Can Domestic Garment Enterprises Start Pformation And Reorganization To Reverse The Decline In One Fell Swoop?

Looking back in 2016, the domestic garment industry was beset with difficulties, and garment enterprises experienced such difficulties as decline in performance, frequent closing up and narrowing of business.

In order to cope with the current situation of the depressed industry, garment enterprises have launched a pformation and reorganization to seek diversified development path.

The seven wolves opened the reinsurance company, and he actively sought pformation and reorganization.

Continue to increase investment in the field of real estate and financial investment.

Vigna S also launched an overseas takeover to sell Teenie Weenie in South Korea.

Under the overall situation of insufficient economic growth momentum, whether these initiatives of garment enterprises can effectively stimulate the growth of enterprises' performance is still unknown.

Unsatisfactory performance

In recent years, due to the impact of labor costs, economic environment and electricity providers, the profit margins of the traditional garment industry have been compressed, coupled with the low entry threshold of the garment industry, resulting in fierce competition in the industry, and many showing homogenization.

YOUNGOR, known as "the leader of domestic men's clothing", has been performing well, but has been trapped in the overall decline of the apparel industry. In the three quarter of this year, YOUNGOR's apparel sector achieved a business income of 2 billion 956 million yuan, 5.5% lower than the same period last year, and net profit of 323 million yuan, down 42.45% from the same period last year.

According to the China Daily newspaper, the net profit of the company dropped by 228.99%, losing 97 million yuan, and operating income in the three quarter continued to decline, net profit decreased by 161.04%, and the loss reached 101 million yuan.

At the same time, he has been running down in recent years. In 2014, his business income and net profit have dropped. In 2015, he sold his shop and property to achieve profitability.

Since the beginning of this year, the income of the company has continued to decline. In the three quarter, it only gained 518 million yuan, down 31.24% compared with the same period last year.

According to its semi annual report, he will continue to sell more than 29 shops that have been purchased according to the economic development and the business circle of different cities. The total cost of the original purchase will not be more than 850 million yuan, which will be sold or leased at the fair price or valuation price of the market.

In addition, Busen shares achieved 246 million yuan in the first three quarters of the year, down 17.33% from the same period last year, and net profit plunged 233.93% to -0.28 billion yuan.

Women's wear is also not satisfactory.

In November, the domestic women's clothing brand Wenger, who had just disclosed the acquisition plan, earned 541 million yuan in the three quarter, down 11.13% from the same period last year. Net profit was 541 million yuan, down 13.06% from the same period last year.

Making a living in pition

Economic downturn and market demand remain low. The declining trend of the garment industry is also difficult to reverse.

Many garment enterprises have to embark on the road of pformation in order to survive.

YOUNGOR, who was quite prescient, implemented the strategy of real estate + investment early.

In 2009, its real estate and investment business contributed nearly 80% of its profits in that year.

Women's clothing brand Vigna S also boldly opened the acquisition.

In November 29th, Wenger issued a notice to buy Teenie Weenie clothing brand and related assets and business to "Yi Nian Hongkong".

Wenger will not issue more than 159 million 400 thousand shares, raising about 4 billion 400 million yuan for the acquisition of Teenie Weenie brand and related assets and businesses of the brand.

However, due to popularity, scale, profitability and other aspects are not as good as Teenie Weenie, the acquisition is also known as "snake swallow elephant" by the market. This acquisition is a blessing or a curse for Vigna S, but it is still unknown.

However, most clothing companies do not continue to add to the clothing plate, but look for new profit growth points.

Take men's brand seven wolves as an example, net profit has declined continuously in the past three years, operating income has increased slightly to 1 billion 790 million yuan in the three quarter of this year, but net profit is still down 7.09%.

In 2015, the seven wolves embarked on the diversified development path of "industry + investment", and participated in the establishment of seven wolf group financial company, Hua Yi Fashion Fund and Xiamen seven equity investment limited company, hoping to make a difference in the field of fashion consumption investment.

In July last year, the seven wolves planned to optimize the 1 billion yuan of the fundraising of the marketing network and invested in the wholly owned subsidiary.

In December 6th this year, seven wolves announced that they planned to use their own funds to invest 315 million yuan, and jointly set up Qianhai reinsurance Limited by Share Ltd with Qianhai Shenzhen Efficient Finance Holding Ltd, China Post Group and Shenzhen far Investment Limited.

Among them, seven wolves account for 10.5% of the registered capital of Qianhai reinsurance.

In 2014, China's high-end women's dress posture opened a pformation plan, claiming to build the "Pan fashion industry interconnected ecosystem".

In April this year, he invested 25 million 200 thousand yuan in DMG company in Korea to enter the field of medical beauty.

In October 16th, he announced that the company intends to invest 500 million yuan to set up a wholly owned subsidiary of the medical management Co., Ltd., will focus on the field of medical cosmetic surgery.

Brand fall

It is still a choice for some enterprises to pform and restructure and use other business segments to feed clothing. But for some enterprises, the clothing sector has already fallen into a decline that can not be saved, so after the reorganization, the clothing business has been abandoned.

For example, the recently renamed clothing brand Dayang creation, its major asset reorganization completed in July is actually a key step in the development of the backdoor listing of Yuantong express.

The Busen shares that have just been reorganized with Xinghe soon will be on the way to Dayang's creation in the near future.

In December 2nd, Busen issued a notice that it would plan to change the main business of the listed company or make major adjustments in its main business in the next 12 months, and clearly stated that the listed company was going to divestiture its original clothing assets at the right time.

The company will pform from traditional garment enterprises to financial technology companies that provide one-stop financial services to SMEs.

At this point, Busen men's clothing business has been completely abandoned is only a matter of time.

Hinur menswear wanted to layout the "Internet +" industry, the price of 10 billion yuan acquisition of Xinghe interconnection, and after 8 months of planning, it eventually aborted. In its latest reorganization plan, the bridegroom Hinur group attempted to pfer its shares of Hinur Menswear, and may involve changes in control. Meanwhile, Hinur's men's wear frequently promoted the growth of their performance by selling rental shops. Although Hinur's top management said he would strive to do well in the main business of clothing, the industry analysts believe that a series of actions by Hinur revealed that the clothing was not very optimistic about the main business of clothing, and did not rule out the possibility of "abandoning men's clothing business" in the future.