Children'S Clothing: What Cities Will Be Laid Out In The Future?

Main high-end

Business owned

Clothing enterprises, owns "Annil angel" children's clothing brand.

In 2017, the company's total revenue was 1 billion 31 million yuan, an increase of 12.07% over the same period last year, with net profit of 68 million 869 thousand and 800 yuan, down 12.95% from the same period last year.

According to the world clothing and shoe net, recently, he held an online and offline institutional exchange meeting. The chairman of the company, Cao Zhang, director general and Liao Zhigang, chief financial officer, received dozens of institutional investors, such as intermediation fund and Tianfeng securities, and began to interact with investors.

The main contents of the exchange are as follows:

Q: has there been any plan to acquire upstream and downstream enterprises or to collect some assets across the border in the past 1-3 years?

A: in the next five years, we hope to achieve first in the market segments.

1-3 years will practice multi brand strategy, but this is a supplement.

Nearly three years will focus on the dress.

Mergers and acquisitions will be considered more secure from the high-end clothing sector, but the specific time depends on opportunities.

We must do it later. It's only a matter of time and speed.

Q: the number of Direct stores and franchisees in the company has decreased to varying degrees. Is the company's strategic adjustment or market changing? What is the current number of Direct stores and franchisees? What is the development of the shops throughout the country?

Answer: the actual online and offline battalion is rising, and the number of affiliate is decreasing.

As of 2017, the number of direct battalions was 974, an increase of 4 over 2016, but a slight increase.

However, this adjustment has been greatly reduced from 488 to 461, less than 20.

Regarding the layout of the city, joining is in the three line and the four line, but the battalion basically distributes above three lines, and the franchisee 80% is distributed below three lines.

In the future, there will be more layout in the shopping center or more than three lines. We expect that the existing 80%-90% in the shop is from the shopping center.

If the average size of traditional department stores is 50, the area of shopping centers will expand to more than 100.

The area and store efficiency of a single store is the main direction we have conquered in recent years, and we need to further enhance our efficiency.

This time we made special mention of the problem of efficiency in the strategy. We will stare at the performance of the single store, because we have two requirements for the flat effect, the first is the requirement of the new shop, and the second is the requirement of the old store. This is our future goal.

Now the channel is like this. The same store is basically a single digit growth, hoping to grow in large digits or small double digits. This is our goal in the future.

The counters are almost flat. The actual growth rate of the counters is relatively small. The main growth now comes from shopping centers. Shopping centers are basically double digit growth.

Q: Children's wear is a relatively fragmented market. According to the data of Ou Rui consulting, the market share of other brands that occupy the top ten position in the market except Semir's Barbara is no more than 1%. In the market, ten of the companies share only 1/10 of the total. These figures will generally reach 30%-50% in the mature market. Is Future Ltd considering whether to accept the capital market and realize the integration of industries? Is there any planning in this area or potential acquisition targets? Why else do you want to ask why the domestic company's development is so low that the market share of ten years ago is so low?

A: balabara is probably 5%-7%. We are slightly below 1%. The front row is ADI. There are basically few below, so the market is really scattered.

In the future, we must make use of capital platform to integrate, but integration must integrate ability, which is very important to our ability to integrate, that is, to what extent do we run to the company, and to what extent do we manage to build our own business capability.

In the future, we call it the two wings to take off, that is, to integrate other platforms through the capital market, including domestic and international integration, because the capital market provides us with such a good platform, and it is estimated that the bonus window period of domestic children's clothing industry is also 3-5 years, and we must strive to achieve integration within 3-5 years.

Why is the concentration ratio of domestic relatively low? We found that domestic enterprises started relatively late, most of them started after 90s, that is, the operation of enterprises and modernization of operation and management are relatively slow.

Second, China's capital market has not yet given great capacity to these enterprises. There are not many specific listed companies. The listed companies are listed only in recent years. Moreover, the depth of understanding of the capital market for children's clothing industry is not enough, and the support for resource grafting is not enough.

Third, it has something to do with consumers.

Since the reform and opening up, in 80s, we all have a sense that foreign brands are good, and domestic brands are slowly being accepted, but now they are slowly changing, and China's products may surpass foreign countries.

Why is the concentration of foreign countries relatively high? Many foreign enterprises are hundreds of years of business or more than fifty or sixty years of business, has done such a long time intensive cultivation.

For example, Nike has been listed from eight years to now, but its compound growth rate is relatively low. It is 7%, but 7% of such a large enterprise, the domestic capital market has a very high demand for an enterprise, doubling every year, you have to consider whether the enterprise has the ability to carry it, because the building of this capability does not mean that one day can be done. If you have 1 billion of the ability to easily carry 2 billion, when you have 5 billion ability to easily carry 10 billion, the expansion of this capacity requires the coordinated development of the entire organization and strategy.

Q: the first question is: first of all, we need to adopt a strategy of exploding money for product problems. Are there any specific measures for this strategy? For example, in the supply chain, including how to choose money and so on, do we have any specific introduction? This is our core product strategy. The second problem is that our advantage is mainly that the growth is relatively fast in the aspect of baby, and it is also the future growth point. However, this field faces many foreign brands' competition. For the middle and high end, how do we deal with these competitions, that is, the problem of brand positioning. Third, since we have positioned the high-end brands, are there any user portraits for the customer groups? Are there any specific measures for product planning?

A: we have done a lot of data analysis, and our advantages have been decided. We have a high degree of recognition in trousers, skirts, winter down clothes and summer T-shirts. This is the first one to delineate this.

The second step is to start product planning, which is the first thing to build, mainly in the supply chain, including the purchase of fabrics, including our spot or fast supply.

For example, in the spring and summer of 2019, we chose 75 main push items. We have specific product data. These items have been set down. After we have decided, what kind of products, fabrics and prices will be broken down, including the gross profit, and the promotion methods and selling points, including the display and marketing of the market, including advertising input, will be pushed up.

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Q: more than 20% of the double long staple cotton is used in 2018 or in the past.

A: it used to be useful, but it used less. Now we increase these proportions. We plan from 2019, and we will fall into every data and category. These items, for example, some of our shirts will be very clean and very comfortable. This category will give people an impression that it is based on our quality and respect.

Q: does the company adjust every year on behalf of the industry and Commerce?

Answer: will adjust, choose a larger supplier to ensure quality.

The down jacket supplier chose Japan Dongli (UNIQLO supplier), and sweater supplier also chose the listed company with quality guarantee.

Q: how many tens of thousands of customers are there in the company? What is the portrait of the user, including age composition? Is there any research on this? Because this is also an important condition for the realization of the explosive products. The number of customers who individually locate this item is 16%.

A: we have an average in it. Our analysis reports are mainly state-owned enterprises, government, officials, staff, and some elite and executives in the IT industry. They are relatively pursuing quality. This pursuit is relatively simple, reliable and sensitive to price.

We are positioned at the middle and high end, enjoying quality life. Their income is quite good. This group of people has a relatively high spending power.

The middle and high income people are divided into two parts, one is the higher demand for fashion, that is, the positioning of the avant-garde elite. This is part of the fashion demand is higher, and the fashion demand is not so gaudy, I hope that the children are low-key wearing the better one. This match with us, we call it quality respect, and the quality requirements are relatively high. These two high-end high-end people probably account for about 16% of each group, but the market itself is overlapping.

Q: how much is the target of the company SKU? Or how much can it be reduced by general explosions?

A: the latest reduction of 20% is less than 800 per season, almost more than 200, and SKU is reduced simultaneously.

We want to explode money and concentrate on core categories. If we want to create this product, we must reduce the width of the product. There are too many ineffective long tails. It is mainly to rush the top part of the product and develop some products through quality and product development.

For example, light and thin eiderdown is the main task. Actually, clothes are the same every year. But every time we try the product, we manage 8 children models altogether. 110-170,8 code will find 8 boys and 8 girls. According to this spot, we will spend a lot of time thinking about this kind of products. We should pay more attention to every detail study.

So we cut down mainly on the long tail. We found that such accounts accounted for nearly 20%, which accounted for a small proportion of our sales, so we would concentrate this part of our resources on the core products.

Q: can we say this year's discount rate?

Answer: the discount rate is basically steady and steady. This is our principle and will gradually improve. Because we want to make these consumers experience better, we will slowly increase the discount in this part.

In 2018, you will gradually see that our discount will not be more severe than that of 2017. In 2019, the discount control is more stringent. First of all, we do not increase the discount, mainly in the product, the layout of 2019, we first upgrade the product, really use 50 pairs of long staple cotton, feel particularly good, the price may not improve, but the control discount is no longer going down, the quality of the group that enjoy quality, they belong to the price insensitive type, not the lower end of the bottom will be price sensitive, first of all, we must make the quality up, we will slowly increase the discount.

Q: referring to the sales target of 5 billion in the 5 years, according to the share growth rate, it is about 37% per year.

Answer: this number is actually terminal retail sales. In five years, we hope that this market will have a certain proportion. How much proportion do we want? We think it should be the ratio of large digits, and five years is about 60 billion. Basically, 9%-10% is our goal. This is entirely the amount of money paid by customers. In fact, our reports are different.

We hope that children and infants will be around 30%.

先說一下存貨結構，我們先關注一下是存貨，從會計上的存貨分一個結構，有原材料，有庫存商品，原材料和委外加工在一起，包括在制品，因為我們是委外加工的東西，更多是委外加工的材料，我們統稱為材料，因為這個還沒有形成產品，這個材料實際上在2017年12月比較多的，應該有6-7千萬的水平，第二個是庫存商品，我們盯得比較厲害的是庫存商品，那個面料是原材料，這部分會轉換成下一季的產品或者是當季的產品，我們更多的關注庫存商品，庫存商品按庫齡來做，庫齡做了披露的，庫齡有一個數據，如果按T年是今年，T-1就是2016年，T-2是2015年，我們2015年的庫存大概是500萬左右，下降有40%-50%了，同比下降很大，差不多將近一千萬下降下來的，第二個就是T-1這一塊目前有上千萬，但是整個的結構，庫齡的結構是在改善，我們三年以上庫齡是100%的計提，其他的

Methods are strictly in accordance with the fast accounting policy. This policy is the principle of low cost and low net realizable value. Considering the comprehensive cash realizable factors, including the cost of realisation, the provision for depreciation of inventory goods is probably around 11%.

From the franchisee this piece is like this, two times a year, divided into spring, summer, autumn and winter, we March is the autumn and winter will be fixed, the annual August is the spring and summer meeting, the whole will decide the order.

The first thing is to change some patterns, and do a lot of business for small franchisees. The whole system is open. This part of the stock is very tight. This part means that you can share some stock and stock, and a part of the O2O mode can get through the whole channel. Before, basically, more than 95% of the products are finished. So many of them are also such a point. Less is the same. Later, through this platform, you can sell the goods of the entire O2O platform, that is, you can not sell the goods of the entire platform, that is, you can not sell the stock of the entire platform, you can sell and share the stock, so the proportion of this piece has been made a larger plan, I hope that the proportion of this part will be gradually improved, which is probably the case. The current mode is still dominated by futures, and now 95% of futures should be futures, which means that they are basically set at the appointed time, but now they are doing a few things.

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Q: Why are online franchising going online? In general, direct online is a direct business? Why do we want to open up?

Answer: we have several flagship stores. Actually, we have made full use of customer service resources, including logistics resources, drainage resources, and there are many channels on the actual line.

For online franchisee prices we will control, the electricity supplier, but the price is easier to manage, unified implementation.

We specialize in a checking company. We find that we sell a low penalty. We invite a company to spend money every year to help us monitor the price. We also have a reporting system. We have found a reward in joining the company, and the other one has a penalty. How long will it take to kick it out?

Q: from last year, did the clothing market really get a lot better in the four quarter? There is also a continuation of the problem. Consult the whole quarter of this year, 50 hundred data came out. We see that the spun apparel is the best. Because the proportion of direct battalion is higher, the company actually reflects the more sensitive, and I would like to consult the relevant situation.

Sales revenue growth or maintained a two digit sales revenue growth, but from the line down, actually we are also very consistent with the market. In the fourth quarter of last year, there was a warming up in the fourth quarter. Compared to 2015, there was no growth in the fourth quarter. But the fourth quarter of 2017 actually has double-digit growth compared with the fourth quarter of 2016. Last year, some of them failed to anticipate the impact of the electricity supplier on us, because we expect that Jingdong will generate some sales revenue. In fact, Jingdong was completely removed in the fourth quarter of last year. Jingdong is better than vip.com, because its customers are better matched with us, discounts and profitability are the same, so the biggest impact of last quarter's fourth quarter is Jingdong. A: it looks like this, from the fourth quarter of last year.

In the first quarter of this year, the growth rate will be faster than the fourth quarter, and maintain a relatively good trend. I think there is a great relationship between the Spring Festival and the Spring Festival. An extended period of Spring Festival has a great impact on the first quarter, which is equivalent to more than 20 days of sales. This is a great influence, especially in February, which accounted for more than 2/3 in the 20 days. The two quarter is very important. Why is it that in the future, when the product is made, what the customers want, what customers need, what products we provide, we can know where the customers' pain and selling points are, so that the customers can really experience the price performance ratio.

Q: what is the company subsidy?

A: the subsidy is like this. Last year, there was a subsidy on the market. The amount should be 3 million. There are comments in the annual report. This year, we have seen some documents that haven't changed much. We feel that the policy is sustainable at least in 2018, and the policy in 2019 is uncertain.

Q: I would like to ask if the company's large revenue comes from the single brand of the company. Is there a successful case in the brand Union, in addition to working with Disney? How is the future of brand alliance bigger?

A: last year, there was a cooperation between Disney and ANN. But cooperation found that we helped him push IP more. Just now, I talked about spending a lot of money every year. Last year, a single fee to him was nearly five million. There are still some expenses to help him popularize, which is about 6-7 millions. We are still cautious about spending.

In this way, we found a thing that hoped that his brand could bring us a flow and a premium. As a result, he helped Disney push.

Spring and summer are still in use in 18 years, but 19 years and autumn are no longer in use.

The brand itself has a certain reputation, plans to stand in its own brand, increase marketing promotion, brand building, advertising investment is a certain gap relative to Barbara.

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