Do Chinese Ladies Pay For Underwear?

According to the world clothing and shoe net, Leslie Wei Nai looked at the market in the North American market, a market with more than 1 billion 300 million people.

This market has been or is creating a miracle, but also let some of Leslie's American villagers taste the sweetness.

Cadillac and Lincoln encountered similar problems with the Victoria's Secret in the US market, so they shifted their focus to China, joint-venture with Chinese enterprises and lowering their selling price in return.

Occupancy rate.

Any global

No one can ignore the Chinese market.

Even this market has the magic of "revive the dead".

(Victoria's Secret) of course not so bad, but the decline in its domestic market is enough to worry Leslie.

L Brands has offered its own killer trick to China's market with a high-profile world show.

But would Chinese ladies want to pay for the Made in China underwear for the virgin?

A decline in the United States

For this global attention lingerie show, you are concerned about which models are on the T stage, who has the best figure, who has an angel's wings, and who is lucky to wear Fantasy Bra...

For Leslie wnsnai, he is more concerned about how much attention has been attracted to the show, which cost billions of yuan, and how much brand influence it can generate and how much sales it will eventually bring.

In the past 20 years, Leslie will not worry too much about this.

But last year's ratings and corporate financial data both declined, and even the outside world began to wonder if he could still be in charge of the Limited Brands fashion kingdom.

Leslie wicks, born in 1937, has passed his 80 birthday this year.

Limited Brands (NYSE:LB) is the secret parent company of Vitoria.

A brand marketing campaign can be made into a global fashion show. It can also collect huge amounts of broadcast fees annually to the broadcasters. The show is undoubtedly successful.

There are few people who can see the show on the spot. Even if they have more money, it will be difficult to get the ticket that has been fired to the sky.

Cbs Broadcasting Inc (CBS) has been working with the secret show for many years, and its high ratings continued abruptly in 2015.

Data show that the audience ratings dropped by 32% over the previous year.

In 2016, the audience rating of the 18-49 year old target decreased slightly compared with the previous year, although the total number of viewers was slightly higher than that of last year.

The ratings of the show show a direct reflection of the concerns of consumers in North America.

No one would have thought that the L Brands brand had become the burden of the whole family.

Over the past decades, the company has focused on the North American and Canadian markets, opened up thousands of stores, and has only 50 stores in other parts of the world.

Since the beginning of this year, sales have declined for several consecutive quarters. In the third quarter, the same store sales decline narrowed to 14% in the previous two quarters, and the overall decline in L Brands also narrowed to 1%.

This brand, which occupies more than 30% of the underwear market in the United States, has been in the cold weather in the region.

According to an institutional survey, the purchase intention of consumers in the US has declined rapidly. The underwear which is often hundreds of dollars can not be seen clearly by local consumers.

What worries L Brands more is whether their products can adapt to the needs of the new generation of consumers.

On the other side of the ocean, China's ZARA, H &M and other international fashion brands are leading their brands to the top of the market after entering the Chinese market.

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Although the Chinese market was tested in the form of agency cooperation in 2015, it was obvious that the time did not pay enough attention to the market.

This time, she made up her mind.

In February this year, it launched two flagship stores in Shanghai and Chengdu.

This time, it is moving the Chinese culture to China. This market should be highly regarded by L Brands.

What is worth pondering is that China's first flagship store in Shanghai, Huaihai Road, Li Bao Plaza, the former tenant is LV, a luxury giant. After 6 years of opening, it closed shop in 2 last year.

It is not just LV. According to statistics, luxury brands including Dior, Gucci and so on last year closed more than 30 stores in China.

Chain reaction of Chinese foundries

On the underwear production line in Shenzhen, China, women workers may not be able to imagine that the underwear that is personally sewn out of their own hands will be worn by those models who are over 1.8 meter tall and attracted much attention.

They don't even care about Liu Wen, He Sui or Xi Mengyao, let alone those from all over the world.

What's more difficult for them to understand is that in order to see a lingerie show, so many people are willing to squeeze their heads and throw away the gold.

Most of them are domestic brands such as urban beauty, man's Finn and even some brands.

Although the underwear of Wei was only officially entered the Chinese market in February this year, the brand's close ties with China began more than 10 years ago.

Careful American consumers may have long noticed the "made in China" on the label of their intimate luxury underwear.

Hongyou, a native of Jinjiang, started from a small factory with shoulder pads and made virgin International Holdings Limited into a global carrier for underwear manufacturing.

02199.HK is the largest OEM factory in the world, and has been working together for 16 years.

When the sale of WIM was hit by the cold winter, Virginia was not able to stand alone.

In the 2017 fiscal year (March March 2016 -2017), Virginia recorded a total income of HK $4 billion 680 million, down 400 million Hong Kong dollars.

The company's top five customers all come from the United States, accounting for 64.5% of the company's total fiscal revenue, contributing HK $2 billion 800 million, of which the largest customer contributed 30% of total revenue, exceeding HK $1 billion 400 million.

The high dependence on big customers also made Virginia suffer the first half of fiscal year 2017.

In the second half of the year, revenue growth will be 17.6%, so that the total income of the financial year will not be too ugly.

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However, as the gross profit margin of the company decreased from 24.7% to 19.6%, net profit dropped from HK $440 million in fiscal 2016 to HK $97 million in fiscal 2017, and net interest rate decreased from 8.7% to 2.1%.

With the difficulty of recruitment and the rising cost of labor, Virginia has begun pferring factories to Vietnam with lower labor costs. In March last year, Vietnam's first factory went into operation, specializing in the production of bra and underwear.

In May this year, second Vietnamese factories have been completed, which will replace Shenzhen factories and supply chest cups for Vietnamese factories.

Two Vietnamese factories have brought together 18 thousand workers.

It can be predicted that the Made in Vietnam label will be worn on the ladies of China.

In early November, Virginia issued a positive profit forecast. From March to September this year, the net profit of the company increased by more than 250% over the same period in 2016.

This should not be the merit of Wei Ming.

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