. Compared with managing only one brand in the past, everyone can feel great changes and challenges, but after trying to work together, the initial new model has already landed. The image of the four brands has taken shape.

Reporter : Domestic apparel group has been transforming and rebranding in the past two years, especially BLUE ERDOS, which is mainly aimed at young markets. The competition in this market is becoming very fierce. What is the positioning of the Ordos Group in the entire Chinese apparel market? In addition to the existing Japanese market, is there any plan for further international expansion?

Wang Wei: Yes, BLUE ERDOS is facing a market with the largest consumption volume and future potential in China. It is a saying that is particularly hot at home and abroad, millennials, but it is also a highly competitive market. So we have to make our own attitude. Now that a very young team is running, the ads they shoot are in the company's elevators, and the evaluation is high. We are about to enter a market where the other three brands have not scored. Ordos created the BLUE ERDOS brand into this market, our core positioning is very clear, BLUE ERDOS as a brand with a young attitude, the core competitive advantage "design sense + very high cost performance + Erdos quality endorsement".

Two or three years ago, BLUE ERDOS was a designer women's brand, but then we made a thorough adjustment and completely overthrew it. Since its launch last year, it is developing at a rate far exceeding expectations. Many shopping malls have actively invited this brand to enter. Fancy the brand price and tonality. Cashmere is the most competitive product category of BLUE ERDOS, but it is not limited to cashmere. The total look of BLUE ERDOS is very strong. The series of products, matching, and the coordination of cashmere and brand positioning are all Overall competitiveness.

At the beginning of the establishment of BLUE ERDOS, we focused on the visual image of the brand, including the store image, display image, etc. In the consumer experience, we focus on the consistency of the information transmitted by the brand, such as the online and offline brand image and experience. Consistency, the consistency of our store's goods, display and advertising image, and clearly convey the brand attitude and concept of BLUE ERDOS to consumers in the simplest and direct way. At present, BLUE ERDOS has 40 stores, and the original plan is 30.

Reporter: According to the data, the Erdos brand family e-commerce operation has achieved good results. Last year, the growth rate reached 47%. What is the future e-commerce strategy? The target will account for the proportion of total revenue, what is the choice of e-commerce platform? Requirements?

Wang Wei: The sales performance of e-commerce is very good. There is no doubt that it will continue to grow substantially in the future. But e-commerce is not only a channel and sales function, but also a vital platform for consumer communication and insight, a platform for brand communication and promotion, and a platform for online and offline product sharing and interaction. In China's current Internet and consumer environment, with the rapid development of new technologies such as big data, AI, AR, payment, logistics, etc., the relationship and interaction between brands, retailers and consumers will become more diverse. Interesting, online and offline will be deeply integrated.

Now what we are doing is omnichannel. Last year, the double eleven was done online and offline. It has no channel, no matter whether it is online or offline, this is a new attempt this year. Select one hundred pilot stores online and offline, so we continue to follow up and explore new models and practices, and actively try online and offline development strategies that are consistent with brand positioning goals.

The choice of e-commerce platform follows the big logic of brand positioning and development, and it is the specific judgment of the situation. For example, we are now working closely with Tmall, and we have cooperated with Tmall earlier. Since 2009, we have been a good strategic partner, so we are trying our new model and will explore high-end fashion brands together. The development model on the Tmall platform. At present, e-commerce's revenue accounts for more than 10%, and the development space is still very large. Last year, it solved the problem of information systems, opened up all the inventory, and provided hardware support for the development of e-commerce. This year, a new membership system and micro-business launch will also be launched.

Reporter: Multi-brand strategy has become a new popular practice in the Chinese apparel market. However, some analysts believe that this is a double-edged sword. Compared with doing a good brand, multiple market segments are risked by decentralization and require more energy from the company. How do you face this challenge?

Wang Wei: The core of the brand is positioning. The core of positioning is segmentation. Of course, the segmentation can be at the customer level, but also at the category and market level. In China's rapidly changing market, branding based on market segments is the focus of concentration. For a group of customers, they can be recognized by their desired presentation, experience number and service. According to our research, China's market size is large enough to support you in the market segmentation. It is ok to be a brand only, but only to get a chance in a market segment, not to eat the entire consumer market.

Multi-brand development must require more effort, which is determined by the company's strategy, goals and vision. After more than a year of hard work, we have gradually established an organization and operation system for the coordinated development of multi-brand division management. This is a complex brand management system. Many large brand groups around the world use this management model to varying degrees. Pursue a balance of efficiency and effectiveness in seemingly complex ways to achieve a balance between brand and business. We are constantly adjusting and developing. At present, the performance of the market is good enough to give us some confidence.

Reporter: How is the Group's expansion of the future of 1436?

Wang Wei: 1436 This year marks the 10th anniversary and has established a stable and fast-growing business. It not only pursues the style and quality of the product, but also pursues a high level of spirituality. 1436 went to find the grassland feelings, and also did a lot of cultural and artistic research. So this customer base is very stable. 1436 has been expanding overseas and opened a second store in Osaka. Pricing in Japan is more expensive than in China and is sold to local consumers. Japan's operations team is very local, we trust, and the Japanese especially love cashmere.

1436 is not particularly anxious about the expansion of foreign countries. The next step may be to enter the European market. First, cooperate with some buyers. Because the 1436 team is a very solid team, it won't be particularly aggressive. At present, 1436 is stable in Japan and has accumulated a large number of local customers. There are 40 stores in China and 3 in Japan. There are also 2 pop-up flash shops in Tokyo this fall. I will go to Italy to participate in the showroom in January next year. The brand's design studio is in Milan.

Reporter: Cashmere clothing is a fast-growing category in recent years, but with the improvement of consumer awareness and the expansion of the market, more and more foreign cashmere brands such as LoroPiana have entered China. In addition to the traditional channel advantages, where is the competitiveness of Erdos?

Wang Wei: First of all, on the whole, the overall competitiveness of the brand family comes from the category advantage that the Ordos Group has cultivated in the Chinese market for more than 30 years. In the category of cashmere, the possession of the cashmere, the cashmere expert, from The whole chain guarantee of raw materials, process and quality. Secondly, the competitiveness of each brand depends on the segmentation area. In each segment of Ordos, we have our own unique competitive advantage combination and product design for different competitive brands. Cost-effective, channel accessibility, customer service, can form different combinations.

Many brands can't do the whole chain like us, because we start from the pasture, sheep, and cashmere. Our brand has continued to invest in this area for many years. It has both production and research, rapid response, and market-oriented innovation. The combination of the two is also our core competitiveness.

The current competitor of Erdos is really not a cashmere brand, but a fashion brand. What we are thinking about is how to stand out in fashion brands, while keeping the cashmere attribute label, and become very "present", younger and more fashionable, related to "I", related to the whole family.

Reporter: According to the information, you have also tried the new retail format of the “Chong Yao Yao Space” brand collection point. What other channels and formats will the Erdos Group hope to try in the future?

Wang Wei: The cashmere space is a new practice. In the future, we will further try cashmere buyers. We are deeply deploying our brand portfolio in the main department store channel, that is, the pattern of one store and multiple halls, such as Beijing Hanguang, four of which contribute 50 million sales a year. Therefore, on the one hand, there is an updated format, on the one hand, in the traditional channels, the brand portfolio is also deeply distributed. Regardless of whether it is in the tourism retail channel or overseas channel, it is based on Japan and has entered some core channels of very high quality. It will continue to be stable and steady, but there will be innovation and development.

Reporter: The business of listed companies of Erdos Group is mainly composed of cashmere clothing and electric metallurgy and chemical industry. However, according to the 2016 financial report of Erdos (600295.SH), the cashmere clothing business accounted for a small proportion. However, last year, it raised 2.9 billion plus yards of cashmere clothing business. In terms of macro strategy, what position will the cashmere clothing business occupy in the diversified industrial chain in the future?

Wang Wei: The original 2.9 billion fundraising may be changed for policy reasons. From the overall layout of the group, the business models and characteristics of cashmere and electric smelting business are very different. One 2C and one 2B, one light asset, one heavy asset, and different periodic characteristics, but strategically important, The two pillars of the Ordos Group.

Cashmere belongs to the consumer market. We are optimistic about China's continued consumption upgrade in the future. In such a huge consumer market, we are convinced that China's own fashion brand group will be born in the next 20 years, and Erdos is the first batch born together with China's reform and opening up. National brands have a very good history and development foundation, and the next leg will be more determined to work towards the goal of the century-old brand.

Editor in charge: Wang Zhen