Look At The Scene: Inventories Rose Sharply By 4.

The store of "LIME FLARE" (Rhine, the brand of Shanghai) is not prominent in the 4 floor of Yi Shi Dan, Nanjing West Road.

On the other side, the "1st anniversary" brand and the popular movie star Ma Su are on the other side of the "twenty percent off" brand.

The shop is wearing high-end sweaters, dresses, trousers and a small quantity.

Son.

Sweater prices are often tens of thousands, and pants prices are generally over two thousand.

Reporters stayed there for about half an hour, only two people were idle.

This year's three quarterly report shows that the operating income of the first three quarters of the group was 782 million, an increase of 26.10% compared with the same period last year, and the net profit of the shareholders belonging to the listed company was 208 million, an increase of 41.15% over the same period last year.

In stark contrast, inventories grew by 66% in the first three quarters compared with 445 million in the first quarter, while inventories in the three quarter increased by 39.78% at the end of the two quarter.

In fact, an important "culprit" is the franchise system.

In the early days of the development of the posture, because of the regional advantages of franchisees in the Department Store negotiations, the proportion of joining was very high, especially the main brand, which accounted for 62%.

"This system is a mismatch for high-end brands, and low-end brands are generally marketing oriented, such as Semir, Muse, bond, and high-end luxury goods are rarely joined.

Joining the system will continue to impact the price system, brand building will be a problem.

A senior investor in Shanghai told reporters.

Lv Lihua, a researcher at the first R & D center, also believes that, compared with joining, the direct camp is conducive to improving the terminal management level of the second tier cities in the second tier cities, expanding the profitability of single stores, and reducing the pressure on the franchisees' funds and inventory, and enabling franchisees to get higher income than before and fully mobilize their business motivation.

As a result, since 2012, Rand has taken part in the pformation of the brand, and incorporated some of the franchisees' shops into the company.

Data show that in the first half of this year, the group received 19 franchisee stores (14 in Wuxi and 5 in Henan) in the second tier cities, and will also achieve the goal of direct and 80%-90% direct operation in the second tier cities in the future through the way of joining the second tier and the capital cities.

Increasing the proportion of direct battalion not only improves management efficiency, reduces costs, but also improves gross margin of sales.

In the two quarter of 2012, the gross profit of 64.23% shares was 3.49 percentage points higher than that in the first quarter.

But this also brings side effects - inventory pressure.

Inventory in the franchisee channel, now all returned to the hands of long posture, leading to the sharp rise in the stock of Long's.

Data show that in the first three quarters, the stock in the first quarter increased 66% compared with the beginning of the year, and the stock in the three quarter increased by 39.78% compared with the end of the two quarter.

Under the pressure of inventory, the group opened its fifth quarter business segment in the second half of 2011, responsible for OUTLETS discount stores and integrated some terminal stores.

In 2011, he integrated 7 OUTLETS discount stores, adding 9 to 16 in the first half of this year, and more than 10 others to be integrated. The company plans to complete the integration of all OUTLETS within this year.

However, the discount stores have also brought about a drop in gross profit while digesting inventory.

Data show that after the two quarter gross profit rose to 64.23%, the gross profit of the three quarter decreased by 2.68 percentage points, which was not significantly different from that of the first quarter, and the gross profit brought by it was exhausted.

The first mismatch leads to the present double mismatch.

This is the core issue of the posture.

George White: high inventory caused by pformation disorder

According to the business outlets posted by George White on Shanghai, the reporter went to the shopping center of Changning Lu long dream, West Yan'an Road World Trade Center, Huaihai Zhong Road Baisheng shopping center, Lingling road flying island International Plaza and Nanjing West Road new world city, and did not find George Bai Ying Industrial Network. Finally, only in the remote Kawa Chihiroki fashion center 2 floor, did we find a George white shirt shop.

"This is the old problem of George White. The rate of closing shop is high, and the relationship between George White's sales system has not yet been straightened out."

The above senior investment personage said.

Three quarterly report shows that in 2012 1-9, George White realized operating income of 456 million yuan, an increase of 15.6% over the same period last year, and realized the net profit attributable to shareholders of listed companies 61 million 545 thousand yuan, an increase of 8.6% over the same period last year.

Of which, 7-9 months realized operating income of 134 million yuan, an increase of -3.2% over the same period, and net profit of 13 million 515 thousand yuan, an increase of -19.02% over the same period last year.

"The main customers of the company are mainly in the fields of finance, electricity, tobacco and so on.

The macro economy continues to fall. It is expected that some customers or potential customers will reduce administrative expenses and postpone the order, resulting in a marked decline in the company's revenue and earnings growth.

Anxin securities Zhao Zhicheng thinks.

Before George White, the main business was customized for group buying.

The main advantage of this model is that the inventory pressure is small and the repayment is faster, but it is greatly affected by the economic fluctuation.

Therefore, George White began to build his own channel to push retail sales.

However, as of now, George White is still not mature in retail, which is mainly reflected in: lower efficiency, more shops, and higher return rate of franchisees.

"The product line, cost structure, and sales system are going to change a lot. The business model is quite different. The company has not yet made the pition.

The cost is rising and the stock is rising. "

The investors told reporters.

In addition, the order meeting is usually regarded as the coming year.

The wind vane of the market, along with the decline of the garment industry terminal growth, the 2013 spring and summer clothing order meeting data has aroused the concern of all parties.

However, George Bai, a group buying group, can not judge the future situation by ordering.