Shoes And Clothing News: How About The Brand Financial Report

Sportswear retailer taobo International Holding Co., Ltd. recently announced the latest annual results without audit. In the year ending February 28, 2022, taobo recorded revenue of about 31.877 billion yuan, a decrease of 11.5% over the same period of last year. The operating profit was about 3.43 billion yuan, down 14% year on year; The profit attributable to equity holders of the company was 2.447 billion yuan, down 11.7% year on year.

The financial report pointed out that the decline in revenue and profit data was related to the repeated epidemic situation. At the same time, the shortage of international supply chain in the second half of the fiscal year also had a negative impact on the retail business, which was only partially offset by the increase in scale brought about by the strategic increase in wholesale business.

In terms of brands, in this year, the revenue of main brands of taobo was about 27.569 billion yuan, accounting for 86.5% of the revenue of the headquarters. The revenue of other brands was about 4.005 billion yuan, accounting for 12.6%.

It can be seen that the main brands, including Nike and Adidas, have the same advantages, and their revenue share has remained stable at over 85% in the past three years. However, compared with 31.421 billion yuan in the same period of last year, the revenue of major brands in this year has dropped by 12.3%. The impact of unstable market environment and supply chain shortage is significant.

The revenue of other brands, including puma, converse, Weaver Group brands (i.e. Vance, the north face and timberland), Arthas, guizuohu, skykey and Li Ning, remained within the range of 4.0 billion yuan, down 6.1% from 4.266 billion yuan last year.

It is worth mentioning that domestic brand Li Ning started cooperation with taobo in 2022. At present, relevant products of Li Ning can be searched and purchased in topsports taobo sports app.

Li taoning once belonged to the competitive relationship with sports shoes in the market. With the rise of the national tide, the competition between domestic brands and foreign brands is becoming increasingly fierce. Taobo's choice to join hands with Li Ning may mean that it will gradually start cooperation with domestic brands.

Since the epidemic, the demand for sports and fitness has been growing, and the global sports apparel market has shown a steady and increasing trend, and China's market is no exception. According to Euromonitor, the retail scale of China's sportswear market will reach 371.8 billion yuan in 2021, with a year-on-year increase of 19.1%. Of course, this is related to the low base number caused by the epidemic in 2020, but it also reflects the change of consumption demand in the post epidemic era and the possibility of growth of sports apparel consumption market.

At the same time of stable growth, high concentration is also one of the characteristics of domestic sportswear market. In the article "annual review of 63 clothing companies: 500 times difference between the highest and the lowest", the number of brands points out that in 2021, the Cr5 of sportswear track (the five largest enterprises occupy the relevant market share) is 58.1%, and the five major brands are Nike, ADI, Anta, Li Ning and FILA. "2021 domestic brand clothing industry research report" released by Guoxin Securities also indicates that the industry concentration of sports shoes and clothing is far higher than that of other subdivided industries such as men's wear, women's wear and children's wear.

High concentration is closely related to the technical, professional and innovative requirements of sports shoes and clothing industry. The market focus and resource aggregation extended from this make taobo's diversified brand stores better play their own advantages. After all, compared with the unknown brand, consumers have a higher recognition of the head brand which has occupied a certain market share.

At present, taobo's cooperation brand matrix has been constantly enriched, covering 11 famous international and domestic sports shoes and clothing brands in China, including Nike, Adidas, Puma and Li Ning. In the complex market changes, the diversified brand combination and optimized store structure endow taobo sports with strong pressure bearing capacity and explore many possibilities of sports shoes and clothing market.