An Li Fang Expects Sales In The First Half Of 2016 To Drop By 18% Compared To The Same Period Last Year.

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A profit warning is issued. The net profit in the first half of 2016 is expected to decline about 35% to 40% a year ago.

Holding also issued a profit warning, which is expected to drop by 18% in the first half of 2016 compared with the same period last year.

City beauty and Ann Li Fang are two of the largest Chinese market.

The producer is a typical representative of her economy.

Over the past few years, the growth rate of the economy has slowed down, and many consumer industries have seen a sharp decline or even retrogression. In the consumer sector, there is a lot of sadness. "Her economy" is a rare sweet spot.

Look at the past revenue growth of urban beauty and Ann Li Fang. Since 2011, China's economic growth has slowed down, but it seems that women spend a little money.

Today, the performance of the two leading brands of underwear in China has declined. For men who finally pay the bill, men may be relieved: women are finally beginning to shrink their clothing.

But for these gratifying people, perhaps this is just that they think too much.

The pattern of China's underwear market

China's underwear market is highly fragmented. There are now more than 3000 manufacturers. The top five companies are urban beauty, Ann Li Fang, Adam, Hui Jie share and Yi erai, although they are the leading brands. The market share is actually very poor. According to the consulting company Frost&Sullivan statistics, these five leading revenue market share is less than 6% in 2013.

Over the past two years, the growth rate of urban beauty, Ann Li Fang and Hui Jie shares has increased and decreased. Therefore, the market share pattern is still not much changed.

Although the urban beauty is expensive, it only accounts for 2.8% of the market share in 2013, and the market share of the leading industry in the United States, Britain and Japan exceeds 15%.

Because the underwear market is extremely dispersed, and the listed companies are very few, the overall market data can not be known.

But according to some signs, the demand for underwear market may be in the ascendant.

Tengfei underwear is listed on the new third board.

Its annual report 2015 shows that the company achieved a total revenue of 224 million yuan and a net profit of 21 million 900 thousand yuan, up 83.52% and 71.04% respectively over the same period.

Among them, the revenue from micro channel contributed 32.65% of revenue.

In addition, the number of underwear scouring is equally amazing.

The secret of Vitoria officially entered China in 2015, but before that, a large number of Chinese consumers bought the brand through overseas purchasing.

Whether it is urban beauty or Fang Li Fang holdings, it is still dominated by offline businesses, and the impact of micro businesses and Hai Tao is inevitable.

Therefore, it is far from the conclusion that women will begin to shrink food and clothing simply because of their declining revenues.

In fact, the reality may be the opposite.

The growth rate of Hui Jie shares over the past few years shows that this speed is accelerating.

Manifen, the first high-end underwear brand in China, has accelerated its revenue growth, suggesting that the upgrading of Chinese women's consumption is willing to spend more money per square centimeter of cloth.

For urban beauty, its growth rate dropped by a large figure in 2015. The growth rate from 2012 to 2014 was over 30%, while 2015 was only 15%.

The reason for this is that city beauty comes into the market in 2014 and you have to do something before going public.

City beauty's underwear is located in the middle and low end. People who have been to the city beauty shop know that its store is relatively narrow and the sense of experience is rather bad.

Basically, women who earn a certain income will probably abandon them.

Therefore, the decline of the performance of urban beauty may not be a comfort for the end of the bill, but the women have already started to run towards them.

International brands focus on China

People who fantasies about shrinking food and clothing may have overlooked one thing. The famous international underwear brands are accelerating to enter China.

The secret of Viking Leah opened a 1860 square meter flagship store in Shanghai in 2015. It was located in the center of the city and used to be a store for Louis Weedon.

Martin Waters, President of L Brands International, the virgin parent company, said: "I think this is a very high-profile way to announce our entry into China, which should become the starting point for our huge business in China."

In October 2015, London luxury underwear brand Agent Provocateur opened its first independent store in Hongkong, and there are 7 stores in mainland China.

Not long ago, La Perla, a rival brand from Italy, opened its fourteenth store in Tongluowan, Hongkong.

Ttiumph plans to open stores in five Chinese cities that do not have its stores this year, and will open stores in 11 cities next year.

Ttiumph has 1000 stores in China.

These high-end luxury underwear entering China do not want to see women who begin to shrink clothes and reduce food.

On the contrary, they are eyeing Chinese consumers with rising incomes and more and more emphasis on emotional consumption.

Despite the slowdown in China's economic growth, China is still a fast growing region globally.

In 2015, the disposable income of residents increased by 8.9% to 21966 yuan.

With the increase of income, underwear consumption begins to turn from simple functional consumption to emotional consumption, such as fashion, personality and brand value, which promotes the upgrading of underwear consumption in China.

A more interesting phenomenon is that China's current income level is close to that of the US in the late 70s.

The apparel industry in the United States began to erupt in the late 70s, and the bra market was seen as a symbol of conservatism and restraint because of the influence of the feminist movement.

It was not until the end of the 80s that women's beauty began to gain popularity.

In contrast, China's income level began to approach the US in 70s, and the appreciation and pursuit of women's beauty also had no moral and cultural constraints. It is not impossible for China's underwear market to replicate the US market.

In addition, the current Chinese individual spending on underwear is far below the level of other countries, but its compound annual growth rate is the highest.

From these two points, it is not difficult to understand why international brands have entered China.

These international brands are in and men are still ready to take their pockets.

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epilogue

The market concentration of Chinese underwear market is very low, even if the market share of the leading city beauty is not more than 3%, so the warning from the performance of the two enterprises is that women are beginning to cut down their underwear expenses.

There is not enough evidence to prove that China's underwear consumption has declined from the perspective of the emerging micro merchants and Hai Tao.

The international brand that has been expanding its stores in China has just hinted that this is a market where women are willing to spend more money.

In the past, a pair of underwear may be only 100 yuan. In the future, you may need thousands of dollars.

You may ask, "who will spend 6000 yuan on a pair of underwear that no one can see?"

This is a very stupid question - the answer is: every woman can.

Therefore, men should not fantasize about women shrinking their clothing or reducing their food, or prepare to pay for their own pockets. In order to hedge and offset the pain of their pockets, they should pay close attention to the investment opportunities in this market and earn some money in the industry chain of underwear stocks to supplement their families.