Semir Set Up Balbala Subsidiary In Xi'An To Improve Children'S Wear Market Layout

Overweight children's clothing layout

To enhance brand influence and market share.

In the evening of July 10th, the Zhejiang Semir apparel Limited by Share Ltd (Semir apparel, securities code: 002563) issued a notice on investing in the establishment of a wholly owned subsidiary. It intends to set up a wholly owned subsidiary Xi'an balaba Garments Co., Ltd. with its own funds to improve the layout of the children's clothing market in the northwest region and enhance the brand influence.

Semir apparel said that the company intends to set up a wholly owned subsidiary of Xi'an balbala Garments Co., Ltd. with its own capital, with a registered capital of 5 million yuan.

Business scope will involve sales of clothing, shoes and hats, bags, leather products, arts and crafts, stationery, toys, furniture, lighting equipment, needles, textiles,

Marketing planning and business management consulting.

The "one belt and one way" has become an important strategy for China's economic development. Many enterprises have been built and planned in the fields of industrial investment, resource development, economic and trade cooperation, financial cooperation, ecological environment protection and so on. While Shaanxi is most oriented to the Central Asian, South Asian and Western Asian countries, trade and logistics hub, important industry and cultural exchange base, the consumption potential will be further released and expanded.

Semir dress design Xi'an balbala Garments Co., Ltd. will further improve the market layout of Barbara brand in Xi'an city and northwest region of Shaanxi Province, so as to enhance the influence and market share of Barbara brand, and achieve good economic benefits for Semir apparel.

Cheng Weixiong, general manager of shoes and clothing independent observers and Shanghai Liang Qi Brand Management Co., Ltd., said that when the balarbara brand continued to grow bigger and stronger, franchisees could not follow, and Xi'an had to set up its own direct subsidiaries.

Semir apparel has set up a Xi'an subsidiary, which has responded positively to the "one belt and one way" national strategy and strengthened the confidence of Barbara to speed up internationalization.

According to Roland Begg, a global information consultancy, China's children's wear market will exceed 280 billion yuan by 2020, and the domestic children's wear market will usher in a more explosive period.

With the introduction of the "two child policy", children's wear market is showing blowout growth, and the new generation of consumers has become the main force of purchase. Children's clothing industry has become one of the important directions for garment enterprises to seize market share.

Before, Givenchy, ZARA, GAP and other international brands launched children's wear series and opened children's wear stores. After that, there were children's clothing market such as aner, Semir dress, Taiping bird and Jiangnan Buyi, and wanted to have a share in children's wear market and expand the market share.

According to Euromonitor data, the market share of Barbara in 2017 was 5%, much higher than that of second Adidas (1.1%) and three Pepco (0.8%) in the domestic children's wear market.

Semir clothing brand balbala children's clothing in the domestic children's wear market occupies a leading position, in the brand awareness, market share, channel size and other aspects of other children's clothing brand priority, and business growth is strong.

According to Semir clothing 2017 annual report, Semir children's clothing business income reached 6 billion 322 million yuan, an increase of 26.4% over the same period last year, accounting for 52.56% of Semir's revenue, becoming the main driving force for the growth of Semir's clothing performance.

In recent years, the competition in the domestic apparel market has been increasing. The influx of international fast fashion brands, sports brands and luxury brands to a certain extent hit the development of domestic casual wear. Semir clothing and casual wear showed a slowdown in growth, and the development space reached a certain limit.

According to statistics, in 2017, Semir's leisure wear category business income reached 5 billion 630 million yuan, an increase of 0.6% over the same period last year, operating profit realized 1 billion 650 million yuan, down 15.27% compared with the same period last year.

In this regard, Semir clothing has stepped up the layout of children's clothing market to ensure the stability of the overall profitability of enterprises.

Cheng Weixiong, general manager of shoes and clothing independent observers and Shanghai Liang Qi Brand Management Co., Ltd., said: "Semir clothing continues to overweight children's clothing brand is also helpless. The main brand Semir brand business has not been greatly improved. Whether compared with local brands, American Apparel, YISHION clothing or international brand UNIQLO, Semir's competitiveness in brands, products and stores is not dominant. Instead, balbala occupies a leading position in the market of children's wear. In recent years, balbbara's children's clothing brands are diversified, and the layout of online and offline channels has surpassed the trend of main brands, which is indeed embarrassing for the main brand Semir."

It is reported that Semir's children's clothing brands include Balabala, MarColor, Mini balabala, mongdodo, badibadi and so on, and constantly expand children's clothing business, and positioned it as a long-term strategy to consolidate the overall status of Semir clothing.

In the first half of 2018, Semir apparel purchased high-end brand Kidiliz and set up the THE CHILDRENS PLACE brand and Barbara brand to enter the Hongkong market. In the process of diversification of brand layout, it further promoted the development of brand globalization so as to expand Semir's business layout and enhance the international influence of the brand.

Semir apparel has publicly stated that the future will be extended from casual clothing business to children's industry, electricity supplier industry and investment industry, and gradually create a pattern of common development of the four major industrial clusters.

A series of actions show that Semir clothing is in the market of deep ploughing children's clothing. Through brand diversification and internationalization layout, it promotes brand influence to create a higher premium space, and focuses on fabric research and design technology to create high-quality children's clothing.