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    China's High-End Women's Wear Industry Is Facing Fierce Competition And Product Homogeneity.

    2014/12/11 12:08:00 32

    Women's WearClothingBrand Women's Wear

    China's high-end women's clothing industry is also facing the problem of homogenization of products. Most brands do not have distinctive style, lack of individuality, originality and relatively independent style. The overall design level of the Chinese apparel industry still has gaps with international standards.

    At present, the domestic listed companies which are similar to Vigna S's business model and run high-end brand women's clothing are mainly of the group, Kaiser shares and baozi fashion (listed in Hongkong, China).

    In addition, Mass Phil, Hsin ho shares, song and so on, the main high-end women's clothing company has also applied to the SFC IPO.

    China from 2013 to 2017 released by the foresight Industry Research Institute

    Women's wear

    Analysis of industry brand competition pattern and leading enterprise development strategy research report shows that there are more than 6000 enterprises in China's women's clothing industry above Designated Size, and more than 30 thousand brands.

    A brokerage analyst who declined to be named told reporters: "now the competition in garment industry is becoming more and more intense, and the cost is higher and higher. Many brands are closing shop. Young people are more and more fond of online shopping and less concerned about physical stores.

    It will be more and more pressure to develop further by opening stores.

    But as the economy continues to grow, China

    clothing

    The consumer market is also growing rapidly. After some of the top international brands of women's clothing entered the domestic market earlier, some low-priced fashion brands also landed in the Chinese market one after another.

    These enterprises have obvious advantages in capital, talent and design, and have a complete set of business models from commodity planning, design, production to retail.

    The gradual entry of international brands has intensified the competition of domestic women's clothing brands in the field of dress.

    China's high-end women's clothing industry is also facing the problem of homogenization of products. Most brands lack distinctive styles, lack of individuality, originality and relatively independent style. The overall design level of the Chinese apparel industry is still different from the international standard. The pportation and training mechanism of the domestic garment designers needs to be improved. The R & D investment of the enterprises is relatively insufficient, the creativity is scarce, and the imitation phenomenon is more serious. Most of the high-end fabrics need international procurement.

    Fabric

    Lack of original design ability.

    According to the statistics released by China business information network in 2013, the sales statistics of clothing sales of major national retail enterprises showed that the market share of VeroModa ranked first in women's clothing brands was only 3.82%, while Vigna S ranked fifth and the market share was even lower. The company admits that the company currently owns only the brand of "V GR SS". Once the company's brand operation has made significant mistakes, the company will face the risk of unstable or even sharp decline in its business performance.

    Prospectus shows that from 2011 to 2013, vicknus's operating income was 505 million yuan, 598 million yuan and 746 million yuan respectively, and the net profit attributable to shareholders of the parent company was 91 million yuan, 95 million yuan and 136 million yuan respectively.

    This business data looks pretty good.

    However, the company's gross margin has been questioned by the industry.

    According to the prospectus, the gross profit margin of the main business of the company during the reporting period is above 67%, which is nearly 8 percentage points higher than the average level of the same industry. The main reason is that the company is mainly based on direct operation mode, and its pricing power, product price and cost structure are different from those listed in the same industry.

    Since 2013, the consumption market of Chinese high-end brand clothing has been dropping seriously. The listed company's long term shares said in the 2014 semi annual report that the overall economic situation in China has not yet improved, and it has a great impact on sales terminals.

    In the first half of this year, the main business revenue of the company was 617 million yuan, down 9.73% compared to the same period last year, and net profit was 97 million 180 thousand yuan, down 34.84% compared to the same period last year.

    Compared with the old counterparts, the growth of vicknus's performance is doubtful.

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