Second Card "L2" Strategy Failure, Profit And Net Profit Doubled

China

Limited company (hereinafter referred to as "Li Lang") released yesterday's interim results report 2016, the company's revenue and net profit year-on-year decline.

The announcement shows that as of June 30, 2016, the company's revenue was 1 billion 174 million yuan, down 1.2% compared to the same period last year, and net profit was 266 million yuan, a decrease of 3.9% compared to the same period last year.

During the period, the number of shops was 2935, 50 less than the beginning of the year.

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The number of "LILANZ" retailers decreased by 10, while the number of "L2" retail outlets decreased by 40.

It is worth noting that the "L2", a subsidiary brand developed by the company, has a net loss of 10 million 600 thousand yuan in the first half of this year.

It is understood that Li Lang listed in 2009, second years of listing L2 brand officially released.

Compared to the main brand "LILANZ", the sub card "L2" is more focused on the young people, and the price is lower than the main brand 20%-30%.

In recent years, garment enterprises are constantly looking for new profit points.

Besides developing the inevitable choice of online channels, there are also such things as Li Lang.

Enterprises choose to develop Deputy cards.

After the first decline in 2013, Li Lang began to adjust the product strategy of the sub card "L2", reduce the unit price of the 20% products, expand the number of "L2" stores, and close the main brand "LILANZ" shop with poor returns.

In view of this, some analysts believe that the traditional clothing enterprises, rather than developing new brands and seizing the new generation of consumer groups, are better able to stabilize the "60 after" and "70 after" consumers who have accumulated over the years.

This type of consumer group is the product of China's third population peak, which accounts for a larger proportion of the consumer population and has a broad market space. Compared with the new generation of consumer groups, they are more willing to go to the offline stores to experience and try clothes, and treat shopping as a kind of leisure.

And as they grow older, they will pursue quality, quality and self-worth.