Economic Downturn Leads To Women Not Buying Underwear?

"

"Refers to an interesting economic phenomenon caused by the economic recession, which is also called" low price ".

Preference trends.

When the economy is in recession, the sales of lipsticks will increase linearly.

Another word is "female skirt length", meaning that when the economy grows, women will wear short skirts because they want to show their long stockings. When the economy is in recession, women can not buy stockings, so they have to lengthen their skirts to cover up the embarrassment of not wearing long stockings.

Today, China's

Listed companies also summed up a "underwear effect".

Reporters noted that recently, a number of listed underwear enterprises issued a profit warning, and attributed the decline in performance to slowing economic growth, the consumer will tend to be cautious, and urban beauty also believes that the rise of micro business has a certain impact on its sales.

Economic downturn leads to women not buying underwear?

Not long ago, two Underwear Companies listed on the Hong Kong stock market issued a profit warning.

Compared with the first half of last year, the overall sales of ANN Li Fang dropped by about 18%, while the same store sold more than 18 months, and the percentage of retail sales decreased by 30. At the same time, the number of retail outlets decreased by 30 compared with the end of December.

Urban beauty predicted that net profit in the first half of this year was down 35% to 40% over the same period last year.

Another A share listed underwear company has not yet released its semi annual report this year, but its net profit in the first quarter dropped by 10.41% compared to the same period last year, to 73 million 656 thousand and 900 yuan.

Hui Jie shares forecast in a quarterly report:

Net profit in the first half of this year varied from 102 million yuan to 140 million yuan, with a range of -20% to 10%, while its net profit in the first half of 2015 was 127 million yuan, up 33.53% over the same period last year.

Hui Jie shares said that the reason for the change in the first half of this year is that the new men's underwear brand Joe Bai Shi and skin care products were invested earlier.

It is worth noting that the net profit of the two Hong Kong Equity listed companies increased year-on-year.

Urban beauty's income and net profit increased by 23.6% and 27% respectively in 2015, reaching 4 billion 953 million 400 thousand yuan and 540 million yuan.

In 2015, it achieved HK $2 billion 536 million, an increase of 6.41% compared with the same period last year. If the exchange losses were excluded, the net profit would reach HK $223 million, an increase of about 14% over the previous year.

In fact, in the past 5 years, the net profit of urban beauty has been growing positively, with an average annual compound growth rate exceeding 30%.

For the first half of this year net profit fell, urban beauty believes that the economic slowdown is becoming prudent, the overall operating expenses rise, and the rapid development of micro businesses.

Anli Fang also believes that the weakness of the retail environment is a major reason for the decline in the company's sales due to prudent consumption. Besides, gross profit has declined, and overall operating expenses have risen and the depreciation of the renminbi has led to this year's poor situation.

When the economy is down, women do not buy underwear? Yan Hongzhong, the chairman of the new three board underwear enterprise, told reporters.

Each enterprise has its own stage goal, which may be inconsistent with the economic cycle and the environment.

Underwear is a relatively rigid product, or firmly optimistic about the market prospects.

Is the power of micro quotient so great?

Relying on shops that spread all over the streets and small towns, urban beauty occupies 3.3% of the market share of the whole country. But because of the rapid development of micro businesses, net profits have plummeted?

The reporter contacted a small business agent who is the main brand of underwear brand without steel ring. The micro agent told reporters that its branding brand is very well known in the industry. "Our foundries and accessories are the same as the first-line brand, but there is no shop charge, celebrity endorsement fee and so on, so the price is cheaper than the first-line brand."

Reporters in the brand official website to see, its bra price range between 200 yuan to 300 yuan.

The above micro agent told reporters that if you want to become a brand agent, you only need to buy a try on, then pay 300 agent fee, and sell a bra. The agent can make a net profit of seventy or eighty yuan.

Although the sales scale of underwear micro businesses can not be accurately known, it can be seen from the sales scale of its superior suppliers.

According to a reporter's enquiry, this underwear micro business is the first largest customer of Kunshan's Tengfei underwear Polytron Technologies Inc (hereinafter referred to as "Tengfei underwear").

Tengfei underwear 2015 annual report shows that its annual sales volume of 2015 of the above micro brand brands reached 73 million 274 thousand and 600 yuan, accounting for 32.65% of its annual sales, while Tengfei underwear achieved 224 million yuan in operating revenue in 2015 and net profit of 21 million 906 thousand and 700 yuan, up 83.52% and 71.04% respectively over the same period.

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As for whether to consider doing micro business, the city beauty high level told reporters when he interviewed, "no".

The brand positioning is still more important than the high-end beauty of the city, and the focus is on the following line. In the 2015 annual report, Hui Jie shares said that the future department store's direct sales counters will remain the mainstream channel for the company's sales.

Yan Hongzhong told reporters that whether it is online or offline, the future must be full channel development, "for consumers, the choice will only become more and more abundant."

International brands are pressing harder and harder.

Not long ago, another Hong Kong Equity underwear company, Virginia, released its 2015/16 results. Up to March 31st this year, net profit increased by 39.3% to HK $476 million, while its chest circumference, sports bra and underwear business revenue increased by 21.1%.

Unlike urban beauty and Ann Li Fang, which are directly targeted at the lingerie of terminal consumers, Virginia mainly provides design and OEM business for global underwear merchants and sports brands. Its customers include Victorias Secret (hereinafter referred to as "Wei Wei"), Bali, Maidenform, CalvinKlein and so on.

Compared with the domestic underwear market, the underwear market in Europe and the United States is more mature. These European and American underwear brands are not satisfied with the stable European and American markets, and are gradually expanding to the potential Chinese market.

According to media reports, the company will open the first underwear flagship store in mainland China in Shanghai, and is run by L Brands, a virgin parent company.

The retail store opened in the mainland of China has been operated by a Malaysia Company agency and does not sell underwear.

It is also understood that Italy luxury lingerie brand La Perla and German underwear brand Ttiumph (Triumph) will also open stores in China and expand beyond the mega cities.

At the same time as international brands are pressing, there are more and more small and vertical underwear suppliers in the domestic market.

These vertical electric providers pay more attention to the design sense of underwear, and at the same time, because the intermediate links are removed, the price is more close to the people.

According to incomplete statistics from reporters, there has been a successful financing of women's underwear business such as oxygen, liberation cup and miss rhino.

According to public figures, the average personal expenses of underwear for Chinese consumers in 2014 were only 169 yuan, much lower than that of the United States, Britain and Japan for 73.9 dollars, 87.1 dollars and 85 dollars.

According to the consulting firm,

From 2009 to 2013, the sales revenue of China's personal clothing industry increased from 113 billion 700 million yuan to 194 billion 400 million yuan, and the compound annual growth rate was 14.4%.

By 2018, the sales of Chinese personal clothing can reach 455 billion 300 million yuan, of which women's underwear will account for 60%.

It seems that Chinese women's breasts are waiting for more and more beautiful underwear to decorate.