The Overstocked Inventory Of Hailan Home For Men'S Clothing Has Reached 9 Billion Yuan And Has Not Been Discounted

Hailan home, a national men's wear brand, is a high-quality brand focusing on men's wear. It has been deeply loved by Chinese people and has a large number of men's consumer groups. There are more than 5000 stores in the world.

The performance of Hailan home, which has attracted much attention, has not let people down. In terms of last year's revenue, Hailan home's revenue in 2019 will increase by 15.09% to 21.97 billion yuan, realizing a net profit of 3.21 billion yuan.

After Anta, Hailan home will become the second Chinese garment enterprise with more than 20 billion yuan in revenue in 2019. In 2019, the total sales of various brands of the company exceeded 160 million pieces, ranking first in China's men's wear industry with a market share of 4.7%, ranking first in the market share for six consecutive years.

On the surface, Hailan home is undoubtedly a big winner. However, the problem of overstocking of its inventory has always been its biggest worry, which has not yet been solved. According to the data, the inventory has reached 9 billion yuan, accounting for 43% of the total assets, and the inventory turnover days are 250 days.

It is understood that the long-term high squeeze inventory has brought great pressure to the business model of Hailan house. According to the main business data of Hailan home in the first quarter of 2020, during the reporting period, the company's Hailan family series contributed 3.161 billion yuan in revenue, with a 10.97% decrease in gross profit compared with the same period of last year; the company's San Keno brand contributed 265 million yuan in revenue, with a decrease of 4.65% compared with the same period of last year.

Now facing the huge inventory pressure of Hailan home, it has not made a discount move. The reason why it is still "fearless" in the face of such a large inventory may be related to the cooperation mode of "upstream credit sales + downstream Financial Alliance".

It is reported that suppliers and franchisees are the two most important links in Hailan home's "industrial chain alliance" business model. Among them, in order to "make full use of clothing production resources", Hailan home and its suppliers mainly adopt the cooperation mode of retail oriented credit purchase, joint development, return of unsalable goods and secondary purchase.

According to the financial report in 2019, of the 9 billion inventory, excluding 600 million raw and auxiliary materials and professional clothing, 4.6 billion of the remaining 8.4 billion inventory can be returned.

In the mode, the company can take the goods for sale first, and then settle the payment monthly to ensure the healthy cash flow of the company. The purchase contract is mainly based on returnable, supplemented by non returnable, which can reduce part of the inventory pressure for Hailan home.

It is worth noting that Hailan home also contributes to the development of Chinese football. Last year, China national football team signed a contract with China National Football Club in December.

It seems that Hailan home is constantly expanding its own field and paving the way for the future. I believe it is another great transformation. Let's wait and see.