Business Casual Wear In Men'S Clothing Market Share Gradually Increased

The market prospect is broad.

It is estimated that the market volume of business casual men's clothing in 2012 is about 100 billion yuan.

With the trend of leisure penetration into the field of formal dress, business casual wear has gradually increased in men's clothing market. It is estimated that the market share of business casual men's wear in men's clothing industry increased from 15.4% in 2009 to 16.2% in 2013.

Positioning high-end business casual men's clothing, department store counters leading channels.

The company's core products are men's trousers and jackets, and enjoy the reputation of "men's pants experts".

In 2011, men's trousers and jackets accounted for 69% of the total revenue. In 2008 ~2011, the annual compound growth rate of sales revenue and net profit was 22.4% and 37.9% respectively.

At present, there are 3140 terminal channels, including 731 direct outlets and 2409 franchised stores. In the terminal form, there are 1673 department stores, 1467 exclusive stores, and the department stores account for the leading industry.

Product strength, channel power, brand power, three forces to maintain a leading competitive position.

Company owns

The three major competitive advantages of operation are high quality products, flat channel mode and extensive brand influence.

The brand image based on "trousers culture" relies on the strong R & D capability and differentiated core products to occupy the market; the "vertical integration" mode and the flat channel mode have good supply chain management capabilities and terminal control capabilities; "create a man's clothing consultant" strategy, and create a fashionable and high-quality corporate image.

In the future, we will speed up the sinking of the three or four line channels to achieve simultaneous growth in endogeny and extension by enriching the upper class.

The company's clothing accounted for about 53%, less than the industry level of 70%~80%. From the experience of the industry, the company has a very large space to upgrade its clothing. As the seven wolves successfully break through the jacket to the whole category, multi series business casual men's clothing, set up the nine herding Wang top brand, will also become one of the breakthroughs of the company in the future.

Future Ltd will gain endogenous growth through adjusting product mix, improving flat effect and comprehensive gross profit margin. The company's terminal channel should be managed flat and expanded steadily, and the depth and depth of the two or three line cities will be increased by increasing the coverage rate and the density of shops in the future.

Forecast Ltd's earnings per share in 2012 ~2014 were 1.18 yuan, 1.41 yuan, 1.71 yuan, and three compound annual growth rate of 24%.

Based on the company's leading position in the industry and the building of future multi brands, and steadily benefiting from the steady growth of consumption upgrading, we first gave the company a "buy" rating.

Risk warning: category expansion is lower than expected; channel sinking is less than expected expansion risk; economic downturn causes the risk of declining consumption capacity.