Tien Chong Fashion Women'S Shoes Spend 878 Million To Explore Digital Operation

Focus on fashion women

Research and development, production, distribution and retail of Guangzhou Tian Chuang fashion footwear Limited by Share Ltd (hereinafter referred to as "Tian Chuang fashion") has recently announced that the company completed the 878 million acquisition of the 100% stake in science and technology, has fulfilled the registration of industrial and commercial changes, and in November 30, 2017 the Beijing Business Administration Changping Branch issued the "business license", so the technology has become a wholly owned subsidiary of the company.

The industry believes that the mobile marketing / precision marketing field in which the technology is located is at a fast growing stage. As a leader in the industry, the technology is expected to inject new ideas into the company's exploration of efficient, fashionable and digital business models, continuously strengthen the company's competitive edge, and help the company break the fashion shoes industry into a new growth cycle.

And the promise performance of technology 17/18/19 is 65 million yuan /8450 million yuan /1.1 billion yuan, and its performance will increase significantly in 2018 and 2019.

According to public information, Tian Chuang fashion was established in Guangzhou, Guangdong province in April 2004. In May 2012, it was registered as "Guangzhou Chuang Chuang fashion shoe Limited by Share Ltd" by the "Global Innovation Limited". In February 2016, the company was listed on the Shanghai Stock Exchange successfully.

The company is mainly engaged in R & D, production, distribution and retail of women's leather shoes.

Women's shoes, one of the leading brands of the whole industry chain, is committed to providing fashion and comfort for female consumers.

And supporting products and services.

At present, Tian Chong fashion owns KISSCAT, ZSAZSAZSU, tigrisso, KissKitty, and KASMASE5 women's shoes own brand, acting as the brand of the Spanish women's shoes Patricia, and participating in the international designer brand UnitedNude. It has 1 Multi scene all men menswear own brand catalog, acting Italy fashion creative brand Obag.

According to the financial report, in 2017, the business income of Tian Chong fashion reached 1 billion 730 million yuan, an increase of 12.01% over the same period last year. The net profit attributable to shareholders of listed companies was 188 million yuan, an increase of 60.25% over the same period last year.

Basic earnings per share of 0.48 yuan.

The industry said that the sustained growth of the domestic economy accelerated the formation of the domestic high and middle income. The strong brand consumption ability of the middle and high income groups and the increasingly mature concept of brand consumption contributed to the rapid development of the high-end market of domestic women's leather shoes including Tian Chong fashion, and gradually became the mainstream of the market.

It is understood that Tian Chong fashion is a well-known shoe manufacturer with a brand and a complete industrial chain. Compared with women's shoes manufacturers only engaged in the production and processing of women's shoes, it can increase the brand promotion efforts and improve the R & D design ability of products, injecting brand value and cultural ideas into products, and with the help of its own perfect industrial chain, the overall sales price of products can be stabilized or even improved, and the profit level is relatively high.

In recent years, the gross margin of the company has stabilized at 50%, far exceeding the average level of the industry.

Chen Bo, an analyst with wealth securities, said that the industry channel adjustment began in 2012, and the operation strategy of "horse race enclosure" was no longer sustainable. The concept of "channel" centered operation was gradually replaced by the concept of "product" and "consumer" as the center.

As an emphasis on the "fashion" and "comfort" gene, women's shoes eco operation company has also carried out a series of channel adjustment and flexible production and other related quality improvement measures in recent years. Even in the context of industry fluctuation adjustment, the company has achieved steady growth in recent years.

Over the past 6 years, the revenue growth rate of Tian Chong fashion has been 5.03%. The compound growth rate of net profit attributable to the parent company is 7.77%. In the past 3 years, the profit scale of the company has increased rapidly. Compared with the compound growth rate of 2.06% of the revenue, the compound growth rate that belongs to the parent company's net profit is 21.82%.

From the earnings report, the sales volume of Tian Chong fashion increased, the gross profit margin of the main products shoes increased, the cost and expenses were properly controlled, and both revenue and net profit increased by double-digit growth. The technology and scale of the company increased, and the net profit growth level of the company was bright since 2017.

In 2017, the company achieved operating income of 1 billion 734 million yuan, an increase of 12.01% over the same period last year, and realized a net profit of 188 million yuan, an increase of 60.25% over the same period last year. The net profit of returning to the mother's buckle was 162 million yuan, an increase of 65.79% over the same period last year.

In the first quarter of 2018, Tian Chong achieved 470 million yuan of business income, an increase of 27.64% over the same period last year. The net profit attributable to the parent company was 75 million 11 thousand and 200 yuan, an increase of 125.55% over the same period last year. The net profit of the net return to the parent company was 62 million 13 thousand and 600 yuan, an increase of 90.72% over the same period last year.

Quarterly, from the two quarter of 2017, the company's revenue has returned to double-digit growth, and since the three quarter of 2016, the company's net profit growth has shown a high level of growth.

In Chen Bo's view, the growth of the creation of stylish and stylish sales has brought about the expansion of the scale of revenue, coupled with the proper control of costs and expenses. The gross profit margin of the company has steadily increased since 2012, and the net interest rate has fluctuated upward.

It is noteworthy that due to the adjustment of production and business strategy and the reduction of SKU, the product growth and sales growth in 2015 and 2016 were negative, but gross margins and net interest rates remained upward. This reflected the improvement of the profitability of Tian Chong fashion.

At present, the women's shoes industry is at a relatively mature stage of development. The marginal effect of the industry bonus is decreasing, and the rapid development of the electricity supplier and the new brand have seized the market. In recent years, the growth rate is relatively low.

Categorization, as the consumption trend of sports shoes and street fashion is gradually strengthened, and the lifestyle changes brought about by health awareness, the growth rate of sports shoes is higher than that of fashionable shoes. According to the stratification level, the consumption of the 234 tier cities is upgraded, and the market size of the high-end brand shoe market is increasing rapidly. Due to the poor quality of design, excessive expansion of channels, the lack of consumer demand and rapid response, the "Matthew effect" of the industry is more and more obvious.

But the growth rate does not change the growth trend of the market size of women's shoes industry. In 2015, the overall market size of women's shoes reached 179 billion yuan, and the market size in 2020 is expected to exceed 230 billion yuan, and the annual compound growth rate will be around 5.7%.

In the context of industry differentiation, in changing consumer scenarios, adapting to the trend and paying attention to the needs of consumers, doing product operation and supply chain management is an important guarantee for enterprises to stand out and maintain the leading edge.

Chen Bo said that the high-end products are positioned in the middle and high-end. As a quality company in the high-end footwear industry cluster of Guangdong, in recent years, the company's shoes brand matrix creation, industrial chain optimization and pformation, operation quality and efficiency have achieved better results, and its performance is better than that of the industry.

According to the growth rate of the split year, before 2015, the company's revenue and profit growth rate was basically higher than that of the industry. In 2015, the company began to further adjust its business policy, reduce production and sales volume, reduce sales scale, and profit growth is not as fast as that of the industry.

However, due to the effectiveness of measures to improve quality and efficiency, product production and sales rate has been maintained at a relatively high level, coupled with strong cost and cost control. Since 2016, the company's profitability has been improved and its growth has been brightest.

What's more, we need to see that the two types of physical shops are joined by direct and offline distributors, focusing on the layout of domestic central cities and key business areas.

In recent years, the company has gradually adjusted the structure of its stores, and the rate of direct selling has increased.

In the future, the company will try to set up a community of interests with franchisees in a variety of ways, such as direct marketing, expanding the scope of high-quality franchisees such as credit preferential policies, and achieving a win-win situation.