Fierce Competition In Women'S Wear Industry Shows Serious Problems.

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, Xin he shares, Song Li Si and other main high-end.

The company has also applied to the SFC for IPO.

According to the "Research Report on the competition pattern of Chinese women's clothing industry and the development strategy of leading enterprises" from 2013 to 2017 released by the foresight Industry Research Institute, the analysis shows that at present, there are more than 6000 enterprises in China's women's clothing industry above Designated Size, and there are 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.

However, with the continuous growth of economy, China's clothing consumption market has also increased rapidly. After some women's top international brands entered the domestic market earlier, some of the low parity 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

The 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, lack of creativity and imitative phenomenon. Most of the high-end fabrics need international procurement, and the original design ability of the domestic women's fabrics is lacking.

In 2013, the statistics of clothing sales of major retail enterprises in China showed that the VeroModa market share of women's clothing brands ranked 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 "v. GR SS" brand. Once the company's brand operation has made significant mistakes, the company will face the risk of instability or even a sharp decline in 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.

But according to the reporter, since 2013, China's high-end

The consumer market has fallen seriously. In 2014, the listed company, in the semi annual report, said that the overall economic situation in the country has not yet improved and extended to the sales terminal, which has a great impact.

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.