How to wash away the "cottage" label on Saturday?

【Tide Business Review/Original】

"No three gold, not married", in traditional concepts, all important occasions, there is always a gold and silver.

Kevin, who is about to enter the marriage hall, take his girlfriend to pick Sanjin on the weekend. The two who usually do not buy gold and silver jewelry are sorrowful. Looking at the jewelry city, Chow Tai Fook, Saturday, Zhou Shengsheng, Zhou Dasheng, Zhou Baifu, Zhou Jinsheng ... It is dazzling, almost all of the jewelry shop named Zhou.

"Which one is the most authentic? What is the difference between gold?" Kevin couldn't help wondering.

Kevin suddenly remembered that a few days ago, it seemed that there were news on Saturdays on the mobile phone. I picked up the phone and turned it over. "Forget it, let's go in first." Kevin said and walked in.

What Kevin does not know is that Saturday is the third time on Saturday, and it has attracted a wave of attention in the capital market. At present, the IPO material was submitted to the Shenzhen Stock Exchange.

This IPO, Saturday, plans to raise 1.4 billion yuan for marketing network expansion, e -commerce platform upgrades, brand marketing and comprehensive capabilities of stores, and replenishing liquidity funds.

According to media reports, the IPO submitted for the first time on Saturday was 2019. Because the sponsor and the audit were involved in the "Kangmei Case", the IPO project was forced to suspend; after replacing the sponsors, Saturday Fu applied for an IPO again in October 2020, and the first issuance was issued. Will it be?

The CSRC's issuance committee has asked for inquiries on Saturday ’s franchise model income of more than 80%, multiple trademark disputes, large inventory and rapid growth.

Are these issues today, on Saturday, have the special solution to Saturday? How far can I go to the third IPO?

01 Once with the controversy

At present, the size of my country's jewelry market is rising. In 2018, my country's jewelry market size was 696.5 billion yuan, an increase of 6.71%year -on -year. It is expected to reach 1419.6 billion yuan in 2024.

In 2019, the industry CR5 was 19.4%, of which Zhou Dafu, Lao Fengxiang, Lao Temple Gold, Zhou Shengsheng, and Chow Tai Sheng's market share were 7.1%, 6,9%, 3.0%, 1.35, 1.1%, respectively.

With a huge -scale jewelry market, in most people's eyes, it seems that it is rounded by Zhou. Most people think that the surname of the jewelry shop is due to the reason for the founder's surname Zhou.

In fact, most of the founders of the "Zhou family" jewelery are not surnamed Zhou. For example, the founder of Saturday Fu, the surname of Li, the founder of Zhou Jinsheng also surnamed Li, Zhou Baifu was founded by the Zhang family, and the founder of Zhou Dafa was appointed.

The "Zhou's" jewelry originator Zhou Dafu has the longest history. It can be traced back to 1929. It was formerly known as "Chow Tai Fook Gold" located in Hongde Road, Henan, Guangzhou. It mainly operates traditional gold jewelry. Its founder is Zhou Zhiyuan, a businessman in Shunde, Guangdong. Listed in Hong Kong in December 2011, it is currently the largest jewelry company in Hong Kong's market value, about 160 billion Hong Kong dollars.

Figure/Zhou Dafu Guanwei

Zhou Shengsheng was founded by the founder Zhou Fangpu in 1934 later. It is the first jewelry company listed in Hong Kong. The current market value is about 5.6 billion Hong Kong dollars.

Zhou Dasheng was a little later. It was founded in 1999 by Zhou Zongwen and landed on the Shenzhen Stock Exchange in 2017. The current market value is about 14 billion yuan.

The birth of the blessing on Saturday was different. The founder was not surnamed Zhou. At first, it was a jewelry inlaid factory by Li Weizhu in Shenzhen, known as "Huaqiang North in Jewelry World" in 2002. In 2004, Li Weizhu and Li Weipeng The two brothers began to officially operate the "Saturday Blessing" jewelry brand.

On Saturday, the old -fashioned name, Zhou Dafu and Liufu jewelry have nothing to do with it. Perhaps the dispute over Saturday was written from the moment the name was founded.

Although the founder is not surnamed Zhou, there are many "Zhou" trademarks on Saturday. The prospectus shows that as of December 31, 2021, the company has 211 domestic registered trademarks and 68 overseas trademark rights, most of which use the word "Saturday".

Because it is too similar to many brand names, Saturday Blessing is deeply trapped in trademark disputes. According to the data of Sky Eye Inspection, more than 300 cases related to trademark disputes involved in nearly 500 legal disputes involved on Saturday were involved.

Regarding the issue of trademark disputes, on Saturday, Fook once stated that for other "Zhou" jewelry brands in the market, as long as it is legal operation, we are willing to compete with them to promote the healthy development of the industry.

However, the capital market does not allow such disputes to exist for a long time. In the inquiry of the issuance committee two years ago, it focused on the issues such as Saturday's blessing trademarks and brand protection, requiring it to explain the acquisition and use of the main trademarks, and the reasons for the disputes between the trademark rights.

Now it seems that the issue of trademark disputes has not been effectively resolved on Saturday, which may have a certain impact on the future listing process of Saturday.

02 Franchise Mode "Half the Hit"

In addition to the inquiry of trademark disputes, the proportion of income in the franchise model is also the focus of being asked.

The Development and Examination Commission has pointed out that the revenue of more than 80%of the revenue in the Saturday Fragrant franchise model is more than 80%, and whether the sales model is in line with industry practices; whether franchisees and Saturdays have a substantial and potential relationship.

It is understood that Saturday's business model is mainly franchise stores, and there are relatively few self -operated stores. As of the end of 2021, Saturday Fu had 3,694 franchise stores and only 70 self -operated stores. The prospectus shows that from 2019 to 2021, Saturday Fu achieved revenue of 2.1082 billion yuan, 2.01 billion yuan and 2.708 billion yuan, respectively, of which the number of franchise model revenue accounted for 82.05 %, 66.77 % and 57.45 %, respectively. It can be seen from the data proportion that the proportion of franchise stores has shown a decline year by year, but it is still the main source of revenue of the enterprise.

In addition, charging service fees from franchisees is an important source. According to the prospectus, from 2019 to 2021, the income of service fees accounted for 17.28%, 24.05%, and 30.59%, respectively, and the proportion increased year by year.

This has greatly improved the overall gross profit margin in the industry on Saturday. From 2019 to 2021, the gross profit margin of Saturday Fu was 36.27%, 37.62%, and 34.92%, which is much higher than the average level of about 25%compared with the company in the same industry.

On Saturday, it seems that the proportion of franchise business is too high. In the prospectus, the franchise model enables the company to quickly occupy the market, which meets the company's brand development stage and the company's "channel priority" strategic requirements. However, it is also acknowledged that if a franchisee has led the store on a large scale to stop the operation or converting the brand, the unable to renew the lease contract or the joint venture contract, the company's operating development will be affected.

Figure/Saturday Blessing Official WeChat

In addition, according to media reports, many of the lawsuits involved in Saturday were "misfortunes" in franchisees.

In February 2017, Shenzhen Dongmen Saturday Fusen Store was seized by the business administration department for complaints. Since then, on Saturday, Fook issued an open letter saying that the store was seized mainly because the individual products and other brand products of the stores on the store were similar, which had nothing to do with the quality of the product.

At the beginning of 2018, the Shanghai Municipal Bureau of Quality and Technology Supervisored the quality supervision and random inspections of the quality of the precious metal (decoration) products produced and sold in Shanghai. The results showed that Saturday's Saturday Football Chain was unqualified in the quality and logo project of precious metals.

According to the official website of the Shenzhen Market Supervision and Administration Bureau, on March 22, 2019, a franchise store under Saturday was named for criticizing the price because it was not clearly marked.

On June 19, 2020, a franchise store on Saturday was issued by the Baoan Regulatory Bureau of the Shenzhen Market Supervision and Administration Bureau for the existence of illegal trade measures, and the "Administrative Penalty Decision" was issued and fined 1,000 yuan.

Recently, a video on the Internet also attracted people's attention to Saturday. A boy bought pure gold jewelry on Saturday. After paying, he found that it was 18K gold.

The shopping guide said that during the purchase process, the product material was introduced to the AU750, and the industry refers to 18K gold. Customers do not know that the "AU750" represents a 75%alloy with pure gold.

Due to the asymmetric information, the relevant personnel of the Fu store on Saturday refused to refund. Although the incident has finally been resolved under the intervention of the Market Supervision Bureau, in Sina Black Cat complaints, due to the induced consumption of stores, unprofessional sales of clerks lead to loss of customers.

It can be seen that the franchise model allows franchisees to have greater business autonomy, and the lack of management capabilities of the brand's party will lead to problems such as chaos and consumer disputes in some stores, which will have a negative impact on the overall value of the brand.

Although on Saturday, Saturday is vigorously carried out self -employed business, the problem of excessive proportion of franchise stores can not be solved perfectly overnight. Saturday Fu can only be slowly mapped. This is still a major obstacle on the road to listing.

03 How to tell new stories?

In order to get rid of the excessive dependence on franchise stores, on Saturday, the revenue proportion of franchise stores intended to reduce the revenue of franchise stores and accelerated the development of its own business, e -commerce channels played a great role. The year of 283 million yuan increased to 762 million yuan in 2021. The proportion of overall main business increased from 12.95%in 2019 to 28.14%in 2021.

In addition, Saturday Blessing is also actively exploring live broadcasts and cargo, pioneering specialty products, and promoting brand operations and development through online and offline empowerment. In 2021, JD.com and Vipshop will become the top two of the top five customers, accounting for more than 8%of revenue.

The prospectus shows that among the 1.4 billion yuan of funds raised this time, Saturday Fook plans to use 682 million yuan for marketing network expansion projects; 109 million yuan for e -commerce platform upgrade projects; 268 million yuan for brand marketing and store comprehensive capabilities Improve projects; supplement the mobile funds of 341 million yuan. Compared with the previous version of the prospectus, e -commerce platform upgrades, brand marketing, and comprehensive capabilities of stores to new projects.

Although the development of the e -commerce business is good, searching for JD.com on Saturday on Saturday, it can be seen that the highest -selling gold bracelet has a good review of 97%. There are still some consumers commented: "The quality is too poor, and it is broken when wearing it." Some consumers said: "The first day is broken"; more consumers talk about poor after -sales service.

In the black cat complaint, complaint information about "Vipshop merchant sells fake goods, Douyin sells fakes on Saturday, the product has obvious flaws, and the physical and pictures does not match".

Figure/Saturday Blessing Official WeChat

This may also be related to the production model of Saturday. According to its first disclosed financial report, in the first half of 2017-2020, the cost of outsourcing of outsourcing accounted for 76.77%, 88.51%, 92.87%, and 96.64 of its total processing costs, respectively. %. Although the proportion of the new prospectus has not disclosed the external processing of the commission, it may be a glimpse of one or two in terms of production and development.

From 2019 to 2021, the production and development investment was only 2.6645 million, 4.0227 million and 9.843 million, and the R & D costs were 0.12%, 0.19%, and 0.35%, respectively. In addition to the business model with obvious light R & D investment, although out -of -the -ware processing can be reduced in investment, it can be seen that the performance of the blessing on Saturday is not satisfactory in terms of product quality and consumer complaints.

From the perspective of market participants, the emergence of quality control issues has led to the gradually decline in brand reputation. In the long run, it is not a good thing for Saturday blessings.

In addition to the general word of mouth and the franchise model, there are many uncertainties, the lack of R & D capabilities on Saturday also makes it weak in product innovation. It is reported that the product production and design of Fook Fook at present is mainly completed by cooperating with external professional jewelry suppliers.

Some people in the industry believe that the overall growth rate of the jewelry market has slowed down, and the development time is relatively short, and Saturday, who is often trapped in the "cottage" controversy. It pays for it.

Gold jewelry products are not ordinary products purchased daily high -frequency purchases in most people. As a controversial jewelry company, Saturday Fu should pay more attention to product design and quality.

Although consumers will favor those well -known brands in history, they will also pay for creative products. In the end, jewelry products will eventually attract consumers. Investment, constantly innovate the quality of product quality, increase management and constraints on franchise stores, and expand its self -operating business in the case of giving full play to the advantages of franchise stores.

After walking in the mall several laps, Kevin had a general understanding of the "Zhou" jewelry. In the end, he chose to buy more well -known brand vendors.

However, there is nothing. Consumers have different choices, but the hero does not ask the source. The market leaves the opportunity to leave Saturday. In the end, they still have to "whitewash" with their strength.

Business is like this.

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