The Revenue And Net Profit Of A Number Of Leading Apparel Enterprises Are Mired In Continuous Negative Growth

Domestic men's wear enterprises continued to deteriorate in the first half of this year after experiencing the pessimistic situation in 2012.

According to our statistics, among the 13 men's clothing listed companies, Youngor, Shanshan, Seppelang, Jiumuwang, China Lilang, Baoxiniao, Red Bean, Shinur, Kanudilu, Dayang Chuangshi, Meierya, Georgeback and Burson (ranking based on the revenue of the first half of the year), there were 4 companies whose total revenue declined in 2012 and 6 companies whose comprehensive net profit declined; By the first half of 2013, the number of enterprises whose operating income and net profit declined increased to 7 respectively; In addition, there were five enterprises with "double declines" in revenue and net profit, including leading enterprises such as Jiumuwang and China Lilang, whose previous performance had been good.

The overall growth of the industry slowed down. The revenue and net profit of several leading enterprises fell into the "quagmire" of continuous negative growth. High inventory continued to trouble. The speed of new store opening slowed down significantly. Inefficient stores were vigorously closed for rectification. Most companies are still in the exploration period of multi brand operation. Short term earnings are difficult to show or even drag down performance

As China clothing In the industry with the highest operational maturity, the largest number of listed companies and always good performance, the domestic men's wear industry represented by 13 listed companies is undergoing a major change under the new competitive pattern.

"Deterioration" spread to leading brands in the first half of the year, and the number of companies with revenue growth among 13 companies decreased to 6. Among them, Youngor's revenue was 7.989 billion yuan, up 47.20% year on year; The revenue of Kanudi Road was 374 million yuan, up 30.95% year on year; Baoxibird's revenue was 1.038 billion yuan, up 13.29% year on year; Shanshan's revenue was 1.767 billion yuan, up 12.88% year on year; Xinur's revenue was 621 million yuan, up 12.10% year on year; The revenue of Red Bean Stock was 853 million yuan, up 10.35% year on year.

In 2012, Youngor, Red Bean, Dayang Chuangshi and Burson were the enterprises whose revenue declined, with an increase of 3 to 7 in the first half of the year. The revenue of China Lilang was 1.093 billion yuan, a year-on-year decrease of - 13.20%; George White's business income was 295 million yuan, down by 8.16% year on year; Dayang Chuangshi's revenue was 344 million yuan, down - 7.22% year on year; Seven Wolf's revenue was 1.423 billion yuan, a year-on-year decrease of - 4.27%; The revenue of Burson was 275 million yuan, down - 3.57% year on year; Jiumuwang's revenue was 1.163 billion yuan, down - 2.29% year on year; Meierya's revenue was 316 million yuan, down - 0.68% year on year.

In terms of net profit, only 4 of the 13 enterprises increased.

Meierya's net profit was 18.91 million yuan, up 96.94% year on year; The net profit of Hongdou shares was 21.2 million yuan, up 16.90% year on year; The net profit of Kanudi Road was 86.6 million yuan, up 12.59% year on year; Youngor's net profit was RMB 960 million, up 8.81% year on year; The net profit of Shanshan shares was 92.6 million yuan, up 2.59% year on year; Seven Wolf's net profit was 256 million yuan, up 4.28% year on year.

In 2012, Youngor, Shinur, Dayang Chuangshi, Burson, Hongdou and Meierya saw their net profits decline, with an increase of 1 to 7 in the first half of the year, accounting for more than half (53.8%). Of which, the net profit of Burson shares was 11.32 million yuan, down nearly 40% (- 39.93%) year on year; The net profit of Baoxiniao was 81.83 million yuan, a year-on-year decrease (- 34.96%); The net profit of Sinovel was 53.26 million yuan, down - 29.41% year on year; George White's net profit was 38.87 million yuan, down 19.08% year on year; Jiumuwang's net profit was 290 million yuan, down - 14.03% year on year; The net profit of China Lilang was 242 million yuan, down 12.80% year on year; Dayang Chuangshi's net profit was 23.96 million yuan, down -11.14% year on year; Seven Wolf's revenue was 1.423 billion yuan, down - 4.27% year on year.

Among them, there are 5 enterprises with declining revenue and net profit, including Jiumuwang, China Lilang, Dayang Chuangshi, Georgeback and Burson.

In particular, the deterioration of business conditions is particularly evident in the "three giants" of business and leisure, which exceeds market expectations. The revenue of the "three giants" declined, which did not happen in 2012. In terms of net profit, except for seven wolves, there was a low single digit growth, and Jiumu King and China Lilang both declined by more than 10%. For Jiumu King, this is the first "double decline" since its listing. In 2012, seven wolves (19.05%)

Both Jiumuwang and Jiumuwang (15.20%) had revenue growth of more than 15%, and China Lilang also had 3.15% growth. In terms of net profit, seven wolves (36.09%) and Nine Muwang (29.07%) had double-digit high growth, and China's Lilang also had a slight growth (0.6%).

Leading formal dress enterprises were also not spared. In 2012, Baoxibird's revenue increased by 11.13% year on year, and its net profit increased by 29.68%. In the first half of this year, although the revenue still increased by more than 10%, the net profit decreased by more than 30%.

By comparing the data of the two periods, it can be found that among the enterprises whose revenue and net profit declined, in 2012, the enterprises whose revenue was less than 1 billion yuan were mainly those of export to domestic brand building type; In the first half of the year, the sharp decline spread to the leading brands with annual sales of more than 2 billion yuan.

High inventory is an important "devil" that devours profits.

In the first half of the year, the total inventory of 13 companies reached 10.321 billion yuan (Youngor calculated by clothing inventory). The stock of red bean reached 4.296 billion yuan; Youngor's inventory is 1.34 billion yuan, Shanshan's inventory is 905 million yuan, Baoxiniao's inventory is 866 million yuan, Jiumuwang's inventory is 588 million yuan, Septwolves' inventory is 461 million yuan, Meierya's inventory is 418 million yuan, Hinur's inventory is 376 million yuan, Kanudi Road's inventory is 297 million yuan, Dayang Chuangshi's inventory is 244 million yuan, Burson's inventory is 203 million yuan, China Lilang's inventory is 198 million yuan, George has 129 million yuan in inventory.

It can be used as a reference. The inventory amount of Jiumuwang accounted for 11.36% of the total assets, the proportion of Baoxiniao was 20%, and the value of Li Ning (02331. HK), who suffered from high inventory, was only 13.45%.

One fact is that the once glorious men's wear industry is following the trend of the sports and leisure industry, which is deeply troubled by the deterioration of business. This is a terrible trend.

Extensive expansion "sequelae"

After extensive expansion in the first 10 years, large-scale adjustment of inefficient stores, continuous closing of stores, and obvious slowdown of new store expansion have become another topic for men's wear enterprises.

In 2012, Septwolves only saw a net increase of 31 stores over the previous year, closed a number of blue label and children's clothing stores, and shifted its focus from opening new stores to restructuring, reforming and expanding old stores. In the first half of the year, it continued to close 152 stores, but maintained the number of direct marketing terminals at 462.

In 2012, Jiumuwang added 124 stores, with a total of 3264 stores, of which the number of direct stores decreased from 19 to 694. In the first half of the year, it closed 59 terminals, of which the number of direct stores increased by 42 to 736, while the number of franchise stores decreased by 101 compared with the beginning of the year. By the end of 2011, its sales terminals had a net increase of 430 compared with the beginning of the year.

In 2012, Lilang also slowed down the pace of opening stores, integrated some low efficiency stores, increased 195 stores in Lilanz, and renovated about 280 stores in the second half of the year. This year, its rectification of stores has continued. It is expected that the rectification plan of the entire store will be completed in about three and a half years by 2015.

In addition, in the first half of this year, Kanudi Road, Baoxiniao, etc. also slowed down their store opening speed. Their new stores were far lower than previously expected, and the new stores were mainly directly operated.

In fact, in the past 10 years, a group of leading men's wear enterprises, like Li Ning, Anta, Tebu and other major sports brands, as well as two popular youth leisure brands, Meibang and Sima, have experienced the extensive expansion stage of fast horse racing enclosure. At that time, the rapid growth of extension stores contributed to the rapid expansion of sales scale. Take Seven Wolves as an example. In 2005, there were 960 exclusive stores and only 8 direct stores in its agent system, with a main business income of only 313 million yuan; At the end of 2012, its overall number of stores soared to 4007, and its revenue increased to 3.477 billion yuan. In the past eight years, the number of stores has increased by 4.14 times, and the revenue has increased by 11.1 times.

However, at present, with the further subdivision of the consumer market, the upgrading of market competition, the rapid growth of commercial property prices, and the rapid increase of circulation costs, the previous "extensional" expansion is under pressure as a whole. Transforming the growth mode and improving the profitability through improving the terminal operation capability will become the key to the future refined development.

The transformation must be accelerated. For this reason, the seven wolves unswervingly implement the strategy of "wholesale" to "retail"; Jiumuwang has focused on improving the profitability of direct stores and franchisees in recent years; Baoxiniao relies on multi brand camp to explore "Phoenix Shangpin" integrated stores. As a response to the impact of e-commerce, enterprises such as Seven Wolves, Nine Muwang, Baoxiniao, Dayang Chuangshi have also entered the online market one after another, implementing an online and offline omni channel layout.

Ouyang Xinzhou, an analyst at the Prospective Industry Research Institute, said that under the dual pressure of weak terminal demand and the "closing trend" of sports brands, men's wear brands have begun to feel the importance of refined channel management. However, the investment in the construction of direct marketing system and refined management is relatively large, which may lead to a decline in performance in the short term, but it is beneficial to the long-term development and upgrading of enterprises. This is also the only way for the transformation of domestic garment enterprises.

Multi brand management is another important breakthrough for enterprises eager to transform and get rid of the bottleneck of old brand growth. In fact, the market capacity of a single brand is limited. In addition to the main brand, it is really a good choice to form a multi brand "camp", occupy a broader market and seek new profit growth points through many new brands with different operational positioning and complementary levels. Among 13 enterprises, 9 have implemented multi brand strategy, accounting for 69.23%. However, from the actual effect, most of the new brands of enterprises are currently in the cultivation period. It is inevitable that they will continue to lose money in the short term, and it will still take time for their earnings to improve.

Ouyang Xinzhou believes that the development of sub brands by garment enterprises is nothing more than self creation, acquisition and agency. The self creation option is most suitable when the main brand is mature, the performance is growing rapidly, and the store has a high efficiency, while the acquisition and agency brands are often high-end, which can play a role in improving the corporate image and connecting with high-end brands. "Domestic men's wear enterprises often consider creating sub brands when the main brand is still in the development stage and the performance meets bottlenecks. At this time, it is difficult to carry out large-scale and high investment cultivation."

New exploration and transformation will take time. For the whole men's wear industry, the whole domestic men's wear industry represented by 13 listed companies will experience a continuous adjustment period in the next 3-5 years. The great change has just begun.