Semir Apparel Inventory Cleanup Has Been Improved, Product Transformation Is Completed At The Core.

Recently, I attended the investor meeting to communicate with the company's management on the company's strategy and operation.

Viewpoint:

1.2013 years of basic clearance

From the current inventory clearance situation, through the electricity supplier has been basically resolved, last year Online retailers The sales volume is 150 million yuan, and no stock of winter clothing has been provided to the physical stores this year. From the autumn and winter clothing orders, the company's situation gradually improved. In 1-3 months, Bala is the first child clothing sales in Taobao, specializing in selling specials and inventory. It is determined to establish the brand of children's clothing as the first place under the online and offline alliance. The scale of the electricity supplier will occupy 10-15% below the line in the next 3-5 years.

2., the transformation from the core of the channel to the core of the product can enhance the core competitiveness of the company.

In the 13 year, we started the new plate, overcame the unitary nature of the product, began to extend the product, re established the team, new plates and new resources, and continued to optimize the products in the next 5 years. According to the findings of the company's research in the UK and Europe, the differentiation of products can bring vitality to the brand, and is also the core competitiveness of enterprises to maintain long-term and healthy development. In the next 3 years, the company should overcome the unitary nature of products, develop products of extended products, and continuously optimize products. In addition, while increasing product category, we should also pay attention to services and enhance the image of the company. In terms of channel development, the company decided to avoid a relatively competitive second tier city, mainly attacking three or four line cities, and still dominated by street stores. By increasing the design of products, we can increase the repeat purchase rate of local residents.

3. extension and expansion to increase the business area of existing stores, and enhance efficiency as the focus of work.

The company has always insisted on the main expansion mode of the street store. At present, 91% of Semir's shops are 100 square meters. The future development plan is to expand the existing stores, expand to the two and third floors, and strive to increase the business area to 300-500 square meters, so as to reduce the effect of flat rent and improve the efficiency. At the same time, we should diversify the products and make great efforts to develop sub brands with potential market, such as accessories, and make use of the brand's calling ability to create one-stop service. There are two ways to increase the strategy of new products: 1) the way of cooperation through merger and acquisition increases the new brand that does not conflict with the existing brand. 2) hatch, use their own organization team to hatch sub brands to meet the needs of consumers' diversity.

Judging from the future extension of Barra's future, the average business area is only more than 80 square meters. In the next 3 years, we need to build a group of 200-300 or more stores and build 400-500 square meters of flagship stores in major cities. The business area of this year's business has increased by 70-80% compared with the average area last year. The opening area is about 140 square meters this year. Bala, as the leading brand in the industry, has certain initiative and voice. The company develops a full range of products of 0-4 years old, among which 0-3 years old outfit has many R & D and promotion, which is a new growth point of the company, with 10% of sales and shoes. Children's Shoes The first place. The company's plan for the future of the Bara brand is to set up vague shops on the lower floors and upstairs.

Conclusion:

The transformation of the company in the next 3 years is centered on product R & D and upgrading services, mainly from the expansion of channels to the emphasis on endogenous growth, so as to enhance the core competitiveness of enterprises. The product diversification mainly comes from mergers and acquisitions and the company's own incubator brand. In terms of channel expansion, the company advocates expanding on the two and third floors on the basis of existing stores, improving flat efficiency and reducing flat rent. The growth of the original business and the growth of new business will be the two main contributor to the development of Semir in the future. In the context of the overall consumer environment has not yet recovered, the company as a popular brand leader, although the inventory problem has been resolved, but the turning point of performance is still unclear.

We lowered our previous forecast of the company's earnings. 2013-2015 years EPS was 1.28, 1.46 and 1.65 yuan respectively, corresponding to dynamic PE were 15.99, 14.02 and 12.44 times respectively. Barbara, as the leader of children's clothing brand, will continue to benefit from the development of economy and urbanization in the future, and the market growth will be larger. At the same time, it will serve as a popular brand. Semir It will also strengthen product design to reflect the inherent competitive advantage and maintain "recommended" rating.