Can Semir Take Advantage Of The Potential Market Of Children'S Clothing To Increase The Stock By 3 Times?

Semir, Baleno and Giordano, which used to be the pronoun of youth fashion, are growing rapidly with the growing popularity of the mass brand market. Fashionable brands have gradually been forgotten by consumers.

The brand that has been seen everywhere in the past few years has almost disappeared in the mainstream business circle of a second tier city, of which Baleno is the most undeveloped brand at present, and its performance has been declining continuously in recent years.

Compared with others, it also faces brand aging. Fast fashion brand Semir's two years of development were unanimously optimistic by the industry.

In the past two years, Semir can be said to be in the opposite direction. Semir According to the 2017 earnings report, the total revenue of the group increased by 12.74% to 12 billion 26 million yuan as of December 31, 2017, but the operating profit decreased by 19.03% to 1 billion 511 million yuan. According to the category, leisure wear category business income increased 0.6% to 5 billion 630 million yuan, operating profit fell sharply 15.27% to 1 billion 650 million yuan, gross margin was 29.31%; compared with it, children's casual wear category business income rose 26.4% to 6 billion 330 million yuan, operating profit rose 22.42% to 2 billion 624 million yuan, gross profit margin 41.57%.

1. Semir's counterattack

Semir's unique show has a lot to do with Semir's positive spanformation. Semir, which is facing positive competition with fast fashion brands abroad, has opened up a new world in the field of e-commerce and children's wear.

From 2011 to 2016, Semir's children's clothing business has more than doubled, and its size is close to adult clothing. Its brand balbala has a market share of 4%, and has become the number one brand in the industry.

The outside world is even more appreciative of Semir's children's clothing business. XinDa securities research reported that, because of the strong brand strength and the leading position in the offline market, when balbala is developing online sales energetically, the channel providers can still make profits and are willing to follow their development. With its competitive position under the stable line, balbala's product development, supply chain capabilities and brand awareness are stronger than online brands, making it the only successful domestic brand in the two online and offline competitions.

Two. Semir will lose another son.

On the night of May 2nd, the Zhejiang Semir apparel Limited by Share Ltd (002563.SH) announced the announcement of the acquisition of French Sofiza SAS100% equity, which is about 110 million euros (about 844 million yuan) in cash, and the acquisition of Sofiza SAS100% SAS100%'s equity and claims, so as to achieve the purpose of acquiring all assets of Kidiliz group.

Statistics show that the Kidiliz group is headquartered in Paris, France. There are 8 subsidiaries in the world, with 11000 sales outlets and 829 stores. The sales volume reached 427 million euros in 2017. It is the largest brand of children's wear in France.

Semir said that in the long run, the acquisition of Kidiliz will help improve the company's multi-source children's brand portfolio from the public to the high-end, with the ability to enter and operate in the main markets of Europe and Asia as well as other international markets, and have a global supply chain layout.

In the casual clothing market that tends to be saturated, the children's clothing market is known as the "last blue ocean" in the clothing industry. Semir, which targets children's business, is expected to usher in new opportunities for spanformation through the early layout of children's clothing and related fields.

Three. Children's clothing business force

Semir's ambition to layout overseas children's clothing has long been highlighted. More than a month ago, Semir announced the long-term strategic cooperation with The Children 's Place, the most professional children's clothing brand in North America. According to the two sides' agreement, Semir will develop and operate The Children 's Place business in Greater China (including Hongkong, Macao and Taiwan) through direct channels, including retailers, retailers and e-commerce.

Semir's children's clothing has long taken up half of its business. At present, Semir's children's wear brands are Barbara, MarColor, mongdodo, badibadi and so on. Barbara's market share and channel size are ranked first in the domestic children's wear market for a long time.

If the acquisition is successfully completed, Semir will have the brand layout from the public to the high-end with the full price. Semir's performance growth in recent years is almost entirely driven by children's clothing, which is obvious to all in the industry. Semir, founded in 90s, has been the main force of its revenue for casual clothing of young customers. On the other hand, the growth rate of children's clothing business has been increasing year by year, which has caught up with the trend of casual wear.

Under the declining trend of casual clothes, Bala Bara children's clothing is becoming the main promoter of Semir's revenue.

According to the earnings report of Semir from 2012 to 2016, the proportion of children's business income is 29.94%, 34.75%, 38.87%, 41.81%, 46.88%, respectively, and revenue is catching up with the leisure business.

Since the "two child" policy was fully liberalized, the high Maori children's clothing industry has become more and more popular, and the infant consumption market space and development potential are huge. Some agencies predict that the size of children's clothing market in China exceeded 150 billion in 2017, and is known as the "last blue ocean" in the clothing industry.

Aiming at children's clothing this big cake enterprise far more than Semir one, the domestic well-known clothing brands such as Hai Lan's home, Anta, Lining and so on are all overweight children's wear plate.

With the growth of the market, apart from the specialized children's wear brand, many enterprises that originally dress up adult clothing are developing their own brand lines for children's wear. The infant market is becoming a new battleground for garment enterprises.

As an early enterprise focusing on children's wear, Semir's layout in children's market is not limited to the field of clothing. Its tentacles also extend to many products of children's consumption scenes, such as children's education and entertainment.

In 2015, Semir's children's business complex dream town was officially opened. In the second half of 2017, the number of passengers in the town was 2 million 200 thousand, with an annual sales volume of 200 million yuan. In May 3rd, people close to Semir group revealed that Semir was planning to split the town of dreams. Independent listing We can see its importance to children's market business.

With the marketing idea of advancing with the times, and even ahead of the layout, Semir has moved from the electricity supplier to the end of the line, to the new products on the line, to the cross-border marketing of e-commerce, and even positioning the electricity supplier as a platform for aggregated resources.