Semir, United States And Taiping Bird Have Been Betting On Children's Clothing Business Opportunities And Challenges.

At present, regardless of luxury brands, fast fashion brands and sports brands are stepping up their efforts to layout children's clothing market. Children's clothing has become a new hot spot in the clothing industry.

Semir further increased children's clothing business.

Recently, the Zhejiang Semir apparel Limited by Share Ltd (hereinafter referred to as Semir) issued a notice that the company intends to set up a wholly owned subsidiary Shanghai Qi Mei dress limited company with its own capital, with a registered capital of RMB 26 million yuan.

Semir said in its announcement that the aim of the investment is to promote the development of THE CHILDREN 'S PLACE brand business.

This will accelerate the development of multi brand clothing clusters and the development of children's industrial clusters.

In May 3rd, Semir issued a notice that it intends to buy SofizaSAS 100% equity and debt with its own capital of about 110 million euros (about 844 million yuan).

SofizaSAS has 100% of the Kidiliz group's leading shareholder in the European high-end children's wear industry and is the only shareholder in the latter.

The ultimate goal of this paction is to acquire all assets of Kidiliz group.

Semir said that Kidiliz has a clear complementarity with its existing balbala brand children's clothing business in the brand positioning and the main market. Through acquisition, Semir will have diversified and rich children's clothing brands 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.

Insiders pointed out that Barbara has achieved the first domestic market share.

In the current growth rate of children's wear industry is relatively high, the overall development of the situation is clear, Semir further increased in

Investment in business is also reasonable.

In fact, not only Semir, sports brand Nike, adidas, Anta, fast fashion brand UNIQLO, ZARA, GAP, and local clothing brands such as Taiping bird, Metersbonwe, Jiangnan cloth, and seven wolves, all want to have a share in the children's wear market.

"At present, children's wear is the blue ocean market.

Children's clothing is much more profitable than adult clothing. "

In an interview with the international finance daily, Chen Wei, a brand marketing expert, said that under the same price, the cost of cloth and labor needed for children's clothing is less than that of adult clothing, so the total cost will be lower.

Semir's 2017 annual report shows that Semir's children's clothing business income amounted to 6 billion 322 million yuan, an increase of 26.4% over the same period, accounting for 52.56% of Semir's revenue and gross profit margin as high as 41.52%.

The average gross profit margin of Semir is 35.77%, and the gross profit margin of casual wear and domestic sales is 29.31% and 35.77% respectively.

Although the children's wear plate was launched by Semir in 2002, it has become the main driving force for Semir's development.

Lu Shengzhen, a brand marketing expert in an interview with the international finance daily, said that the growth of children's wear market has been relatively large, especially in the big boy market.

And in Semir's product camps, badibadi, MarColor, Balabala, Mini balabala, mongdodo and other children's clothing business revenue accounted for more than casual wear, and the growth rate is higher than casual wear.

"Under the pressure of leisure clothing competition and slow growth, Semir will show new competitiveness in the children's wear market."

In addition, the performance of Taiping, Metersbonwe and other children's clothing business is also commendable.

In 2017, Mini Peace Peace achieved a retail sales of 1 billion 42 million yuan, an increase of 29.31% over the same period last year.

To achieve revenue of 709 million yuan, an increase of 37.48% over the same period, and gross margin reached 52.37%.

In 2016, Taiping bird's children's clothing store was 635 home, a 194 increase from the end of last year.

In 2016, its operating income reached 516 million yuan, an increase of 65.91% over the previous year and a gross profit of 2.77 billion, an increase of 63.41% over the previous year.

In its 2016 annual report, Taiping bird said that the fast growth of children's wear ensured the stability of the overall profitability of the company.

Metersbonwe's report shows that its Moomoo and ME&CITY KIDS children's wear brand annual total retail sales increased by 32% in 2017, and sales revenue in 2016 increased by 41% over the same period last year.

However, there are also "chicken pots" full of money.

Seven wolves once tested children's clothing business from 2008 to 2010. Its 2010 annual report shows that the sales revenue of the three series of seven wolves children's wear, women's wear and Saint worth is 30 million 153 thousand and 700 yuan, accounting for 1.48% of the total sales revenue of the six largest product series of the seven wolves.

In the 2011 and subsequent annual reports of the seven wolves, there was no children's clothing business.

2013-2016 years of children's wear in China, according to data from Chi Chi research.

Scale compound growth rate was 7.6%, and the market scale in 2016 amounted to 145 billion 11 million yuan.

World clothing shoes and hats statistics show that in 2017, the scale of children's wear market in China has exceeded 150 billion yuan.

Roland Begg, the global information consultancy, predicts that by 2020, the size of the domestic children's clothing market will exceed 280 billion yuan, and the domestic children's wear market will usher in a more explosive period.

At present, regardless of luxury brands, fast fashion brands and sports brands are stepping up their efforts to layout children's clothing.

Children's clothing has become a new hot spot in the clothing industry.

Zhou Pingfan, general manager of Semir, said that after many years of rapid development, adult clothing

From the rapid expansion stage of extension expansion to the stage of endogenous optimization, the children's wear industry is benefiting from the second child policy and is in the stage of rapid development, but more and more new participants will enter the industry.

At present, the clothing enterprises that cross border children's clothing are mainly carried out through the way of brand merger and acquisition, so that the market preparation cycle can be saved.

Relatively speaking,

There is not much difference between enterprises in making children's clothing, in terms of operation mode, procurement, brand operation and management.

Moreover, the capital of cross-border enterprises is relatively strong and can be quickly laid out and expanded.

Lu Shengzhen, a brand marketing expert, told the international financial daily.

Chen Wei said that these clothing brands have some advantages in making children's clothing across the border, such as the bargaining power with the mall will be stronger.

Nike and Lining usually have four or five stores in the second tier business circle, which can form a strong negotiating advantage.

In addition, the supply chain of these brands is stronger than that of a single clothing brand.

"Some enterprises are not involved in children's clothing, perhaps because the characteristics of children's clothing market are not as accurate as those of the main industry. In addition, the decentralization and management integration of merging enterprises and the integration of procurement are also more difficult for enterprises to overcome."

Lu Shengzhen pointed out.

It is worth noting that despite the intensification of competition, the concentration of children's clothing market is still very low.

In 2017, apart from Semir's Barbara and Adidas children's clothing, the market share of the other ten brands in the market was no more than 1%, and the TOP10 plus figures accounted for only 11.3% of the total market, while the number of foreign mature markets reached 30%-50%.

Insiders pointed out that Semir children's clothing is relatively low and middle market, but the market share is relatively large, and the development speed is relatively stable.

"Semir has been sinking channels in recent years, leading to confusion in brand image and price, and has been hit by peers.

The development space in the leisure market has been very limited.