In 2016, The Apparel Retailing Industry Was Huge And Competitive.

From the perspective of the history of trade development, retail is the oldest trade mode, and the initial trade can be regarded as the rudiment of retail trade.

In the initial stage of market development, the small scale of commodity production determines that the supply of commodities is limited, and the self-sufficiency of consumers determines that the demand for commodities is also very limited.

Retail industry

The analysis shows that trade activities are scattered, scattered and small batch and concentrated in a certain area, mainly by retailers.

In the first half of this year, the performance of China's casual wear brands was good. From the similar performance and development trajectories of these brands, we predicted some future trends of the domestic and global apparel retail market.

La Natsu Bell and Hai Lan's family are opening stores in the opposite direction.

In September 22nd, La Natsu Bell released the mid 2016 report. The report shows that as of June 30, 2016, the six On La Natsu Bell's operating income and operating profit were RMB 4 billion 809 million yuan and 395 million yuan respectively, representing an increase of 13.8% and 4.1% respectively over the same period last year.

The profit for the first half of 2016 was 303 million yuan, up 4.8% over the same period last year.

La Natsu Bell attributed the growth of revenue to continued expansion of shops.

In 2016, La Natsu Bell's retail store increased from 7893 in December 31, 2015 to 8483 in June 30, 2016, a net increase of 590.

The financial performance of the first half of the year is somewhat similar to that of men's casual wear.

In the first half of the year, Hai Lan's business income was 8 billion 763 million yuan, an increase of 10.46% over the same period last year, and its net profit attributable to shareholders of listed companies was 1 billion 773 million yuan, an increase of 6.42% over the same period last year.

Hai Lan's home opened 652 stores in half a year.

It is interesting that La Natsu Bell and Hai Lan's family have proposed the Zara and UNIQLO, respectively. The media often connect the two cheap casual wear enterprises and Zara with UNIQLO as a topic of "gimmick".

It is worth mentioning that the "real" Zara is equally strong and is constantly opening new stores.

In the 2016 semi annual report issued in September 21st, Zara's parent company Inditex reported its performance as of July 31st.

The group's sales rose 11.1% in the first half of the fiscal year, earning 10 billion 470 million euros, about 77 billion 830 million yuan, and its profit revenue rose 7.5%, earning 1 billion 260 million euros, or about 9 billion 360 million yuan.

As the core brand of the parent company, Zara is more powerful.

It is reported that in the first half of fiscal year, Zara sales increased by 13%, while ZaraHome sales increased by 17%, while other brands such as Bershka and MassimoDutti achieved a single digit growth.

The strategy of Zara internationalization promotes the growth of performance.

In the first half of this year, Inditex group opened 83 stores in 38 countries, covering all brands, bringing the number of its global stores to 7096.

In September, Zara opened its first store in Hu Zhiming, Vietnam.

In October, Zara will also open its first store in Oakland, New Zealand.

UNIQLO's performance has fluctuated, but it has not stopped the pace of opening stores.

The three quarter report of fiscal year 2016 released by the fast selling group of UNIQLO parent company in mid July showed that the overall income of the group in the first nine months (September 1, 2015 to May 31, 2016) of the group rose in 2016, and the profit fell.

In the third quarter single quarter (from March 1, 2016 to May 31st), Japan's UNIQLO and overseas UNIQLO performance improved, showing a double growth trend in earnings and operating profit, earnings increased by 6.2% over the same period last year, and operating profit increased 18.6% over the same period last year.

Among them, the profits of Greater China (mainland China, Hongkong and Taiwan) also turned to growth and revenue growth was also maintained.

XXX said its medium-term vision is to become the world's first apparel manufacturer and retailer. For this reason, it is also pursuing an international expansion strategy and expanding its stores.

According to Xun group, the total number of overseas UNIQLO stores has increased from 161 to 928 stores in the three quarter of May 31, 2016.

Open more stores and develop online businesses

While expanding the stores, these cheap casual wear brands also seem to have to shop more and more.

According to media reports, Inditex lowered the target of retail space expansion earlier this year and shifted its focus to larger fullyintegrated stores in major markets.

In August, Zara, a flagship store in Antwerp, Belgium, was reopened after renovation and expansion. In September, Zara opened another 5 story flagship store on the main shopping street in Galician, Spain. At the same time, Stradivarius, another brand of the group, opened a flagship store in Oxford street, London.

UNIQLO has also proposed that global new flagship stores and large stores will be launched in major cities around the world, while new UNIQLO stores will continue to open.

The group opened its biggest flagship store in Southeast Asia in Singapore some time ago. UNIQLO also announced that it will enter Canada's second market in North America. It plans to open its first store in CFTorontoEatonCentre, Toronto, Canada in September 30th, which will occupy 3 and 4 floors of the shopping center, with an overall sales area of 2545 square meters.

Domestic brands are also adjusting the terminal structure of the channel.

La Natsu Bell said in a semi annual report that he will continue to optimize the channel structure and increase the proportion of experience shopping center channels.

This means that we will open more stores and continue to implement its multi brand strategy, which is expected to buy or invest in more "lifestyle" brands.

Hai Lan's home also proposed that the new category of women's clothing should be introduced from the "man's Wardrobe" to the comprehensive clothing brand retailer.

And the trend of multi brand and multi category is to go to big stores and collection stores.

In 2016, Hai Lan's home also mentioned that "speed up the expansion of channels, ensure the rationality and rationality of single store layout, and maximize the utilization of the core business circle" in the location of single stores, which means that we should open more flagship stores.

At the same time, there is a phenomenon worth paying attention to.

The growth of brand revenue is not only an expansion of physical shops, but also an important reason for the rapid growth of online revenue.

For example, although La Natsu Bell opened hundreds of stores, its sales in the same store actually declined and continued to slide.

According to the financial report, in the first half of 2016, sales in the same store under the La Xia bell line decreased by 4.98% compared with the first half of 2015.

The same store sales in the first half of 2015 decreased by 0.8% compared with the first half of 2014, compared with 3.2% in 2014.

But La Natsu Bell had bought the seven brand of the Amoy brand. In the first half of the year, the electricity business revenue reached 390 million yuan, accounting for 8.1% of the main revenue (2015 of the total annual sales accounted for 6.5%).

The main business revenue of Hai Lan's home line in 2016 was 417 million yuan, an increase of 99.11% over the same period last year.

It is foreseeable that the future parity clothing brand will pay more attention to the operation of online business, and the O2O mode will be an important part of the brand model of the casual wear.

Some analysts believe that the rapid growth of Zara performance is benefited from this model.

According to media reports, Inditex group CEO Pablo Isla (PabloIsla) believes that the growth of performance benefits from the fully integrated business model under the online and offline business.

"With the promotion of technology innovation such as mobile payment, the group's online business and traditional entity store business can be seamlessly connected, and we will continue to promote these innovations."

Prior to this, Inditex announced that its mobile payment function will be launched in all its brand stores (Zara, MassimoDutti, Stradivarius, Bershka, Pull&Bear, ZaraHome, Oysho and Uterq E) starting from September 1st this year.

This business will be implemented from Spanish stores and then extended to other countries.

For UNIQLO, its goal is "simple and crude": we expect the online store to achieve 30% of its total sales in the medium term.

This is the goal it clearly stated in the three quarterly report.

Improving supply chain efficiency and building logistics center

There is no doubt that fast fashion brands or cheap casual wear brands need to "fast", minimize inventory and continuously improve the efficiency of supply chain management.

There is a view that the real business of the home is not selling clothing, but supply chain management.

The supplier of Hai Lan home is buying on credit + direct mode.

Is its core advantage.

Hai Lan home's 2016 semi annual report shows that the total assets, net assets and net profit of Jiangyin Hai Lan home supply chain management Co., Ltd. are the first in all the 22 subsidiaries and shareholding companies of Hai Lan home.

This shows that the words are not empty.

To improve the efficiency of supply chain, and to vigorously develop online business, the two power superimposes, and push brands to plan one thing next: build logistics centers.

La Natsu Bell mentioned in the earnings report that warehousing and logistics centers will be further expanded in the first half of 2016.

The company said that as of June 30, 2016, the two phase of warehousing and logistics center construction in Tianjin and Taicang is progressing smoothly, and is expected to be completed in the second half of 2016. Chengdu's warehousing and logistics center has entered the construction stage.

In addition, the Group invested more automation equipment in the first half of 2016 to enhance the capacity of warehouse sorting and enhance the efficiency of intelligent warehouse management.

In the first half of 2016, another apparel company, which had a double profit growth in net revenue, said that in 2016, it was necessary to focus on cultivating logistics support capabilities and teamwork capabilities, and create a "public platform" and "supply chain platform".

Recently, Semir clothing has revealed information on the establishment of three new logistics industrial parks. The main purpose of the Jiaxing construction logistics port area is to support the development of future electricity providers. The Wenzhou park is mainly aimed at Barbara children's clothing to make up for its inadequate storage and supporting facilities. The Hangzhou electricity supplier park is considered from the perspective of R & D design to solve the problems of office, technology and R & D facilities.

UNIQLO disclosed that in April 2016, the group's future logistics center in Tokyo has already started operation. Next, it plans to open new logistics centers in other parts of Japan and overseas locations such as China and the United States.

Zara's logistics system is even more exaggerated.

There is no mention of the famous "aircraft delivery". It is reported that ZARA has made a 5 million square foot warehouse, which is 90 times as big as the football field, 9 times larger than the warehouse of Amazon.

Commodities are placed directly in the area belonging to the branch store according to the order needs of thousands of stores around the world.

Finally, manual boxing.

There will be countless trucks at the door of the warehouse to pport products to other European areas or airports two times a day.

The duration of the product will not exceed three days.

It is also reported that an insider in Inditex China has revealed that in the mainland of China, the northward Canton is the three largest port for Zara logistics and distribution, from the three ports to the lower level cities, to the maximum extent by air pportation.

It has been summed up as follows: This is a logistics company in a retail jacket.

It is the boss of a logistics company wearing a clothing retail jacket who has become the richest man in the world.

Although the competition for garment industry in 2016 will be more intense, the support of the garment industry will still occupy a large proportion of the economic development of the whole region due to the large market and more maneuverability relative to many other industries.