Shoes And Clothing Industry Under The Electricity Supplier

Suning, a show like price war, has aroused concern and discussion from all walks of life in the market.

Regardless of the ultimate purpose of the price war and the impact it made, from the perspective of the incident, investors' attention to the electricity supplier can be seen soaring. Jingdong, suning.com, Yi Xun, Dangdang and so on have increased significantly during the "war" period.

The reporter understands, in recent years, electric business is in a stage of rapid development, network sales growth year after year.

And the development of a new sales mode will definitely impact the traditional sales industry, but it will also breed new opportunities for development.

Then, in the current high-speed development of the electricity supplier, what industries will be shocked and which industries will benefit?

The era of "E" has not only been limited to information dissemination, but now it has changed the whole "commercial war".

Some netizens believe that if you shop now is restricted to exclusive stores and large department stores, then it will be really "OUT". With Taobao, Amazon, Dangdang, No.1 store and other electricity providers mushrooming on the network sales platform, "commercial war" has changed from the competition of real stores to the "war" between the traditional entity store marketing and the electricity supplier. After this method is gradually recognized by residents, the electricity supplier is likely to become the mainstream trading mode in the future.

Platform breeding opportunities

As we all know, electronic commerce is a new business operation mode based on browser and server application under the open network environment of the Internet, which enables buyers and sellers not to meet each other in a variety of business activities, to achieve online shopping, online pactions between merchants and online electronic payment, and various kinds of business activities, trading activities, financial activities and related integrated service activities.

Among them, the core of e-business is supply chain, including import terminal, logistics terminal, technology platform and purchase system.

The supply chain is ultimately implemented in the procurement system, so the strength of the supply chain determines the competitive advantage of each supplier.

At present, the global e-commerce is mainly divided into brand, channel, platform, tourism, O2O, virtual goods, and socialized business.

In terms of scale, platform and tourism are the two largest categories.

Guotai Junan said that China's traditional retail channels have four characteristics, namely fragmentation, regional, supply chain weakness and brand weakening.

Our region is relatively large, strong brands are very few, and generally the degree of recognition is relatively low, which has led to the brand type of electricity supplier is difficult to establish a large B2C (Business-to-Customer), so most of the brand goods are suitable for operation on the large platform.

As an integrated platform, the large open platform can integrate more platforms and more channels, and bring more opportunities.

Last year it grew by nearly 50%.

Reporters learned that in 2011, the scale of e-commerce pactions in China reached 7 trillion yuan, an increase of 46.4% over the previous year, of which B2B e-commerce revenue scale reached 13 billion 100 million yuan, an increase of 35.1% over the same period last year; online shopping pactions over 770 billion yuan, an increase of 67.8% over the same period; the online travel booking market scale of nearly 170 billion yuan, up 61.3% over the same period.

In addition, in 2011, China's online shopping accounted for 4.3% of the total retail sales of social consumer goods, although less than 10 percentage points, but this figure is 5 years ago, it can be seen that the electricity supplier is in a stage of rapid development.

According to the statistics of AI consulting, in 2011, the number of online shopping users in China reached 187 million, accounting for 41.6% of China's PC users. However, compared with developed countries, the penetration rate of online shopping in China is still relatively low. In 2010, the proportion of Internet users in Korea and the United States accounted for 64.3% and 66% respectively, which was significantly higher than that of online shopping users in China.

According to the analysis of Minsheng securities, under the background of stimulating domestic demand and stimulating social consumption, the deepening of online shopping services has led more netizens to realize daily consumption through online shopping. Frequent promotions of shopping websites have also stimulated the new demand of Internet users.

It is estimated that in 2011 ~2015 CAGR (CAGR is the abbreviation of CompoundAnnualGrowthRate, which means the compound annual growth rate, that is, the annual growth rate of an investment in a specified period.

It can stay at around 40%.

Will benefit from "12th Five-Year plan"

The electricity supplier is more and more known by investors and recognized by the market, and the national policy will also vigorously support its development.

This year, the Ministry of industry and Commerce issued the "e-commerce development plan for 12th Five-Year".

The plan put forward the plan to strive to achieve a breakthrough of 18 trillion yuan in e-commerce pactions in 2015. Among them, the scale of e-commerce pactions between enterprises exceeded 15 trillion yuan, and the proportion of online purchases and online sales accounted for 50% and 20% of the total purchases and sales respectively. The regular application of e-commerce reached more than 60% of the total number of SMEs, and the amount of online retail pactions exceeded 3 trillion yuan, accounting for more than 9% of the total retail sales of social consumer goods.

Reporters also noted that the plan also proposed to promote express delivery, no load, urban distribution enterprises rely on information technology to improve the level of social services, strengthen the innovation of payment services, and promote the integration of e-commerce and electronic payment development.

Huatai Securities believes that at present, the infrastructure construction of online shopping in China is still relatively weak. Credit and logistics problems are still an important factor restricting consumers' online shopping. The construction of e-commerce credit system and logistics system will help ensure the safety and convenience of online shopping, thereby attracting more netizens to join the army of online shopping and realize the promotion of online shopping penetration.

From the scale of e-commerce pactions and policy support, the electricity supplier industry has revealed the "spring" atmosphere.

Industry status quo /

Network sales grab market share, commercial department stores are most "hurt"

A new business operation mode will inevitably impact the traditional business operation mode.

From 1978 to 1993, roadside stalls prevailed; from 1993 to 2008, the mode of commercial buildings began to rise, and gradually pushed the roadside stalls out of the market. After 2008, Internet sales became a new thing, and now began to occupy the market share under the mode of commercial buildings.

The mode of commercial buildings has been impacted, that is to say, the traditional commercial department store marketing has been affected.

Department store "injured"

It is reported that in September 2011, the Pacific Department Store announced that Beijing's Ying Ke store was officially closed because it could not cope with the rising rent. In May this year, Shanghai's first department store Huaihai store closed down, and in August, the spring department store in the southern section of North Sichuan Road was closed.

The direct reason for the closure of these department stores is not only the rents but also the poor sales caused by external shocks.

In the first quarter of 2012, the Ministry of Commerce released operational data in the first quarter of the year, showing that the domestic retail sales growth slowed significantly in the first quarter.

The retail sales of consumer goods in Enterprises above designated size increased by 15.6%, and the growth rate slowed by 6.9 percentage points over the same period last year. The rate of decline was 5.4 percentage points higher than the national average.

As the department stores operate mainly on jewellery, cosmetics, clothing, household appliances and other non necessities, their sales weakness is more significant under the background of the general performance of retail industry.

Analysts: there are still advantages in physical consumption.

Wang Yuanyuan, Wang Yuanyuan, a commercial department store analyst at Anxin securities, said: "with the slowdown of overall economic growth, the growth of consumption of commercial department stores is also weakening. At the present stage, the consumption pattern of e-commerce and other sectors is rising, and the market share of traditional department stores is being gradually eroded.

More and more standardized products are turning to online sales. The characteristics of low price, convenience and speed are accepted by more and more people. The traditional department stores can not compete with them because of the high cost of rents and labor costs.

Wang Yuanyuan also analyzed, "in fact, people shop in physical stores, mainly to enjoy such a consumption process, physical businesses do not need to rely solely on price war to seize the market.

Online consumption is mainly concentrated in low-end products, so the impact of high-end products in physical stores is relatively small, and the consumption of real products still has its advantages.

Nevertheless, the traditional commercial department stores are still the biggest hit by the electricity supplier. The competition pressure is all-around. The traditional department stores need to strengthen their services and extend to the middle and high-end fields, so as to avoid the fight against the electricity providers.

In addition, Tang Shuangshuang, an apparel industry analyst at Huachang securities, believes that "in the face of the rapid development of the electricity supplier, the garment industry can be said to be mixed. On the one hand, the brand with a high reputation can continue to maintain its brand advantage, while those with less well-known brands will fall into a melee, and even the substitution of its similar products will appear, which will make a great impact on such enterprises."

Key companies

Wangfujing:

Invest 100 million wading electricity providers

Lian Huiqing, a securities representative of the company, told reporters that the scale of sales of e-commerce has expanded rapidly in recent years, which has indeed had a certain impact on traditional commercial department stores.

However, the consumer groups of the electricity providers are mainly concentrated in the middle and low end, while Wangfujing is located in the high-end, so the impact on the stage is relatively small.

Lian Huiqing also said that Jingdong, Suning and other e-business are currently competing for hot competition. The competition in the field of e-commerce is fierce. But it is also seen that the vast market of online shopping, so Wangfujing decided to enter the electricity supplier.

This year, the company has planned to invest 100 million yuan to build a Wangfujing department store network platform. Now it has entered the stage of opening up and investment promotion, and it is expected to achieve on-line operation in the year.

The platform will be positioned in the middle and high-end market, and will strive to create a large interactive shopping mall for young and fashionable shopping groups.

It is reported that the Wangfujing department store's Internet strategy will take the power of the group to explore the real sustainable development path of e-commerce, and ultimately realize the interaction and interaction between online and offline businesses. It will adopt the operation mode of warehousing mode and implement a unified delivery and after-sales service standard.

Lian Huiqing said that Wangfujing will not participate in the "price war" of the electricity supplier, mainly relying on product quality and service to attract consumers.

Tianhong mall

Already opened online shopping platform

At present, the Tianhong mall basically keeps the 6~10 shop opening speed every year. Under the background of the rising cost of labor and rents, the fast opening of shops will bring pressure on the company's short-term performance.

According to a quarterly report this year, the business revenue of Tianhong mall reached 3 billion 833 million yuan, an increase of 6.87% over the same period last year, and net profit attributable to the parent company was 164 million yuan, down 18.47% from the same period last year.

In contrast, because of the lack of store rents and labor costs, the expansion of electricity providers is particularly fast and faster than traditional commercial department stores.

Tianhong mall secretaries staff told reporters that the online shopping mode of consumption is gradually popularized, the prices of related goods are indeed cheaper, and the shopping crowds are gradually expanding, and traditional shopping malls will also be partly affected.

However, the major commodity providers involved in the "price war" products are mainly concentrated in the field of home appliances, while Tianhong shopping mall is a small shopping mall mode based on "supermarket + small department +X+ snack snacks".

The staff further revealed that, in view of the change of market consumption concept, Tianhong mall has already opened online shopping platform, and is also exploring the e-commerce marketing mode preliminarily.

At the same time, in order to resist the consumption of electricity suppliers to the traditional department store, the company will extend to the middle and high end to further enhance the shopping experience of consumers.

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Vigorously develop network marketing channels

Recently, the brand of women's shoes announced the results of the China Daily on Saturday, which achieved 740 million yuan in the reporting period, an increase of 22.42% over the same period, and a net profit of 47 million 600 thousand and 800 yuan, down 16.69% from the previous year.

The reason for the decline in performance on Saturday is attributable to a marked slowdown in domestic economic growth.

However, reporters noted that the traditional brand store that had been vigorously expanding was the main reason for Saturday's performance.

As of June 30, 2012, there were 1973 brand chain stores on Saturday, including 1527 self operated stores and 446 distribution outlets.

The construction of a large number of brand stores resulted in a sharp rise in sales costs, management fees and financial costs. The three growth rates were 18.8%, 41.81% and 286.07%, respectively, while the expenses of major sales channels and department stores were also rising.

In the face of this situation, on Saturday, the focus of the channel work in 2012 will be to tighten the approval criteria for new stores and avoid or reduce new and inefficient stores as far as possible.

While tightening the expansion of traditional physical stores, on Saturday the fourth quarter of 2011, efforts to expand the network sales channels were intensified. At present, all the major electricity suppliers in China have worked closely together to enhance their online sales performance.

2012 1~6 month, net sales channel sales revenue of 38 million 580 thousand yuan, online sales accounted for a smaller proportion.

Market trend /

brand

If electricity providers seize the daily sales share of the department stores, then the preemptive space must be the garment industry.

No matter Taobao or other network platforms, the most popular online selling is clothing shoes and hats. It is the first big type of online shopping, and its impact on enterprises is also good and bad.

Before 2011, sales of clothing products with low price and less than 100 yuan per unit price increased rapidly, which brought a great impact on small and medium-sized garment enterprises. Nowadays, the sales of brand clothing at the price of 200 yuan ~400 yuan have exceeded the low end products.

When consumers are willing to increase spending and buy quality assurance brands, the high-end brand clothing will benefit from the electricity supplier mode for a long time and improve its sales ability.

Online shopping clothing favored

In traditional channels, due to the large number of brands and the degree of homogenization is very obvious, so the garment enterprises fight the "channel war" and "price war", the industry competition is very fierce, and the profit space has been sharply compressed.

The new channel mode of e-business undoubtedly provides clothing enterprises with new competitive places.

According to the statistics of AI consulting, the online shopping paction scale of clothing and apparel in China has reached 103 billion 700 million yuan in 2010, an increase of 105% over the same period last year. In 2007, the compound growth rate of ~2010 reached 149%, which is far higher than the overall growth level of the online shopping market 103.9%.

From the perspective of online shopping consumers, the number of users of clothing online shopping reached 120 million in 2010. 4 of the 5 consumers who participated in online shopping had purchased clothing products, and the penetration rate of clothing online shopping in online shopping groups was close to 80%.

Why clothing products are so popular in online shopping? Some market participants believe that, first of all, the apparel industry itself has large market capacity and fast growth, so the segmented market has good growth and future space is very large.

In addition, their products are highly standardized and their demand is relatively stable, which is one of the reasons why they become the main varieties of online shopping.

So, which clothes are easier to open up in the online shopping channel? Many analysts have concluded that fashion casual clothing is often featured with personalized characteristics, and the selling trend is popular nowadays. Therefore, the product life cycle is much shorter than that of regular clothing and home textile products, and the demand for renewal is very strong.

Because of the fast changing style of the products, the inventory consumption of the traditional clothing enterprises is greatly increased, and the difficulty of selling the traditional channels is also increased.

Electricity supplier market response fast

The biggest advantage of online channels is that it takes time from design to shelf and can quickly pform popular information into business opportunities.

In addition, underwear is also suitable for developing e-commerce. At present, Chinese women's demand for underwear has not only stayed at the functional consumption and comfort level, but also paid more attention to its fashion and popularity. Women's underwear has gradually shown the characteristics of "fast fashion", which leads to high inventory and huge pressure on inventory cost.

E-commerce emphasizes the quick response from design to shelf reaction, so it can effectively solve the backlog problem of channel inventory.

On the other hand, some market participants pointed out that from the perspective of Taobao clothing sales, men's clothing sales with strong brand awareness are excellent, such as the seven wolves (25, -0.07, -0.28%) and 25.11,0.83,3.42%. Compared to women's wear, men's clothing is relatively simple and unified, with higher standardization, so it is easy to be born from big to strong enterprises.

Therefore, some men's famous brands have also benefited from the development of the electricity supplier mode.

Key companies

Sha Sha shares:

Online sales accounted for over 10%

For female consumers who like online shopping, she is a very familiar brand, and its underwear sales rank ahead of Taobao for a long time.

In fact, Lingsha's underwear products have maintained a relatively high gross profit margin in the first half of the past 3 years. The company has sold more than 10% of its products through the Internet.

Ma Zhongming, the Secretary of the board of directors, said that, while taking into account the traditional marketing channels, the company also vigorously developed the network platform. Now it has cooperated with Taobao and other electricity suppliers to sell products. The products sold by authorized online stores accounted for more than 10% of the revenues of the company.

According to the semi annual report, we can see that the first big customer of the company is the electric business enterprise. The first 5 customers are Zhu Baoqing, with sales volume of 10 million 260 thousand yuan, which is responsible for Zhejiang's Agel Ecommerce Ltd business.

The electricity supplier is the authorized direct selling wholesale company of Lun Sha group. It is also separated from the group. The monthly sales volume of the company online has millions.

Search for special:

Brand new network sales

Since the beginning of this year, as the fund's heavily loaded stocks, the stock price of the search has gone up strongly, and behind it has good performance as support.

The newspaper disclosed that the company's operating income increased 48.3% to 664 million yuan compared with the same period last year, operating profit increased by 51.3% to 130 million yuan, and net profit attributable to listed companies increased by 46.48% to 95 million 880 thousand yuan, and the net profit for 1~9 months this year is expected to increase by 40%~70% over the same period last year.

In 2012, he slowed down the pace of channel expansion deliberately. The total number of stores in the first half was about 1600, and the rate of extension was 8%. The extension was still the main driving factor for the rapid growth of the company's revenue.

In terms of channel mode, franchising channels and self operated channels increased by 47.11% and 60.95% respectively over the same period last year.

As far as the region is concerned, the growth of the Southern China region is 110%, which shows the advantage of regional control in the strong area in terms of quantity and quality.

The secretaries of the company told reporters that the brand clothing, which was searched for the special trend, was mainly sold through the offline storefront stores. In the large e-commerce platforms in China, there were no special outlets for sale.

The company will carry out network sales under the premise of protecting the sales of existing stores.

He has embarked on a plan to plan online sales, and will develop new brands that meet their positioning standards for online sales, and will also increase capital to a subsidiary to operate information technology and e-commerce.

In fact, it has been a long time since the search for Internet sales. As early as last September, he had renamed the wholly owned subsidiary of Dongguan tidal current front-line Trade Co., Ltd. as the Dongguan tidal current front Mdt InfoTech Ltd, whose business scope changed to the sale of electronics, technology, e-commerce and electronic products.

AOKANG International:

Professional team leader in e-commerce business

Those who get the channel get the world.

AOKANG international is the leading leather shoe operator and retailer in China. It has the brand advantage of multi brand misplacement and high-end high-end consumer groups.

Through the combination of direct sales and distribution, group buying, OEM/ODM and online direct sales are the supplementary channels. In 2011, AOKANG shoes market share reached 6.49%, ranking first in the country.

In 2011, AOKANG terminal channel expansion speed up, the company has more than 4500 sales terminals, after the successful landing of the A share market, the extension will be expected to increase to more than 50%.

In 2012, AOKANG will add about 1000 new shoe stores (643 new stores in 2011), of which AOKANG, Kanglong and red fire birds are the main street stores.

"In fact, AOKANG has not only the sales channels of physical stores, but also the expansion of online marketing. The company has set up a team specializing in network marketing, and has carried out relevant cooperation with Taobao and other e-business providers. The company's online sales volume has continued to grow."

Its Tung secretaries staff told reporters.

The above people further point out that the network sales and the traditional sales platform do not conflict, the two parties to the consumer groups are different, the products involved are completely different, the situation of hand and left hand to hand do not appear.