Why Is The Underwear Market So Large That It Is Hard To Get The Underwear Brand Tycoon?

More and more Chinese women realize that

It's not just a functional clothing item that can be done, it needs both.

Health, and even a necessity for self pleasing functions.

According to the world clothing shoes and hats net, Chinese underwear

The scale doubled to five US dollars in 18 billion years.

Market consulting firm arrow predicts that the retail value of China's women's underwear market is expected to reach US $25 billion by 2019, reaching two times that of the US market, and this figure will increase to 33 billion US dollars by 2020.

Industrial development needs upgrading

Despite having such a huge market potential, many industry insiders give feedback to reporters that the competition in the domestic underwear market is still at a very early stage.

The report on the trend of lingerie consumption released by the business data center also shows that the clothing industry in China is still at a growth stage, and the consumption habits of personal clothing are lagging behind. In recent years, the average per capita expenditure is only about half that of developed countries.

"Big brands including urban beauty and Ttiumph should not have a brand's market share of more than 3%.

The market share of the top ten brands is not nearly as high as 20% of its local market share, and five of the top five brands occupy at least 70% of the local market share.

Zhou Miaohua, general manager of Guangzhou Xiu Mai clothing accessories company, told reporters, "however, over the past year, the US brand has entered the Chinese market and has not yet been able to open up the market."

Zhou Miaohua, who is engaged in underwear accessories production for more than ten years, is considering reducing the proportion of underwear in the company's business.

"The underwear itself is compared to the garment, and both the front and back ends have a relatively high threshold.

As a recent category of women's body, how to get the trust of female users, the value and concept behind the underwear, and the challenges of the back end supply chain under the new consumption behavior, the complexity of the process version, the large quantity, and so on, are all very challenging.

Zhou Miaohua said, but he also said that this is not his main reason to reduce underwear business.

In fact, from the impact of the electricity supplier, so that Zhou Miaohua has been deeply ploughing online under the business suffered a lot of impact.

In addition, the intensification of competition in the industry once affected his confidence in the market.

"Underwear enterprises are now showing obvious differentiation.

We are in a relatively low-level enterprise, and in this market, they are becoming less competitive and can only be forced to pform.

Zhou Miaohua reluctantly told reporters.

It is worth noting that in March 22nd, 002763.SZ, known as the "underwear first stock", was also pointed out that the exit from Jingdong was due to channel competition.

The reporter verified to Tong Jie's stock manager. As of press release, no relevant feedback was received.

Guoxin Securities research report pointed out that China's underwear market structure is decentralized, with a large number of brands, up to more than 3000, but 99% of the brand sales scale are below 100 million yuan, and there are few brands that sell over 1 billion yuan.

02298.HK is one of the few Underwear Companies in the country with more than one billion scale underwear.

However, it seems that the days of underwear giants are not very good.

In March 22nd, the city beauty released its 2017 performance report. In order to cope with the structural adjustment of China's personal clothing industry and face the challenges of fierce market competition, the group took the initiative to adjust sales and distribution channels and close many stores that lost money, resulting in a decline in sales and retail revenues to franchisees.

The annual report shows that the total number of urban beauty stores decreased by 362 in 2017.

In fact, in the first half of 2017, urban beauty faced the challenge of both net profit and net profit.

In 2016, its profits even dropped. Sales revenue dropped by about 8.9% to 4 billion 510 million yuan in the year, and net profit dropped by about 55.2% to 242 million yuan.

Reporters learned in the interview that the urban beauty who landed in the capital market in 2014 can be said to be an important promoter of the underwear industry to the public eye.

In the urban beauty listing prospectus, by the end of 2013, according to the total sales revenue, urban beauty accounted for about 2.8% of the market share of the clothing industry, almost three times that of the second largest underwear practitioners in China.

But urban beauty is mainly engaged in design and sales, and almost all of the production is outsourced.

Bra is the main product, accounting for more than 40% of the company's products.

Now look at the composition of urban beauty, but it is divided into 37.22% retail outlets, 55.85% to licensed dealers, and 6.93% to e-commerce services.

01388.HK is still the 100% main business of underwear. The group of Manifen's underwear brand is mainly composed of 67.15% of Manifen, 14.66% of eaves, 9.11% of Lan Zhuoli, and OEM1.94%.

It is understood that, according to the channel to divide the main composition of the urban beauty in the underwear market has been ploughing for 20 years, reporters combed in 2017 in the drastic reform is not difficult to find, as an old brand of domestic underwear, it began to worry about being thrown away by the market, whether it is in the channel or in the design of products are painstaking efforts, pointing to the young consumer groups, to the middle and high-end.

"In 2017, the company hired a lot of new executives, increased investment in e-commerce channels, shut down hundreds of Direct stores, and constantly refurbished new stores to stimulate consumption."

Urban beauty, a market insider, told reporters.

In addition, the reporter also noted that the gross profit margin of urban beauty in 2016 was 44%, while the gross profit margin of similar enterprises was generally close to 60%.

In fact, the "sale to the franchisee" in the above main components is the key to the dilution of its gross margin.

In the other two, the gross profit margin of an Li Fang and Hui Jie shares reached 78.7% and 68.4% respectively.

"The positioning of urban beauty is the public's small profits but quick turnover, but if the product is not sold, the operation efficiency will be reduced, and the operation cost of the channel will become a burden on the development of the enterprise."

Wu Kai, a senior apparel retailer, told reporters.

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Big groups grow weak.

The lingerie itself is a challenging field, and the challenge is not just from the same dimension.

In early March, Vitoria's Secret (Victoria, sSecret, hereinafter referred to as "Wei") parent company LBrands (NYSE:LB) released the latest financial results, the group in fiscal year 2017, net profit fell 15.1% to 983 million dollars.

Reporters learned from Wind data that its main business is composed of 58.48% of its underwear.

In the past two years, the brand has been in a state of continuous downturn. Although it can be seen that the group is constantly adjusting its strategy, it still has little effect, and its PINK performance has not been able to keep up with the market.

It has been criticized as "acclimatized" by the Chinese company, which has been pushing forward into the Chinese market. This is the feedback from many people in the industry.

"The version is not grounded, and in the market promotion strategy, the foreign set has been introduced into the Chinese market. Although the angels and shows are huge, they do not really hold the consumer psychology of Chinese consumers."

Famous fashion blogger and Chen pin culture communication company founder Crystal told reporters.

In the interview, the reporter learned that the product lines of Europe and the United States moved to China directly, but 30% of the products were ultra-thin, but this type of underwear had only 6% market share in the Chinese market.

However, Wei is still optimistic about the Chinese market.

From its potential in the Chinese market, Shanghai's first flagship store opened in February last year. It has opened six stores in Shanghai, Chengdu, Chongqing, Suzhou and Guangzhou.

In November 2017, the high-profile show was unveiled in Shanghai.

It is reported that this is the most important choice of the Chinese model, and its ambition for the Chinese market is self-evident.

Unlike the Chinese market, which is still very aggressive, as an old lingerie manufacturer, an Li Fang is similar to the urban beauty. In 2017, it adopted a relatively conservative approach to the investment in physical stores.

In its 2017 interim results announcement, it said that in the face of unstable consumer confidence, retail outlets would be appropriately adjusted to close or reset low benefit stores to enhance the overall effectiveness of the sales network.

In January 26th this year, the latest retail Data Bulletin released by ANN Li Fang showed that by the end of December 2017, the total sales point decreased by 142 to 1925, including 1705 counters and 220 specialized stores.

Wu Kai believes that although underwear is a very need for offline experience of a category, but still by the impact of the electricity supplier, online pfer or increase investment in the line is a lot of businesses have to go.

In addition, if foreign brands are unable to adapt to the environment of local operations, big investment is also the result of helping other enterprises to educate the market, resulting in "empty bamboo basket".

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