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    Menswear Brand Collectively Fall? Channel Reform And Survival

    2014/12/21 10:43:00 16

    Men'S Clothing BrandChannelChange

    With the announcement of the announcement of the termination of the restructuring of the men's wear Brand Company Busen in November 27th, the cumulative decline in the three days after resumption was over 20%.

    Stock is only an intuitive reflection of company performance.

    This year, Busen's net profit in the third quarter was -4563.56 million, down 554.74% compared with the same period last year.

    But Busen is just a microcosm of the whole men's clothing brand enterprise.

    In 2014, the men's clothing brand did not hand over a satisfactory answer. Business and net profit almost declined, or even a huge loss.

    After the sports brand, the men's clothing industry has also entered the cold winter.

    Collective fall?

    According to statistics, in the first three quarters of this year, the performance of nearly 60% clothing listed companies declined.

    Reporters combed the third quarter of 2014 men's clothing brand enterprise's earnings report found that men's clothing brands are almost falling.

    Seven wolves announced the first three quarters of operating income of 1 billion 731 million yuan, a year-on-year decline of 25.06%; net profit attributable to parent company 228 million yuan, down 38.74% compared to the same period; the company expects 2014 annual performance fell to 20%~40%.

    The first three quarters of the year were 1 billion 495 million yuan, down 15.07% from the same period last year, and the net profit attributable to shareholders of listed companies was 306 million yuan, down 27.99% from the same period last year.

    In the first three quarters of the year, the company's revenue was 2 billion 641 million yuan, down 18.76% compared with the same period last year. Net profit attributable to shareholders of listed companies was 146 million yuan, down 166.67% from the same period last year.

    The three quarterly report of 2014 announced by the wedding birds showed that the company's operating income in the first three quarters of the company was 1 billion 596 million yuan, an increase of 2.82% over the same period last year, and the net profit attributable to shareholders of listed companies was 127 million yuan, down 18.89% from the same period last year.

    Kaiser shares in the first three quarters of 2014 achieved operating income of 355 million yuan, down 1.93% from the same period last year, and realized net profit of 7 million 373 thousand yuan, down 67.85% from the same period last year. In the three quarterly report, Kaiser shares also predicted net profit of 5 million 80 thousand yuan to 12 million 700 thousand yuan in 2014, down 50% to 80% over the same period.

    The reasons for the decline in corporate profits are basically the same, "macroeconomic impact", "weak terminal demand", "channel reform" and so on.

    Kaiser shares believe that the main reason is the fierce competition in the market, the terminal demand of the textile and garment industry is still weak, the terminal sales pressure is large, the profit margins are reduced, and the company's operating profit has declined.

    The seven wolves believe that the main reason is that the decline in orders from customers in 2014 will result in a sharp decline in revenues.

    Hinur said that the main reason for the decline in performance was due to the macroeconomic impact, terminal consumption continued to slump, and the company to help the franchisee ease the pressure on inventory, reorganizing channel products, resulting in a decrease in sales of franchised stores.

    Busen shares attributed the decline in performance to the fact that the overall market situation of the company is still grim, the clothing terminal market is weak, the customer orders are reduced, and the sales scale is declining.

    "The cost of new and old businesses has increased, but the new growth point has not been fully released" dragged down the company's performance.

    In the view of Liang Runyi, a clothing retailer consultant, the reason for the decline in the profits of menswear brand revenue is more important. These enterprises do not really care about the whole internal management system, and the internal friction is very serious, especially in the layout of internal communication and organizational system.

    In addition, the focus of enterprises is not practical enough, the market layout is not refined enough, and so on, is also one of the reasons.

    Channel reform and survival

    Accompanied by

    Garment industry

    Terminal demand is sluggish, inventory pressure is too high, resulting in a decline in profit margins. Men's clothing companies have also started many ways to survive, first of all, to close stores.

    Seven wolves are strengthening the integration of offline channels, including the continuous closure of inefficient stores. The total number of stores closed in the first half of 2014 was 347, and the total number of stores was expected to be closed by 500~600 in 2014.

    The proportion of franchised stores is large.

    Other men's brands are also closing the store by closing their stores.

    As of June 30, 2014, the total number of stores was 478, compared with 53 in December 31, 2013.

    Nine Mu Wang closed 73, the card slave road closes 53, Hinur closes 46.

    For closing stores,

    lilanz

    Wang Liangxing, chairman of men's wear, does not deny that there is such a situation in his own brand.

    "Li Lang has also closed many stores, but our strategy is very clear. Now it is the retail era. More professional retail managers are needed. Dealers who are not professional are rich enough to open a shop, but now they must be pformed or eliminated."

    Wang Liangxing said that the store is for pformation and upgrading, dealers also need pformation and upgrading.

    On the other hand, these brands are also exploring the electricity supplier channel and O2O mode.

    Seven wolves said that the current line is still dominated by clearing stocks, and explore online and offline linkage.

    In October of this year, seven wolves announced that the "Wolf Totem" brand was the ultimate shirt in the Suning dual channel to open the pre-sale.

    The person in charge said that the product will create the ultimate single product through pre purchase, online customization mode, and subvert the marketing mode of the traditional clothing industry.

      

    Joeone

    In September of this year, the "E mall" platform was launched.

    At the same time, the company has set up an online and offline integrated working group to promote O2O related businesses, and will focus on three aspects of inventory integration, order integration and "E mall" in the future.

    Under the line of happy birds, shops continue to slow down, and actively develop e-commerce business, is actively working with Tmall, Jingdong and other cooperation.

    Chen Shixin, a clothing expert, said that one of the characteristics of men's clothing sales channels is that the operators and owners of brand shops are mostly franchisees and agents all over the world. Many of the franchisees are "husband and wife shops", but the strength is weak, but the number is huge.

    In today's environment, we need direct outlets, large agents and some powerful franchisees in headquarters to pform to professional retailers. Then we need a professional retail management team and a certain scale to adjust.

    From the brand headquarters, it may be necessary to integrate and optimize some franchisees with weak operations.

    Close down the loss stores, further streamline the quantity, and at the same time force e-commerce, with this new channel to meet the needs of a wider range of consumers at a lower price.


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