- Jing Gu |
Operating outlets across 29 provinces, region and major cities in China, Zhejiang Semir Garment Co Ltd, is one of the leading and most recognizable casual apparel companies in the country.
The group's total revenue increased 12.74 percent, hitting 12.026 billion RMB (approximately 1.8 billion US dollars) according to Semir's financial report for 2017. The group currently operates 13 apparel brands including Semir, Balabala, Minette, MarColor, and GSON, which target different customer groups based on age, gender, and style. The two most recognisable brands are Semir, a casual apparel brand, and Balabala, which specialises in children’s clothing.
The Semir Group was founded in the Wenzhou, Zhejiang province in December 1996. 15 years later, the company’s registered capital had grown to 238 million RMB (37 million US Dollar) and Semir went public at Shenzhen stock exchange in March, 2011. Today, the group’s total market capital is 31.4 billion RMB (4.92 million US Dollars).
Semir’s success relies heavily on its “virtual production management” strategy, which helps the company optimize its inventory levels and streamline its business operations. The strategy is used in Semir’s 7,500 franchise outlets in China, some of which boast profit margins as high as 96 percent. The company outsources production to more than 160 high productivity and performance partner manufacturers from the Pearl River Delta and Yangtze River Delta economic zones as well as Shandong and Hubei provinces.
In January 2002, Semir Group launched Balabala in an attempt to capitalise on the children’s clothing market. It turns out to be a huge business success and Balabala is now recognized as one of the top childrenswear brands in China.
Recently, in May 2018, Semir Group announced it is set to merge with French kid’s high end fashion group Kidiliz, in an attempt to strengthen its reputation and expertise in Europe’s premium childrenswear market. Semir will acquire Kidiliz at the price of 844 million RMB (110 million Euro), The two companies are now at the final stage of merger talk.
This article translated and edited by Kelly Press.