Mei Bang Dress: "Fan APP" Difficult To Carry The Banner Of Internet Pformation

Recently,

The first loss in the past 7 years has occurred, and its ongoing Internet pformation is not satisfactory at the moment.

What's going on here?

Textile and garment industry has been out of the cold winter after several years of downturn. More and more listed companies began to turn around to gain profits and achieve different performance growth. However, the Metersbonwe clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "American bond") has not yet come to spring.

In the first half of the year, the company lost nearly 100 million yuan. Is it possible to turn a profit in the second half of the year? What is the current operation situation of the important project "pformation APP"?

Declining performance and declining trend

For the first time in the first half of 2015, the state owned apparel market lost its first loss in 7 years: the net profit attributable to shareholders of the parent company was -9476 million, down 152.9% compared to the same period last year.

And a few years ago, it was beautiful.

In the context of China's accelerated urbanization, the company benefited from the price and rapid expansion of the civilian population. The company's operating income in 2011 was close to 10 billion yuan, and its net profit was 1 billion 200 million yuan.

In 4 years, how did the apparel of American state go down from net profit to more than 1 billion?

First of all, it should be attributed to ZARA, UNIQLO and other international.

With the strong layout of China and the rapid growth of the electricity supplier, the traditional casual wear enterprises in China have been impacted.

Before and after 2012, local clothing brands generally encountered inventory crisis, and their performance also showed a marked decline.

Facing the double attack of foreign investment and electricity suppliers, traditional clothing enterprises have made adjustments to cope with the cold wave of the industry, and many companies are gradually getting out of the mire.

For example, Semir clothing increased the proportion of children's clothing business in 2012, and experienced an adjustment to resume growth. The recent performance is better than that of Smith Barney's clothing. In the first half of 2015, net profit reached 423 million yuan, up 22.9% over the same period last year.

Other casual wear enterprises gradually get out of the predicament, while the American Apparel continues to decline.

Net profit from 2012 to 2014 was 8.5, 4.1 and 150 million yuan respectively, and the loss was 94 million 760 thousand yuan in the first half of 2015.

The high-end city brand ME&CITY, which was launched, failed to stop the decline of its performance.

The United States has always been fashionable at low price positioning, the high-end brand has not been bought by consumers.

For the first half of 2015, nearly 100 million yuan of losses, the United States State clothing previously explained that the franchise channel adjustment lag behind direct channel, continued to decline.

Specifically, in terms of revenue, straight stores have increased by 5.1% over the same period, while franchisees have fallen by 20.5%.

In terms of gross margin, Direct stores declined by 2.4%, while franchised stores fell by 28.2%.

The difference between Direct stores and franchisees is not noticed in the period of radical expansion. The industry is different when winter comes. The market reaction ability of Direct stores is better than that of franchisees.

American Apparel expects that in the first three quarters of 2015, the operation of the company's franchise channel is still lagging behind the direct channel. Wholesale income is still affected by this effect. The overall performance will lose 150 million to 250 million yuan.

"Fan APP" is difficult to carry the banner of Internet pformation

In the first half of the year, the loss of nearly one billion yuan did not impede its pformation.

In July, the company issued a fixed increase plan to raise 9 billion yuan of fund-raising to accelerate the pformation of the Internet.

The key project is a mobile platform called "fan".

Fan APP allows users to match and match their favorite clothes and share them on the platform.

If you take the advice and get paid, you can get the corresponding income sharing.

APP has not only the products of Smith bond, but also the third party brand.

The APP was launched in April 30, 2015. What is the current operation?

From downloads, as of October 8th, fan APP downloaded 170 thousand of its 360 mobile assistant platforms, and downloaded 120 thousand on Baidu mobile assistant platform.

The same type provides APP for fashion and shopping consultation.

The number of downloads of beautiful clothes and star wardrobes has exceeded ten million.

It can be seen that in the competitive fashion shopping APP market, fan APP as a new entry, want to share a piece of cake is not easy.

Mei Bang apparel is expected to have fan APP average annual income of 14 billion 300 million yuan in the next 5 years, two times the operating income of 6 billion 600 million yuan in 2014.

Can a APP bring an annual revenue of over 10 billion as the company wishes? In the current downloads, fan APP is still unable to carry the banner of pformation.

Despite its poor performance, the company is not soft in its marketing campaign. The advertising expenses in the first half of 2015 amounted to 50 million 110 thousand yuan, up 1.5 times from 20 million 40 thousand yuan a year ago.

The promotion of fan APP popularity is also inseparable from the huge investment in marketing.

In March 2015, fan APP named the online variety show "wonderful flower" in the second quarter. Although the company did not disclose the naming fee, Chen Long CMO said in the interview that the amount was flat with the first quarter naming fee of 50 million.

In the fan APP comment area of the 360 mobile assistant and Baidu mobile assistant platform, many people said that the APP was downloaded because of the wonderful work.

But with the broadcasting period of the program, the marketing effect is also fluctuating.

Fan APP's popularity during the second season of "wonderful flower" was released from June 2015 to September. However, after the end of the program, fan APP's fever subsided.

Fan APP was led by Zhou Bangwei, the son of Zhou Chengjian, chairman of the board.

To some extent, fan APP is an opportunity to train hands for enterprise successors.

Zhou Chengjian, chairman of the board, pushed Zhou Bangwei to the public to pave the way for his son's succession.

However, for Zhou Bangwei, who was born in 1996 and still studying in the United States, he has a long way to go, and is facing the predicament of the recent decline in the performance of American state clothes.