Decline In Performance, Inventory Of High Horse Clothing Changed "Landlord"

In the past 16 years,

It has always left the impression of "idiot" to the industry. Even though the industry has invested in real estate and property, it is also focused on the relatively low profit clothing business.

However, as Semir's clothing moves its eyes from clothing to real estate, the image of "idiot" will be ready at any time.

Gold purchase

156 million, or will detonate Semir clothing ten years of thinking.

Since its inception, Semir apparel has been deeply cultivating its main business, even though

It has not been able to activate their thinking.

Until recently, Semir clothing changed its past style of work, announced that the company intends to use the proceeds raised 156 million yuan to acquire 100% stake in Zhejiang Chinese Industrial Development Co., Ltd. and inherit the corresponding debt.

Among them, the share pfer price is 49 million yuan, and the inherited debt is 107 million yuan.

After the completion of the paction, the company will acquire the ownership and the right to the use of the land at 236 Yanan Road, Shangcheng District, Hangzhou, Zhejiang Province, with a total floor number of 6 stories and a building area of 2637.77 square meters.

The bulletin shows that the 1-4 estate of the property has been leased to Hangzhou Bang Wei costumes Co., Ltd. (a wholly owned subsidiary of rival American bond clothing) as a storefront, the rental area is 1758.51 square meters, the lease period is up to February 28, 2013, the 5-6 floor is leased to individuals as a hotel, the rental area is 700 square meters, and the lease period is up to May 31, 2014.

After the lease expires, Semir clothing will set up its own network here.

According to the planning of Semir clothing, the future use as a store will help to enhance the brand image and sales performance of Semir brand and Barbara brand in Hangzhou.

For this reason, the real estate located in the core business circle of Hangzhou has made Semir dress willing to take out three times premium.

However, whether the results can be worth three times the premium, it seems that it is not clear now.

In fact, Semir clothing is not the first clothing enterprise involved in the purchase of commercial real estate.

In 2009, the second years of the US bond apparel market implemented a series of long-term lease and purchase activities for real estate. In the first 8 months of the year, 39 commercial real estate were sold, with a total investment exceeding 1 billion yuan, resulting in a decline in corporate profits.

And in the real estate field, YOUNGOR, a bigger garment company, made a clear statement in April this year to return to the main garment industry.

In 2010, the contribution rate of YOUNGOR's real estate business to the company's total revenue reached 47%, and only half of the sky was chosen. In 2011, the real estate delivery of YOUNGOR was reduced by 3 billion 234 million yuan due to the cyclical factors of the project, and the income and operating profit decreased by 46.94% and 32.12% compared with that of the previous year. The cash recovery rate slowed down, the inflow decreased by 2 billion 526 million yuan compared with the previous year, while the payment of land, project and various taxes and fees increased by 2 billion 304 million yuan over the previous year.

According to YOUNGOR chairman Li Rucheng, the performance of YOUNGOR's real estate business in 2011 only accounted for 1/3 of the expected value.

"If it's like

That way, entering the real estate market completely, identity has become a developer. I am not optimistic.

Jiang Yikun, a media commentator in the real estate industry, told New Financial reporters that regardless of the relative bad market environment, or from the trend of increasingly strong professional demand, non professional enterprises may lose money in this market.

If we choose to make a "real estate developer" in the United States, if Jiang Yikun chooses to be a "real person", we are optimistic about it: "on the one hand, this is its fixed assets, which may increase in the future; on the other hand, in such a golden section, flagship store, Semir clothing decoration reputation will be greatly enhanced."

In other words, one is to develop the real estate sideline with clothing as the leading part; the other is to develop the clothing industry by buying the land and opening the shop.

This is the two path in front of Semir costumes.

To this end, the new financial reporter called the office of Semir public relations headquarters and the chairman's office, both of which initially revealed an unaware attitude towards land purchase.

After repeated questioning by reporters, Ms. Gong, the chairman's office, made it clear that in June 12th, Semir dress had held the first provisional shareholders' meeting this year on the proposal to purchase shops by raising funds in the form of equity purchase, but the details are not yet disclosed.

Therefore, it is not clear whether the Semir costume is just a front stop for the horse race enclosure, or for the test of water in the real estate market in the future. The strategic significance of Yu Senma's dress is not yet known.

Improve leveling effect

Aside from the strategic considerations, Semir's clothing business is still cost-effective in terms of a single act.

In the idea of Semir clothing, the shop area in the first tier cities is about 1000 square meters, and the two or three line city is about 300-500 square meters.

The acquisition area is more than 2600 square meters, plus the advantage of the core business circle. It just coincides with Semir's idea of "improving the overall business efficiency in the first and second tier cities in the way of flagship stores, big shops and quality stores".

In fact, Semir clothing has been opening new stores rapidly in recent years. Meanwhile, it has begun to upgrade its stores from large shops, upgrading its store image and enriching product categories. It is an important criterion to evaluate the strength of stores. It means the efficiency of 1 square meters in terminal stores.

Before the listing, Semir's 8.5 generation of the latest image shop accounted for less than 10%, and in the future, the proportion will continue to improve.

According to statistics, the proportion of redecorated stores can be increased by 10-15%.

I have to admit that in the short term, big stores still have disadvantages.

The main reason for the slow down of Semir's Direct stores in 2010 is that there are too many stores.

After all, the incubation period of large stores is more than one year, which makes sales growth less than the growth of the area.

But in the long run, when big stores reach maturity, their efficiency will continue to rise.

Moreover, to a certain extent, the trend of big shops is not determined by Semir clothing.

"From the perspective of the layout of the flagship store in the core business circle, the layout of Semir clothing is lagging behind the whole country, and the image of the brand is also slightly lost to Metersbonwe.

In the long run, holding large shops in some core business circles will bring greater convenience to the operation and category expansion of multi brand businesses, and also conform to the market positioning from a single category to a comprehensive category, which helps to expand the store from franchised stores to one-stop shopping malls.

Footwear industry independent critic Ma Gang told New Financial reporter.

Compared with ZARA, C&A and other international giants, Semir clothing has a gap in the store image and reaction speed. Therefore, the overseas brands have achieved the efficiency of up to 30 thousand -5 by virtue of the direct marketing system and the big store mode of the supermarket, while the flat effect of Semir clothing stores can only be maintained at around 15 thousand.

Against this background, the appearance of Semir costumes is very smart.

First, we can completely design and pform the storefront according to the company's independent thinking, and bring great initiative to the layout of the core business circle. Second, we can have our own fixed assets in the gold lots, and enhance the brand reputation and efficiency with the large flagship store. At the same time, we should try our best to close to the scale of the foreign-funded clothing enterprises, and provide experience and lessons for the future competition with the competitors such as foreign garment enterprises, so as to facilitate the long-term development of the brand.

In any case, in the long run, the commercial real estate resources in the core business circle will be even more scarce. Whether or not it can be rented will be affected by many factors such as urban business planning, landlords and so on.

According to Hua Jie consulting clothing industry analyst Liang Venlo, under normal circumstances, retail leasing costs are generally around 17% of the cost, but the cost of leasing in the past 3 years has soared, which is likely to break through the value.

"In fact, this is somewhat similar to the practice of McDonald's (micro-blog) abroad, which is a very good profit model for franchise chain enterprises."

The founder of Chinese franchise research, Dr. Li Weihua, a franchise research center of China University of Political Science and Law (micro-blog), praised the new financial reporter for his move to buy Semir real estate as a store. "This resource is scarce, mobile and highly exclusive.

At the same time, it is also one of the ways to implement more effective control for franchisees.

In fact, in Ma Gang's view, the other meaning of Semir's clothing is the acceleration of self run stores.

From the point of view of revenue structure, Semir clothing direct battalion is only about 10%.

Although the number of Semir clothing is higher than that of Smith Barney in the number of stores, Semir apparel is not dominant due to the stability of terminal management and sales.

For a large garment enterprise, it is helpful to reduce the risk of channel by properly increasing the proportion of direct battalion and increasing the control power of the channel.

"In the past, the franchise mode helped enterprises expand rapidly when their management capabilities and financial capabilities were weak. However, when the market environment is not good and the franchisee is under great pressure, the flight of franchisees will become an important risk for enterprises.

Direct battalion can enable enterprises to make rapid decisions and meticulous management. At the same time, it also avoids the risk of large fluctuations in business performance caused by unstable channels.

Ma Gang said.

In the final analysis, Semir costumes should not only pform, but also turn quickly.

After all, time and tide wait for no man.

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Fatigue gradually revealed

At the beginning of the second years of listing, Semir's apparel industry has seen a downward trend in its performance.

In the first quarter of this year, Semir's apparel revenue reached 1 billion 319 million yuan, down 15.8% compared to the same period last year. Net profit was 160 million yuan, down 38.74% compared with the same period last year.

Net profit is expected to fall between 0-30% in the first half of this year.

At the same time, inventory remained high.

As of March 31st this year, Semir clothing inventory amounted to 1 billion 334 million yuan, an increase of about 21.7% from 1 billion 96 million yuan at the end of 2011, nearly equal to its main business income in the first quarter.

Capital market liquidity is also not optimistic.

In the early years of the listing, Semir clothing handed over the answer with a 37.99% decline in share prices throughout the year.

The downturn has continued to this day.

As of June 15, 2012, the closing price of Semir clothing was 28.45 yuan, with a total market value of less than 20 billion yuan.

Last year, only the wealth of chairman Qiu Guang and his family was over 30 billion yuan.

"Business growth and economic growth are facing bottlenecks.

In the past, the growth of enterprises depended on the growth of channels and the strong demand for consumption. When the two problems occurred at the same time, the rapid growth of enterprises naturally stagnated.

Ma Gang believes that the reason for the decline of performance is the mismanagement of the business strategy, the strong challenge of the competitors, or the poor overall business environment.

In Ma Gang's eyes, the short board of Semir's clothing is its early marketing product, which focuses on the youth leisure brand image and cost-effective products. It focuses on the two or three line market, though it makes Semir apparel among the leading enterprises in the casual wear industry, but in the first and second tier markets, the brand is not strong enough.

At the same time, Semir clothing is also facing the impact of large brand channel sink.

At present, the competition of teenage casual wear industry is becoming increasingly fierce. The high-end market has been impacted by the fast fashion brands such as ZARA and H&M, which accelerate the entry into the Chinese market. The low-end market needs to face the impact of regional brands from online shopping and lower prices.

"The big retail environment is not good enough, the market demand is not as strong as before, and with the continued inventory problem and the limit of the growth of channel size, Semir apparel 2012 performance decline is still difficult to reverse."

Ma Gang said.

At the same time, in the future will become the main point of children's clothing business, Semir clothing also faces challenges.

At present, Semir wears Semir's casual wear and barbbara children's clothing dual brand operation, which has expanded rapidly in recent years, and maintained an annual growth rate of 52% over the past 2005-2010 years in 5 years.

In 2011, the retail sales of Semir casual wear and children's clothing were increased by 35.09% and 80.13% respectively.

From the total number of stores, compared with the number of Semir brand terminal stores more than 4000, Barbara brand terminal stores more than 3000 scale is also not inferior.

However, even though Barbara has the title of the first brand of children's clothing in China, it has obvious first mover advantage, but it has a low market share of single brand.

With the competition of many well-known clothing brands in China and children's clothing market, balbara's competition pressure seems faster than expected.

Kappa, Adidas, Nike, GAP, Anta (micro-blog), Lining...

In addition to a well-known clothing giant, even the golden baby, who opened the door to the Chinese market with the early education business, is involved in the Chinese children's wear market.

This means that Semir apparel is facing a new round of competition with mature market operation experience and strong resources support at home and abroad.

And this competition is not only reflected in the price or manufacturing capacity, but also in the overall competition of the brand.

More attention should be paid to Semir's clothing than that of the foreign brands.

According to the "2012-2016 year Chinese children's clothing product market analysis and investment prospect research report" released by Shang Pu consulting, the middle-income group is the main body of children's clothing consumption, while 94% of consumers believe in the brand of children's clothing abroad.

Obviously, these are the ambition to restrain Semir's dress.

In 2009, Semir dress asked McKinsey to help them formulate the strategy of brand development and channel standard establishment and implementation. At that time, the target of sales exceeded 35 billion yuan in 2014 and the market share increased by more than 30% per year.

At the end of last year's 15th anniversary celebration of Semir costumes, Qiu Guang and her high-profile claim that Semir clothing will become the leading brand in China's casual wear industry and the world's top 20 multi brand apparel group in the next five years.

Under such circumstances, it is imperative that the adjustment be taken for granted.

"In my view, the most urgent task of Semir clothing is to recognize the regularity and periodicity of development, adjust the pace of development in a timely manner, ensure the health of the channel, and launch a more suitable commodity mix for the market."

Ma Gang believes that clothes can be replaced with strong brands, and the aging of brands is fast. When the design and scale of the channels reach a certain level, the single brand will also encounter growth limits in the market, not unlimited.

Therefore, through the expansion of multi brand and multi category, the width of commodities can be extended to enhance the growth of performance.

If Semir clothing is sold more than a single product in the past, then in the future, we should not pay more attention to the serialization of products, such as complete sets of products, parentage and lovers' clothing, so as to optimize the combination of commodity structure and increase the yield per unit area.

In any case, the past 10 years of the old clothing industry have passed, and the next round of development opportunities is being nurtured.

The success of the industry in the past has benefited from the success of marketing and the rapid expansion of channels. But homogenization is serious, and operation, marketing and design are highly homogenized.

In the future, the clothing industry will be more subdivided, and more niche brands will be fission, while the freshness of the popular brands will be more sensitive. Flat channels, one-stop shopping and quality consumption will become the focus of attention of enterprises.

"Clothing industry will usher in a new stage of development, that is, from the past manufacturing, marketing, channels to promote the development of the industry to consumer dominated times, enterprises should focus on consumer product design and social marketing."

Ma Gang believes that opportunities and challenges lie ahead of Semir apparel and other domestic apparel companies.