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    Seven Wolves Slow Down The Expansion Rate &Nbsp; Half A Year, Only One Store.

    2010/8/19 17:28:00 100

    Seven Wolf Store Brand

       Direct shop It increased by 79 from the end of last year, but the number of franchisees decreased by 78. Seven wolves (002029, SZ) added in the first half year Exclusive shop The actual number is only 1.


    In August 18th, seven wolves reported that the company realized 1-6 months. Do business Revenue was 970 million yuan, an increase of 10.7% over the same period, an increase of 40.7% in operating profit and a 36.2% increase in total profit. The China Daily also showed that in the middle of 2010, the number of exclusive stores (Hall cabinets) was 3250, of which 299 were direct stores, and 79 were direct stores than those at the end of 2009. There were 2951 franchisees and 78 fewer stores than at the end of 2009.


    Correspondingly, the seven wolves reported in 2009 that the number of exclusive stores (Hall cabinets) was 2957, an increase of 188 from the end of 2008.


    In this regard, analysts believe that, in the context of the global economic crisis, especially whether China's economy will be faced with the two bottom finding and the rising cost of garment industry, the seven wolves will face greater competition pressure than other garment and textile enterprises. And the continuous increase in store rentals will undoubtedly increase the burden on the stores. Therefore, the seven wolves can only slow down the speed of "horse race enclosure" and focus on the profitability of a single store.


    After the cold winter of 2009, although the clothing and textile industry of China has lived through life and death, the prospect is still not optimistic.


    According to public data, in the 1-7 months of this year, China's textile and apparel exports totaled US $109 billion 600 million, up nearly 23% over the same period last year. Among them, the total exports of textiles amounted to 42 billion 839 million US dollars, and clothing exports totaled 66 billion 827 million US dollars, with a growth rate of 32.75% and 17.45% respectively. But this growth is based on a resumption of growth in the low base last year.


    At the same time, it is widely believed that the growth of textile exports will slow down in the second half of this year. According to the data released by the General Administration of customs, the export volume of textiles and clothing increased by 11.4% in July, but compared with 19% in 2008 and 17% in 2009, the growth rate in the second half of this year has come down.


    According to an industry analyst, the overall performance of the international market is relatively low, exacerbating the speed of the export of some domestic clothing brands from exports to domestic sales. Foreign brands suffering from the financial crisis have begun to rush to the Chinese market. This means that domestic brands such as the seven wolves are facing the double attack of foreign brands and export to domestic brands. Zhou Shaoxiong, chairman of the seven wolves, also said that some foreign brands are developing strategies for entering China. In 2010, the phenomenon of "two-way attack" has been increasingly reflected in the national garment industry, and the new pattern of clothing is coming.


    In this complex competitive environment, the seven wolves slowed down the pace of expansion.


    "Shops and shops are basically flat, store rentals and labor costs are rising. At present, the company focuses on improving the profitability of the storefront. "Zhou Shaoxiong said


    In fact, the seven wolves also mentioned in the newspaper that commercial property prices were high, squeezing terminal profits, but also brought pressure to the company's channel development. For this reason, the seven wolves indicated that they would encourage the channel to enter the market and properly sink to the three line market, so as to reduce the cost of the initial stage and reduce the risk of channel.


    However, the people in the industry believe that seven wolves are continuously invested, managed and managed in the brand building. innovate It is also constantly upgrading, not pursuing the expansion of the number of stores, but paying attention to the connotative development of brands and benefits. The practice of seven wolves is suitable for the development of the garment and textile industry at the crossroads of spanformation and development.

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