Lining Scramble For Children'S Wear Market, Competing For Number One.

The bad performance in 2011 made Lining (China) sporting goods Limited (hereinafter referred to as "Lining") had to speed up new breakthroughs in other fields.

In early May,

The group announced that the company will enter the field of children's clothing with a brand new management team and brand new logo, and released the development plan of Lining's children's clothing in the next 5 to 10 years.

Lining group spokesman Li Wei told the China Times reporter that

The substantial gross profit margin and the huge growth space of the market will be an important reason for Lining's involvement in children's wear.

It is noteworthy that not only are Lining, such as Nike, Adidas, Semir, Metersbonwe, news bird (12.67, -0.13, -1.02%), Bosideng and many other traditional brands of adult clothing, they are also targeting the young clothing market.

"The high gross margin level and fast growth of output value are the two characteristics of children's clothing market, and the reason why these traditional adult clothing brands enter the children's clothing market is that the children's clothing industry is highly dispersed and has not yet formed a real sense of industry leader.

And this will be a great temptation for any clothing enterprise. "

Zhu Meng, a clothing industry analyst and a strategic advisor of the strategic planning company, said.

Performance slump

Lining's 2011 Annual report shows that the company achieved operating income of 8 billion 929 million yuan a year, a decrease of nearly 500 million yuan from last year. Although its sales performance in the domestic sports brand is still the first, its leading edge has been shaky.

This reporter compared Anta, XTEP, PEAK, 331 degrees and other domestic sports brands last year's annual report found that in 2011, in addition to Lining, other domestic sports brands have achieved two digit performance growth, including Anta business income has reached 8 billion 904 million yuan, an increase of 20.20% over the same period, to surpass Lining only need to increase the revenue of 25 million yuan.

At the same time, Lining's profit margin is also decreasing.

In its annual report, the reporter saw that Lining's gross profit margin dropped by 8.02 percentage points compared with that of 2010, and its net profit was only 386 million yuan, down 65.2% from the same period last year.

Needless to say, Nike and Adidas, compared to Anta, XTEP, PEAK, and 360 degrees, are the sports apparel brands of China. Lining's net profit level is already the bottom of the industry.

"The growth of sports adult clothing in 2012 will be very slow. This year is particularly difficult, because last year there was too much inventory, and the inventory level of every company is still high. By contrast, children's clothing is undoubtedly the way out for the future."

Zhu Meng told our reporter.

The reporter inquires the annual report to see that Lining last year's inventory of goods up to 1 billion 133 million yuan, an increase of 40.57% compared to the same period last year, compared with PEAK and 31st degree inventory level only maintained at about 400 million yuan; Lining's inventory average turnover day is the industry's largest, the average need for 73 days, while Anta and 360 degrees of turnover speed is only about 40 days.

Does Lining speed up the layout of children's wear because of a fall in performance? Lining does not give an answer.

However, Zhu Meng believes that the growth of children's clothing in 2012 will far exceed the traditional sports clothing business, which is undoubtedly a key concern for Lining, who is facing pressure of performance.

Targeting children's clothing

"For Lining, children's clothing market is no stranger to this, nor is this the first time that Lining has set foot in the field of children's wear.

As far as I know, at present, Li Ningzheng is facing a new choice for children's clothing partners. "

Lining group former government and director of external affairs Zhang Xiaoyan told our reporter.

A person from the new business development department of Lining group confirmed to reporters: "we did carry out children's clothing business two years ago.

Lining's children's clothing is also called "Lining", but we do not choose to sell in Lining's stores, but through the dealer channel to go to the supermarket department store route.

According to the above personage, in 2010, Lining collaborated with the local children's clothing manufacturer, Parker, for the operation of Lining's children's clothing.

Just a few days ago, Lining announced that it would replace the partners of children's clothing, and chose Tianjin wide cat children's Articles Co., Ltd. as the exclusive agent of Lining's children's clothing in the next ten years.

As for the reasons for changing partners, Li Ningxin, director of business development department, explained that the cooperation between the company and paramount did not meet the expected performance. The reason is that there are differences in management cognition between the two companies. Parker is an independent company, which leads to the failure of Lining's management intentions to be implemented.

This time is different, because Lining is one of the shareholders of Tianjin wide cat. Therefore, Lining can strengthen the supervision of wide cats and realize Lining's management intention.

At present, there are no channels outside to know Lining's children's wear in the first two years.

Reporters inquire Lining annual report, but in its annual report, children's clothing business is not listed separately.

Lining group spokesman Li Wei said that the management of Lining's children's clothing could be arranged by Tianjin wide kitten, but before the deadline, reporters did not receive an interview reply.

And an operator of children's clothing business website told reporters that Lining's children's wear could only be regarded as mediocre because its children's clothing series had no advantage in price.

Lining, an ordinary child's top coat or pants, costs about 120 yuan -130 yuan, and a pair of children's shoes are over 100 yuan. Compared to many, the price of clothing for many domestic children's clothing is only 50 yuan -60 yuan.

This is undoubtedly a problem for Lining, who is not a high-end children's clothing.

Industry get together

In the clothing industry generally believe that the economic environment is depressed, the traditional adult clothing brand into the children's clothing industry seems to be a trend.

This reporter learned that, such as Nike, Adidas, Semir, Metersbonwe, news bird, Bosideng and so on have also been involved in children's clothing area before.

"The gross margin of children's clothing is even higher than that of traditional adult clothing. We see that the gross profit margin of children's clothing brands such as PhD and Semir's Barbara is above 40%, which is next to the most profitable business men's clothing."

Zhu Meng told our reporter.

At the same time, children's clothing market cake is also growing.

An industry statistics report shows that the market value of children's wear is about 100 billion yuan, and the industry's annual growth rate is above 30%.

"Adult clothing is now only able to maintain a growth rate of more than ten percent per year, and this year it may be a single digit growth."

Zhu Meng predicted.

However, as clothing companies poured into the field of children's clothing, Bosteng, who was involved in children's wear industry last year, chose to quit.

In March 31st of this year, Bosideng chose to pfer the shares of Rambo 51% to its children's clothing operation company at the price of 10 million 400 thousand yuan to the management of Rambo.

Bosideng bought Rambo company in March 15th last year when Bosideng announced ambitious plans to invest 100 million yuan in its children's clothing, opening 150 to 200 stores a year, and increasing the number of outlets to 2000 by 2015.

But only 1 years later, Bosideng chose to leave quietly.

The company did not explain the reasons for the withdrawal of children's clothing market, but the reporter found that Rambo company half year children's clothing turnover is 48 million yuan, accounting for only 2% of the group's turnover.

"It is difficult for us to speculate on the reasons for Boston's abandonment. It may be a choice of the direction of the group's business, or maybe it is not optimistic about the future of children's clothing industry."

Zhu Meng analysis.

However, Zhu Meng said that until now, there is not a single brand in the domestic children's clothing market. The brand concentration is very low and the market is highly dispersed. Even the pnational giants such as Nike and Adidas are all mediocre, while the market share of traditional children's clothing brands such as PhD and frog is also 2%-3%.

"Now the so-called leader in the field of children's clothing is far from forming the brand leadership in the field of adult clothing, so it will be an opportunity for any latecomer, because the cake is bigger and bigger, and everyone will become the ultimate industry leader."

Zhu Meng said.