Home >

High Cost Test Hongkong Multi Brand Retailers

2014/7/1 20:34:00 29

??? 日本語 Fran?ais English 中文

High Cost Hongkong Multi Brand Retailers

strong > two most brand retail groups are trapped in the dilemma of "increasing profits without increasing profits" 
 Hongkong fashion leading enterprise I.T fashion group announced the 2013/2014 financial year end results as at the end of February 2014. 
During the period of , the total turnover of I.T group was HK $6 billion 746 million 900 thousand, a slight increase of 3.1% over the same period last year, and gross profit increased by 5.1% to HK $4 billion 44 million 400 thousand. The gross profit margin was 59.9%, which was 1.1 percentage points higher than the 58.8% in the previous fiscal year. However, its operating profit was significantly reduced by 12.2% from HK $476 million 100 thousand in the previous fiscal year to HK $418 million 100 thousand, and its operating profit margin also dropped from 7.3% in the previous fiscal year to 6.2%. What is more optimistic is that the net profit declines more sharply, down 27.3% to HK $280 million compared to the same period, and the basic earnings per share decreased by 25.8% to HK $0.23. 
 the total turnover of I.T group in Hongkong is HK $3 billion 625 million, accounting for 53.7% of the total turnover of the group, with a year-on-year decrease of 2.2% in turnover, and a total retail income of HK $3 billion 565 million 500 thousand, a 3.3% decrease compared with the same period last year, while sales in the same store declined by 4%. 
 the flagship JOYCE multi brand boutique store mode, and its more than 200 famous international fashion brands, cosmetics and accessories products, another famous retailer in Hongkong Joyce Boutique (Zhuo Jia Deng Jie Shi) group has also seen a similar situation. 
 the 2013/2014 financial year results released by the group in June 20th as at the end of March 2014 showed that the group achieved a turnover of HK $1 billion 339 million 500 thousand, an increase of 5.9% over the previous fiscal year of HK $1 billion 265 million 200 thousand. However, the gross profit of HK $72 million 74 thousand was 7.48% lower than that of the HK $77 million 897 thousand in the previous fiscal year, and the net profit of HK $61 million 676 thousand was also 4.1% lower than that of HK $64 million 305 thousand in the previous fiscal year. At the same time, gross profit margin also dropped 1.9 percentage points. 
 the largest sales market of the group was HK $1 billion 99 million 400 thousand, an increase of 4.1% in the market period of Hongkong, but its operating profit dropped 24.5% (HK $27 million 300 thousand) to HK $84 million 416 thousand. 
 as Hongkong's most famous two most a href= "http:// www.91se91.com/news/index_c.asp" > brand retailer < /a >, they both fall into the dilemma of "increasing profits without increasing profits", which was unthinkable before. 
 < a > href= > http:// > www.91se91.com/news/index_c.asp > rent > /a > and high labor cost.
There are many reasons for the decline of profits in the P I.T and JOYCE. 
Under the continuous consumption environment of P, consumers' desire for high-end brand consumption is the primary reason. 
 in view of the decline in total turnover, total retail revenue and same store sales in Hongkong, I.T group said that the unfavorable macroeconomic environment has made the already weak Hongkong apparel retail market worse. Although there has been a moderate recovery in turnover growth and growth in same store sales in the second half of the year, there has been no real signs of recovery in the consumption dynamics of local consumers and visitors in Hongkong, and consumers are generally cautious about consumption. In this environment, the group cautiously expanded its stores to maintain stability in a fluctuating environment, so that the total retail stores in Hongkong increased by only 0.8% to 62625.8 square meters during the period. 
 Joyce Boutique group said that the decrease in gross profit rate during the period was mainly due to the increase in the price of goods and the increase in discounts. Under the series of inventory clearance measures, as at the end of March 2014, the Joyce Boutique group's stock amounted to HK $250 million 800 thousand, which was HK $21 million 800 thousand lower than the HK $272 million 600 thousand at the end of last fiscal year. I.T group also said that the main reasons for the decline in net profit during the period were the downward pressure on product pricing and the pressure to reduce prices in the same industry. 
 again, affected by the dealership's expiration. I.T group and JOYCE have brought together a large number of international brand resources, and have formed the core competitiveness with the sale of multi brand collection store terminal mode. But an unavoidable fact is that their access to international brand resources is not only the most core buyer model, but also through the form of agents. Under the agency mode, there is a certain risk in operation. Once the contract signed with the brand is expired and no longer renewed, the shop that has already been opened must be closed, even if the shop has developed mature and has good profitability. 
During the period of , the ETRO franchise of Hongkong Boutique group expired, and its Hongkong Harbour City ETRO store and the ETRO Plaza of land Plaza were closed in July 2013 and February 2014 respectively. ETRO's franchise in the mainland also expires on July this year, when the Joyce Boutique group's cross level ETRO store in China World Trade Center, Beijing, will be closed, which will have an impact on the company's profitability. 
 earnings data show that in the 2013/2014 fiscal year, rents (including rental and building management fees) continue to account for a large proportion of the total operating expenses of I.T group, accounting for 23.8%, which is 1 percentage points higher than the 22.8% in the previous fiscal year. At the same time, the cost of employees (excluding the purchase of equity expenditure) was continuously rising, and the proportion of total turnover was 15.8%, which was 0.7 percentage points higher than the 15.1% in the previous fiscal year. 
 total, the total operating expenses of I.T group accounted for 53.8% of the total turnover, up 2.3 percentage points from 51.5% in the previous fiscal year. 
 in the Hongkong market, the gross profit margin of I.T group increased by 1.3 percentage points to 59.3%. However, as the proportion of operating costs increased to 53.7% in the sales volume (50.4% in the fiscal year), the operating cost increased, the operating profit of the Hongkong market decreased 23.3% to 210 million 200 thousand Hong Kong dollars compared with the previous year, and the operating profit margin decreased by 1.6 percentage points to 5.8% in the previous fiscal year 7.4%. 
 for this, Joyce Boutique group said that the profitability of the company's Hongkong business declined, which was affected by multiple factors such as the decrease in the contribution of the single brand store portfolio (especially sales and gross margin) and the increase in store rents. 
Shen Jiawei, chairman of P I.T fashion group, pointed out that 2013 was difficult for many global retail businesses. During the year, the pace of economic recovery in developed countries slowed down, and the growth rate of the emerging market economies slowed down. The retail situation of the group operating area is constantly shrinking by consumption power (especially the impact of non essential items) and the multiple pressures of rising operating costs. The company minimized discounts and led to a rise in gross margin. 
 however, the sharp rise in operating costs is still the main challenge faced by many retail enterprises, resulting in a decline in net profit. The 1.1 percentage point increase in the gross profit margin of the group during the year is not enough to offset the cost pressures of existing store operations and new store expansion. The rise in operating expenses continues to encroach on the profitability of retailers and will continue to be a key issue in the industry as a whole. 
 > a href= "http:// www.91se91.com/news/index_c.asp" > mainland market < /a > growth potential, loss is difficult to block, accelerate the expansion of enthusiasm /p >
P has always been the "cornucopia" of all Hongkong retail enterprises. The same is true for the I.T group and JOYCE, and they have indeed tasted sweetness in the mainland market, and are very optimistic about their potential growth potential in the future. 
 I.T group entered the mainland market as early as 2002. At present, the mainland is the second largest market. Unlike many indicators of operation in the Hongkong market, the growth of I.T group in the mainland market in 2013/2014 financial year is very impressive. 
During the period of , it achieved a turnover of HK $2 billion 371 million 800 thousand in the mainland market, an increase of 16.5% compared to the same period last year, and its turnover accounted for 35.2% of the total turnover of the group. Among them, the total retail revenue of the mainland market was HK $2 billion 168 million 500 thousand, an increase of 16.3% over the same period last year, while the same store sales grew by 8% over the same period last year, unchanged from the previous fiscal year. 
 as of the end of February, the I.T group has 253 I.T brand self operated stores in the mainland, 16 more than the 237 in the last fiscal year, 113 franchised stores, 13 less than 126 in the last fiscal year, 20 FCIT China brand stores, 2 more than 18 in the last fiscal year, and 10 stores in China, compared with the 4 in the last fiscal year. 
 I.T group said that the increase in turnover and retail revenue in the mainland market was mainly due to the expansion of the shop network, the total sales area increased to 87151.8 square meters, an increase of 23.7% over the same period last year. 
 in fact, the layout of I.T group in the mainland market is far more than accelerating the expansion of the brand collection store, but also expanding to the operation of the buyer's 100 stores. 
 November 2010, the I.T Group signed an agreement with the GaleriES Lafayette of Paris, France, to establish a joint venture. Each side held 50% of each shareholding. The joint venture established and managed the Affiliated Companies. It will open, operate and manage department stores in the main cities of China with Galeries Lafayette trademark. In October 2013, the project was put into operation and opened the flagship store of China's first old Buddha's department store in Xidan commercial street, Beijing. The store has 6 floors, with a total area of about 47 thousand square meters, with a total investment of 36 million dollars, bringing together hundreds of European brands. 
 mainland is also the second largest market outside of Hongkong Boutique Joyce group. In recent years, it is accelerating the pace of expansion. 
 August 2013, the group's second JOYCE multi brand store in Shanghai opened in Huaihailu Road Iapm trade mall, covering 540 square meters. During the year, two JOYCE Warehouse stores were opened, one located in Chengdu times Oteri J (360 square meters, opened in September 2013), and the other in Shanghai MIG heaven and earth (510 square meters, opened in December 2013), thus increasing the JOYCE Warehouse store in the mainland to 4. As of the end of March, Joyce Boutique had 11 shops in the mainland market, including 4 JOYCE multi brand stores, 3 single brand stores and 4 JOYCE Warehouse shops. 
In the financial year of 2013/2014, the turnover of Joyce Boutique group in the mainland was HK $238 million 800 thousand, an increase of 14.6% over the previous fiscal year (3.5% in the previous fiscal year). The company said that the increase in turnover in the mainland market was mainly due to the growth of sales in 3 new stores during the period, while the increase in gross margin and the reduction of rent in the shops increased the operational efficiency. 
 but it is worth noting that from the present stage, the operation of the mainland market is not so optimistic. 
In the first half of 2013, the operation of I.T group in the mainland market was still in a state of deficit. In the second half of the year, it lost profitability and realized a profit of HK $47 million 100 thousand, a sharp decline of 49% over the same period last year. In the fiscal year 2013/2014, the gross profit margin of the group in the mainland market was reduced to 57.3% (57.9% in the fiscal year). The cost of existing stores and the expansion of new stores increased the operating cost ratio to 55.1%, which was 1.8 percentage points higher than the 53.3% in the previous fiscal year. 
 at the end of 2 in 2014, the total loss of the Department was 41 million 800 thousand Hong Kong dollars, of which 11 million 500 thousand was HK $11 million 500 thousand in the financial year. I.T group said that the business is still in the early stage of operation, and losses are inevitable. The group will continue to optimize its product mix and service levels and strive to make profits in the expected time. 
 Joyce Boutique group is also at a loss in the mainland. In the 2011/2012 fiscal year, its losses in the mainland market amounted to HK $9 million 700 thousand. In the 2012/2013 fiscal year, its losses expanded to HK $31 million 400 thousand, mainly due to the loss of stores in the 3 phase of China World Trade Center mall in Beijing (including HK $4 million 900 thousand in fixed assets impairment). In the financial year of 2013/2014, although the deficit narrowed to HK $2 million 849 thousand from the HK $31 million 400 thousand in the previous fiscal year, it still failed to get rid of the loss. 
 however, it does not affect the firm confidence of I.T group and Joyce Boutique group to the mainland market. 
 Joyce Boutique Group believes that there are still quite a few demand for high-end multi brand stores in the mainland's retail market, which is very attractive in the long run and is accelerating the expansion of the market. 
 according to the plan, Joyce Boutique group will open 3 Alexander McQueen stores in Beijing Xinguang world this year. The concrete plan is that 1 women's clothing stores with 130 square meters and 1 women's shoes counters with 50 square meters will be set up in October. There will be 1 women's accessories shops in 90 square meters in spring and summer of 2015. Of the 5 new shops planned for this year, 3 are located in the mainland. In addition, after the closure of the cross level ETRO store in China World Trade Center mall in Beijing in July, the 300 square meter area of the shop will be merged into the adjacent multi brand JOYCE store. The new area will be used to expand the men's clothing department of JOYCE shop and provide space for the development of other types of products. 
 I.T group also said that in the next 10 years, the rising speed of the middle class in the mainland will accelerate, and the per capita disposable income of the general public will continue to rise, becoming more and more interested in the personal style, and the long-term development potential of the market. The growth rate of the mainland market is expected to rank the top two in the operating areas of the group. As a result, the expansion of the retail network will continue to expand its share in the mainland market. Before the end of next fiscal year, we will complete the plan for shopping centers in many cities in the mainland, such as Chengdu, Shenyang, Hangzhou, Nanjing and Guangzhou.