Lining: Clear Inventory Work Close To The End Of Brand Transformation Into The Most Giving Stage

< p > the first half of this year, < a > group < /a > the increase in revenue is mainly attributable to the increase of new retail sales and the expansion of the group's own store network. Due to the different cost structure of different retail stores, gross profit increased by 10.5% compared to the same period, reaching 1 billion 400 million yuan. < /p >
< p > with the transformation from traditional wholesale mode to retail based transformation, the income of Lining core products has also been improved. It is understood that the company's core brand Lining's income accounted for 85.2% of the group's total revenue, reaching 2 billion 674 million yuan, an increase of 8.8% over the same period last year. The income of Lining footwear was 1 billion 305 million yuan, an increase of 5.4%, and clothing revenue was 1 billion 196 million yuan, an increase of 14.2%. < /p >
< p > "at present, Lining's transformation has entered a critical stage. Although the sales of products have achieved good results in the initial stage, we also face certain challenges. The remaining 10% of the old stock squeeze exists in the weakest channel partners, and healthy business development still can not offset the old inventory digestion and platform costs." At the scene of yesterday's performance briefing, President Lining admitted that the recovery of the group still takes time. < /p >
< p > however, the net loss in the first half increased from 184 million yuan to 586 million yuan in the same period last year. For this reason, Lining said that it was mainly due to the initial investment, bad debt provision and other items of the reform measures. < /p >
< p > reporter understands that in the first half of this year, Lining has been committed to the clearance work of old stock, and the old stock has dropped by about 38%. With the gradual improvement of the inventory clearing work, the implementation of the retail mode has also achieved initial success, accounting for 50%. < /p >
< p > < < a href= > http://sjfzxm.com/news/index_z.asp > > < /a > cash flow is negative. The main reason is that we pay more attention to cash flow rather than profit in the stage of clearance. At present, the overall business scale is not big enough to cover our cost, but we are in the rising channel, and now it is getting closer to the healthy value that has completely recovered. Jin Zhenjun said. < /p >
< p > for this reason, Zhu Qinghua, a consultant of light industry in CIC, said that the transformation of Lining from the initial wholesale to the current retail and direct marketing means that Lining needs to carry out a comprehensive transformation in the channel. "One of the challenges that Lining faces is the talent pool. In the process of transformation, the company needs a large number of talents to push forward. Secondly, the layout of the store and the reconstruction of the retail channel will have a certain impact on the layout of the store. Thirdly, the development of the electricity supplier channel is a weak link in the traditional garment enterprises." < /p >
< p > for the transitional Lining, 2014 is a year of brand remolding. How to solve the remaining problems determines the key to the healthy development of the future. < /p >
< p > since the announcement of the transformation in 2012, the company has also made three stages of transformation, first of all, to remove old stock and improve cash flow; the second stage of old stock reduction and cash flow recovery, but the profit is still negative; the third stage is the recovery of wholesale sales, the revival of retail sales, the increase in the proportion of new retail sales and the increase of gross profit margin, thus making the company realize profits and positive cash flow. < /p >
< p > "we must do this in the transformation of retail industry. First we should go to stock, cash is king, then we integrate channels. Products and brands must be transformed before they can grow again. " Jin Zhenjun said that the company went to inventory longer than expected, because some of its distribution partners are weak, accounting for about 10%, and they are not enough to cooperate with the transformation. In the future, we will focus on distributing partners to inventory, ensure cash flow, and eliminate some distribution networks, while strengthening the operation of Direct stores. Jin Zhenjun told reporters that the newly opened shop will take about 6~12 months to generate profits. < /p >
< p > it is worth noting that Lining, who has always been a sponsor of the national gymnastics team, has voluntarily abandoned this opportunity this year, and is replaced by Anta (Anta store). At yesterday's press conference, Lining said, "we want to focus our limited resources on the business that is consistent with our core products. This is the right choice for the company, but it has great pressure on me." < /p >
< p > at present, Lining has identified five core categories, namely basketball, running, training, sports life and badminton. Kim said that the gymnastic team has great feelings for Lining, but for the company, the five core categories and related sports market will be focused in the future. "This transformation process is very difficult, but it must be completed successfully, and continue to implement the fashion quick sales mode to improve the overall retail sales." < /p >
< p > "Lining's transformation can win greater competitiveness for its future development, and the dredge of channels will play an important role in promoting sales." Zhu Qinghua told reporters that Lining still needs to improve the product links, strengthen innovation and compete with other domestic sports brands. At the end of the product and Qu Daoduan at the same time, it will help to accelerate the development of Lining. < /p >