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    Falling Consumer Willingness Leads To A Decline In Sales?

    2016/7/29 19:02:00 55

    UnderwearAn Li FangCity Beauty

    Not long ago, two Hong Kong stocks went public.

    Underwear

    The two companies issued a profit warning. Compared with the first half of last year, 01388.HK's overall sales fell by about 18% in the same period of this year, and net profit of 02298.HK (35%~40%) fell by about 2%.

    Sales decline.

    Embry Form

    and

    Urban beauty

    The same reason will be attributed to the slowdown in economic growth, the consumer will tend to be cautious, while urban beauty also believes that the rise of micro business has a certain impact on its sales.

    Can women really reduce their consumption for underwear products? Can women really find micro businesses to buy underwear?

    Falling consumer willingness leads to a decline in sales?

    Not long ago, two Hong Kong shares listed Underwear Companies issued earnings early warning. Compared with the first half of last year, the overall sales of ANN Fang fell about 18%. In stores operating for more than 18 months, the sales of the same store were also recorded by more than 10 percentage points, and the number of retail points was reduced by 30 at the end of last December.

    Urban beauty predicted that net profit fell by 35%~40% in the first half of this year.

    Another A underwear company, Hui Jie shares, predicted in a quarterly report that the net profit in the first half of this year changed 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, an increase of 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 RMB 4 billion 953 million 400 thousand yuan and 540 million yuan; and in 2015, the income reached 2 billion 536 million Hong Kong dollars, an increase of 6.41% over the same period last year. If the exchange losses were excluded, the net profit reached 223 million Hong Kong dollars, representing 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 decline in net profit in the first half of the year, urban beauty believes that the economy is slowing down, consumption is becoming prudent, overall operating expenses are rising, and the rapid growth of micro businesses has been caused.

    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 that "every 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.

    Micro commerce develops rapidly

    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 flagship branded underwear manufacturer with no steel ring, which said, "the accessories and accessories of our factory are the same as those of 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, bra price at 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 yuan agency 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 major customer of Kunshan's Tengfei underwear Polytron Technologies Inc (hereinafter referred to as Tengfei underwear).

    Tengfei underwear 2015 annual report shows that the company achieved annual operating income of 224 million yuan, net profit of 21 million 906 thousand and 700 yuan, an increase of 83.52%, 71.04% over the same period.

    Among them, the sales volume of the above micro brands reached 73 million 274 thousand and 600 yuan, accounting for 32.65% of annual sales.

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

    Brand positioning than the city beauty high-end Li Fang, Hui Jie shares are still under the line as a business focus, Hui Jie shares in the 2015 annual report said that the future department store direct sales counters will remain the mainstream of the company's sales channels.

    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 big names covet the Chinese market

    Not long ago, another Hong Kong stock underwear enterprise Virginia released 2015/16 annual report. As of March 31st, net profit increased by 39.3% over the year to HK $476 million, while its chest circumference, sports bra and underwear business revenue increased 21.1% over the same period.

    Unlike urban beauty and Ann Li Fang, which are directly oriented to the terminal consumer lingerie, 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 no longer satisfied with the stable European and American markets, and are gradually expanding into 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.

    Public figures show that in 2014, the average per capita expenditure of Chinese underwear was only 169 yuan, far lower than that of the United States, Britain and Japan for 73.9 dollars, 87.1 dollars and 85 dollars.

    According to Frost&Sullivan, a consultancy, sales in China's clothing industry increased from 113 billion 700 million yuan to 194 billion 400 million yuan from 2009 to 2013, and the annual compound growth rate was 14.4%. In 2018, sales of Chinese personal clothing reached 455 billion 300 million yuan, of which women's underwear accounted for about 60%.

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