The Cost Of Operation Can Not Avoid The Rush Of Domestic Men'S Clothing Stores.

In the domestic clothing market, the competition of garment enterprises is very large. Many businesses are faced with the big problem of operating cost. It is difficult to rise without cost.

Recently,

YOUNGOR released its first quarter results in 2016. The main garment industry achieved 1 billion 40 million yuan of business income and 210 million yuan of net profit, which was 12.03% and 28.12% lower than that of the same period last year.

Other brands in the industry, such as nine shepherd kings and seven wolves, have not yet achieved good results.

It is worth mentioning that, as the top brand of the men's wear market, YOUNGOR closed 35 stores this year, and the men's clothing market tide has spread to the first quarter of this year.

According to the Beijing business daily, after last year's intensive customs shop, local men's clothing did not usher in spring in the first quarter of this year.

In addition to YOUNGOR, the men's clothing enterprises listed in the first quarter of this year have generally failed to make profit growth.

At present, among the 6 men's clothing listed companies that have issued a quarterly report, the net profits of seven wolves, nine shepherd kings, and 3 lucky birds, belonging to the shareholders of listed companies, have declined or zero growth: the net profit of the seven wolves has decreased by 5.18% compared with the same period last year, and the net profit of the reported birds has fallen even more than that of the previous year, reaching 86.16%, while the net profit of the nine herd kings increased by only 0.36% over the same period last year.

Only the net profit of Dayang creation and Hinur has increased.

It is worth noting that although Hinur's net profit has achieved a two digit growth of 10%, its total amount is only about 5 million yuan.

From the perspective of store reduction, in addition to YOUNGOR, in the first quarter of this year, nine Mu Wang closed 26 stores.

According to the earnings data, the total number of stores in 2015 was 153, down from 2945 in 2014.

The store of Dayang's creation reached 44 by the end of March this year, with 5 stores closed in the first quarter, mainly due to the closure of the mall or the loss of management.

For the growth and decline of performance, a number of local men's clothing enterprises generally say that weak market demand is a major factor affecting their performance.

According to the recent retail sales data of consumer goods released by the National Bureau of statistics, in March 2016, sales of clothing, shoes and hats and needle textiles increased by a new low, an increase of only 4.4% to 348 billion 200 million yuan, far less than the 9.8% increase in 2015, and also a sharp slowdown compared with the 8.4% increase in 1-2 months.

According to the Southern Metropolis Daily, increasing operating costs has become an inevitable problem for garment enterprises.

Such as the "noble bird", its clothing industry, business income increased by 3.09%, but the operating cost increased by 4.2% year-on-year, gross margin decreased 0.55%; the footwear industry's operating income decreased by 0.5% compared with the same period last year, operating costs increased by 7.7%, gross margin decreased by 4.77%; accessories business income decreased by 39.42%, operating costs decreased 38.63%, and gross margins decreased by 0.86%.

Its Hodo menswear increased by 32.83%, but its operating cost increased by 34.41% and its gross margin decreased by 0.87%.

The business revenue of Meyer direct store increased by 3.70%, but its operating cost increased by 12.36%, and gross profit margin dropped by 3.91%.

The situation of clothing enterprises closing shop is not allowed to be ignored.

There are 71 new retail outlets in 2016, closing 148 retail terminals.

As of the end of the reporting period, YOUNGOR's sales outlets decreased by 35 compared with the beginning of the year.

Meyer brand joined franchise stores to close 2 stores.

There are 12 new stores in the nine branches, but 23 are closed, 28 new stores are open, but 44 are closed.

In view of this, Xiong Xiaokun, a researcher at CIC light industry, said that the decline in clothing industry revenue was mainly due to the decrease in demand.

In addition, under the pressure of inventory, enterprises have to sell the revolving funds at a reduced price, making the market price war frequent, and the garment industry situation is more severe.

Chen Ke pointed out that China's garment enterprises used to rely mainly on the development mode of "brand plus distributors to open stores quickly".

In the face of factors such as the increase of store and labor costs, the decline of traditional department stores and the lack of fine operation ability of dealers, the traditional growth model relying on brand bonus is difficult to support the demand for rapid growth in the future.

On the other hand, along with the structural change of consumer groups, consumers' purchasing behavior tends to be rational, and the factors such as offshore purchase, clothing sale website and designer brand emerge, so that consumers have more clothing purchasing channels than in the past.

However, he said that the gross profit margin of the apparel industry has not declined, and the net profit of the industry has declined. Different types of enterprises have different reasons.

For domestic enterprises, offline and online channel competition and lack of product innovation seriously affect the product's positive price sales, while export enterprises, the competitiveness of export products brought about by the appreciation of the renminbi is also one of the factors leading to a decline in revenue.

As a result of rapid expansion, a number of "inefficient shops" were created, coupled with insufficient innovation in products and modes, which led garment enterprises to decide to close some stores.

Chen Ke said that after going through the painful inventory of past years, clothing enterprises realized that improving store efficiency is the way of future development.

Take YOUNGOR as an example, although the revenue and net profit of the main garment industry have declined, the overall net profit of the company has increased by 76.3% over the previous year.

In response, YOUNGOR said that the reason for the year-on-year increase in net profit was that the real estate sector benefited from the policy support and the difference in the project carried forward. The average gross profit margin of the real estate project settled substantially increased compared with the same period last year, and realized net profit of 1 billion 49 million 678 thousand and 100 yuan, an increase of 201.48% over the same period last year.

In addition to the YOUNGOR of the real estate sector, seven wolves and nine shepherd kings have also begun to take the road of integration.

Nine Mu Wang invested 12 million US dollars in Korea's clothes house.

The seven wolves invest in multi metre music and set up Hua Yi Fashion Fund to invest in lifestyle and consumer culture related lifestyle industries.

The seven wolves said that the future will revolve around the strategy of "investment + industry", and build a fashion consumption ecosystem including supply chain, brand, channel, communication and capital, and open up the M & a space.

In addition,

With the power of "Internet +", we need to be a global fashion brand operator.

Since March 28, 2016, the company's "card slave road" has been changed to "modern Avenue", and the strategic upgrading has shifted to the fashion business platform.

However, although these men's clothing enterprises began to actively pform, trying to find the latest profit point, but in the face of the overall market downturn, the industry believes that this year is still an adjustment year for men's clothing industry.

"Under the pressure of net profit decline, although we have begun to try to diversify the pformation to stimulate performance and invest more energy, we must undergo a certain period of labor pains, and we can not see the obvious effect immediately, so the pition period is also a test for enterprises."

An industry man is worried about the prospect of these enterprises.