Hai Lan'S Home Will Find The Necessary Warm-Up And "Sense Of Presence" For Entering The First Tier Market.

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What would you first think of? What's the man's wardrobe, two times a year, or Yin Xiaotian's face?

If you live in Shanghai, Beijing, you may have a sense of "seemingly few shops in Shopping mall."

Indeed, the main market of Hai Lan's home is in the two or three line city.

And it may surprise you that the company is doing well.

For example, at the beginning of this year, standard and poor's released the "25 of the world's top fourteenth apparel companies", Hai Lan's home ranked fourteenth, when the market value of 600 billion yuan and more than 100 billion yuan, it easily surpassed Coach, Prada and Michael Kors.

From the 2015 earnings report just released, its performance has been pretty good in the past year, and its operating revenue and profit have increased by more than 24%, while its competitors have increased.

In the same period, the revenue growth was less than 4%, while net profit was declining.

Of course, the sales volume of both of them is relatively large. In 2015, the revenue of Hai Lan's home was 15 billion 830 million yuan, while that of the seven wolves was 2 billion 486 million yuan.

The best selling clothing of Hai Lan's family is trousers, with 22% of the income contribution.

They are all over 13%.

East China is still its largest market, and its contribution to income is nearly 45%, which is nearly 9 times that of the northeast.

This also means that if you are in the two or three or even four tier cities in East China, then you can see that the frequency of Hai Lan home store is much higher than that in Northeast China.

In the 2015 fiscal year, the total number of stores in Hai Lan's home was 3990, an increase of 274 over the same period last year.

The reason for saying "only" is that it only added 235 stores in the first quarter of fiscal year 2016.

The reason for the rapid expansion of offline stores in the short term is actually related to its operation mode. Hai Lan's home uses a business mode between direct operation and franchisee, which provides funds and some shops for the franchisee (to assume the cost of opening shop and staff), but the right of store management is in the hands of Hai Lan's home, and the two are sold in proportion.

The advantage of this model is that the home of Hai Lan can not expand its expansion everywhere without spending its own money, while unified management gives it strong control over the terminal.

The more than 4000 store is a bit of a scary concept.

You know, UNIQLO has only 890 stores in the whole overseas market.

However, although fewer stores, the Greater China region contributed 344 billion yen, or 20 billion yuan, to UNIQLO in the 2015 fiscal year, which surpassed the 15 billion 830 million yuan of Hai Lan's home.

It is not without reason to take UNIQLO as reference. Zhou Jianping, chairman of Hai Lan's home, had previously identified UNIQLO as its competitor.

A reasonable question is that UNIQLO is the main player in basic casual wear, while Hai Lan's home business is dominated by business suits, which seems very difficult for them to form a direct competitive relationship.

Zhou Jianping's explanation is that Hai Lan's home is providing "more and more diversified men's casual wear, which is priced in popularity, and there are overlaps between customers and UNIQLO."

He also said that UNIQLO is expanding to the lower reaches of the city, which is the main source of Hai Lan's home.

However, UNIQLO's main market is men and women. On this point, although Hai Lan's home has a brand named "Ai Ju rabbit" for the female market, its current market performance (the brand's 2015 fiscal year income is 3 billion yuan, up 0.69% over the same period), it is not enough to pose a threat to UNIQLO women's clothing.

In the 2016 fiscal year, Hai Lan's home is expected to add 700 stores.

When the channel such as UNIQLO fast fashion brand sinks, its plan is to develop to high speed city.

"The focus of our previous development has been in East China and the two or three tier cities, but the core business circle of Beijing and Shanghai has always been our dream. We have increased investment in the first tier market, including the northern market."

Hai Lan's home side told the media last year.

Last February, its largest flagship store in Beijing opened in Wangfujing.

In the same year, Hai Lan's home launched a ground marketing called "Hi-T rainbow wall" at the Lujiazui subway station in Shanghai. Similar marketing activities also appeared in Shanghai Xujiahui subway station where the traffic volume was very high.

Although it is not excluded that these marketing purposes are aimed at enhancing brand image, rather than representing direct access to the market, they will provide necessary warm-up and "presence" for Hai Lan's home to enter the first-line market in the long run.

The ground marketing of Hai Lan's home in Shanghai Lujiazui subway station

In addition, Hai Lan's family tried to shape themselves younger.

This year, Hai Lan's home invited Lin to become the spokesperson of his colorful jeans series. Before that, the spokesperson of Hai Lan's home was Du Chun, David Wu, Yin Xiaotian and other more mature and mature people.

A few weeks ago, Hai Lan's family has just announced a strategic cooperation with the Orient DreamWorks to launch the "Madagascar" series of clothing and derivatives.