The Trend Of The Reform Of Garment Enterprises Is The General Trend. The Retail Industry Presents 4 New Trends.
With the continued invasion of emerging international brands and fast fashion brands, 2016 is a memorable year for practitioners of the local apparel brand industry.
We see the decline of the casual wear market, a series of industry problems surfacing such as high inventory, closing shop tide and running road pformation.
Under the continuous downward trend of garment industry, whether continuous layout or deep development seems to be forced by the situation, there is a lot of helplessness, and most enterprises are on thin ice. The failure of decision-making is the outcome of losing the whole market.
With Semir stepping into the scale of tens of billions of revenue last year plus Anta sports, Hai Lan home, YOUNGOR and other enterprises, in the next few years, it can be estimated that the number of apparel enterprises entering the "billion club" will reach about 10 in the next few years.
And this figure makes people see the hope of local clothing brand.
China's local brands are also growing in the face of foreign brand competition, and the market is becoming more rational. Meanwhile, clothing brand enterprises are also trying to make a breakthrough in the pformation.
In 2016, capital further promoted the pace of pformation, upgrading, integration and survival of the fittest in the garment industry. A large number of enterprises continued to exert their efforts in the road of pformation, or intensive cultivation, increasing investment in subdivision areas, or seeking cross-border development.
The pressure of garment industry pformation is further increased, and garment enterprises further accelerate the pformation and pformation step by way of mergers and acquisitions, changing business models and developing new businesses.
The channel of apparel enterprises is gradually stepping into the stage of refined pformation, which is driven by products and services and centered on consumers.
Under the trend of personalized and experiential fashion consumption, we are concerned about the investment opportunities brought about by the structural change of the consumer goods industry, as well as the industry integrators with high quality resources in the process of accelerating the integration of channels.
Insiders expect that the garment industry in 2017 will usher in an overall recovery.
With the improvement of offline payment system, the promotion of retail pformation brought by the new integration of logistics and logistics, and the application of AR real payment technology, the garment industry will usher in a real recovery in 2017, and the brands will also be open online.
In the past year, Hai Lan's family opened shop crazily, and there were 972 new stores in the first three quarters, equivalent to an average monthly opening of more than 100 stores. At the same time, there were over 10 billion revenue in the three quarters, ranking the top of the total retail revenue of the national garment retail industry in the first three quarters of 2016.
However, behind the shop, fashion and practical products and design, flexible and quick response supply chain system and fine and systematic operation management are needed.
Otherwise, a lot of shops can't escape the bad luck of closing down.
Nowadays clothing enterprises are seeking new changes.
Like the family of Hai Lan, there are many enterprises that are crazy to open shop and seek new growth opportunities.
At present, there are many products in the clothing market, and the competition among the same industries is becoming more and more intense.
The clothing industry directly faces the consumer market, and its product development is closely related to consumer demand.
Because of the changing demand of consumers and the fast changing themes of clothing, the demand for design and popularity of clothing products is getting higher and higher.
Can the garment enterprises be recognized by the consumers?
Everything remains to be seen.
Trend 1: seamless integration between online and offline
In the past year, people often say a word about the development of the retail industry. They go online to Wang Jianlin and go to Wanda to open a shop.
Now, the Wanda Group under the line is seeking growth in online business, and Ma on the line is also aiming at the development of physical stores.
Data show that 96% of the millennials used mobile phones when shopping in the physical stores. Mobile phones and other mobile devices have become the shopping companion of the Millennials.
In the future, seamless connection between online and offline will become a new consumption trend, and garment enterprises and retailers will become the real winners.
On the one hand, a wide variety of shopping choices widen the sales channels of clothing brands, and on the other hand, it can also optimize the shopping experience of consumers.
Online and offline high integration has become a trend.
Whether the local old clothing enterprises or the new Amoy brands, they already realize the necessity of online and offline communication.
The traditional clothing brand news bird has lost 300 million - 390 million yuan net profit in 2016. In the half year of 2016, the company explained the loss as a result of the "Macroeconomic downturn, the broader consumer perception, the change of consumption concept and the impact of the Internet economy".
Hai Lan's family announced its annual report in 2016 in March 11th.
It is understood that during the reporting period, operating income reached 16 billion 999 million 591 thousand and 700 yuan, an increase of 7.39% over the same period last year.
Hai Lan's family has a high price ratio to grasp the consumer psychology and speed up the integration of online and offline businesses.
Hai Lan's home always adheres to the high cost performance as the core, gathering and integrating the superior resources of the industrial chain, accelerating the integration of all channels under the online and offline complementarity, accumulating and enhancing the brand value, and achieving sustained and stable growth of business performance.
Semir has stepped up its investment in the Internet business to pform its commodity system and retail system.
Semir released its 2016 annual performance bulletin in February 28th. During the reporting period, the company achieved a total revenue of 10 billion 703 million 120 thousand and 300 yuan, an increase of 13.21% over the same period last year, and realized operating profit of 1 billion 856 million 288 thousand and 300 yuan, up 3.37% over the same period last year.
After several years of large-scale online migration of traditional brands, 2016 began to change. We even believe that 2016 became the first year of online brand collective remolding line.
Semir's main reasons for its growth are: Internet business input, promoting the pformation of commodity system and retail system, improving the quality and efficiency of supply chain, and online e-commerce business.
With the concept of "new retail" put forward, the hypothetical consumption scenario and business form are being implemented step by step.
The success of Amoy brands, which is won by low prices and fashion, is no longer brilliant. They are also beginning to seek a way out.
At the beginning of this year, the opening of the Xiasha factory store in Yintai was the first department store in the world to be born in the Internet. When it was double 11 hours, nearly 40 brands had been set up in Yintai collection store, including yinmen, seven grid, Goblin pocket, deer and flying birds, Rizhao, etc.
This type of store is fully integrated with Tmall's automatic price, goods, prices, warehousing, logistics, and settlement.
In the context of consumer escalation, consumer demand is becoming increasingly personalized and diversified, giving birth to a new retail mode of online and offline integration.
By expanding the "new retail" mode, e-commerce and physical retail enterprises are expected to open up all channels and achieve complementary advantages, which can provide consumers with better shopping experience and help expand business scale.
And how to achieve seamless online and offline links depends on the channel integration ability of garment enterprises and retailers.
Trend 2: channel sinking "fashion to the countryside"
There seems to be two parallel spaces in the Chinese market. There are always bustling popular brands in the stores of the second tier cities, but few people in the three or four cities.
Some brands that are hard to win in the second tier cities but live in the low line cities are quite moist and expensive.
The two space consumers have different fashion ideas and shopping experience.
Between the first tier brand and the consumers of the three or four tier cities, it can be said that there is still a "unfriendly" relationship between the first and the other.
The lack of first-line brands in most three or four line cities has become an important space for local brands to play.
According to the earnings data of Shanghai La Natsu Bell Limited by Share Ltd, from 2014 to 2016, the company had 12 brands, with annual turnover of up to 10 billion yuan, and the proportion of the three line and the three line cities accounted for more than 45%, becoming the most weighted market.
Anta and urban beauty clothing business with low level of urban layout are faster than the comparable industry.
Anta's main brand and children's wear brand focus on the two or three line city market. At present, the low level city stores account for 85%. In the fourth quarter of 2016, the retail sales in the lower reaches of the city reach a 15~20% high growth rate; the urban beauty outlets are concentrated in low-level cities, accounting for about 90% of the stores. After experiencing the 2016 sales setbacks, they actively promote channel pformation and store upgrades, and initially estimate the first quarter performance in 2017 is expected to exceed expectations.
In the process of consumption upgrading, branding is an important upgrading direction.
The clothing market of the past three or four tier cities is dominated by non branded bulk goods. With the continuous increase of per capita disposable income of the three or four line residents, consumers will increasingly favor the brand products, gradually changing from quantity to quality, from basic functions to fashion and brand, and brand products can be divided into two categories, one is the three or four line local brands, such as YISHION, the trend frontline, and the other is a well-known brand sinking to three or four line cities, such as Semir, Hai Lan home, etc. three or four line city branding is the trend of the development of the apparel industry. Other brands of second tier cities will gradually sink into the three or four tier cities.
The group announced that it will consider entering the most high-end shopping malls of some three or four line cities this year, launching special contributions to the three or four line, and the price of products will be lower than that of the first two lines.
In the short term, the low market base is low, the popularity of the brand is low, and the store space is large.
The competition and subdivision of middle and high-end women's clothing brands have been formed for a long time, and the key to competition is homogenization and excess. After 60 and 50, the consumption level of high-end female consumers has been completed in the second tier cities, and the consumption of culture, aesthetics and values has been gradually broken down. The previous blind trend of consumption has tended to decrease. At present, the maturity of the three or four line ladies' dress is not enough, so there may be some room for the sinking of the posture.
Dong Ruibin, an analyst with China Merchants Securities, believes that the upgrading route of clothing category in the three or four tier cities is basically the same as that in the second tier cities. Only because the majority of the new generation of consumers in the three or four tier cities are well-educated 80 and 90, the acceptance of new things is higher, and in recent years, the popularity of the Internet has improved, and the sources of information are diversified. The upgrading speed of the three or four line cities will be higher than that of the second tier cities.
With the acceleration of urbanization and the rapid growth of the domestic three or four line garment market, the consumption potential of the three or four tier cities will be further released, and it will also expand the new market space for domestic garment enterprises.
This change in consumption trend is bound to attract more enterprises to "deep down", and the domestic high-end clothing brands will gradually "sink" the channel, "fashion to the countryside" will become a trend.
Trend 3: multi brand preemption, market segmentation, sportswear leader
Nowadays, multi brand strategy is a common understanding of sports brand.
Among them, Anta's "single focus, multi brand and all channel" strategy is the largest step in multi brand layout.
In addition to Anta and Anta children, it has DESCENTE, FILA and FILA KIDS brand layout in the high-end market.
On the day of earnings announcement, Anta also announced that the wholly-owned subsidiary ANKO and Kolon of the company had entered into a joint venture agreement with the company on the establishment of the joint venture group. Its business is mainly for the exclusive operation and marketing, sale and distribution of products with Kolon Sport IP and trademarks in the area.
The 361 degree uses multi brand strategy including 361 degree, 361 degree children's wear and outdoor brand ONEWAY, aiming at different segments of the domestic mass market, children's sports and high-end outdoor sports market respectively.
Based on the increasing popularity of consumer groups and demand differentiation, large-scale and mass production mode has been unable to meet the individual needs of consumers.
Anta launched the personalized product customization service called "ANTAUNI", which has become one of the biggest attractions.
The customized sports equipment on this Internet platform is conducive to enhancing the interaction between consumers and products and meeting the personalized needs of consumers.
The multi brand strategy seems to have achieved good results in the past year.
In 2016, the overall market for sports goods was warmer.
Anta, 361 degrees, Lining, XTEP and other four companies have gross margins above 40%, compared with the downturn in the industry in 2012, an obvious increase.
Li Ning Co's 2016 annual performance report shows that after the trough in 2013, Lining's income growth momentum was obvious in the past three years, leading to double-digit growth in revenue for three consecutive years.
Revenue rose 13% to 8 billion 15 million yuan in 2016.
Gross profit increased by 16% to 3 billion 705 million yuan compared with the 3 billion 193 million yuan in 2015.
XTEP International Holdings Limited's 2016 annual performance bulletin showed that the realized income was 5 billion 397 million yuan, an increase of 1.9% compared with the same period last year, and gross profit margin rose to 43.2% in 4 consecutive years.
The 361 degree performance report shows that the company achieved a revenue of 5 billion 23 million yuan, an increase of 12.6% over the same period in 2015.
Gross profit margin in 2016 was 2 billion 109 million yuan, an increase of 1.1 percentage points to 42% over the same period last year.
Zhu Yuan, a researcher at Guoxin Securities, believes that most of the local sports brands still face greater business challenges in the industry with double-digit growth. The main reason is the rapidly evolving consumption upgrading trend.
Sports brands, apart from multi brand strategy, are also looking for a breakthrough in consumer upgrading.
Companies are beginning to seize the opportunity to capture female consumers.
Although men are the main participants in competitive sports, sports brand resources tend to be male consumers for a long time. However, with the uptrend of consumption, women's attention to health and body has increased rapidly.
According to the analysis, female consumers have larger physical shape and higher requirements for comfort and individuation.
Sports brands are working hard to find a breakthrough for women.
For example, Lining launched the business of women and dance sportswear brand Danskin in mainland China and Macao. Lining tried to establish an influence in the female market and further enhance her competitiveness.
Sportswear is expected to continue to lead in 2017, although the momentum will be relatively weaker compared with 2016, but sportswear and leisure wear will continue to grow.
The rapid development of sportswear benefits from the pursuit of healthy new life style.
Trend 4: pformation crossover more and more "do not work properly"
In the process of pformation and upgrading of garment industry in 2016, many garment enterprises chose cross border diversification, or downsizing and changing their main businesses. At the same time, many garment enterprises were focusing on the main garment industry, taking capital as a link, extending to the upstream and downstream of the industrial chain, especially to downstream logistics, channels, retail, service and other industrial chain links, and converting to multi brand, multi category, product + service life style brand.
He bought two brands of medical beauty.
The total operating revenue, gross profit and net profit of the group in 2016 increased to varying degrees, providing impetus for speeding up the overall upgrading.
For the gratifying performance in 2016, the main reason for the growth of performance is that it not only continues to deepen the women's clothing business, but also speeds up the market expansion of akakon baby business under the national online and offline market, and rapidly creates the medical beauty sector.
As early as 2014, Langer launched the investment pformation plan, claiming to build the "Pan fashion industry interconnected ecosystem".
In April 2016, he invested $25 million 200 thousand in the Korean DMG company and entered the field of medical beauty. In October 16th of the same year, he announced that the company intends to invest 500 million yuan to set up a wholly owned subsidiary of the medical management Co., Ltd., which will focus on the field of medical cosmetic surgery.
In 2017, it will accelerate the integration of four major business segments, such as women's clothing, baby products, medical beauty, cosmetics and so on.
YOUNGOR, the second largest market in the apparel industry, is still increasing investment in real estate and financial investment.
YOUNGOR, who was quite prescient, implemented the strategy of real estate + investment early.
As early as 2009, its real estate and investment business contributed nearly 80% of the profits in that year.
YOUNGOR, the "clothing kingdom" created by Li Rucheng, has now crossed many fields of textile, real estate, foreign trade and financial investment.
Shanshan plans to spin off the clothing business and start the energy lithium battery. The seven wolves are not only like YOUNGOR real estate, but also involved in reinsurance; Busen is developing the new business direction of "enterprise financial technology".
In addition to the traditional old clothing companies, young brands are also trying to catch up with the local industry.
Mei Bang tries to open book bar and coffee bar in flagship store, and La Natsu Bell invest heavily in coffee brand.
Once the diversification strategy of garment enterprises is thrived, it will be inevitable to go out of business.
For apparel companies, cross-border attempts have become a new trend.
However, insiders admit that there are not many cases of pforming cross-border cooperation into conventional profit models.
There are also tragic cases in the main business pformation.
In September 2016, the famous clothing brand, Dang Yang Shi, was renamed in September 2016. Its major asset reorganization completed in July is a key step in the development of the backdoor listing of Yuantong express.
In September 13, 2016, Da Yang created a notice that the company intends to sell all its assets and liabilities and acquire a 100% stake in the express delivery company by issuing shares. The paction price is 17 billion 500 million yuan.
Chairman Li Guilian resigned from the listed company with 4 executives.
This also means the backdoor delivery of Yuantong express, which is known to be favored by Warren Buffett, and has been delisted for its garment enterprises that have tailored 20 suits. The courier industry has replaced clothing as the main business of listed companies.
A senior industry expert familiar with the creation of Da Yang said that in his view, the founder of Da Yang had the opportunity to make use of the power of the capital market to become the leader of the industry. However, the market value of the company eventually lingered on the bottom of the clothing listed company, which was due to the lack of sufficient grasp of the opportunities for pformation in the great Yang Chuang world.
A closer look at some cases in the domestic market shows that local brands still have some shortcomings in cross-border cooperation and brand marketing. Cross-border cooperation has become a marketing activity that consumers expect. The real cross-border product is attracting consumers through products, but selling brands.
Generally speaking, the current garment industry is still hard, and it has been in the extensive development stage, and the pformation is still on the way.
The reform of clothing enterprises is the trend of the times, or pboundary cooperation or pformation. In the future, this trend will continue to spread.
- Related reading
Brand Nirvana And Rebirth Of Bath, Lining'S Empire Of Electronic Competition Is Emerging.
|- Children's shoes | 47 Elite Enterprises Compete For "Baby Industry Pioneer"
- Industry perspective | Look At The Weakness Of China'S Sports Industry From The Olympic Games
- Children's shoes | Wenzhou Vigorously Promotes The Quality Of Children'S Shoes And Sets Strict Standards.
- Management strategy | The Five Stages Of Store Managers Must Know The Broken Windows Effect.
- Industry Overview | The Clothing Market Is Blowing The "Four Seasons Wind", Causing The Clothing Upsurge In Late Summer And Early Autumn.
- Venture capital project | Earnings Highlights Jingdong Ali Who Has More Strength
- Advertising blockbuster | Burberry New Advertising Takes The Lead In The Fashion Show.
- Company news | Second Card "L2" Strategy Failure, Profit And Net Profit Doubled
- Industrial Cluster | National Fashion Eyes Once Again Gather Together Jinyi Billion Billion Cluster Project Is About To Start.
- Logistics skills | Take Stock Of 8 Mergers And Acquisitions Events In 2016 At Home And Abroad
- LVMH Is Speeding Up Rewriting The Rules Of Luxury Fashion Industry.
- Brand Nirvana And Rebirth Of Bath, Lining'S Empire Of Electronic Competition Is Emerging.
- Fortune Bird Prolongs Recruitment Period Of Recombination Party
- Enter The Enterprise To Find The "Sticking Point" Experts To Help Lanxi Pulse "Think Tank" To Help Upgrade Industries.
- Or Because Of The Sharp Fluctuations In The Stock Market, Women'S Clothing Brand Liu Jo Suspended The IPO Plan.
- Opening Of The New York Exhibition: New Mission, New Journey, Layout And Global Stability
- At The End Of The Year, The Order Was Good, And The Silk Factory Was Selling It.
- PTA Before The Spring Festival, The Stock Market Has Raised The Bull Market.
- Can The Babu Bean, A Brand History Of Over 30 Years, Seize The New Opportunities For Upgrading Its Consumption?
- Virgil Abloh How To Use Topic Marketing To Make The First LV Series Sales Exceed Expectations