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    The Seven Wolves Have Been In Recession For Some Time.

    2016/2/18 11:05:00 61

    Seven WolvesAchievementsBrand Strategy

    There is no doubt that the seven wolves of domestic men's clothing enterprises spare no efforts in brand building, and their spokesmen are hardly known.

    For example, earlier Hu Jun and Honglei Sun to Zhang Hanyu and Aarif Lee.

    The brand temperament of the earth's gas has allowed Hengda Xu Jiayin to change his belt from Hermes to seven wolves.

    But these beautiful faces and lace news did not save the company's performance.

    The 2015 performance report released by the seven wolves showed that the company achieved a total revenue of 2 billion 460 million yuan in 2015, an increase of 3.02% over the same period last year.

    At first glance, it is worth celebrating, but its net profit has dropped by nearly 6% compared with 290 million yuan in the same period last year, which is 270 million yuan.

    In this regard, the seven wolves explained that the main reason for the increase in revenue was the newly increased needle spinning business in the second half of 2014, which contributed much more revenue.

    However, the gross profit margin of the needle spinning business is relatively low, so the total profit contribution in the reporting period is relatively small.

    At the same time, the company is still in the wholesale mode pformation.

    reform

    During the adjustment process, the income and profits of the original business were all affected.

    After reading the annual reports of seven wolf years, the reporter found that the company's performance fell for the first time in 2013, after ten years of rising year.

    Data show that in the year, seven wolves were operating at 2 billion 773 million yuan, down 20.23%, and net profit was 379 million yuan, down 32.44%.

    Also from the same year, the seven wolves no longer took the expansion Road, but began to close inefficient shops.

    "In addition to the weakening of the apparel retail industry and the decline in the company's orders, the performance decline is an important reason for the company to recover more inventory and reduce inventory pressure."

    Seven wolves company explains.

    A research report by China Merchants Securities said that since 2013, the company has continued to respond.

    store

    Contraction integration, the increase in net number of stores has a greater impact on income, and there is no obvious recovery in terminal demand.

    Wang Yi'Nan, marketing manager of Barry trading Shanghai limited, believes that besides the seven wolves themselves, the downturn in the clothing industry has also had a great impact on the above results.

    "In the context of sluggish sales, 2013 is a year when the profit margin of listed menswear companies deteriorates."

    Wang Yi'Nan told reporters that the net profit of many men's clothing companies listed in the year, including Li Lang and the wedding bird, all fell sharply.

    In his opinion,

    Men's wear

    The decline of performance is inevitable to a certain extent, because the original mode of the whole industry is too simple, and the homogenization of enterprises in product, promotion and positioning is serious.

    "Brand clothing depends on the growth mode of opening stores, and has come to an end.

    Market segmentation and channel diversification are the future directions. "

    Zhou Shaoxiong, chairman of the seven wolves, said in a media interview that some foreign brands are developing strategies for entering China, and the phenomenon of "two-way attack" has become increasingly evident in the domestic garment industry, and the new pattern of clothing is coming.

    "Shops and shops are basically flat, store rentals and labor costs are rising. At present, the company mainly lays a solid foundation and focuses on improving the profitability of the storefront."

    As Zhou Shaoxiong predicted, the main business of the seven wolves has been adjusting for two years after 2013.

    Continuous shutting down and declining performance seems to be the norm for seven wolves.

    According to statistics, in the first half of 2014, there were 3155 terminal stores in the first half of the year. In the first half of 2015, there were 2636 terminal stores and more than 500 stores in one year.


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