Overseas Fast Selling Brands Enter The Domestic Market, Men's Clothing Companies Are Squeezed.

As the 2016 performance bulletin came out one after another, the men's clothing industry, which suffered from the "terminal downturn" dilemma, did not bring too many highlights to the industry. From the perspective of performance, the polarization trend was extremely obvious. In a depressed market environment, self adjustment, accelerated transformation and cross-border operation have become the choice of men's clothing enterprises. Overseas brands such as H&M and UNIQLO have been launched into the domestic market. These brands are more youthful in design, more popular in price and more in line with the needs of mainstream consumer groups. They succeed in grabbing the share of the domestic garment market and squeezing domestic enterprises.

The men's wear industry is more robust and higher than the overall apparel industry performance, indicating that men's clothing still has room for growth. In the case of low concentration of men's clothing industry and overseas brands constantly squeezing the domestic market, leading enterprises in the country can still maintain the first mover advantage by improving their competitiveness (channel optimization, upstream and downstream integration, etc.). However, due to the erosion of electricity suppliers and poor experience of offline stores, the poor upstream and downstream control, and unable to seize the new trend of consumption, and other factors, physical clothing stores have been suffering from weak sales growth and declining profits in recent years. In 2015, domestic related men's clothing enterprises appeared on a large scale, resulting in a negative growth in the performance of some listed companies.

According to statistics, in the local men's clothing listed companies, except for the rapid growth of the main business of Hai Lan's home, the net profit attributable to the parent company in 2016 will reach 31.01-32.48 billion yuan, and the growth rate will reach 5%-10%, while the benefit subsidy plus investment income will increase. In 2016, the profit growth of the nine owners can be realized by about 10%, but the main business is facing the risk of downslide. The net profit of the School Service Leader George White will reach 63 million 332 thousand and 800 yuan in the 2016 year, down 3.40% compared to the same period last year, and the net profit of the seven wolf 2016 is 266 million yuan, down 2.57% compared to the same period.

Data show that from 2004 to 2012, with the continuous improvement of residents' income and consumption ability, China's Garment Retailing industry has experienced several decades of rapid development. Over the past 8 years, the growth of retail sales of garment enterprises above designated size has maintained a growth rate of over 20%. The scale of clothing retailing increased rapidly from 58 billion 800 million yuan in 2000 to 702 billion 200 million yuan, and the compound speed increased by more than 23%. After ten years of rapid development, China's traditional retail industry is facing more and more overseas competitors' strong entry into the market, market share, poor management of terminal stores, and unfavorable grasp of consumption trends. The growth of garment retailing has declined significantly since 2013. As of November 2016, China's apparel retailing has declined for the first time, and the composite growth rate has dropped to 6% in the past 4 years, and the development of traditional clothing retailing has been a bottleneck.

In the overall slowdown of the retail industry, men's retail sales grew at a relatively steady rate, and the composite growth rate of 2011-2015 years was 15%. The composite growth rate of 2016-2020 years is forecast to decline slightly to 13.3%, but it is still higher than that of the overall apparel retail sales. The per capita clothing expenditure of men increased from 521.5 yuan in 2011 to 882 yuan in 2015. According to the forecast, the per capita expenditure in the next 2017-2020 years in the next 2017-2020 years can still grow steadily at 13%.

Take Hai Lan home as an example, in 2015, its operating income was 15 billion 830 million yuan, an increase of 28.3% over the same period last year. The net profit attributable to the parent company was 2 billion 953 million yuan, an increase of 24.35% over the same period last year, and the growth rate was maintained at a relatively high level. The first three quarters of 2016 achieved operating income of 12 billion 67 million yuan, an increase of 6.56% over the same period last year, and net profit of 2 billion 414 million yuan, an increase of 5.45% over the same period last year. Analysis shows that the main reason for the decline in net profit growth rate is the company's new affiliate Deduction Policy, which has reduced the company's short-term earnings. But with the end of the new store's incubation period (usually 9-12 months), the stores will substantially boost the company's profit level.

As of the third quarter of 2016, Hai Lan's family owned 4962 stores, and the company positioned the mass market. The store was mainly located in three or four line cities. As the company started in Jiangsu, it has a high penetration rate in East China (accounting for 44% of revenue). But in recent years, the company has extended its channels to the southwest and northeast. The growth rate of revenue in other regions (above 30%) is significantly higher than that in East China, so it is expected to enhance the national penetration of the company. Thanks to the unique management mode of the company, the company has grown against the trend in most of the garment enterprises' closing stores. Over the past 5 years, the composite growth rate has exceeded 15%, ahead of the same industry. Competitor 。

From the perspective of expanding the electricity supplier business and supplemental online channels, Hai Lan's home began to expand its electricity supplier channels in accordance with the trend of consumer trends. Hai Lan's men's wear has shops in Tmall, vip.com and other leading electronic business platforms, and ensures the same price on the same line to ensure that the offline stores are not eroded. At present, the company is mainly based on offline franchised stores, while direct outlets and online electricity providers account for a relatively small proportion. In the first three quarters of 2016, direct sales accounted for 1.7%, while online sales accounted for 4.77%, but grew by 53% over the same period. As the electricity supplier gross profit (60.2%) is higher than offline sales (39.9%), so when the company E-commerce business Expanding to a certain scale can boost company profitability.

Wu Xiaoyu predicted that, despite the impact of the new deal in the first three quarters of 2016, the new store started to grow from the fourth quarter of 2016 to the end of the fourth quarter of the year, and the growth of single store revenue will gradually increase. The brand growth rate will be 16.5% in the three quarter. From the perspective of its brand, AI is now in the stage of rapid growth, and the growth rate of revenue in the first three quarters will be 48%. In 2017, the brand will still have about 900 stores on a large scale, and the growth of business revenue will be kept at 47.5%. In 2016, the revenue of the sea group will be reduced. In 2017, the company plans to slow down the shop opening rate and reduce the area of the store (from 555 square meters to 300 square meters), which will lead to a decline in the income of the brand in the next few years, and the compound growth rate will be -6% in the next year. At the same time, due to the increase of rental charges, the sea's gross profit margin decreased correspondingly. San Keno was affected by the industry downturn, inventory backlog and its own no breakthrough products. It predicted that business income in 2016 will decline from double-digit growth to -13%, and the three year compound growth rate will be -14.5%.

Wu Xiaoyu thinks, including men's wear plate. Clothing enterprise To boost performance, we must grasp the industry's current problems and new trends: first, the clothing market is currently fighting for 80/ 90's consumer groups. These groups are more rational in their shopping habits. They also value price performance in pursuit of texture and design personality. Secondly, with H&M, UNIQLO and other overseas fast selling brands entering the domestic market, these brands are more youthful in design, more popular in price, more in line with the needs of mainstream consumer groups and so on. They successfully occupy the domestic apparel market share and squeeze domestic enterprises. Many enterprises blindly fight the price war in response to the threat of electricity suppliers and overseas brands. However, higher production and operation costs are difficult to maintain the company's profitability. Therefore, how to integrate the industrial chain and enhance competitiveness is a difficult problem for garment enterprises to consider.

For more information, please pay attention to the world clothing shoes and hats net report.