Urban Beauty Wants To Account For 20% Of The Domestic Market Share.

The decline in the performance of the apparel industry has become normal. Nearly half of the 20 listed A share listed companies have dropped or even lost.

According to the reporter, in recent years, the popular brand city beauty of venture capital has begun to invest heavily in building "big show" to learn from the "secret of Vitoria", the leader of American underwear.

But the days of underwear industry are more moist.

The net profit of urban beauty in 2015 was 540 million yuan, an increase of 27% over the same period last year. The net profit of Hui Jie shares in 2015 was 166 million yuan, up 24.63% over the same period last year. The old brand "an Li Fang" held a net profit of 202 million Hong Kong dollars in 2015, an increase of 7.17% over the same period last year.

Last weekend, the circle of friends in the clothing industry was swept away by a show.

This is the annual "underwear conference" of urban beauty. Besides spokesmen Lin Chiling and Huang Xiaoming, many Korean celebrities were invited to help.

It is understood that the cost of the show is in the tens of millions of yuan.

In the apparel industry, the decline in performance has become the norm now.

Why does it cost a lot of money to build a "show"? The rise in costs will not affect the net interest rate of the company. According to the Bank of China International Research Report, it is estimated that the urban beauty will increase its brand investment, and the market promotion cost is expected to increase from 1.6% to 2%.

The agency said the increase in short-term marketing expenditure will limit the rise in net interest rates, but this will help the company to achieve long-term sustainable development.

Zheng Yaonan, chairman of the city beauty, told reporters that after this great show, the popularity of the brand will be greatly improved.

"I believe this year is the first year of brand upgrading. In the next 5 or 10 years, you will see a real China show. After that, you don't have to go to the United States to see the big show. You can see it in China."

Zheng Yaonan's view is that China's

Consumption has entered the "awakening" period, and the opportunities for the next few years are very large.

"No matter what industry, the consumer from the Enlightenment period to the awakening period is a very important stage change. Once this stage is entered, the brand concentration of the industry will increase.

Therefore, the next 5 years will be our best opportunity. Our vision is to occupy 20% of China's underwear market share in the future.

20%, it is the market share of Victoria's Secret in the US market. The top five brands in the United States account for nearly 70% of the total market share. The concentration is very high. Zheng Yaonan said that for the Chinese market, although the urban beauty market occupies the first place, it has only 4% share.

"Because China's cultural convergence is not as strong as that of Europe and the United States, it needs brand diversification, which is the core strategy of the company in the future."

Everbright Securities Research Report shows that the biggest feature of underwear is "the product is different from the body, the brand is mainly local".

Because of the great diversity of races and stature in different countries and regions, the market competition pattern of local brands and foreign brands is gradually formed.

But the vision of urban beauty is more than local.

The 2015 annual report shows that the company will consider expanding its overseas territory.

Is the Chinese market not big enough?

To reporters, considering the overseas market is a long-term layout.

Zheng Yaonan believes that the company is doing well in China, but India and Southeast Asian countries and other markets have not yet been well developed.

Underwear is expanding from Europe and the United States to the world. First, it enters Singapore, Japan and other places in Asia and then enters the mainland of China. According to this rule, the next is the new market to be developed in India.

"Such a market in India still belongs to the Enlightenment period, so we will carry out a long-term strategic layout to intervene in the market before the entire market awaken.

In the short term, there may be no way to produce great results, but the future must be a good market opportunity. "