Semir Successfully Counter Attack Forced Transformation Of Electricity Providers To Break The Bureau

There are many local fashion brands that have come out in Wenzhou. Semir It is one of the best.

Qiu Guang, founder of Semir, and revisited the development plan of the next five years at the company's internal meeting, also restated Semir's "big goal". It includes two aspects: on the one hand, the retail target will reach 80 billion, the market value will reach 100 billion, and the income will reach 50 billion by 2021. In addition, 10 creative companies can be built, 10 new creative brands will be created, and Semir's real strength in the garment industry will be greatly established. Two is the terminal and front-line business quality that Semir apparel pays more attention to, besides the financial indicators which are more concerned about the capital market. The core indicators also include "three one": the number of shops per million stores is the first; the number of customers in the scale of 100 million is the first; the number of retail tens of billions of brands is the first.

Qiu Guang, who had been an agent of Metersbonwe, and her own Semir brand, once followed the old rival Metersbonwe's market moves. Today, Semir successfully "counterattack", the market value is Metersbonwe clothing two times.

What is the concept of the 100 billion market value target that the industry is concerned about?

Textiles in A shares and H-shares Garment industry At present, Shenzhou International ranked first in the market value of 61 billion 300 million. However, achieving such a market value is not simple. As the largest knitwear manufacturer exported to Japan, Shenzhou knitting has always been the main market in Japan, covering all the knitted garments, including sportswear, casual wear, underwear, pajamas and so on. In recent years, international famous sports brand customers such as Nike, Adidas, PUMA and FILA have also been developed, and actively expand the European and American markets.

At present, the market value of Semir is 27 billion 600 million. To reach 100 billion market capitalization, Qiu Guang and further explain that it will keep abreast of four billion industries with clothing and apparel, a billion industry and electricity providers, children, clothing and investment.

Forced transformation

Semir's growth momentum is continuing. According to Semir financial report, the operating income in 2016 was 10 billion 703 million yuan, up 13.21% from 8 billion 454 million yuan in 2015, and the total profit was 1 billion 876 million yuan, up 3.74% from 2015's 1 billion 808 million yuan. The net profit of shareholders belonging to the listed company was 1 billion 427 million yuan, up 5.78% from 2015 1 billion 349 million yuan.

However, what attracts people's attention is not only the increase of revenue figures, but also the effective way of transformation and upgrading of traditional garment enterprises.

Like most clothing enterprises in China, Semir's life is not always clear. In 2011, the number of Semir stores increased by more than 1400, but by 2012, the number of stores in the country has reached 4420. In 2013, the number of Semir stores has changed to 4029. That is to say, in 2013, Semir closed nearly 400 stores. Sales of casual wear continued to be poor, and Semir began to shut down inefficient shops on a large scale.

Semir has summed up the reasons for the decline in product sales: in addition to the impact of online shopping, the impact from foreign brands is also huge. In recent years, foreign fast fashion brands UNIQLO, Zara and H&M have entered China's development one after another. These brands, apart from the soft power of design and brand, far exceed domestic brands, the hard power of the supply chain system is far beyond that of domestic counterparts. The supply chain system of Semir and Smith Barney is in a leading position in China. The lead time (from product design to sales time span) is about 2 months to 3 months, while the leading time of Zara and H&M is only 2 weeks.

Due to the impact of the fast fashion brands of foreign clothing and the segmentation of consumer market, together with the blind expansion of most Chinese garment enterprises, Semir has plunged into a crisis of stock quagmire and image decline. From Semir's 2012 and 2013 annual reports, we can see that the main income of its casual wear has been declining for two consecutive years. In 2012, its leisure wear realized its main revenue of 4 billion 880 million yuan, down 12.64% compared to the same period last year. In 2013, the main income of casual wear was 4 billion 683 million yuan, down 4.04% compared with the same period last year.

Electricity providers to break the power

In the face of the 2013 crisis, Qiu Guang and his sober scrutiny are brewing the great changes of Semir: integrating and upgrading the upstream and downstream supply chain, expanding the channel of electric business, innovating brand management, accelerating the cultivation of new brands, and deeply integrating the high-quality resources of the whole world. Semir broke into a series of "combined boxing" - zeroing, cohesion and leaping.

Qiu Guang and this explanation of this great change: the so-called zeroing is to unload the burden and regenerate the passion for starting a business; cohesion refers to the launching of large system and large platform operations, that is, diversification of products, diversification of brands and diversification of channels, and ultimately through qualitative change and innovation.

The turning point appears after transformation.

Semir electric business did not get involved until 2010. In the Taobao double 11 activities in 2014, Semir took nearly 200 million yuan in business. For this reason, it launched the online exclusive brand "brother Lai AI". It has attracted a lot of customers who focus on consumption experience by means of "high quality parity" brand tone and "cost-effective" online strategy. In the 2015 "double 11", Semir's e-commerce brand has nearly doubled its year-on-year growth in terms of 396 million sales. On Tmall, regardless of traffic or sales volume, Semir is the top of the latecomers.

After Qiu Guang and tasted the sweetness, the investment of e-commerce channel continues. After investing about 115 million yuan in Korea's cross-border e-commerce platform ISE, it added 770 million yuan to build the Zhejiang Semir e-commerce Industrial Park project and Semir Pinghu Jiaxing port warehousing and logistics base project, with a view to promoting the development of O2O online business integration mode.

At the "2016 new network business summit", Zheng Xiaomeng, director of Semir electricity supplier, said: "we hope to achieve internal integration and development through high efficiency. Traditional clothing brands tend to rely on their traditional baggage. Though this burden may be heavy, it may be a regular function for them. For example, the brand should rely on the shop, relying on the factory and relying on the designer. The Semir electricity supplier is effectively integrated into the social resources that can be utilized, such as the development of products through the way of buying hands.

On the contrary, once the bidding enterprise, Metersbonwe, its own electronic business platform, the state purchase network was launched in 2010. In 2013, it created the O2O shopping experience store in the whole country. In 2015, it launched the mobile Internet, launched the clothing matching platform supporting the one key purchase, "fan APP", and the high investment did not achieve much effect, which became one of the reasons for the loss. The reason for this is that the industry believes that many moves by the United States have not touched the essence.

Seize children's clothing heights

The East is not bright and the west is bright. In the process of transformation, Semir accidentally discovered that children's clothing has become a new growth point. From the 2012 annual report of Semir, we can see that while the main income of casual wear decreased, the main income of children's clothing was 2 billion 110 million yuan, an increase of 3.02% over the same period last year. In 2013, the main business of casual wear continued to decline, and the main income of children's clothing was 2 billion 535 million yuan, an increase of 19.90% over the same period last year.

In the two tier market, Semir is also sought after by the agency for the idea of the children's industrial chain. At the investor exchange meeting held in 2014, Semir focused on the children's clothing sector. On the second day after the survey, its stock closed at a daily limit.

At the investor exchange meeting, Semir said that the children's clothing market is now in the stage of epitaxial expansion, with a market capacity exceeding 100 billion yuan. Benefiting from the liberalization of the birth policy, the children's clothing market will have a good momentum of development in the future. At the same time, with the improvement of consumption ability, consumption will change from low end to middle end, and consumers need safer, high-quality, cost-effective clothing for children. Semir clothing also believes that although the self created brand Balabala has ranked first in the retail sales of children's clothing industry in China, retail sales have reached 5 billion yuan in 2013, but the market share is only 3%. In foreign countries, the top ranked brands in children's wear industry account for about 20% - 30% of the market. Therefore, regardless of extension or endogenous growth, children's clothing brand space is very large.

Semir said that big stores, upstairs shops and boutiques are the trend of children's clothing development. Children's clothing brands may set up separate brand stores in shopping centers, and also support collection stores. In the future, Barbara and many dream shops will not be less than 80 to 100, with a standard area of 100-150 square meters and a low threshold franchise operation system. As a family entertainment and entertainment center, shopping centers will become the main channel for Semir to open children's clothing stores.

Thanks to Barbara's contribution to Semir's clothing performance, Semir is now building a children's industrial chain to diversify. Qiu Guang he means that children's industry is the only way out for Semir's transformation. Semir will integrate resources to create a comprehensive service provider for children's industries through investment in animation, film and television, children's education, Internet services and other related children's cultural and educational industries. In 2014, Semir began setting up an early education training market to acquire 70% stake in Shanghai, a child education enterprise.

Set up benchmarking shops

For reference to UNIQLO, there are 60 shopping center stores in Shanghai, 10+ stores in Beijing, and 40 million stores. Therefore, Semir believes that the fast fashion can be done well. Besides, the logic of street shops is bottom-up, but the shopping center is top-down, so the shopping center shops will create a brand explosion as a result of shop marking.

At the mid 2015 investor conference, Semir said that the new store area of Semir brand should reach 82 thousand square meters, with 200-500 square meters of standardized stores. "This standard has passed our sales, production, R & D and other data analysis, in line with Semir's product structure and production utility, which can bring us the advantage of integrating upstream and downstream resources to the maximum. As a result, adult agents have closed and integrated smaller stores and less profitable stores, adding new standardized, better location and larger stores and improving profitability. Zhou Pingfan, President of Semir, explained at the investor exchange conference.

It is not hard to see that Semir hopes to further enhance the market share of the brand through the strategy of store standardization planning and channel sinking.

In order to strictly control inventory risks, Semir has perfected the information system. It intends to strengthen the management of the two level agents, analyze the data according to the indicators such as agents' sales and inventory each week, and allocate the inventory each quarter to reduce the inventory risk of the agents.

Conclusion

Qiu Guang and recent investment are also very active. He thinks that this forum will bring some changes in the future.

Qiu Guang and I believe that Barbara, as the leader of the children's market, has 4000+ stores under the line. In the future, it will be a large entry traffic under the line. With these flows, the company can further expand the development of its children's business, including investment, mergers and acquisitions, based on these customer channels and brand resources.

But I have to admit that Semir is also facing challenges. Because compare Fast fashion Semir and the United States deep ploughing three or four line cities for many years, the future will continue to adhere to the channel sink, to strengthen the coverage and business expansion in the three or four line city. But the fast fashion novelty and fast cycle are the challenges of Semir and Smith Barney.

For more information, please pay attention to the world clothing shoe and hat net information report.