China's Most Profitable Clothing Company: Its Profit Exceeds Anta And Hai Lan's Home. Its Market Value Is 143 Billion.

A few days ago, the National Bureau of statistics issued a data: in the first half of 2019, China's total retail sales of social consumer goods reached 195210 billion yuan, an increase of 8.4% over the same period last year. However, with the increase of total retail sales of consumer goods, clothing products have become the only item in consumer goods. In the first half of 2019, China's per capita clothing expenditure was about 1156 yuan, down 2% compared to the same period last year.

As we all know, in China's apparel market, whether it is sportswear or casual wear, foreign brands occupy most of the market share, such as Nike, Adidas, UNIQLO, ZARA, H&M and other brands, they have only exceeded the large number of domestic brands in the Chinese market. Now, in the case of the decline of clothing consumption in the whole country, it will mean greater challenges for our local clothing companies.

The next store of Hai Lan's home line

In fact, in the first half of 2019, a number of well-known garment enterprises in China had some problems in their operation. For example, Hai Lan's home in men's clothing, the backlog of stock is about 9 billion 500 million yuan. If we calculate the net profit of Hai Lan's home in 2018 for 3 billion 450 million yuan, this backlog will be equivalent to the total profit of the company in 3 years. In the women's clothing brand, La Natsu Bell spent only 6 months in the first half of 2019, and there were more than 2400 outlets, averaging 13 stores a day. In addition, from the mid year earnings forecast released by La Natsu Bell, La Natsu Bell expects to lose between 440 million yuan and 540 million yuan in the half year.

Whether it is the inventory problem of Hai Lan's home, or after the crazy expansion of La Natsu Bell, and because of poor performance, it can be said that it is very common in the domestic garment industry. In spite of the poor performance of the local clothing brands and the majority of the market share of foreign clothing brands, the most valuable companies in China's clothing listed companies come from a Shenzhou knitting company, which specializes in foundry and clothing export.

At present, the market value of the major clothing listed companies in China is that the total market value of Shenzhou knitted fabric is 158 billion 891 million Hong Kong dollars (about 143 billion yuan), ranking first in the apparel industry. The second place is Anta sports. Its current market value is HK $156 billion 537 million (about 141 billion yuan). Shenzhou knitting and Anta sports are the only two clothing companies with a total market value of more than 100 billion yuan.

In addition, clothing brands such as Lining, which are more familiar with clothing, have a total market value of about 48 billion 337 million Hong Kong dollars (about 43 billion 500 million yuan). The total market value of Hai Lan's home is 37 billion 170 million yuan, while the total market value of the boatman is 27 billion 318 million Hong Kong dollars (about 24 billion 500 million yuan), the total market value of Semir's clothing is 28 billion 580 million yuan, and the total market value of XTEP international is 12 billion 874 million Hong Kong dollars (about 11 billion 500 million yuan). The above listed clothing companies, plus YOUNGOR in real estate and financial investment, are China's clothing listed companies with a total market value of more than 10 billion yuan.

Anta offline store

Why can Shenzhou knitting, which specializes in international apparel brands, become the highest value clothing company in China? This is mainly due to its profitability. We compare the net profit of the major clothing companies in 2018, including the net profit of Shenzhou knitting company is 4 billion 540 million yuan, the net profit of Anta is 4 billion 103 million yuan, and the net profit of Hai Lan's home is 3 billion 450 million yuan. As you can see from here, Shenzhou knitting is also the most profitable clothing company in China. In 2018, the revenue of Shenzhou knitting company was 20 billion 950 million yuan, with a net profit margin of 21.7%.

Why does Shenzhou knitting work as a foundry in order to achieve more than 20% profit margins? This is mainly due to the fact that the brand of its OEM is internationally famous, and its products are extremely expensive, such as Nike, Adidas, UNIQLO, Puma, Felix and so on. Moreover, Shenzhou knitting is not just doing OEM, but doing ODM, including product design and production, and higher profits. From the perspective of Shenzhou knitting's revenue composition, only 30% of Shenzhou knitting's revenue comes from China, and 70% of its revenue comes from exporting overseas markets. As the highest market value clothing company in China, Ma Jianrong, the boss of Shenzhou knitting, is also the richest person in China's clothing industry. Ma Jianrong's personal wealth has reached 47 billion 500 million yuan in the "2019 Hurun global rich list".

From the Shenzhou knitting company to the highest market value clothing company in China, it can be seen that there is still a certain gap between the local clothing brands and foreign clothing brands in China's clothing industry, which is mainly reflected in the ability of product design, the ability to lead the trend and brand awareness.