Urban Beauty, Anli Fang, Has Grown Weak. Chinese Women'S Underwear Brand Giants Are Hard To Come Out.

More and more Chinese women realize that underwear is not only a functional clothing category, but a fashion, health, and even a necessity for self enjoyment.

China's underwear market doubled to five US dollars in the past 18 billion years, according to Market Research Institute.

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

Potential, but many industry feedback to the first financial reporter is the competition in the domestic underwear market is still at a very early stage.

The first financial and Business Data Center released the report on the trend of lingerie consumption also shows that China's clothing industry is still at a stage of growth.

Spending habits are lagging behind. In recent years, 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.

Guangzhou Xiu Mai

Zhou Miaohua, general manager of excipient company, told the first financial reporter, "however, the US brand has entered the Chinese market for over a year and has not yet been able to open up the market."

Underwear

Zhou Miaohua, who has been producing for more than ten years, is considering reducing the proportion of underwear in the company's business.

"Underwear itself is compared with garments, and the front and rear ends have relatively high thresholds.

As a category nearest to women's body, how to get the trust of female users and move consumers through the value and concept behind underwear in the new consumer behavior, as well as the challenges of the back-end supply chain, the complexity of the process version, the large volume of orders, 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 first financial reporter verified to Tong Jie's shares. He did not receive relevant feedback as of press release.

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.

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 urban beauty, has been ploughing in the underwear market for 20 years. The first financial reporter combed his great reform in 2017. It is easy to find that as an old brand of domestic underwear, it began to worry about being thrown away by the market. Both channels and product design are painstaking efforts, pointing to young consumer groups, and 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 the first financial reporter.

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.

Big groups grow weak.

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

In early March, the Victoria (sSecret), the parent company LBrands (NYSE:LB) of Vitoria, released the latest financial results. The group's net profit fell 15.1% to $983 million in the 2017 fiscal year.

The first financial reporter 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.

The visa, which has entered the Chinese market, has been criticized for being "ineffective". This is the feedback given by many people in the industry to the first financial reporters.

"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."

Crystal, founder of the famous fashion blogger and Chen pin culture communication company, spoke frankly to the first financial reporter.

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 thought, though

Is a very need for offline experience of the category, but still by the impact of the electricity supplier, online pfer or increase investment in the line is a lot of enterprises have to go the path.

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".