"Men'S Wardrobe" Is Not Just A Man'S Clothing.

In the pformation of Hai Lan's home, it has been highlighting young vitality. The consumer market has been developing from three or four lines to one line. The sales mode has also been testing water from a single line.

The pformation of Hai Lan's home

Among the many listed clothing companies in A shares, there is such a company whose total business revenue is second, but the net profit is not only the first, but also higher than the total number of the four plus ones.

This company is actually no stranger to us.

From the "two times a year, Hai Lan's home, every time there is a new harvest, men's wardrobe."

Later, it was more simple and brutal: "men only spend two times a year to visit the home of Hai Lan."

Its advertising words have already been deep in mind.

Recently, the replacement of the spokesperson into a popular little forest has also aroused a heated debate.

A shares of textile and apparel group, the top five of net profit in 2017

Source of data: corporate earnings

In fact, the business of Hai Lan's home has been very good.

Let's look at some key data together.

This can not help but wonder how the business model has produced such a big gap.

01 light asset model

Hai Lan's home Limited by Share Ltd is not only a brand of "Hai Lan's home", but also a well-known brand of "love rabbit" located in urban women. It is located in the business dress, "San Keno" and "price fits".

Apart from San keto's independent production and operation mode, other brands are brand chain operations.

What does this mean?

You can understand that it does not design products on its own. Most of its products are bought on credit from hundreds of thousands of suppliers across the country.

The supplier is responsible for design and production, which is responsible for purchasing and selling.

Most products are developed by ODM, eliminating a large number of design costs.

In the annual report, Hai Lan House describes the relationship with the upstream suppliers themselves: "in the procurement process, it mainly adopts the mode of retail oriented credit, joint development, unsalable merchandise return and two purchase, and it forms a community of interests with suppliers, making full use of the clothing production resources.

Commodities are mainly bought on credit, and monthly payments are made with suppliers to reduce the occupation of funds at the purchasing side.

Downstream stores, the way to join.

Before 2014, franchisees need to pay 1 million yuan as a deposit and another 1 million to be used as shop rental decoration and staff training.

The store is managed by Hai Lan's home and divided according to sales revenue. This is also a period of rapid growth of the Hai Lan home franchise store.

Relying on these funds, Hai Lan's family can continue to expand rapidly.

14 years later, the 1 million deposit was cancelled, and the corresponding guarantee income disappeared.

Franchisees never undertake the risk of unsalable inventory.

After reading, I can probably understand that the constraints and tradeoffs between Hai Lan's home and upstream suppliers and downstream franchisees are wonderful.

Because of the large volume of purchases, suppliers had to agree to demand for credit and partial sales of goods, which largely alleviated the capital and inventory pressure of Hai Lan's home.

And the downstream franchisees, without franchisee management and commitment to inventory unmarketable risk is to appease the franchise fees, and a large number of funds brought by franchisees can continue to "snowball" like expansion.

A supply, a supply of funds, and the elimination of product design, clothing production and other links, dispersed capital demand, is a typical light asset heavy business mode.

02 the "double high" drawbacks under the above mode

This pattern also has drawbacks.

The most obvious is the high debt ratio.

The supplier's arrears and the margin to be returned by the franchisee are the main liabilities.

By the end of 12 2017, the assets and liabilities ratio of Hai Lan's home was as high as 55.466%. In addition to the depth of the real estate sector, YOUNGOR's debt ratio reached 64.033%, and the debt rates of several other clothing brands were around 35%.

The reason why Hai Lan's home is heavily indebted is attributed to its business model.

Figure: assets and liabilities ratio of Hai Lan home and clothing and other fiber products industry over the years

Secondly, the company is facing high inventory pressure.

Although the Hai Lan home will sign a return agreement with the supplier, the supplier will bear the risk of unsalable products, but from some actions, it seems that it is not so simple.

First of all, Hai Lan's home has also set up a platform for "sea one family". Its brand name is "obedience", and it is said that they are all unsalable funds, mainly for handling tail cargo.

But the effect is not obvious.

According to an annotation in the annual report, not all unsalable goods pressure is applied to suppliers: "in inventory commodities and consignment products, the company can return the goods to the supplier in accordance with the original cost of the goods with goods that can be returned."

Although both revenues and net profits continue to grow, Hai Lan's home may face a crisis in the face of high inventory and high debt rates, as well as slower growth in men's clothing.

As a result, Hai Lan's home has begun a drastic reform and layout.

03 enhance brand image

When many people's impression of Hai Lan's home is still like this, it quietly changes.

We should invite the small red forest to renew, and Hai Lan's family wants to pform into younger.

Moreover, in recent two years, Hai Lan's home has shouted out the slogan of "calling the UNIQLO", and it has really improved in quality control and control.

In terms of store design, bright yellow shops are in the past, referring to the cool style of fast fashion brand shops, so that the display of clothing matching becomes the most important theme in the store.

In order to expand its influence on young people, since 2014, Hai Lan's family has sponsored many famous variety shows such as running brothers, the strongest brain, if you are the one, the masked singing, the single war, and the Mars intelligence agency broadcast by Youku. At the same time, the amount of advertising on Internet video, cinema, subway and high-speed rail has been raised every year.

According to statistics, from 2014 to 2016, Hai Lan's family invested 500 million -6 billion yuan in advertising expenses, which was 5-10 times that of seven wolves and nine shepherds in the same period.

In August 2017, Hai Lan home's 100 million stake was called "China ZARA" fast fashion brand UR. It opened the first stop of fashion layout. Hai Lan's home hopes to invest fast fashion fashion, while improving its brand image, at the same time, it can also learn from its business mode.

04 women's wear market stores grow surprisingly fast

As a "man's Wardrobe", Hai Lan's home is inevitably being played by the public in the unconscious mind.

The label is then insulated from other types of clothing.

In fact, in recent years, Hai Lan's home is still seeking pformation outside men's wear. One of the "tools" is the fashion leisure brand "love rabbit" for urban women.

And this quiet change is reflected in the earnings report.

In 2017, Hai Lan's home added 1054 stores, 505 stores, and a net increase of 549.

419 of them belong to AI Ju rabbit.

By comparison, we found that the growth rate of the store has reached 67.04%, far exceeding the 5.75% of the men's clothing brand and the overall average growth rate of 10.47%.

That is to say, in the past year, it is the love rabbit that is the brand of women's clothing, which drives the big expansion of the Hai Lan family group, which is dominated by men's clothing.

In terms of gross profit margin, AI Ju rabbit increased by 8.63% to 27.79% compared to 2016, although it has a certain distance from the 40.34% of Harean's men's clothing brand, but it is also mainly because the brand is in the expansion stage, and the high cost is not hard to imagine.

In the future, with the gradual improvement of brand awareness, the brand will expand to a relatively stable growth period.

We also discovered the determination of Hai Lan's home to expand the love of rabbit.

In 2018, Hai Lan's family planned to add 300 brand stores to AI Ju rabbit, and 400 men's shop of Hai Lan's home.

If this is the development, the love house rabbit store will reach 1/3 of the men's clothing store.

Maybe in a few years, the home of Hai Lan will really become "the wardrobe of a man and a woman".

05 children's wear market development category

Increase women's clothing

It is not enough to support all the dreams of Hai Lan's home.

In October 2017, Hai Lan's subsidiary, Hai Lan investment, invested 660 million yuan to acquire 44% stake in Ying Shi baby, and officially entered the infant consumption market.

Ying Shi baby is a high quality baby products brand agent and agent. Its own brand "YEEHOO Ying Shi" is a famous brand of baby clothing in China.

The brand is mainly clothing, covering lathe supplies, accessories, footwear, toy supplies, positioning in the 0-6 year old baby products.

At the same time, it also acts as a proxy for many famous brands of mother and baby products both at home and abroad.

Hai Lan's acquisition of Ying Shi, on the one hand, is based on the rapid growth expectation of children's market and the trend of consumption upgrading. On the other hand, it also increases the category and widens the customer base.

As we all know, the previous development of the company focused on men's and women's clothing, especially men's clothing.

In the case of slower growth of men's clothing, Hai Lan also needs to expand its product categories and maintain its growth.

In this case, the "first generation" in the first tier is a good choice.

Moreover, the channel of "Ying Shi" is mainly based on the mainstream shopping malls and electricity providers in a second tier city. This may be one of the points that we want to enter into the home of Hai Lan, a second tier city.

06 home market benchmarking Muji

In addition to marching into women's wear children's clothing, you may still have difficulty connecting Hai Lan's home and home products.

Last October, Hai Lan home's one-stop home store "Hai Lan optimization" quietly opened.

This is also a bold attempt for the future strategic pformation of Hai Lan's home.

From the perspective of commodity composition and category, Hai Lan preferred the brand to MUJI, but the price of the former is more close to the people.

It is not hard to imagine that another NetEase, MUJI, is a domestic brand.

Two years ago, NetEase successfully entered the household electric business through NetEase's strict selection of the brand.

This deep involvement in the upstream supply chain is dominated by the "strict selection" mode and quickly attracted a number of similar competitors.

But this kind of "strict selection mode" was actually left behind by the family of Hai Lan in the clothing field.

It is not hard to imagine that after the experience of supply chain integration in the upper reaches of clothing is applied to the home market, the cost control of Hai Lan's optimization is no problem.

At the same time, compared with MUJI's high brand premium and brand recognition of second tier cities, Hai Lan's experience in channel and retail in the three or four tier cities is worth looking forward to.

At the same time, Hai Lan chose the old route of Hai Lan's home as the main line of brand expansion.

It is understood that Hai Lan's preferred expansion plan has been put on the agenda. By the end of 2018, the group plans to set up 20 stores.

The responsible person also said, "what we want to do is brand rather than small grocery store."

07, the electricity supplier channel needs urgent efforts.

According to the 2017 earnings report, the sales channel of Hai Lan's home is divided into online sales and offline sales, of which the sales revenue of online sales is 1 billion 54 million yuan, accounting for 5.91%, and the proportion of offline revenue is 94.09%, which is almost the same as that of 2016.

It is not hard to see that online sales are not big.

Under the trend that luxury brands have to pay attention to the sales of digital channels, the online sales space of Hai Lan's home is still very large.

It may also be aware of this. Although double eleven was the first in Tmall to win men's wear sales, Hai Lan's home turned to cooperate with Tencent in February 2018.

Tencent announced 2 billion 500 million of its shares, accounting for 5.31% of the shares.

Tencent has more than 900 million active WeChat users. Hai Lan's home can get the flow of WeChat fission and the traffic pmitted by public numbers.

Tencent shares, including Jingdong, vip.com and other platform resources can also be effectively docking.

As expected, in April 8th, Hai Lan's family announced the launch of the micro mall through the same name brand WeChat service.

At present, there are 8 kinds of merchandise in the mall, including suits, shirts, and sweaters.

Jackets, trousers, shoes and accessories.

Hai Lan, as the first brand of business casual men's wear, has strong cash flow capability and rich channel resources. It can provide help for the future multi brand and multi purpose fashion ecosystem.

Under the general trend of consumption upgrading, we should reshape the tonality, expand the market and acquire the market.

Genes will be the challenges and opportunities of Hai Lan's home.

In the pformation of Hai Lan's home, it has been highlighting young vitality. The consumer market has been developing from three or four lines to one line. The sales mode has also been testing water from a single line.

Among them, there are not only endogenous brand incubation and expansion, such as Hai Lan optimization and AI Ju rabbit, but also epitaxy horizontal mergers and acquisitions, such as English and UR.

And it is foreseeable that this trend will continue in the future.

In order to maintain company growth and industry status, Hai Lan's home may have more investment and merger actions.