The Key To Breakthrough Clothing Stocks Is Management.

Management and positioning of clothing stocks breakthrough key

According to HK media, Hong Kong media reported that Si Jie global (market, information, commentary) (00330) surrendered its brilliant results yesterday, and its share price has turned over sharply, rising 25%. The experience of Si Jie's turning around is of course worth reference, but fashion clothing such as popular fashion, luxury clothing and children's clothing has their own advantages and potential. Investors can analyze them carefully.

A big bank has estimated that it will be a good hit, but now it has earned more than 500 million in the first half of the year.

If only from the second half of 2011 and the first half of 2010, achievement In comparison, it will only feel that the performance of the company is mediocre. The cost rates of all kinds of costs, such as staff, leasing, logistics and promotion, have increased by 0.8 to 2.7 percentage points.

But if we carefully look at the change of the thinking and compare the operational efficiency of the first half and second half of 2011, we will find that after being hit hard, Si Jie is actively improving its operation efficiency, which accounts for the highest cost of staff and lease, and the rate of expenditure has not only increased continuously, but has reduced 1.2 and 0.7 percentage points respectively.

New management level operation efficiency

In fact, after the departure of Xing Liyuan and others, he fell into a low tide and replaced the whole management. The executive power and decision-making power of the new people were most concerned by the outside world. efficiency The market has been most successful, and it is believed that investors will have instant reaction to the new management's confidence in the implementation of the transformation plan.

The decline of fashion stocks depends on management level.

Fashion is always changing industries. Therefore, the prosperity and decline of fashion stocks often depends on the executive ability and decision-making power of management.

The market once guessed whether the myth of Si Jie could be reproduced in fashion star I.T (00999) in recent years. Lyon analyzed the success of I.T with 3 main elements, which also reflected the ability of I.T management.

(1) I.T owns many brand businesses.

First of all, I.T is a brand diversified fashion enterprise. It sells brand products to all brand stores, and single brand stores specialize in individual brand fashions. Some brands come from their own products, while others acquire them. Management The development of multi brand management mode can reduce the impact of the trend of individual brands.

　 (2) brand has unique positioning.

The second success factor is that each brand has its own unique market positioning. The management of multiple brands reflects the management of risk diversification. However, to achieve more brand and not to contradict each other, it is the management's ability to integrate the brand. As can be seen from Figure 1, the brands that I.T owns are rarely seen overlapping in the market. Another concern is that figure 1 shows that most of the I.T products are in the range of the trend of fashion, and the price of the products can also be set in the middle.

(3) innovation promotion strategy

As for the third element, it is an innovative promotion strategy. Lyon has enumerated that I.T's marketing campaign can match many current trends, cartoons, stars, and so on, so that marketing can see more benefits.

Like Si Jie, Daphne (00210) has also undergone a transformation period. From the previous subcontracting to the development of its own brand, the success of the operation reflects the executive ability of the management. As for the earlier company's threat to the shortage of migrant workers, Lyon points out that the management has successfully dispersed its production period. This also reflects that the management can suit the time and avoid production faults.

Similarly, Giordano (00709), which has been favored by Tong uncle, has also maintained a good profit margin in recent years, mainly benefiting from the effective reorganization of supply chain by management and successfully improving the connotation of product distribution.

There are many concepts in children's products.

Speaking of China's clothing industry, of course, children's clothing is indispensable. Under the mainland's one-child policy, many parents are willing to break up their bags and spend on their children. This year is the year of the dragon, and the market is looking forward to the effect of the dragon year. China will set up a baby boom in the year of the dragon.

According to Research Institute Frost&; Sullivan survey, domestic children consumption The product market increased from 165 billion 300 million yuan in 09 years to 311 billion 100 million yuan in 2013, with a compound annual growth rate of 17%. The average household expenditure per household in the mainland is only 2 to 3 of that in Europe and the United States, and the development space is still huge.

Dr. frog (01698) is the only mainland children clothing company listed in Hong Kong. There are about 1724 retail outlets in the mainland. When it comes to the market, it is temporarily two, but last year's medium-term performance is worse than expected. Operating profit has increased by only 12%, and the stock price has also been plunge. However, under the concept of dragon year, the stock price has been showing signs of growth recently. After more than 3 months' consolidation, it has broken through the high rebound in November last year.

Lv Yihao, vice president and chief executive officer of the group, once said that he is optimistic about this year's performance. He believes that the dragon year effect is emerging and is introducing several series related to the dragon year. The group also expects that the order volume will increase by 4 to 5 percent this spring and summer.

However, the competition for children's clothing market is fierce. Enterprises have to add branches, increase market share and launch products at a relatively competitive price, which will result in pressure on Maori. The International Bank estimates that the retail sales of PhD can increase to 2434 this year, pushing sales up by 49% and net profit by 32% to 332 million yuan. Only because the group increased the gross profit margin of the lower product line, and continuously opened the branch order to increase the cost, last year gross profit rate would be pressed by 6.4 percentage points, and net profit increased by 32%.

Jiayin: optimistic about Prince Frog (quotes, information, comments)

Compared to the doctor's baby, another children's product stock Frog Prince (01259) is more popular in the market. Because the products are mainly care products and consumption is high, the group also invited Kelly Chan, the singer with "Little Dragon pack" as spokesperson. Jiayin International believes that the distribution and brand of the group are gradually improving, and efforts to expand the market of the first tier cities, so optimistic about its prospects.

　 20 million high consumption potential of luxury goods

To invest in China's consumption concept stocks, we must first understand China's 1 billion 300 million population and each consumer group.

High growth of Prada business

Goldman Sachs pointed out that China's consumer groups can be divided into 4 categories, namely, the masses, core middle class, high-end consumers and high-end consumers. Among them, the latter 2 have a population of 20 million, and luxury goods such as Prada (01913) and Zhou Dafu (market, information, commentary) (01929) can grow at a high speed.

The size of the 4 type of consumer group is opposite to the level of consumption ability. Take the most populous consumer group as an example, the average monthly income is 1500 to 4000 yuan; such population has been earning high speed in the past 5 years. increase China's most low-end consumer products such as Daphne (00210) and Lining (market, information, commentary) (02331) are the most beneficiaries, but pay attention to the rise of wages is a two edged sword.

Luxury goods can be divided into 2 categories: high-end consumption and high-end consumption. China is a developing country, with a population of no more than 1 million of its high-end consumer level. This group is addicted to the top red wine and sports cars, and it only goes to VIP gamble even after gambling on the sea.

Despite the high consumption power, income is more volatile than the economic cycle. This year, total consumption of goods has declined.

However, the high-end consumer population is growing at a high speed and has reached 20 million. Goldman Sachs believes that such people often go abroad. They love iPhone, Starbucks, and can also afford handbags and watches of about 1000 to 3000 dollars, which is the sales target of Prada (01913). As shown in Figure 2, sales of Prada and Burberry in the same store are higher than those of the most high-end Tiffany.

Morgan expects that the size of the global fashion market will double in 2010 in 5 years, and China will contribute 3 of it to growth.

Interestingly, a survey also found that more than half of the domestic consumers purchase The more upscale products will discard "upgrading" another product category.

The obvious example is that when consumers buy clothes, they prefer to give up sportswear and buy more fashionable fashion jewelry. This can explain why the mainland sports apparel sales slump, inventory rise and other issues.