"The Man'S Wardrobe" Hai Lan'S Family Wants To Get Involved In Women'S Clothing.

That determined to capture the man's wardrobe.

(600398.SH) now wants to find more business opportunities.

The company recently mentioned its strategic layout in an internal meeting with the securities broker, saying that it will start to get involved in women's money because of the single category bottleneck.

However, set foot in a brand new field for this family.

The success of enterprises remains to be seen.

Transformation younger

Face

The traditional clothing industry is increasingly sad because of the factors such as impact and commodity homogenization.

In contrast, the performance of Hai Lan's home is commendable.

The local clothing brand, founded in 2002, has strong momentum in recent years.

Before 2014, the impression of people seemed to remain in the "home to buy clothes for daddy", and in recent years, with the light pformation of the company in the past years, the market of young consumers has been opened after the ride of the variety show that has been welcomed by young people.

It is reported that compared to the previous years, the main face of adult male customers, since 2015 Hai Lan home fashion style has reached 50% of the proportion, more adapted to the needs of 80 and 90.

The success of pformation is reflected in the performance report.

The annual report released by Hai Lan home in April this year shows that the company achieved operating income of 15 billion 830 million yuan last year, an increase of 28.30% over the same period last year, and realized a net profit of 2 billion 953 million yuan attributable to the parent company, an increase of 24.35% over the same period last year.

This report card is quite proud of its decline in performance, frequent closes and losses relative to its domestic men's clothing.

The success of Hai Lan's home is seen by many people in the industry. The sales link takes the mode of separation of ownership and management right to control the terminal retail channels. All franchisees use the national ERP system in a unified way, so that they can grasp and analyze the sales situation of all products in all the stores in the country, facilitate quick response to replenishment and pfer of goods in the stores, effective cost control brings down the price of clothing sales and stimulates sales growth.

In terms of the number of stores, Hai Lan's home has grown from 1389 in 2010 to 4225 in the first quarter of 2016.

This is in sharp contrast to the closings of many clothing companies.

Reporters interviewed learned that the reason why Hai Lan's home was able to "open up shop against the potential" was that it adopted a similar business model.

That is to say, the franchisee of Hai Lan home does not enjoy franchisee's management rights.

Franchisees only need to bear the risk of rent and daily operating expenses, and the goods that can not be sold can be returned to headquarters.

Since franchisees do not participate in management, they do not have to bear the risk of unsalable merchandise. This is also an important factor for the attraction of Hai Lan's home.

In addition, Hai Lan's home will not pay the full amount of money when purchasing goods to the upstream suppliers.

It is reported that the company paid 30% of the suppliers before 2014, and the proportion of the payment after 2014 reduced to 25%. After the two sale season, the products haven't been sold yet, and Hai Lan's home has the right to return the unsalable goods to the suppliers.

As a result, Hai Lan's home shifted the bulk of the biggest retail sales risk to the original supplier, and played a role of OEM and upstream and downstream.

Xue Danqing, the representative of securities affairs at Hai Lan home, revealed that at present, 80% of the new stores in Hai Lan's home can be profitable in the year.

According to its disclosure, Hai Lan's family has accelerated the pace of opening stores this year, and plans to increase 700 stores all year round.

The company has a total of 235 stores in the first quarter. Following the larger efforts to adjust inefficient stores in 2015, the overall expansion of the channel in 2016 is expected to accelerate, and the annual performance is expected to increase by quarter.

Want to get involved in women's clothing

Although the shop is running smoothly, there are also hidden dangers.

Yang Chen, an investment analyst at Wan Delong, points out that under the bad environment of men's clothing, the rapid and low-cost expansion of Hai Lan's home mainly benefits from the higher financial input of the franchisees.

If the existing franchisee profit does not decline, this mode is sustainable, otherwise this mode will be greatly affected.

The cost of franchisee in Hai Lan's home mainly depends on the capital input from the franchisee, and the risk it takes on the expansion cost is relatively small. However, if the profitability of the franchise decreases or even losses, it will release a negative signal that affects the potential investors and impede the expansion of Hai Lan's home.

Cheng Weixiong, general manager and senior clothing expert of Shanghai Liang Qi Brand Management Co., Ltd. also told reporters that the core competitiveness of Hai Lan's home is to integrate suppliers' production resources, do not discount on consumers, and join stores without stock. With the expansion of the scale of shops and the continuous expansion of the competitive brand groups, the former light asset brand management mode has become more and more important for the Hai Lan family.

"The first and second tier shops with high rents are not big businesses because of big shops and high rents. Business is good and scale is bigger. Suppliers are not growing bigger. The scale of purchasing itself is bigger and bigger."

Cheng Weixiong, for example, has a brand named "obedient" brand under the brand of Hai Lan home. In fact, the "obedient" store is used by the group to make clear inventory. Now the number of stores is more and more open.

Perhaps considering the overall depression of the men's wear market and the fact that the company's products are too single, Hai Lan's family, which has experienced rapid development, intends to enter the women's clothing market this year and conduct multi category business.

But did not disclose specific detailed plans and timetable.

"The business mode of Hai Lan's home is not exclusive at the moment. More local men's clothing brands or other category brands are imitating and following up. It is also a sense of urgency for the Hai Lan family, and the strong desire for change is urgent."

Cheng Weixiong pointed out.

But the problem is that women's clothes are complicated and different styles.

Compared to men's clothing, women's life cycle is short, turnover speed is fast, meticulous degree is strict, competition is also fiercer than men's clothing.

If there are no special buyers or women's designers, how can this business be carried out smoothly for a man based business like Hai Lan home?

Xue Danqing said, Hai Lan's home has its own designer, about 200 people, of course, the company will cooperate with other design companies.

As an incentive, Hai Lan's home usually gives the design company 40% gross profit.

"Men's clothing brand women's clothing, if only promotional behavior can be understood.

But if we really want to try it out, the reeducation of consumers is not a short-term task, we need a system, and consumers will buy it. The data will tell us in the near future.

Cheng Weixiong said.