Children'S Clothing Or 360 Degree Growth Highlights

After more than ten years of competition baptism, domestic

The brand has shown a "super and strong" situation.

(02020) at present, it is already a dust storm. Other brands are still in the wind and rain.

We know that sportswear products are not very different in terms of category, and there are two kinds of sales channels on the line and offline.

It is brand and market positioning that can open the product gap.

For example, Anta has been through many years of exploration to form a more mature way to choose the brand spokesperson. After signing NBA star Claire Thompson, the brand value gradually increased.

In 2017, Anta ranked thirty-fifth in the world's 50 most valuable fashion brands, and its brand value increased by 67% to 2 billion dollars.

In the market positioning, Anta positioned its products in the low-end market, and firmly occupied the initiative of the three and below cities.

However, the establishment of brand takes years or even more than ten years, in other words, it needs to be cultivated slowly.

So if we want to bring short-term changes to enterprises, enterprises need to take the initiative to choose the customer groups, that is, to make market positioning for products.

As one of the famous sports brands in China.

(01361) being in action.

The rise of children's clothing business is at that time.

According to the annual report of 2016, there were 6357 stores in the end of 2016, of which 72.5% were located in three or below cities in China, accounting for 8.4% and 19.1% in the first tier and second tier stores.

But even if the "main battlefield" is small and medium-sized cities, the business of 360 degrees seems rather difficult.

Data show that in 2015, 331 sports stores were 7208, and reduced to 6357 in 2016, a year-on-year net decrease of 851.

The "alarm" was not relieved, and the 31st share price fell by 10% during the year.

K-line chart

Is there no way to rally?

In more than 6000 stores, there are 2000 stores for children's wear (921 of which are counters in stores), accounting for 31.46%.

Of the 851 stores closed in 2016, there were 350 children's clothing stores, accounting for only 41.13% of the total number of stores.

Why do children keep a large number of children's clothing stores?

The annual report shows that in 2016, the sales income of children's clothing was about 651 million yuan (if there was no description, the same below), accounting for 13% of the company's total revenue, and its sales increased by 10.6% over the same period last year.

In addition, the gross profit margin of children's clothing business is as high as 43.5%, which is the highest in all business sectors.

According to the first quarter earnings report released in May this year, 1069 stores in children's clothing business increased 7.4% in the same store sales.

But this is not the whole reason for retaining a large number of children's clothing stores.

Two child bonus children's clothing or achievement growth highlights

According to China industrial information network, in 2014, the population aged 0-14 reached 226 million, of whom 124 million were urban children.

Source: China Industrial Information Network

With the gradual liberalization of the two child policy, the birth rate of Chinese newborns is increasing rapidly.

According to the statistics of the health and Family Planning Commission, the number of live births in 2016 was 18 million 460 thousand, reaching the highest level since 2000. The birth rate of two children and above accounted for more than 45%, an increase of more than 10 percentage points over 2013.

In the first 5 months of 2017, the number of live births in the country was 7 million 407 thousand, an increase of 7.8% over the same period last year, and two children and above accounted for 57.7%, an increase of 8.5% over the same period last year.

With the rapid growth of population, all things in the world are mutually beneficial, and will inevitably affect the economic development of related industrial chains.

According to the Research Report of China Commercial Industry Research Institute, in 2017, the scale of children's clothing market in China will exceed 150 billion yuan, which has become a new growth field in the development of garment industry.

In addition, data from Roland Begg, a global information consultancy, showed that the size of the domestic children's clothing market is expected to exceed 280 billion yuan by 2020 with the opening of two children and upgrading of consumption.

In the face of such development opportunities, 360 degrees will certainly not sit idly by and "slip away".

According to the bulletin issued in July 24th, the 361 degree children's clothing orders in the first quarter of the year reached a low double-digit year-on-year increase in the order value of the first quarter of 2018, and shoes, clothing and accessories orders accounted for 47.4%, 50.1% and 2.5%, respectively. The shoes had a double-digit growth in the average selling price, and the clothing had a high single digit growth in the average selling price.

So far, the order value of children's clothing has increased for 13 consecutive quarters.

360 degree already has independent operation children's clothing business unit, mainly provides 3 to 12 year-old child suitable athletic shoes, clothing and accessories products.

It is reported that the growth rate of children's wear is higher than that of the main brand business.

Competition in the same industry is still grim.

The problem is, everyone knows that "cake" is delicious, even if the cake is really big, it may not be enough.

Because the opponents are also taking action.

Lining revealed in 2018 spring ordering meeting that the company had taken back the agency right of children's clothing brand, and plans to launch its own children's wear brand Lining YOUNG in January 1, 2018.

According to the world clothing shoes and hats net, the new brand Lining YOUNG will mainly adopt the direct battalion mode, with two product lines for children aged 3-6 and 7-14.

The channel is planning to open about 500 physical stores next year in the two or three tier cities, and the electricity supplier will also become an important supplementary channel for the brand.

Anta, as the leader of the industry, will not let go of this "fat meat".

Zhitong finance and economics APP learned that Anta had already arranged the children's clothing market as early as 2008, and now owns two brands of Anta KIDS and FILA KIDS.

It is reported that in the first quarter of 2017, the retail sales of Anta brand products showed a low double digit year-on-year increase, of which Anta children increased by more than 30%.

In addition to offline stores, Anta also actively develops online markets.

It is reported that in May 30th of this year, Anta children signed a strategic agreement with Tmall mother and baby, through the cooperation with Tmall, to improve the brand innovative marketing and content marketing by using the top line products.

Accordingly, we seem to feel that the warning of children's clothing market competition is more and more intense.

Can 360 degrees highlight the encirclement? We can use a set of data for reference.

Anta is in the forefront of the industry.

Compared with the four major sports brand listed companies in Hong Kong stock market, sales data of children's clothing (including clothing and shoes) in Tmall's official flagship store have found that Anta is far ahead in terms of product design quantity and sales volume. It seems to have become the other three insurmountable "big mountains".

It is commendable that in the four companies, the market capitalization of the lowest 331 degrees (HK $5 billion 624 million) in its children's wear flagship store has reached 538 products. Judging from the quantity of the products, it seems that it is not impossible to surpass Anta, but the gap between XTEP and the international market is not big, even the sales situation is better than that of XTEP.

This shows that 360 degrees in the children's clothing market does have considerable strength.

With the continuous increase in the order of children's clothing, the story of 360 degrees and children's clothing may be worth reading under the two wheel drive online and offline.

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