America'S Rapid Expansion Worries

According to the results of the semi annual report in June 30th, the net profit of shareholders belonging to the listed companies decreased by 80% compared with the same period last year, and the profit dropped sharply to the sharp rise in sales expenses. Nandu journalists learned from many domestic casual wear enterprises that with the 002269 major international fast fashion brands including UNIQLO, ZA RA, H& M and GA P settled in China, the market competition in the first half of this year increased significantly. "Everyone's strings were stretched too tightly." last week, the United States has been praised as the leader of light asset mode and the benchmark of domestic casual wear industry (002269).

America's rapid expansion worries

A pcript of "long and short" reveals the bottlenecks encountered in the rapid expansion of Metersbonwe (M, e&City) brand.

The semi annual report shows that in the first half of the year, Smith Barney's business income increased by 2 billion 541 million, an increase of 39.49% compared with the same period last year, while operating profit was only 63 million 530 thousand, down 57.86% compared to the same period last year. The net profit of shareholders belonging to the listed company was 40 million 330 thousand, down 82% compared to the same period last year.

The American Board of apparel believes that several major factors that affect net profit decrease by 82% are: cost increase is higher than income increase; two, sales cost increase is bigger, and cost rate rises during pulling period.

"Since last year, the direct channel construction of the company has been greatly intensified, and the new expansion of the shop cost has increased rapidly."

Three, the company's financial subsidies have been reduced, and some other effects come from the adjustment of income tax.

As a typical light asset enterprise, Smith Barney has always pursued the strategy of R & D, brand ownership, production and channel outsourcing.

However, since the IPO, the "lower end" of the US state capital, which holds capital, has begun to shift from light to heavy, including increasing the number of Direct stores and buying real estate in stores.

In addition to the strategic readjustment on the subjective will, there are also views that the fast fashion brand represented by UNIQLO is expanding rapidly in China, which has accelerated the pace of accelerated expansion of the US state garment and led to a sharp increase in expenditure.

A Dongxing securities research report points out the adverse effects of accelerating expansion. "In the first quarter of this year, Metersbonwe's profit making consumer strategy not only affected the current performance, but also made a certain damage to the brand image, which needs some time to repair."

"Master" enters China

For the domestic casual wear brand such as Metersbonwe, the market environment is not so peaceful now.

With the help of the national policy of stimulating domestic demand, the consumer market is booming, but foreign fast fashion giants are also in this big cake.

At the end of June this year, G A P, the largest clothing retailer in the United States, announced its high-profile entry into the Chinese market.

At the end of 2010, 4 flagship stores will be opened in Beijing and Shanghai. Each store will have an area of more than 1000 square meters.

At the same time, with the entry of G A P, Spain's ZA R A, Sweden's H &M, Japan's UNIQLO and G A P four fast fashion brands are officially joined in China.

At the same time, it is also a channel invasion of "sea, land and air".

Take UNIQLO as an example, in addition to occupy the first tier cities in the gold lots to open stores, it also pioneered the establishment of a network sales channel, and in a short time, the scale of annual sales volume of 100 million yuan was formed.

ZA RA, who has just opened its online sales system in Europe, also said it would consider selling online in the Chinese market next year.

"For domestic casual wear brands, international fast fashion is also an enemy and friend."

Liao Jierong, an independent analyst in the apparel industry, said that before the fast fashion entered China, the domestic brands represented by Metersbonwe and YISHION developed rapidly through imitating the high-speed turnover mode of ZA RA.

Nowadays, the "masters" have become competitors, the same way of playing, the other side has stronger financial strength, faster new goods shelves speed and international brand.

"At the present stage, it is difficult to develop blindly and blindly, and the differentiation of product positioning and channels will become a major topic for domestic brands."

Seven wolves and bin Bao's "enemies" manual

"Without their own brand culture, they can only imitate."

Zhou Shaoxiong, the chairman of the seven wolves, believes that their respective foundations are not the same for the current market pattern of internationally renowned fast fashion brands.

"Fast fashion is based on fast selling and fast supply chain reaction.

The seven wolves do more to guide lifestyle, aiming to sell world-class products at the right price.

According to Zhou Shaoxiong, the seven wolves will organize their customers to participate in some polo, sailing and sailing activities, and invite professionals from these fields to participate. "Only in this way can consumers truly understand our related theme products."

"Our vision is to be China's Polo."

Zhou Shaoxiong said that Polo is also a brand emphasizing culture, which is different from fast fashion, and each of them has its own market.

Nowadays, fast fashion brands enter China, too. "They are not necessarily suitable for all consumers."

Apart from brand differentiation, channels are also the main way for domestic brands to deal with fast fashion.

She Xujin CEO, who owns the German menswear brand "BEN BO", pointed out a "gold rush road" to enter the two or three line market after the first market saturation.

"We are developing very rapidly in the capital cities of Guiyang, Chengdu and other western provinces."

According to She Xujin, the trick of bin Bao is to have successful sales templates in these two tier cities and quickly copy them.

It is understood that bin Bao has accumulated a successful experience in the two tier market through its operation in Shantou, Guangdong, and proved to be effective in other two level markets.

In She Xujin's view, there is nothing new in the apparel industry chain and brand promotion, and more importantly, it is suitable for its own market positioning and strategy.