The Big Show Is Still Hot, But Chinese Supplier Vijani Profits Have Plummeted Nearly 90%.

2016 "

"Underwear show" is staged in Paris, France, and China's four supermodels Liu Wen, Xi Mengyao, He Sui and Ju Xiaowen also make a collective appearance.

It is understood that Wei is part of the United States.

Limited Brands group, the producer of the first fashion show in 1995, has been in fashion for twenty-second years.

In 2015, the first store in China was located in Raffles square, Shanghai.

Although the annual vogue lingerie show is still popular in fashion circles, it is based on its suppliers in China.

The November 28th mid year financial report showed that its profit plunged by nearly 90%.

Virginia's revenue is bleak.

In October 8, 2015, Virginia listed on the main board of Hongkong, providing the world's leading lingerie and sports brand design and OEM business. Its customers include underwear brand Victoria 's Secret, Bali, Maidenform, CalvinKlein, Warners, etc., sports brand VSX, Adidas, Reebok, Under Under and so on.

Jeanne and Victoria's parent company and LBrands, the largest underwear retailer in the United States, have worked together for 15 years and are one of the largest underwear suppliers in the world. According to the Bank of China International Holdings Limited, 35% of virgin nickel's sales come from LBrands.

According to the world clothing and shoe net, in September 2016, Virginia sales rose 3% over the same period last year, but this was mainly contributed by its daily chemical products (9% growth), while the sales of its products were weak, with an increase of 0%.

In September last year, the growth rate of the products was 8%.

The situation in the entity store is even worse.

In addition to the contribution of e-commerce, the same store sales in September fell by 2%, compared with 9% in the same period last year.

By comparison, it is not difficult to see that it has been stagnant for third consecutive months.

Not only did it increase by 0% in September, but in August and July, the year-on-year growth rate was 0%, while the physical property declined slightly for three consecutive months.

Due to the downturn in the performance of major customers, virgin also issued a profit warning in June of 2016 fiscal year, according to virgin ginson daily data, virgin mid-term earnings plunged 89.3%, from 217 million 400 thousand Hong Kong dollars in the same period last year to 23 million 244 thousand Hong Kong dollars.

In the first half of the year, the company's chief executive, hung Yu Yi, explained that the group's revenue declined and the fixed expenditure could not be reduced due to the reduction of orders at the same time by several major brand partners.

He said the group's net profit and gross profit margin plunged were the most difficult period since the financial crisis of 2008.

However, he also pointed out that this is only a temporary situation and is confident of improving the gross profit margin in the second half of the year.

In mid October, Morgan Stanley released a report that lowered the group's rating from overweight to neutral and lowered its target price from HK $11.4 to HK $8, a drop of nearly 30%.

Underwear business is not good enough.

From Virginia's interim results report, the reporter noted that compared with the data in 2015 and 2016, compared with Europe, Southeast Asia, South Asia, Japan and other countries, its income in the mainland of China fell off from 283 million Hong Kong dollars in 2015 to HK $163 million in 2016.

However, the underwear business in China is also unhappy.

Earlier, urban beauty, Ann Fang and other underwear listed companies have issued early warning performance (or revenue decline) in the first half of 2016: urban beauty realized 2 billion 200 million yuan in the first half of 2016, an increase of 0.2% compared to the same period last year, and net profit of the parent company decreased by 35.6% over the same period last year.

In the interim profit and net profit in 2016, the company's profits fell by 38.47% to HK $89 million 348 thousand.

China's underwear market doubled to five US dollars in the past 18 billion years, according to Market Research Institute.

Euromonitor, the market consultancy, predicts that the retail value of China's women's underwear market is expected to reach US $25 billion next year, two times that of the US market, and this figure will increase to 33 billion US dollars by 2020.

On the one hand, the scale of the whole underwear market is expanding, but on the other hand, for many underwear enterprises, they are facing the dilemma of declining revenues, decreasing profits or even losing money.

Ma Gang, an independent critic of shoes and clothing, told reporters that there are two reasons for the larger sale of underwear market in China: first, the positioning of the same brand presents a constantly fragmented market trend. New brands begin to divide the market in different latitudes, which is different from the market positioning based on age. Some brands enter the market from the functional perspective to attract consumers, thereby snatching the customers, resulting in the loss of a brand customer and the sales profits being impacted. Second, to a large extent, it is related to the emerging sales channels in recent years, such as the electricity supplier, especially the micro dealers, constantly emerging in the underwear market in the form of self marketing, occupying the market share of traditional sales.

Ma Gang also said that there may be two aspects of the pattern in the underwear market in the future. The market concentration of mass brands will be higher and higher. A large number of market share will be divided by a few brands, while the brand market that is biased towards small consumer groups will be more and more subdivided, and there will be subdivision of the brand to generate and grab some markets, forming a trend of cutting the market.

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