How Does Lang Lie In The Men'S Wear Market?

China

Industry sales in 2016 fell again in the second quarter.

Rainstorms and floods in six or seven, plus the backlog of retail outlets in the autumn and winter last year, will cause pressure on sales prices. It is expected that the industry will not improve significantly in the second half of 2016, and industry integration will continue.

Faced with multiple market pressures,

How will men's clothing cope with this? Let's see what Mr. Wang Dongxing, chairman and executive director of the Chinese real estate company, Li Lang, said.

Market downturn:

Net profit fell

Yesterday, China Lee Lang Limited (HK share number: 1234) released its first half performance in 2016.

In the first half of the year, income and net profit declined in the first half of the year.

Net profit for the period was 266 million yuan, a decrease of 3.9%.

The Board recommends an interim dividend of HK $13 per share and a special medium-term dividend of HK $5 per share.

The income in the period dropped 1.2% to 1 billion 174 million yuan.

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Sales of LILANZ increased slightly, from 1.1% to 1 billion 95 million yuan, while the sales of vice brand L2 dropped 25% to RMB 79 million yuan.

Wang Dongxing, chairman and executive director of China's Li Lang, concluded: "the group implements the strategy of" upgrading quality and not raising prices "to enhance the originality and cost performance of products, so as to win the market by products.

The group also continued to strengthen the management of supply chain and retail channels, enhancing channel monitoring capabilities and improving operational efficiency.

Although the weak consumption and the impact of heavy rains and floods in six or seven months will inevitably affect the retail performance of our group, the retail sales in the first half of the year continued to grow. "

Channel integration:

Will continue to open large stores

During the period, Li Lang continued to set up large stores in shopping malls of provincial capitals and prefecture level cities in response to changes in consumption patterns. By the end of June 2016, the number had increased to 50 to 60, and sales performance was in line with expectations.

As of the first half of this year, the number of shops in the 2935 shops.

The number of retail outlets in the LILANZ brand has been reduced by 10, mainly due to the reduction of the number of shops in the department stores due to the closure of inefficient shops due to actual operating conditions.

The number of L2 brand retailers decreased by 40.

In terms of online channels, the company will continue to use Tmall as the main online sales channel, and is also studying the good use of WeChat platform to provide customers with products and send them to the store for trial service.

The new service is expected to be launched in the fourth quarter of 2016, with the aim of increasing customer flow and enhancing store efficiency.

Original design:

Set up women's clothing design team

In the first half of 2016, Li was hired as a foreign woman designer in the form of a single season contract, and was responsible for the design of the fall women's series in 2017.

The local women's wear design team has also been established. In addition to the autumn and winter products that have been launched in 2015, a series of women's clothing products will also be launched in spring and summer 2017.

In addition, as sales of high-end products continued to rise, sales accounted for about 5% from a few years ago to about 13% in 2016. Therefore, in the first half of 2016, Lee also recruited a foreign designer to design high-end series, hoping to further increase the sale of high-end series.

What is worth mentioning is that he is committed to cutting the strategy of "improving quality and not raising prices", improving product cost performance to promote sales, and focusing on cost control to maintain stable gross margins.

In the products of 2016, the original ratio is expected to be close to 65%. Among them, the proportion of products developed by the group is about 30%.

In the long and medium term, Li Lang hopes to increase the proportion of original products to 70%, while the target of using the unique fabrics developed by the group is 50%.

Future planning:

The chairman said so.

President Wang Dongxing concluded: "the sales of Chinese men's wear industry went bad again in the second quarter of 2016.

Rainstorms and floods in six or seven, plus the backlog of retail outlets in the autumn and winter last year, will cause pressure on sales prices. It is expected that the industry will not improve significantly in the second half of 2016, and industry integration will continue.

In the second half of 2016, Li Lang will maintain a prudent shop opening plan. The main brand LILANZ aims to maintain the current number of stores, and continue to optimize the store network, and open shops in the appropriate locations through the first tier distributors, especially in the shopping centers of the provincial and prefecture level cities. The sub brand L2 will continue to close the shops with poor operational indicators according to market conditions.

At the same time, he still expects to increase retail sales in the second half of the year by enhancing product strength and channel management, and further consolidating the leading position of Lang in the men's clothing industry in the long run to achieve sustainable long-term growth.