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Performance Pressure Domestic Clothing Brand Force To "Counter Attack"

2019/9/18 17:18:00 4


This September, the famous clothing brand Taiping bird has landed in fashion week and fashion week. Its new style continues to get Call of all traffic stars, but behind the attention of a big wave, it is the first half of Taiping bird's revenue and net interest rate both falling. In spite of the continuous decline of the national clothing expenditure, many famous clothing brands, except Taiping birds, are facing the situation of "pressure" after the "mid-term exam" in 2019.


La Natsu Bell's huge losses nearly 500 million Hai Lan's home revenue in the past half billion

In the first half of 2019, Taiping bird reported that the operating income of the company during the reporting period was 3 billion 120 million yuan, down 1.54% compared to the same period last year, and net profit of 132 million yuan, down 33.06% compared to the same period last year. The government subsidy for the first half of the year was up to 120 million yuan, which made the net profit less than 24 million 536 thousand and 600 yuan, down 66.87% compared to the same period last year.

Why is it that even the birds that are popular with the "millennials" do not sell? Recently, the topic of "Chinese people do not like to buy clothes" is on the hot spot.

According to the statistics of the National Bureau of statistics, in 2019 1-6, the retail sales of clothing, shoes and hats and needle textiles increased by 3% over the same period last year. The growth rate slowed sharply by 620 basis points over the same period last year. The apparel industry above designated size enterprises completed 10 billion 413 million garment production, down 1.09% from the same period last year, while the industry's profit margin fell 5.02%, down 0.15 percentage points.

In addition to the Pacific bird, the performance of the first half of 2019 in the first half of the year in the first half of the first half of the year, such as the long group, the Jinhong group (formerly vicknus) and the daily fashion, all fell to varying degrees. La Natsu Bell and the US bond clothing even recorded a loss of over 100 million yuan. During the reporting period, La Natsu Bell's income dropped to 3 billion 950 million 600 thousand yuan, down 9.78%, of which La Chapelle, Puella, 7 Modifier three core brand income all recorded double-digit decline, net loss reached 498 million 100 thousand yuan, and in 2018 the company's medium-term net profit 235 million 800 thousand yuan; the US bond clothing report period plunged 31.47% to 2 billion 698 million 900 thousand yuan, recorded a net loss of 137 million 900 thousand yuan, after deducting the non loss after the loss reached more than 148 million yuan, while the same period in 2018 profit 53 million 114 thousand yuan, the company also expects the loss of the 53 million 114 thousand quarter yuan.

Although the industry environment is not as good as before, but there are still 6 profit margins in the 11 well-known clothing enterprises listed by the new express reporter.

Among them, the industry leader, Hai Lan's home revenue has exceeded 10 billion yuan in the past six months, and its revenue in the first half of 2019 was 10 billion 721 million yuan, up 7.07% over the same period last year. Net profit of 2 billion 125 million yuan, an increase of 2.87% over the same period last year. The acquisition of foreign clothing brand KIDILIZ rose by 48.57%, to 8 billion 219 million yuan, and net profit to 722 million, up 8.2% from the same period last year, and the net profit was 669 million yuan, up 8.02% over the same period last year. Similarly, the performance of Jiangnan cloth, the first half of the year rose 17.3% to 3 billion 358 million 200 thousand yuan, realized net profit of 484 million 800 thousand yuan, an increase of 18.1% over the same period.

Countermeasures rents continue to rise, brand stop shop stop

The easiest way to lose business is to stop shop. According to the data released by the China Index Research Institute in July 16th in the first half of 2019, the average rent of 100 commercial streets and 100 shopping centers in 15 cities in China rose by 0.72%, an increase of 0.27 percentage points over the previous period. From the point of view of cities, the rent of the first tier cities in the first half of 2019 was 81.5% higher than that of the second tier cities, and the rent of the second tier cities rose by 65.8%. The rise of store rentals has led to the increasing investment and business liabilities.

In the first half of this year, La Natsu Bell sharply contracted 3114 stores. During the reporting period, the company closed 2470 stores, from 9269 at the end of 2018 to 6799. The company said it would continue to close its stores in the three quarter, retaining only about 6000 stores in the country, which means that the company will close about 800 stores in 7-9. The United States has also made a rapid expansion of the United States and costumes since 2017, refused to disclose the number of stores in the performance report. In the last disclosure of the annual report in 2016, the company operates 3900 Direct stores and franchised stores, and the number of shops in the past two years is expected to continue to decline.

Every year, more than 70% of its revenue comes from the Taiping birds from offline stores. Since 2019, the pace of closing has also started. In the first half of the year, 184 new stores and 324 franchised stores have been opened, 111 stores and 556 franchisees have been closed, and the number of stores has decreased by 167.

However, the number of stores in the sea and the number of stores in the south of the Yangtze River increased. The number of stores in Hai Lan's main brand in the first half of the year was 5449, an increase of 152 over the beginning of the year, and 187 new stores in the south of the Yangtze River during the reporting period. The total number of stores in the world was 2018, of which 578 were direct stores.


Besides design and quality, there must be a brand kernel.

For huge losses, La Natsu Bell explained that the first half of the year, mainly because the company accelerated digestion of the seasonal products, so that sales gross profit decreased by 1 billion 115 million yuan over the same period. La Natsu Bell said that in the three quarter, it will further implement the offline retail optimization strategy to improve the efficiency and profitability of single store operation. Among them, pulling the "fans economy" is an important part. Semi annual data show that as of the end of June 2019, the total number of effective members of La Natsu Bell was over 11 million. In the first half of 2019, the number of newly recruited members exceeded the total annual recruitment rate in 2018, and the proportion of member sales accounted for over 40% of total sales, representing an increase of over 30% over the same period last year. In March 2019, the total number of fans of the "La Natsu Bell member center" was 6 million 400 thousand, and 1 million 790 thousand new fans were added during 2019 3-7, representing a cumulative increase of 508% over the same period in 2018.

The "28 law" has been fully verified by the "fan economy" as the core strategy. As of June 30th, the number of member accounts and account numbers increased by 1 million 100 thousand and 1 million to 3 million 600 thousand or 2 million 500 thousand respectively over the same period last year. The proportion of member contribution to retail sales has increased from 62.6% a year ago to about 70%. Annual consumption accounts for more than 5000 yuan increased from 162 thousand in fiscal year 2018 to over 203 thousand, with total consumption of over 2 billion 400 million yuan and retail sales exceeding 40% under the line.

China and Thailand securities analysis said that since 2019, the tax reduction and tariff reduction policies have been frequent, and liquidity has been relaxed. The demand for garment terminal is expected to be stable throughout the year. Guotai Junan also optimistic about the end of La Natsu Bell's massive inventory adjustment, raising the profitability of the positive price products.

According to the analysis of insiders, from La Natsu Bell's discounted inventory, leading to a huge loss of the company, we can see that fast fashion and low price products have begun to stay away from public aesthetics. The transformation and upgrading of garment enterprises, in addition to the need for creative design and excellent quality, also need to inject cultural cores into the brand. It is like the slogan of "chao chao" in recent years. It has been frequently linked to Phoenix, white rabbit, tea and other local brand Taiping bird. Its chairman, Zhang Jiangping, said when he landed in the international fashion week, "from China to China, the strength of Chinese brands has not lost any country today. The bird of peace makes good self-confident clothes. The foundation of "chao chao" is "country", not just "tide".

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