The Warning Problem Of Hancan'S Home Is In The Innovation Model

From the reply content of Hai Lan's home, actually, the business model of the company is not very special.

Although Hai Lan's home has set up some new brands and reorganized the "San Keno" brand, the company mainly continues the original "Hai Lan Jia" brand management mode, for example, in the sales link, separating ownership from management rights, joining the franchisee into a community of interests, and adopting a retail oriented credit purchase mode. In addition to paying a small part of the goods (usually not more than 30%), when the goods are in storage, the payment of the goods is retail oriented and monthly settlement with suppliers.

After reviewing the annual report of Hai Lan's home, the Shanghai Stock Exchange thinks that the reason for the company's operating performance growth in 2014 is "innovative mode, effective retail store and supplier management", but so called.

What is disclosed is not clear, such as supply, production, retail and other links, including the business mode and characteristics, the difference from the traditional mode, the impact on the actual business results and the competitiveness of the company, and the risks that this mode may bring.

And business risks are mainly reflected in

Up.

Reporters noted that although the inventory of Hai Lan home in 2014 has declined in proportion to current assets, the company's stock pressure is still relatively large: inventory in 2012-2014 years is 4 billion 457 million yuan, 4 billion 516 million yuan, and 5 billion 663 million yuan respectively, representing 60.77%, 50.4% and 48.61% of current assets, respectively.

Besides,

Surging management fees and sales costs have also been the concern of the Shanghai Stock Exchange.

The Shanghai Stock Exchange pointed out that the growth of management fees and sales expenses of Hai Lan's home in 2014 did not match the growth of business revenue, and business income increased by 72.56% compared with the same period last year, while management fees increased by 108% and sales expenses increased by 104%.

In this regard, Hai Lan House explained that because the scope of the consolidated statements has changed, the company has bought the keno technology consolidated statement, and the higher the sales cost is mainly the increase of advertising expenses and staff salaries.

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Last year, the urban beauty made a profit of 425 million yuan for shareholders. If the average price earnings ratio of the domestic small and medium board is 70 times, the valuation is also close to 30 billion yuan. If we refer to the company's performance growth of over 54% last year, I'm afraid the market will give a higher valuation.

According to the current share price, the market value of urban beauty has exceeded HK $10 billion.

For this reason, the financial commentator is half laughing and half regretting that when the urban beauty was listed on the domestic small and medium sized boards, the company owner Zheng Yaonan had a minimum increase of 2-3 times.

Of course, Zheng Yaonan's value is not the point. Even how Zheng Yaonan started from a small security guard in a supermarket took 20 years to accomplish the history of a listed company's boss.

The key point is that when the domestic clothing industry is in a state of sadness, the physical stores have been hit by the electronic commerce. A city beauty selling underwear has opened more than 7000 stores in more than 330 cities across the country, and the speed of opening this shop is still increasing at 1000 per year.

At first glance, this figure is somewhat frightening. To know, Lining was on the way to the expansion of stores. In 2008, Lining expanded the number of stores from 5000 to more than 8000 in 2011 through the east wind of the Beijing Olympic Games. Then, Lining was unable to support the inventory pressure brought by channel expansion. By the end of last year, the number of stores had been reduced to more than 5600.

In the traditional business form, there is a contradiction between store expansion and stock backlog, although each company spends huge capital on data management systems such as ERP, but the final statement on the financial statements is still a surge in inventory balance, and the stores have to discounted sales to return cash as soon as possible, resulting in a decline in profit margins and bruising brand value.

But the movement of sports brands is not a "word" in the market, because at the same time, city beauty is setting up shop against the trend.

Where is the bottom line of urban beauty? Yu Zhenqiu, vice president and chief financial officer of the company, said: "we have done a measurement inside the company, and the company can open up to more than 20000 of the country's stores."

Why urban beauty can achieve this amount? The main reason is that the channel characteristics of urban beauty are different.

First, the products of urban beauty are necessities, which are fast moving products in modern life, but sports goods are obviously not.

Second, the investment and distribution of the stores are different. The urban beauty stores are mostly in the range of 30 to 50 square meters, and now most of the sports goods and clothing stores are averaging 150 square to 200 square meters, the investment cost of their big shops is relatively high, and they can only be opened in commercial street and pedestrian street.

But the beauty of the city has changed the mode of opening the traditional clothing brand in China. It not only opened the shop in the commercial street, the pedestrian street, but also opened the shop to the community, pportation hub and school, so that we closer to the consumer to open shop. Through this multi-channel infiltration, the city beauty only successfully opened more than 1200 shops last year, and predicted that the development of the store will be more rapid in the future.