Fuanna'S Expansion Of Physical Stores And E-Commerce

Home textile industry has experienced exhaustion after this year's super expected high speed growth last year.

Recently, the "big three" of the home textile industry is known as "Luo Lai".

(002293, stock bar), Meng Jie home textiles (002397, stock bar) and fuanna (002327, stock bar) released the 2012 semi annual report.

Semi annual report shows that home textile leading enterprises in the first half of the year, "a few unhappy families."

In the first half of the year, the business income of 1 billion 40 million yuan, an increase of 3.31% compared with the same period last year, but net profit fell 17.7%.

Meng Jie home textile business income and net profit increased by 2.10% and 11.27% respectively over the same period.

Compared with the declining trend of the two enterprises, fuanna has a good momentum in the first half of this year.

In the first half of the year, the company achieved operating income of 758 million yuan, an increase of 24.83% over the same period last year, and realized a net profit of 109 million yuan, an increase of 27.61% over the same period last year.

Data show that from 2010 to the first half of this year, fuanna's profit growth is greater than its revenue growth.

But similar to the whole industry, fuanna is also facing greater inventory pressure and the need to speed up channel pformation in order to adapt to consumer buying habits.

How to solve these problems? Fuanna Anna Hu Zhenchao recently accepted the "investor newspaper" reporter.

Focus on design and reject homogenization

Yang Zhaohua, President of China Household Textile Industry Association, believes that one of the biggest problems in the home textile industry is homogenization.

How can rich Anna stand out in the "homogenized product" of the industry?

Hu Zhenchao: for the home textile industry in pition, enterprises with foresight and diversity will win.

From the initial image design to the material structure design, and then to the design of material composition, every step of Fu Anna pays attention to originality and creativity, which is the beginning of our challenge to homogeneity of home textiles.

Over the years, fuanna has always adhered to the positioning of "art home textiles" and achieved the brand recognition of "breaking labels and recognizing them".

In the first half of this year, fuanna launched more than 120 new products and more than 400 new products, providing consumers with more "core value" products.

Since design has always been the advantage of fuanna, what are the characteristics of fuanna's design team?

Hu Zhenchao: fuanna's innovation benefits from the technical strength, and the technical foundation accumulated over the years has laid the foundation for the realization of "art home textiles".

Fuanna is one of the largest R & D technicians and independent intellectual property rights companies in China's home textile enterprises. At present, there are about 100 full-time R & D teams.

The biggest reason for our strong design ability is that our chairman, Mr. Lin Guofang, has taken up the position of chief designer personally and attached great importance to the improvement of design and research capabilities.

Foreign well-known textile enterprises, such as Italy Zucchi, will choose to cooperate with high-end clothing brands when they develop to a certain stage.

Hu Zhenchao: at present, in the home textile industry, fuanna has already had its own DNA characteristics, and the brand culture has risen to the degree of no need to see trademarks.

In the future, fuanna's "original" footsteps are endless, insisting on developing her main business and continuing to do the brand long run of the home textile industry for 100 years.

Expansion of physical stores and e-commerce

Direct store has been the advantage channel of fuanna. How much does the franchisee and the direct store occupy now? What are the progress of the 300 stores planned for this year?

Hu Zhenchao: at present,

Direct sales channels accounted for about 40%, and sales channels accounted for 60%. There were 25 direct marketing subsidiaries and more than 2000 sales terminals in the whole country.

According to the plan at the beginning of this year, fuanna will add 300 new outlets this year.

By the first half of this year, the number of net increase outlets reached 147, with a total of 2076 outlets at the end of the reporting period.

At the same time, we are further improving brand image through rectification, enriching product categories and improving the sales atmosphere of shops, thus improving the sales level of single stores.

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As part of the consumer buying habit has shifted from offline to online, what plans does fuanna have in network sales?

Hu Zhenchao: with the new channel of electronic commerce to deal with market pformation, it is the current development strategy. E-commerce sales in the first half of this year amounted to tens of millions of yuan.

Although the company has launched a brand name "holy flower" for online sales, more than 60% of online sales still come from the "fuanna" brand.

Our operation in e-commerce is mainly based on exploding money, which refers to goods that are in short supply and sales are very high.

For example, in last year's "double eleven" promotion, we cooperated with Taobao mall, and 5 products sold to 4000~5000, and sales of single products exceeded 2 million yuan.

It is reported that the order amount will increase by 30% in the autumn and winter of 2012, but the growth rate is slowing down. Will this affect the performance of the company in the second half?

Hu Zhenchao: the slowdown will certainly have some effect, but it has little effect.

Orders mainly depend on franchisees, but general orders only account for 60%~70% sales volume of franchisees.

In addition to franchisees, we also have direct outlets.

In the first half of this year, the inventory pressure of the whole household textile industry increased.

Fuanna's inventory in the first half of the year reached 491 million yuan, up 35% from the same year.

How will the company digest the increased inventory?

Hu Zhenchao: since the beginning of this year, the home textile market has continued the sluggish situation of textile enterprises, and the stock has increased.

Compared with the same company, Fuan terminal inventory has no pressure, we have very sensitive feedback to the terminal, and the operation situation is also more healthy. The key factor that surpasses the peers in 2012 growth is that.

The company's net cash flow in the first half of the year was 19 million 560 thousand yuan, down 82% from the same period last year, and the cash flow was tight. However, the company recently announced the announcement that it would use 150 million yuan to buy bank financial products. Is it reasonable to use the company's funds?

Hu Zhenchao: now our cash stock has more than four billion.

The tight cash flow is due to the payment of accounts payable and bills in the first half of the year.

In fact, cash income is not small.

This is not unreasonable, buying financial products is to improve the efficiency of the use of funds, is a manifestation of rational use of funds.

That's what we are talking about.

No problem. It is bought on the premise of assurance, indicating that funds are idle.