In Search, He Said Publicly That Gross Margin Would Drop.

mainland

Faucet

Group Limited by Share Ltd (hereinafter referred to as "search special") director, deputy general manager, Secretary of the board of directors Liao Gangyan recently said publicly that the gross margin of the company's clothing products is generally around 40%, which will give customers and consumers more profit in the future, so the gross margin will be reduced.

According to the world clothing shoes and hats net, search for special.

The market positioning of clothing business is the three or four line city in China, and the consumer positioning is an ordinary young consumer group of 16-35 years old.

The company focuses on the high-end links of garment industry such as brand promotion, R & D design and marketing channel construction, outsourcing all the production and processing low-end links.

The company centrally procuring raw materials, and after the production and processing of the products are completed, they are sent to franchisees and direct outlets across the country through the company's warehousing and logistics.

Liao Gangyan said that in recent years, the clothing consumption market has undergone great changes, and the consumer market has changed from a seller's market to a buyer's market. The consumption tendency of the new generation of consumer groups tends to be smaller, individualized and differentiated.

In the past, the mode of development by horse race and extensive development has been difficult to continue. It is necessary to make new explorations in business mode, product design, marketing and so on, and carry out meticulous management so as to adapt to the changes in the consumer market.

Search also made a lot of explorations in these aspects. On the one hand, we launched 10 brands to satisfy consumers' personalized consumption demand; on the other hand, we made a deep reform of the store's image to provide consumers with a good consumption experience; at the same time, we constantly improved the quality and quality of products, and further lowered the price of products, trying to provide consumers with more cost-effective products.

However, in an internal information obtained by reporters earlier this year, Mr. Ma Hong, chairman of the special office, said: "the clothing industry is still a constant demand industry, and its clothing is characterized by high inventory and high gross profit (30%+).

The apparel industry chain is very long. The products can be profitable from the retail, wholesale, distribution, franchised, garment factories, dyeing factories, weaving mills, cotton mills, and cotton.

Ma Hong said that in search of special products, the main products are cost-effective, which is mainly achieved by the coordination of supply chain efficiency and low cost.

For customers, the main advantages of searching for special supply chain management services are: on the one hand, scale purchase and cash payment can reduce purchase price; the other side can solve the problem of customer's capital.

In addition, scale sourcing is easier to attract quality suppliers while maintaining stable supplier product quality.

In Mr. Ma Hong's view, at present, the purchasing cost of SMEs is high, and they are faced with high financing costs and difficult financing.

Many factories have put forward the "centralized procurement, cost advantages, less wastage and quality stability" procurement appeal, even if the company earn 10 profit from it, many processing plants are still willing.

According to the world clothing shoes and hats net, Mr. Ma Hong also used his supply chain project subsidiary "Dongguan Ji Yate" as an example to say that Dongguan "Ji Yat" currently has 3 shareholders and 40-50 suppliers.

The purchase is mainly based on the customer order needs of downstream garment factories, and the purchase price difference is earned.

Gross margin level 6%-12%, net interest rate 4.5%-5% or so.

In terms of revenue, the company expects a scale of around 1 billion yuan (estimated by natural customers based on their respective customer resources).

In the first quarter of 2016, 1 and February were the off-season. In March, the scale was about 60 million yuan, and April was about 80 million yuan. In the near future, there could be about 10 million yuan a day.

Looking ahead three years later, the company is expected to reach 5 billion yuan in sales.

In this regard, the industry believes that, from the profitability point of view, although the gross profit margin in the search industry than other listed companies in the same industry 44-88 percentage points lower, but the company's sales net profit is at the top level in the industry.

However, this low price strategy has to achieve cost control through excellent supply chain management, so as to achieve a balance between cost performance and profitability.

Founder Securities analyst Li Ruihong here talked about finding ways to expand directly through the direct connection of franchised stores to the franchisee, and to a greater extent, let the franchisee make the rapid expansion of the channel, and establish a strategic partnership with the main raw material suppliers. In order to ensure timely, economic, high-quality and efficient supply of raw materials, the purchase price can be obtained by expanding the scale of the batch purchase, and the scale effect will be more obvious after the listing.

In addition, by optimizing the technological process to reduce the amount of raw materials used in the unit, the operating pressure of the fluctuation of raw material prices has been lowered, and the steady growth of gross profit margins has been maintained.

Reporters also noted that, according to the profound changes in the development of China's clothing market and the actual situation of the company, the reporter put forward 2016-2018 years' development strategy based on the continuous upgrading and optimization of the company's existing brand promotion, product design, supply chain management and channel operation. At the same time, the development strategy of "multi brand, full channel and platform" should be put into practice. Through capital operation and integration of industrial resources, the "fashionable FMCG Brand Ecosystem" can be constructed from offline to online, from middle to low end to high-end, from domestic to international, and to meet the clothing needs of various consumer groups.

According to the world clothing and shoe net, in 2016 1-9, the company realized a total revenue of 4 billion 29 million yuan, an increase of 202.08% over the same period last year, and realized a total profit of 406 million yuan, an increase of 99.42% over the same period last year. The net profit attributable to shareholders of the parent company was 259 million yuan, an increase of 74.58% over the same period last year.

Among them, the third quarter single quarter operating income and net profit increased by 270.41% and 90.07% respectively.

The former Founder Securities analyst Li Ruihong predicted that the special public offering has been approved by the securities and Futures Commission of the securities and Futures Commission, and 297 million shares have been issued after the implementation of the dividend payment scheme and the additional capital stock plan. The company will receive 8 billion 656 million yuan, 20 billion 366 million yuan and 34 billion 890 million yuan in revenue in the first 2016-2018 years to achieve 505 million yuan, 763 million yuan and 1 billion 38 million yuan of net profit attributable to the parent company.

More interesting reports, please pay attention to the world clothing shoes and hats net.