Most Men'S Clothing Profits Decline, Product Innovation And R & D Need To Be Strengthened.

This year, it is affected by macroeconomic fluctuations, insufficient consumer confidence and the diversion of e-commerce.

And operating costs such as store rentals continue to rise.

The growth of business performance has declined significantly, and there has been a wave of closing shop.

Recently, Ying Shi business management (Shenzhen) Co., Ltd. and Shenzhen retail business association (China brand chain development conference organizing committee) jointly launched the "win win of chain brands and shopping centers in the era of full channel competition" (hereinafter referred to as the "report"), analyzed the development status and trend of China's chain lock brand, and pointed out that retail enterprises should strengthen differentiated marketing, strengthen product innovation research and development, integrate online and offline businesses, so as to better develop.

Phenomenon: net profit decline, small and medium brands survive significantly fatigue

According to the report, retail brands of chain brands continued to face a decline in main business income and net profit in 2014.

In particular, the three major chain clothing brands, such as men's wear, sports and popular fashion, are operating.

According to the survey, men's clothing brand enterprises in the first half of 2014 showed a year-on-year decline in net profit, accounting for 7 of all men's wear brands.

In order to stop losses, only seven wolves closed 347 stores in the first half of the year.

Lining and 31st degree respectively closed 244 stores and 159 stores in the first half of the year.

In terms of popular fashion brands, 4 of the 5 key companies declined, and Giordano closed 89 stores in the first half of the year.

At the same time, close to 9 of the listed electrical and electronic brand enterprises, the main business revenue growth slowed compared with the same period last year; the main business income growth rate of life brand enterprises recorded a decline of 7; jewelry watches and clocks listed brand enterprises have nearly 6 of the main industry revenue growth slowed down; beauty cosmetic brand enterprise main industry income growth rate of decline in the proportion of 50%.

Chain brand enterprises in these industries have also closed their stores.

Market: improve the product line, accelerate the pace of expansion of foreign brands

The samples selected from the "report" are listed companies, which can prove their strength in the Chinese market. However, compared with the "foreign brands", the domestic brands still lag behind in the market share, and are still small and medium-sized brands.

Domestic cosmetics and cosmetics leading enterprises Shanghai Jahwa [0.66% Fund Research Report] last year's revenue is only 1/3 in L'OREAL China.

In addition, through the continuous acquisition of domestic small and medium brands, foreign brands also wait for opportunities to expand market channels and improve product lines, or even directly eliminate competitors, which also makes the survival space of domestic brands further squeezed.

On the other hand, fast fashion brands in foreign countries still have a fast pace of expansion in 2014.

Ying Shi Group Research Center monitoring data show that the first half of the world's six fast fashion stores (UNIQLO, ZARA, H&M, C&A, Gap, UR) increased 47 stores, an increase of 45.4% over the same period last year.

Under the double branding of foreign brand expansion and e-commerce, domestic retail formats have to face more brutal market competition.

Countermeasures: differentiated marketing, product innovation and R & D

The report analyzes five types of retail formats.

It is found that some brand enterprises stand out in the fierce competition with differentiated marketing.

Although these chain dress brands are positioned in the high-end market, differentiated marketing has multiple brands, which can meet diversified consumption needs in products, images and services.

Experts from the Shenzhen retail trade association point out that differential marketing has become an alternative to the repositioning and strategic adjustment of different types of chain brands.

According to the survey, in order to create products that meet their needs for different customer groups, differentiated marketing needs product innovation, but many domestic brands do little in product innovation or structure.

In terms of jewelry and watch brands, the average gross profit margin of jewelry and watch listed companies selling traditional gold jewelry is less than 20%.

The low gross profit rate not only reflects the poor cost control ability of domestic jewelry retailers, but also reflects the oversimplistic structure of domestic jewelry enterprises based on gold jewelry.

Some brands have begun to change, such as Acer, Xie Ruilin, Zhou Dafu and Lufu jewelry.

Ying Shi Group Research Center found that beauty cosmetics industry, for example, in 2013, L'OREAL research and development cost reached 857 million euros.

It accounts for 3.7% of sales. However, more than 67% of Chinese brands' R & D investment accounts for less than 3% of sales.

At the same time, these domestic brands are significantly overinvested in marketing, and the total number of listed companies whose product promotion costs exceed 40% of sales cost reach 45% of the total.

Experts pointed out that the lack of product innovation and R & D investment is the main reason why domestic brands are unable to establish competitive advantages. In the future, we must invest at cost and invest in order to win the market in competition.

Expert opinion: integration of online and offline business integration mechanism

At present, many chain brands still regard Internet sales as another independent channel, and there is no good interaction and integration mechanism under the online and offline business.

The report believes that many chain brands can not optimize the offline stores and online channels to provide better services for consumers than competitors, and even fail to ensure the consistency of brand positioning and image online and offline.

The result is that only the "price war" under the line is extended to the line, which is harmful to the development of the brand.

Experts of Shenzhen retail business association suggest that chain brands should lay a channel according to the needs of the target market and cooperate with the precise marketing means to ensure that the brand image has a high degree of uniformity in different channels.

It is also necessary to ensure that consumers can get the most convenient shopping experience, whether they are pre-sale service links, payment links and after-sale maintenance, so that they can achieve pformation and development in the era of full channel competition, and finally achieve the goal of showing themselves.