Why Did The Seven Wolves Repeat The Mistakes They Made 15 Years Ago?

< p > > the world's < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "_blank" > shoes "< > hat net" Xiaobian "to introduce the seven wolves terminal inventory pressure, repeat 15 years ago.

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< p > ideal is very plentiful, reality is too skinny.

Wolf wolf frail wolf again gave investors a surprised report card.

A few days ago, seven wolves disclosed the first quarter performance report. The company's revenue in the first quarter was 650 million yuan, down 31.3% compared to the same period last year. Net profit was 110 million yuan, down 39.9% compared with the same period last year.

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< p > this data is in sharp contrast to the industry's expected 2014 garment industry will be better than 2013's expectations.

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< p > under the background of the weak overall growth of the apparel industry, the seven wolves ahead of the decline in performance continued to break through in the face of adversity. However, with the downward pressure of orders, the lack of channels and the difficult situation of inventory difficulties, the seven wolves in the pformation again highlighted their incapability. Not only did the industry ask, where did the next seven wolves go? < /p >

< p > < strong > short term performance is difficult to improve < /strong > < /p >

< p > the seven wolves in the reform once again showed investors a weak side in performance growth.

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< p > seven wolves achieved a business income of 653 million yuan in the first quarter of 2014, down 31.3% compared to the same period last year, achieving a profit of 161 million yuan before the profit and tax, down 42.6% compared to the same period last year. The net profit of the parent company was 112 million yuan, down 39.8% compared to the same period last year.

The company expects a decline of 30%~50% in the first half of the year, far below what many securities companies had expected.

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< p > this is not the first time that the performance of seven wolves has declined.

Before that, after 7 years of expansion of the "men's more than one side" commercial men's clothing brand seven wolves, there was a turning point in development in 2013, the first decline after listing 7 years later.

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Zhang Yue, P publicist, explained in reply to the author's interview that the slow down of revenue, the rising cost rate and the provision of inventory impairment were the main reasons for the sharp decline in performance.

The company's short-term performance is difficult to improve significantly, and the turning point is expected to appear at the end of the year or early next year.

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< p > Zhang Yue said that the inventory of men's clothing industry is still in progress, and terminal consumption demand is still weak, leading to the rigid cost prominent, and the sales management fee rate increased by 5.5 percentage points. During the period, the company offered 74 million yuan inventory depreciation allowance and suppressed performance.

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< p > for this reason, many interviewed insiders told me that the seven wolves gave such pcripts to investors, which is indeed surprising, which has some reasons for the weak growth of the garment industry.

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< p > data show that the sales volume of 50 large retail enterprises announced recently by the China Business Information Center showed that the retail sales of clothing increased by 4.1% over the same period in 2013, and the growth rate dropped by 5.9 percentage points over the previous year.

Among them, men's wear sales were the most obvious, and retail sales fell 0.6% year-on-year.

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< p > the reason for the continued decline of the performance of the seven wolves is in addition to the weak development of the whole industry, which is related to the development strategy of heavy brand publicity and the rapid development of aggressive expansion.

A senior member of Chen's name who did not want to be named was analyzed by the author.

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< p > data show that there are 464 stores and 3038 franchised stores in the seven wolves co operation camp, compared with the number of stores in 2013, which decreased by about 65 and 440 respectively over the previous year.

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< p > "the shop closed is a shop with low profitability, which is a natural elimination in channel adjustment."

Zhang Yue, who interviewed me, said that the seven wolves also fluctuated under the condition of bad environment, indicating that there were indeed problems.

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< p > < strong > Terminal inventory pressure is hard to understand < /strong > < /p >

"P > < a href= '> http://www.91se91.com/news/index_f.asp > seven wolves < /a > terminal pressure and main industry high storage have been a difficult problem for development. Although e-commerce is developing rapidly, the small proportion of e-commerce in the sales field is only a cup of water for the seven wolves that lead to high storage after the quick closing of the store."

The senior personage in the industry of the above surname said to the author.

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< p > it is understood that at present, most of the mid-range clothing brands including the seven wolves have adopted the mode of distributing the goods by agents. The agents generally take about 65% off of the products, and the profits in the clothing sales segment are large.

Data show that seven wolves franchisee sales accounted for more than 80%.

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< p > the seven wolves have expanded their stores on a large scale, but they have encountered a growing environment in which the garment industry has grown feeble. The seven wolves that have continued to expand have not tasted the sweetness of expansion.

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< p > a shop owner who asked not to be named by the interview told me that with the fierce competition in the garment industry in recent two years, the sales of the seven wolf's clothing in recent two years are not very good. The price advantage of its products is becoming more and more difficult to highlight, and a large number of old customers are losing.

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< p > "now the frequency of clothing replacement is far below that of previous years, and this frequency has been very difficult to appear under the background of depression."

The franchisee complained to the author.

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< p > however, in 2013, the seven wolves that continued to expand were trapped in the dilemma of increasing profits without increasing profits, and began to close down inefficient shops on a large scale, resulting in excessive inventory and difficulty in cost control.

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Less than P, let the seven wolves add up to the snow. The two quarter will expect double digit decline.

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< p > related earnings data show that seven quarters of the first quarter revenue fell 31.3% share of the company, of which the number of units recorded in direct channel declined, the electricity supplier channel grew by 20%~30% over the same period, and the number of franchising channels dropped by about 40% due to the decrease in store base and accumulation of channel stock.

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< p > above, according to the analysis of the inventory data of seven wolves by BOC International Securities, according to the estimation of the inventory level of the franchisees in 2013, we judged that the inventory level of the current channel is still more than 1 years.

Our basic judgement for the whole year is still going to inventory, so the probability of significant improvement in the company's operating profit margin is not high.

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< p > Oriental securities issued research report that this year's main business of seven wolves will still face no small pressure.

There is no obvious sign of improvement in terminal retail, and business men's clothing industry is challenged by the expansion and opening up business mode.

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< p > < strong > repeat the mistakes of 15 years ago? < /strong > /p >

Under the double pressure of terminal weakness and high inventory, the future development of the P is also complicated.

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< p > a senior industry insider who declined to be named told the author that the performance of the seven wolves was not accidental, but a manifestation of multiple factors. This may be the beginning of the decline of the performance of the seven wolves.

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< p > stubbornness at the leadership level may be the main reason for the future development of the seven wolves.

A middle class who did not want to be named told the author that seven wolves would not accept the price reduction proposal easily, which would damage the brand.

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< p > product quality is also the biggest problem for the future development of the seven wolves.

"If the product of the seven wolves is still sold on the three line of quality for second line prices, the seven wolves will repeat the mistakes they made 15 years ago.

At that time, the establishment of the seven wolf brand was almost bankrupt because of the runaway investment.

Another insider, who declined to be named, told the author that the reform of the seven wolves company could not solve the fundamental problem of the company's performance decline. For the seven wolves, the main problem of the company's performance decline was product quality.

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< p > for this, Zhang Yue told the author that the problem of "a href=" http://www.91se91.com/news/index_s.asp "> /a > decline is mainly due to changes in format and situation, and the brand can not be adjusted to adapt to changes in time.

In terms of products, it is only in the process of planning and development that it is out of step with the rapid changes of the actual market.

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