Can La Natsu Bell Dilate And Expand To The End?

According to the world's clothing and shoes net, we are going to raise funds on the market, start shop crazily, and be short of money.

Chinese

enterprise

It seems that we want to play this "adverse weather" business development mode.

This simple and crude mode did allow the company to expand rapidly in a short period of time, but the company's profits had a clear downward trend.

Recently, the La Natsu Bell clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "La Natsu Bell") wants to copy the extensive expansion mode of Hong Kong stock to the A share market.

La Natsu Bell (06116.HK) is eager to land A shares, which stems from the high cost of financing of Hong Kong stocks, and wants to get a cheap store through A shares.

Not only crazy shop, but also La Natsu Bell continues to expand.

It seems that the men and women, young and young clothes are to be exhausted.

Craziness will bring a good result in a short time. The stock that has been deformed is a serious sequela left by this company's development mode.

If the management is not good, the inventory will become the last straw to crush La Natsu Bell.

La Natsu Bell is known as "China's ZARA", which must be La Natsu Bell's goal, but the premise is to be able to reach the goal of achieving that day.

Crazy shop, get into the increase, do not give a vicious circle.

Many Chinese apparel enterprises regard ZARA as the "great God" of the industry, trying to copy ZARA mode.

Among them is Zhou Chengjian, 002269.SZ.

What's the result? After the listing of Smith Barney's clothes, the store opens up, and the high inventory makes Zhou Chengjian, a senior tailor, unable to return to the sky.

After her daughter Hu Jiajia took charge of the company, she even wanted to return.

Unlike Zhou Chengjian, Xing Jiaxing, the founder of La Natsu Bell, was not a tailor. He sold clothes at the very beginning.

Despite the fact that the United States has learned from the past, xingjiaxing still seems confident of its market playing.

But the data reflected in the company's earnings are hard for investors to be as confident as Xing Jiaxing.

By the end of 2016, La Natsu Bell had more than 8900 offline retail outlets throughout the country, and all of them were direct battalions.

This data is not estimated in domestic garment enterprises.

The crazy expansion did bring immediate results to the company's revenue.

In 2014, -2016's revenues were 6 billion 200 million, 7 billion 440 million and 8 billion 550 million respectively.

But the net profit attributable to the parent company in 2016 dropped to 530 million from 620 million in 2015.

Over the past year, the number of offline outlets has increased by 1014, and the decrease in net profit is also directly related to this.

The rental expenditure in 2016 increased from 553 million in the previous year to 834 million.

More than 8 billion revenue a year, La Natsu Bell does not own a clothing factory, this low profit labor intensive outsourcing.

As we all know, the gross profit margin of garment enterprises is generally high, and La Natsu Bell is no exception. The gross profit margin of 64% in 2016 is almost the same as that of the same industry.

However, due to the direct mode of operation and the high cost, the company's net interest rate is only 8.85%, far below the 15.67% industry average.

The same is the 603587.SH for women's clothing, although the revenue in 2016 is only 1 billion 800 million, but the net profit of 522 million is almost the same as that of the 8 billion scale La Natsu Bell.

The expansion of all direct battalions and network outlets has resulted in a more dangerous result of rising inventories.

In 2015 and 2016, La Natsu Bell's inventory had exceeded 1 billion 700 million in two consecutive years, accounting for 29.93% and 27.18% of the company's current total assets, respectively.

A garment industry insiders said that many domestic clothing enterprises want to learn ZARA, as long as the expansion of the rich shop is easy, but the real success of ZARA is the response speed of its supply chain, "this point is far from being able to learn overnight.

Otherwise, it will not learn, it will be hurt. "

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How can new brands expand if they expand crazily?

While the expansion of La Natsu Bell outlets is expanding, the company's brand is also expanding.

Through its own development or external acquisition, La Natsu Bell's clothing brands have more than ten.

These brands cover almost all kinds of styles of women's clothing, men's wear, children's wear and brand of electric business. If you add old clothes, then La Natsu Bell can solve the problem of dressing for a whole family.

Especially for women's clothing, although La Natsu Bell has a clear age and style orientation for its brands, there is a shopping mall. In fact, there are no obvious differences between the women's brands and even compete directly with each other.

Strictly speaking, the expansion of the lower outlets is due to brand expansion.

At present, more than half of the company's income is contributed by two old brands, LaChapelle and Puella, while the two brands have 1855 outlets in 2090 outlets. La Natsu Bell said that the growth of these two brands is limited.

The multi brand strategy really looks good, but it can not be seen in the performance of the subsidiaries, but also affects the profitability of the company.

Founded in 2010, Shanghai Le Ou Fashion Co., Ltd. is a subsidiary company of La Natsu Bell, responsible for the research, design and sale of Candie's women's clothing brand.

However, in 2014 -2016, the company's revenue increased slightly, but its net profit fell from 23 million to -167 million.

Coincidentally, in 2016, Guangzhou hechen Clothing Co., Ltd. contributed more than 20 million net loss in that year. The company is responsible for the research, design and sales of high-end and high-end ladies' brand Siastellad.

Founded in 2015, Shanghai Chong an apparel Co., Ltd. is responsible for the design, development and sale of menswear brand Marc Ecko, which has lost more than 12 million in two years.

US is the brand that La Natsu Bell used to directly match the standard ZARA, so he is highly regarded by the company. The net loss of Shanghai excellent ornament, which is responsible for running the brand, reaches 48 million.

If it is understandable that new companies and new brands need to burn money, then the Puella performance of the main brands of the company will continue to decline. I am afraid that La Natsu Bell needs to pay attention to it.

Shanghai micro music, which runs Puella, has been able to maintain revenues of around 1 billion 200 million in recent three years, but its net profit dropped from 158 million in 2014 to 35 million in 2016.

In 2016, La Natsu Bell invested heavily in foreign investment in many companies, covering the Internet clothing brand, high-end women's clothing brand, but also spans the Italy coffee chain.

However, from the published financial data, by the end of 2016, none of the 6 companies participating in the stock market could be successful.

Consumers seem to have had an aesthetic fatigue with La Natsu Bell. During the reporting period, the average number of purchases per customer is decreasing, and the average purchase interval is growing.

This time, La Natsu Bell wants to land A shares to raise 1 billion 640 million, of which more than 1 billion 500 million will be used to open shop, and plans to open 3000 outlets next 3 years. Under the current operating situation of the company, the risk of this investment can be seen.

At the beginning of this year, La Natsu Bell spent millions of dollars to participate in the A+ round financing of the fashion sharing platform Doraemon. Sharing the company's inventory to the platform is a good move.

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