Hai Lan'S Home Failed In The Women'S Clothing Business And The Countryside Surrounded The City.

August 29th , Hai Lan's home (600398.SH) released the first half of the year's earnings report: operating income of 10 billion yuan, an increase of 8.23% over the same period; net profit attributable to shareholders of listed companies was 2 billion 100 million yuan, an increase of 10.2% over the same period last year. Affected by the overall retail environment, the second quarter growth rate slowed down.

Affected by the growth rate of growth is not ideal factors, in August 30th, Hai Lan's share price went down and closed at 10.11 yuan, or 1.37%.

At present, Hai Lan's house has its own Three main brands: Men's clothing brand "Hai Lan home", women's clothing brand "love rabbit" and custom brand "San Keno". They contributed 81%, 6% and 8% respectively. In 2017, Hai Lan's home was newly developed. HLA Jeans, Hai Lan optimization, AEX, OVV and many other brands.

Among them, the main brand "Hai Lan home" growth rate slowed down, but the 2011 women's clothing brand "love habitat rabbit" ushered in a larger growth. "Ai Ju rabbit" is positioned as a fashion fashion brand. The target age is 18-30. In the first half of 2018, it earned 610 million yuan, an increase of 82.3% compared with the same period last year, accounting for 6% of the revenue, and a net increase of 108 to 1158 stores.

The number of aggressive expansion stores boosted revenue growth of "Ai Ju rabbit". Since 2015, the number of "love rabbit" has increased from 306 to 1050, and the number of stores has increased by more than two times in the past two years, and revenue has increased from 310 million to 890 million, with an average annual compound growth rate exceeding 40%.

However, simple calculation is not difficult to find that in the past three years, the sales volume of "Ai Ju rabbit" has been declining. In 2017, the average revenue of a store was only 850 thousand yuan, and the daily sales volume was more than two thousand yuan.

There are many indications that the route of the "love rabbit" is a differentiated location between the middle and low and the two or three line cities.

First of all, "Ai Ju rabbit" put headquarters and R & D centers in Jiangyin, Jiangsu. This is a three line county-level city, which reflects the location of AI Ju from the side.

The search for "Ai Ju rabbit" on the map of Gao de will find that the brand is mostly in the two or three tier cities.

Secondly, the brand in the first tier cities is mainly located in remote suburbs. Take Beijing as an example, there are 19 search results of "Ai Ju rabbit", of which 15 are located outside the Fifth Ring Road, and then take Shanghai as an example. There are 24 search results, 20 of which are located outside the central ring, and 44 in the north of Guang San city (no Shenzhen), which means that most of the stores are in the two or three line, or even the four tier cities.

In addition, "love rabbit" hired actress Wang Likun endorsement, the interface reporters in Baidu "female star billboard" the fifty place did not see the actress's figure.

The middle and low end sacrificed profitability: according to the earnings data, the average single store in 2017 (sales of stores over 12 months) was only 1 million 190 thousand yuan, which was 1/3 of the "Hai Lan home" (3 million 250 thousand yuan), with an average daily sales of 3260 yuan.

Under the rapid expansion speed and the low and middle position, fierce competition and discount sales have led to lower gross margins. In addition, the industry characteristics of women's clothing also means higher R & D expenditure and electricity supplier matching expenses.

In the first half of 2018, the gross profit margin of "Ai Ju rabbit" was 29%, down nearly 9 percentage points from the same period last year, mainly due to the fast opening rate, the larger proportion of new stores, the thinning of single store revenue and gross profit margin, and the discount in the first half of the year. In the same period, the gross profit margin of "Haolan house" was 43%, and the "San Keno" gross profit rate was 50.59%.

In the fierce competition, positioning the middle and low end is understandable, but it needs a set of efficiency system: at the expense of gross profit margin, we need to rely on a faster turnover rate to drive profits, which means that "Ai rabbit" needs higher turnover efficiency to gain profits.

Because the earnings report did not disclose the details of each brand's inventory, according to a research report of Tianfeng securities, the inventory of "Hai Lan Jia" 7 billion 100 million and "Ai Ju rabbit" 680 million, corresponding to the main business costs were 4 billion 578 million and 430 million respectively. Assuming that the inventory structure is balanced during the reporting period, it can be estimated that the turnover days of two brands are 562 days and 579 days respectively.

This shows that "Ai Ju rabbit" not only has lower gross profit margin, but also slower business efficiency, which will be a fatal problem. Besides, women's clothing has the characteristics of short cycle and fast change. These facts show that the advantage of Hai Lan's home is not obvious, and the company is not fully prepared for women's clothing.

But Hai Lan's home is a must for women's clothing. In July of this year, Hai Lan's home issued 3 billion yuan to Switching Company bonds, of which 470 million was used to build the R & D building of AI Ju, and 1 billion 100 million yuan was used to build the AI rabbit warehouse. The rapid growth of the "love rabbit" business has brought about an increase in the demand for logistics and warehousing.

According to the company's plan, "Ai Ju rabbit" will be a major force in the growth of Future Ltd: in 2018, the company planned a 400 net increase in "Hai Lan's home", and a 300 increase in "Ai Ju rabbit" store. It is estimated that by 2020, the number of "Ai Ju rabbit" stores will reach 2000, and the number of stores will double by the end of 2017. The main business revenue will reach 2 billion 250 million yuan, reaching 2.5 times that of 2017.

According to the above data, the estimated revenue of 2 billion 250 million yuan will be apportioned. The average daily sales volume of each store is 3082 yuan, even lower than the above 2017 level. Whether such performance can support the above plan is doubtful.

On the other hand, compared with men's wear, women's clothing has a higher demand for product design, especially fashion women's clothing brand, that is, pay more attention to style. Take "Ai Ju rabbit" as an example. During the eight years, it experienced the spanformation from sports fashion brand to leisure fashion brand, and then to the fashion brand of popular fashion, so that the brand performance that had been incubated for eight years was growing. The frequent change of brand positioning will cause the confusion of consumers' cognition, which is not conducive to the promotion of the market.

In addition, the men's clothing's Hai Lan home is facing more brutal competition: according to the data of the foresight Industry Research Institute, compared with other types, the market concentration of the women's clothing industry is relatively low, and the market share of the top ten enterprises is only 6.8%, which is lower than that of the men's clothing industry.

This means a more intense competition in the industry. The consumption demand of women's groups has provided the survival space for many brands with the main subdivision style and the long tail market. In the 2017 Tmall women's clothing industry sales ranking, AI Ju rabbit did not rank among the top twenty.