Mei Bang Clothing Profits Less Than Semir Will Meet Market Challenges

With 26 days American Apparel The annual report is published. Casual wear Domain leader American Apparel Ushered in challengers Semir The first impact in the capital market.

　　
Although before Smith Barney The pressure of the new year's newspaper has been released many times, and the executives have made suggestions on many occasions, hoping that the market should not be too optimistic about the annual report. But with the entry of Challenger Semir, the performance of Smith Barney in 2010 seemed bleak.

　　
although Smith Barney Operating income is higher than Semir However, it is easy to see from the annual report that the gap is decreasing year by year. Smith Barney The headache is that even with higher revenue, net profit is much lower than Semir's.

　　
An anonymous broker analyst said the reason for the above phenomenon is the difference between the two expansion models over the past year. Semir is a franchisee, while Smith Barney is working hard in its own stores.

　　
Although the franchisee mode has no advantages and disadvantages with the direct store mode, the problem facing the US is that the cost of direct investment is too large, but the return is far from matching.

　　
    Smith Barney The cost of sales is much higher than that of the others. Semir

　　
and Semir Comparison, Smith Barney The advantage in revenue continues to shrink. According to the results of the financial report, in 2008, Smith Barney's revenue was 1.34 times that of Semir, and in 2009, its revenues dropped to 1.22 times that of Semir. In 2010, the revenue of Smith Barney continued to decline to 1.19 times that of Semir.

　　
However, the gap between us and Semir's net profit has been accelerated. Data show that in 2010, Semir apparel net profit jumped to 1 billion yuan, an increase of 45.77% over the same period last year. In fact, from 2009, Semir's revenue was less than that of the United States and the United States, but the net profit was even higher. By 2010, this phenomenon has been more and more obvious.

　　
Nearly 3 years of annual report data show that the U.S. bond gross profit margin is higher than Semir, and net interest rate is far lower than Semir.

　　
It is not difficult to find out from the annual report that the three period cost is high, and the most important factor is "selling expenses". From 2008 to 2010, Smith Barney's sales and sales rates were much higher than those of Semir.

　　
Dongxing securities analyst Cheng Yuan said, from the profit situation, Semir In the near term, the profit is much higher than that of the United States. We judge that this is due to the different strategies in the operation stage, rather than the real profitability. In recent years, in recent years, the United States has expanded its strength directly, and the new brand has been expanding vigorously.

　　
    Smith Barney In 2008, the sales cost was 943 million yuan, the sales cost rate was 21.08%, the sales cost in 2009 was 1 billion 450 million yuan, and the selling expense rate was 27.79%. By contrast, Semir's sales rate is much lower, from three to 7.13% in 2008 to 3.39% in 2010, and 5.82%.

　　
    American Apparel A director of the office of the secretaries general said, "compared with the US state, Semir The risk is really low, they are more risk sharing to the franchisee. If Smith Barney does only join stores in the next few years instead of Direct stores, the net profit may increase every year. "

　　
Financial reports show that Semir In 2008, the number of franchisees was 2613, the number of outlets was 54, the number of franchised stores in 2009 was 3154, the outlets were 104, by 2010, there were 3862 stores, and the outlets were 145; another flagship brand, balbala, was 2551 in 2010, and 125 in Direct stores.

　　
Wan de data showed that in 2009 Smith Barney The number of Direct stores is 523, and the total number of stores is 2863. At the end of 2010, there were 690 stores in the United States and 3659 in total.

　　
In 2009, the United States barrack store accounted for 18% of total stores, and accounted for 19% in 2010. The proportion of Semir's Direct stores in 2010 was 4%.

　　
Cheng Yuan pointed out that from the point of view of the core competitiveness of the brand, we think that the ability of the us to accumulate and channel management is slightly stronger than that of Semir, while Semir's current channel development strategy is more suited to the appetite of the capital market, but in the long run, the risk is greater than that of the United States.

　　
The official pointed out, however, this is only a short-term solution. "We want to maintain steady growth, annual 30-40% growth and net profit growth of 20%. While taking into account some of the views of the capital market, we should adjust some strategic structures. "

　　
    Inventory backlog serious in 2010

　　
The annual report shows that Smith Barney Accounts receivable increased by 95% to 932 million yuan, and other receipts in the United States increased by 271% to 327 million yuan.

　　
    Smith Barney The head of the secretaries general office pointed out, "because the base of the accounts receivable is not very large, accounts receivable is a support policy for our franchisees, and the franchisee has appropriately extended the accounts receivable period. "

　　
Because the situation in the first quarter of last year was not ideal, "because some products were not able to be listed, and some production problems were encountered. "The person in charge pointed out.

　　
But the person in charge did not deny the problem of tight capital chain in the past year. The annual report shows that the net financing of the company in 2008 was basically 1 billion 335 million yuan, and only 44 million 710 thousand yuan was left at the end of 2010. The net cash flow generated by Smith Barney in 2010 was -10.53 billion yuan, while the figure was 856 million yuan at the end of 2009, down 223% from the same period last year. The net cash flow generated by operating activities in 2010 was -10.53 billion, while the figure was 856 million yuan at the end of 2009. It fell by 223% last year.

　　
By the end of this year, the United States has tried many short term financing, and the chief executive pointed out that "we have already formed some effective strategies and measures." "It points out that some outlets will be used to solve the inventory problem.

　　
The person in charge pointed out that the fund shortage in 2010 was mainly due to the serious backlog of inventory. "Our industry itself is relying on the weather and has certain cyclical characteristics. Seasonal fluctuations have more impact on the market, but there are still many experiences and lessons to be concluded. "Financial reports show that in 2010, Smith Barney's stock rose by 183% to 2 billion 548 million yuan.

　　
Zhu Qinghua, a light industry researcher at CIC, said that excessive inventory would have a negative impact on garment enterprises. "Excessive inventory will increase the occupation of capital and space resources, reduce the cash flow of enterprises and increase the risk of operation. "

　　
In addition, Zhu Qinghua said that excessive inventory will lead to a disconnect between production and sales of enterprises, causing the bullwhip effect, resulting in the whole garment enterprises getting into a predicament of high cost, and production links will also be affected.

　　
Cui Hongbo, chief executive officer of Lian Zhi Da brand management, pointed out that while pursuing the expansion of scale effect, the United States has increased a large number of pre orders. Once the sales are expected to have problems, the stock will increase substantially.

　　
The core of the profit of a garment enterprise is inventory control. Cui Hongbo pointed out that if the inventory is reasonable, excess profits can be obtained.

　　
    The tuition paid by the searcher

　　
As a challenger, Semir, which entered the capital market in 2011, is still on the way to a fast expansion of its conservative franchisees. Compared with the 3 year old US bond company, it has invested heavily in the construction of its own stores. In addition, the establishment of brand MC also contributed a lot of energy to the United States. MC was once considered an innovative move by the industry. Once a breakthrough is made, it will bring the power of MB to far more than that of the original brand.

　　
Just 3rd anniversary of MC did not seem to surprise the market as expected. On the contrary, the 2010 annual report shows that the brand is still losing money.

　　
Cheng Yuan pointed out that the US bond MC has not yet been released. If the franchise is liberalized in 2012, the growth rate may be considerable.

　　
"The success of a brand like MC is not a problem that can be solved in a few years. "Cui Hongbo pointed out that the United States has to face multiple challenges, from brand to product and even to mode.

　　
The launch of MC is the mode that the United States hopes to make direct contact with the terminal. China has long relied on the mode of agents, so that the fashion brand will never touch the trend of the market. Cui Hongbo told reporters that the MC launched by Smith Barney is a subversion of traditional franchisees and agents.

　　
MC, a brand of the city series started in the United States, was once criticized for its little difference from the MB product of the main brand. After that, MC was stripped from MB and began to operate as an independent brand.

　　
"The United States is too optimistic about the launch of MC, ignoring the difficulty of the new brand's operation cycle and the large backlog of inventory problems. "Cui Hongbo pointed out that it is undeniable that MC, as a brand facing the future, we have seen the spirit of challenge of the United States and the explorers.

　　
From a practical point of view, MC completely subverted the original operation mode of the United States, while the existing operation mode of the US bond company, which originated in the franchise mode, does not support its new MC mode. Cui Hongbo pointed out that many practices between the two brands are hedging. "

　　
The director of the secretaries general said that the problem that MC is facing at present is just a tuition fee paid by the US state. "For China's clothing brand, the tuition fee must be paid sooner or later. In the future, the cost of such tuition will be bigger and bigger, and the cost will be higher and higher. "

　　
"When a certain scale is formed, it is not allowed to make mistakes. The larger the scale, the higher the cost. "The person in charge pointed out that fortunately, the current state of the United States can also pay tuition fees.