Close Shop 2400, Half A Year Deficit 500 Million! Is La Natsu Bell Getting Cold?

　　 Case list

This year, UNIQLO designers jointly limited the amount of money and triggered a wave of crazy rob, unusually hot, but in the past year, fast fashion is the most uneasy year in the Chinese market.

The performance of famous fast fashion brands such as ZARA, H&M and UNIQLO declined to varying degrees, and the growth was weak.

Many brands have already withdrawn from the Chinese market, for example, Topshop and NewLook in the UK have been evacuated from the Chinese market in 2018, and Forever21 from the United States also began closing stores and clearing inventory in April 2019.

In the big shuffle, the domestic brand was not spared, and the sentence was answered: when the tide recedes, you can see who is swimming naked.

La Natsu Bell, a Chinese apprentice who has been seen as ZARA, the most worried opponent of Hai Lan's family and a dual listing of /A shares of Hong Kong stock, has revealed his underpants: LaChapelle:

In the first half of 2019, the performance loss is estimated to be 440 million yuan to 540 million yuan for shareholders of listed companies, and ST will not be turned back in the second half of the year.

The shares of the controlling shareholder and the actual controller Xing Jiaxing have already been lower than the minimum performance guarantee ratio, which constitutes a breach of contract.

In the first half of this year, over 2400 stores were closed, and more than 13 stores were closed every day.

Some people say that La Natsu Bell has stalled, but in fact La Natsu Bell is not "stall", but out of control after speeding.

One

　　 Learn ZARA, super UNIQLO,

Shop nearly 10000

The La Natsu Bell brand was founded in 1998. In 2001, the Shanghai La Natsu Bell dress Limited by Share Ltd was formally established. It was located in the 25-30 year old lady style.

In the first year, La Natsu Bell's sales volume was about 23 million yuan, and then began to expand at any cost. But because of the bottleneck of capital, the expansion speed was not fast, and for a few months, he could not pay wages to his employees.

Until 2009, La Natsu Bell gained about 10000000 dollars in two investments, which made his expansion speed faster.

Business models also follow the successful fast fashion brands such as UNIQLO, ZARA, GAP and so on.

The strength of ZARA and other fast fashion brands comes from the rapid capture of the trend. La Natsu Bell is also following suit. Xing Jiaxing, the founder of Paris, once said, "if there are fashion shows in second days, the relevant information will appear in our mailbox."

Data show that by 2016, the new speed of La Natsu Bell products can also reach 7-15 days, and its supply chain is indeed very strong.

In 2009, La Natsu Bell's sales volume was less than 500 million yuan, and by 2016, it had exceeded 10 billion.

Its stores spread all over the country's 123 line cities. From 2014 to 2017, the number of La Natsu Bell's physical stores was 6887, 7893, 8907 and 9448 respectively, and the market share in the domestic market as early as 2014 has exceeded ZARA and UNIQLO.

At the same time, La Natsu Bell was first listed on the Hong Kong stock market in 2014, and became the first A+H clothing company listed on the stock exchange in 2017 after being listed on the Shanghai Stock Exchange in 2017. At that time, La Natsu Bell also openly stated that he wanted to develop the menswear brand vigorously.

Two

　 From profits to huge losses, plummeted.

Women's clothes are out of control!

A share listing is a turning point for La Natsu Bell.

Before the listing of A shares, La Natsu Bell announced in the prospectus that profits in the first three quarters of 2017 will grow by 1% to 10%.

As a result, in the fourth quarter of 2017, its net profit fell by 23.19% compared with the same period last year, and the net profit of the deduction decreased by 53.3%. The net profit and net profit of the year decreased by 6.29% and 19.53% respectively.

Subsequently, the net loss of 2018 yuan was 160 million yuan, and the net loss of non net profit was 245 million yuan, down 164.43% compared with the same period last year.

On the contrary, in recent years, although the growth rate of China's clothing market has slowed down, the Chinese clothing market is still growing steadily. The total sales in 2018 have reached 3 trillion and 80 billion yuan and the total output has reached 45 billion 600 million pieces (the data are from the China Apparel Association's 2018-2019 China garment industry development report).

La Natsu Bell went against the trend and went out of control.

As follows:

1, cost out of control

According to public figures, in 2018, although La Natsu Bell opened 1132 new stores, 1311 had been turned off, and the total number was reduced to 9269.

People in the industry have said that opening a shop necessarily means an increase in the cost of decoration, hiring, stocking, and entering the market. It is shown in financial data that income increases, expenses increase, inventories increase, and profits are not necessarily. Closing stores means less revenue, less costs and fewer inventories. But strangely enough, the number of La Natsu Bell stores has not been reduced. On the contrary, its sales cost reached 6 billion yuan in 2018, accounting for 59.28% of total revenue and 38% of annual sales.

Later, it also made a smooth transition to O2O. The business income of the electricity supplier was also good. It also built its own super large scale logistics and distribution. This reminds us of the customers of the year. We must know that Jingdong logistics has only just achieved breakeven since it was established for 12 years.

2, open shop to become "face project", increase income does not increase profits.

In 2017, La Natsu Bell said in his listed prospectus that we should continue to open stores with proceeds from financing. We plan to open 3000 new businesses in 3 years, and the total number of stores will be close to 13000. This is a terrible number.

In fact, since the rapid expansion of stores in 2011, La Natsu Bell's income growth is obvious, but single store sales are declining.

In 2015, La Natsu Bell's same store sales began to slide, down by 3.2%. By 2016, the decline was widened to 6.4%, and revenue in 2017 was down by 8%. Not to mention in 2018.

What is even more frightening is that the performance growth that has been pulled hard by the number of stores has failed.

3, multi brand out of control

La Natsu Bell is a multi brand strategy, reducing the dependence on a single brand, which is understandable. But just like its large-scale and fast start shop, its brand number is more complicated, not more refined.

There are more than a dozen brands of self created brands and imported brands, including women's wear, men's wear and children's wear. At one time, in the same store, almost all brands of La Natsu Bell's brand could be seen, and two identical brand stores could often be seen within the same scope of sight.

La Natsu Bell executives have said that women are more "happy and old" than men, and brand loyalty is lower, so La Natsu Bell has to bring more new choices to women consumers.

But in fact, La Natsu Bell's brand homogenization is serious. Apart from the different store styles, there is no obvious division.

The product itself is no longer the same. The label of "civilian" and "fashion", from price to clothing materials and services, is being tucking out. For example, some netizens complained that La Natsu Bell's online shop experience was worrying, the delivery was slow, the clothes were returned by others, the application for replacement was late, and so on.

4, management out of control

In the second years after the listing of Hong Kong stocks, in 2015, La Natsu Bell submitted a prospectus to A shares, but failed to pass it. In the end, he succeeded in IPO in 2017, got the capital of scale expansion, and 90% used to expand the retail network.

But in 2018, La Natsu Bell, who had just completed a year's listing, would issue a public offering of convertible bonds 1 billion 530 million yuan. After that, the size of a fund-raising was reduced, and the plan for issuing convertible bonds was finally terminated in February 2019. But it also plans to raise funds through issuing medium-term notes or short-term bonds.

Under a series of operations, only a large proportion of the company's stock ownership pledge is actually held, and finally the result of the explosion.

During this period, La Natsu Bell also began large-scale personnel changes, from board to senior executives, after the A share listing, a month, a number of directors, executive directors, vice president level senior departure.

In short, behind this series of runaway is the logic that La Natsu Bell has been driving growth through channel size. Although supply chain has provided enough powerful support for its store operation, it lacks effective internal control.

Three

Behind the decline is terrible inertia.

Success often breeds behavioral inertia, but behavioral inertia can easily lead to failure. Because inertia is large, it can easily lead to slow response or misconduct in changing circumstances.

La Natsu Bell got bogged down in the mire of runaway control, behind which was the terrible inertia formed after the high-speed rush.

Xing Jiaxing once said in an interview in 2010: "our industry has such a definition: first, to achieve a certain number of years, it may be more stable. Two, to achieve a certain scale, it will be more stable. Both are indispensable. If a clothing brand comes out very well at once, it will not be stable if it has not experienced the wind and waves, and has not accumulated much experience. If it is done for a long time, it will be very troublesome to keep up the scale. "

At that time, the number of stores in La Natsu Bell was less than 900. But in the ensuing expansion, La Natsu Bell went all the way, forming a very successful appearance. Radical expansion of the shop drive the growth of revenue, and its advantages are entirely concentrated in traditional channels.

Even if its performance in the electricity business is good, in essence, it is also the trend of the whole market.

After 2008, China's apparel industry as a whole reshuffled, many of the sports and leisure apparel brands were plunged into a stock crisis. At the same time, they encountered the impact of the rapid failure of traditional channels, such as rapid failure of the traditional channels, the influx of electricity providers and foreign brands. None of them drive consumption on the scale.

Anta, Lining, Bosideng, red bean home and so on are all old Chinese brand names. They also experienced a huge impact in the shuffle, which is more serious than La Natsu Bell now. But in the past two or three years, they have achieved the perfect turn. Why?

They have the greatest common ground. They are all re studying the market trend, studying the needs of consumers, and then making quick efforts on products. Anta's category system, Lining's "national tide", Bosideng's comprehensive upgrading of the standard canadian goose and red bean home, have been transformed into explosive machines, and consumers can clearly feel that they have changed and become more popular.

La Natsu Bell has caught up with a fast fashion market, but has also formed an inertial thinking. He has always pursued the drive of revenue growth by channel size, but he has not grasped the concept of product driven.

Under inertia, we can not only respond appropriately to the changes in the market environment, but also ignore the bottom line of the enterprises themselves. Eventually, after the scenery, they have quickly evolved into a game of losing only one underpants.

La Natsu Bell has arrived at a critical moment that must be transformed. This process must be extremely painful, but it is imperative.

Because consumers are "happy and old", opponents will not wait for you.

Finally, quote a very reasonable saying:

The so-called master,

There is only one swordplay and one routine.

You can't walk on rivers and lakes.

It must also be moved at times.

Being able to remain in an invincible position.

Reference material:

Baidu Encyclopedia

Sina Finance La Natsu Bell's "makeup remover": abnormal financial data behind counter losses, "La Natsu Bell's same store sales continued to decline, net profit is not satisfactory."

Red business network "half closed shop 2400 why La Natsu Bell was abandoned?" "

AI Yi Shang "La Natsu Bell ranked women's clothing second why can cover Zara, UNIQLO?"