In 2016, The Market Of Children'S Clothing Became The Battleground Of Every Soldier.

The two child policy was officially launched in 2016.

The market fat has become a battleground for all kinds of soldiers.

The new entrants Changxin International (00238-HK) launched the new cool Kissocool trick, providing candy coffee to attract customers to shop and shop slowly.

Li Weiliang, chief financial officer of Changxin international, told reporters that the group set up a cool Kissocool in Shanghai and Qingdao, and Shanghai accounted for 6500 square feet.

In order to cooperate with family shopping, there are recreational spots in the store, which provide toys, books and candy for children, and provide coffee and Internet facilities for their father.

Due to the good reaction, Changxin plans to add 1 or 2 more interesting and cool this year.

Plans to open 1 or 2 more cool this year.

Since 2014, the group has started to expand children's clothing business, and has obtained 10 children's wear brand agents, including Diesel Kids, Paul Smith Junior, Roberto Cavalli Junior, Fendi Kids, etc., and opened 13 children's wear brand stores in 2015, located in Hongkong, Macao, Shenzhen, Chengdu and other places.

Changxin decided to step into the children's wear market. He explained that since the mainland implemented the two child policy since this year, and the middle class consumer group is growing, and most willing to spend money on children, the children's clothing purchased should attach importance to quality assurance, brand should have personality, brand and fame, so Changxin chose to take the high-end market position.

He quoted market statistics. In 2015, the size of children's clothing market in China reached 140 billion yuan (RMB. The same below). By 2017, it had an estimated increase of more than 300 billion yuan.

The group will continue to look for agents.

I hope to scale up in 3 or 5 years and develop double line with men's clothing business.

Changxin men's wear top stores, outlets Outlet inventory

Changxin International

The two major brands of business, Denton and iron lion, need to set aside 30 million yuan in 2015. Li Weiliang said that Changxin has made a response to expanding sales to shopping malls, outlets, Outlet, and online sales, and the inventory has improved. The number of days of inventory turnover has dropped from 700 days to 688 days at the end of last year.

The autumn order meeting, which he just held, indicated that the order volume of the store itself kept growing, and it was cautiously optimistic about the prospect. As for the dealer's order quantity, it continued to decline, as it was still necessary to clear up the stock. When the inventory was cleared, it would depend on the market condition.

In the first quarter of this year, the same store sales of men's clothing business recorded a positive growth, continuing the rally in 2015.

Men's clothing business will continue to develop steadily.

In the face of the slowdown in the mainland economy, he said that the business suits and casual wear of the group were relatively stable in Xi'an, Guangxi and other regions. There was a certain number of VIP VIP guests to support and maintain positive growth. Changxin's current VIP VIP group was about 4 or 50 thousand.

The total number of self operated stores in 2015 decreased by 31.6% to 121, and the outlets decreased from 25.1% to 143. He said that this year will continue to adjust to regional demand, while Guangxi and southwest China will still increase retail outlets. This year, we plan to open 6 self dealers and 2 outlets.

Changxin Ji performance improvement

In 2015, Changxin's performance deficit widened to 75 million 600 thousand yuan.

Li Weiliang explained that one of the reasons was that children's clothing business was launched in 2014. The distribution shop only started in 2015 and was in the period of investment and cultivation, with a loss of nearly 20 million yuan during the period.

He stressed that the market outlook for children's clothing is cautiously optimistic and the market is huge.

In addition, the group made 30 million yuan provision for men's stock. The group has taken measures to clean up the stock and has achieved results. It is expected that the provision will be greatly reduced this year.

The group also actively controls costs, and purchases will be carried out according to market demand.

In addition, the group share option award scheme also resulted in a non cash expenditure of 7 million yuan, and this year's expenditure is also expected to decrease significantly.

Cooperation with Fosun to set up clothing investment fund

In terms of financial position, he introduced the group's net cash of 350 million yuan, including the remaining 200 million yuan in 2010, which remained on the market, and remained for the purpose of merger and acquisition. The Group intends to continue to acquire international brands to expand its business.

The group issued a HK $200 million debt earlier. He explained that the issuance of Hong Kong dollar debt was mainly related to the company's intention to purchase plans in Hongkong and overseas.

In addition, Changxin also set up investment funds with Fosun International (10.16, 0.08, 0.79%) (00656-HK), Shenzhen 603808-SZ, 02111-HK, Dongguan's super surplus textile, etc., to find investment opportunities in the clothing market, the scale of the fund was 600 million yuan, Changxin invested 96 million yuan, and song LED led 360 million yuan. He said that by Fuxing's huge domestic and overseas network, it would help to find suitable acquisition opportunities.