Seven Wolves Clothing To Industry + Investment Mode Pformation

Recently, the news pointed out that the seven wolves group will not only develop the garment industry in the future, but also pform the industry and investment mode, from then on to the road of diversification and increase the profits of enterprises.

Seven wolves go to pluralism

The main business has encountered bottlenecks, so that enterprises like wolves have begun to gradually adjust their strategies, changing from a purely industrial clothing company to a diversified company of "industry + investment".

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 process of the adjustment and pformation of wholesale mode, and the income and profit of the original business are all affected.

Weak main business

The seven wolves have been in recession for some time.

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.

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.

A research report by China Merchants Securities said that since 2013, the company has continued to shrink and integrate its stores. The increase in the number of net outlets has had a greater impact on revenue, and there has been no significant 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, the decline of men's clothing performance is inevitable to a certain extent, because the original mode of the whole industry is too simple, and the homogenization of products, promotion and positioning is serious, so the so-called differentiation is just the brand difference.

"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. "

The continued weakness made the seven wolves begin to realize the need for pformation.

First is the electricity supplier.

In the first half of 2013, the Electronic Commerce Department of the seven wolves was upgraded to an independent company.

The company is composed of the commodity department, the channel department, the operation Department and the marketing department.

But it's not easy for a company that owns more than 3000 offline stores.

Reporters browse Taobao found that in addition to the seven wolves own brand flagship store, there are many other seven wolves brand monopoly.

One of the stores insisted on selling genuine products.

"We are the official licensed store of seven wolves."

He told reporters that because most of the more than 3000 stores of the seven wolves are franchisees, and these franchisees do their own business on Taobao, they often have different prices.

According to Wang Yi'Nan, based on various reasons such as direct operation and franchisees, there are still no matching situations between the existing channel structure and the operation background of the seven wolves.

In the marketing strategy of the electricity supplier, the seven wolves have been blurred. In a while, it is a clearance strategy, and for a while they are specializing in the sale of network funds.

Because of this, in last year's double eleven, the sale of seven wolves has fallen out of the top ten of men's clothing.

"Since 2013, men's clothing enterprises have gradually entered the store and in-depth adjustment cycle. Some traditional enterprises have been trapped in the problems of high production costs, competition in electricity providers and changes in consumer shopping habits. The market share of enterprises has dropped significantly and entered a critical period of pformation."

Feng Dehu, vice president of China Garment Association, said last year when he summed up the operation of traditional men's clothing enterprises.

Reporters noted that the main business has encountered bottlenecks, so that enterprises such as the seven wolves began to gradually adjust their strategy, from a purely industrial clothing company to a diversified company of "industry + investment".

In July 2015, seven wolves announced that taking into account the high price of commercial property, the huge change of business mode, and the extensive growth mode of over reliance on channel expansion, and so on, the company decided to change the 1 billion yuan of the remaining 1 billion 766 million yuan of funds raised before to establish a wholly-owned subsidiary.

This fund was used to buy the layout and structure of the existing marketing network of commercial property expansion companies.

Now, the seven wolves plan to invest in some clothing industry and related fashion industry and retail consumption industry.

"Like wolves, such a diversified clothing business is not unusual.

For example, Shan Shan and YOUNGOR, although the former started with clothing, but now clothing accounts for only a small part of the company's business.

Wang Yi'Nan said, "of course, the pformation of most clothing enterprises is still related to the main industry, and they want to make a fashion industry ecological chain."

Can these new businesses and projects bring a new profit growth point for such a veteran men's clothing company with 25 years of experience in the clothing industry?

So far, it remains to be seen.