20 Years To Build Super 1 Billion Children'S Wear Empire To Achieve The First Story Of Domestic A Share Children'S Clothing And The Story Behind Ann'S "Anxiety"

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Starting late, it is still in the growth stage, and has the characteristics of rapid growth of market demand and growing space.

It is understood that there are three major plates in China's children's clothing industry, namely, Zhejiang, Fujian and Guangdong. The industry is highly dispersed and the fighting stage is in a mixed stage.

Except for a ride.

The other second players who have over one billion of the body size also have something to do, including the first A child in the country.

Compared with the adult extension brand, the layout of children's clothing is earlier, the channel is spread all over the country, occupy a second tier city quality resources, expand the camp to strengthen terminal management and control, and seize the electricity supplier development opportunities to share the high speed growth bonus of the electricity supplier.

At the same time, he was criticized for inventory and product quality problems.

What are the important stages of the brand development process of the children's clothing in the past 20 years? What are the industry's leading players?

Hang on

The first share of A share children's clothing is gleaming in China.

Shenzhen's Limited by Share Ltd is a family.

The main high-end clothing business of children's clothing brand owns Annil brand.

The company's products cover two categories of children's wear and children's wear, including clothing, jackets, trousers, skirts, down garments, household clothes, and other multi class children's clothing products.

Founded in 1996, he reviewed his resume for more than 20 years. From the beginning of his establishment, he developed into a leading brand of children's clothing that sold one billion of the industry. He has taken a decisive position and popularity in the market.

In November 13, 1996, the brand "Anil children's clothing store" opened in Huaqiang North women's world department store in Shenzhen. In 1999, the brand "Annil" was registered, and the company gradually stepped out of the individualized operation mode, entered the brand development route, and began to produce "brand" children's clothing in a small batch production. In 2005, the brand business expanded to overseas markets, so that the marketing work was in line with the international standards, and the image of the terminal was improved rapidly. In 2017, Shenzhen's Limited by Share Ltd in the Shenzhen stock exchange board of small and medium-sized enterprises became the first share of the domestic A share children's clothing.

In the 2018 half year report released by the company, the company's revenue grew steadily and its profit level increased gradually.

As of June 30th, the company's revenue was 568 million yuan, an increase of 17.51% over the previous year, and the net profit attributable to shareholders of listed companies was 55 million 399 thousand and 600 yuan, an increase of 24.62% over the same period last year. The company's earnings per share were 0.42 yuan, and its net profit was 55 million 399 thousand and 600, up 24.62% over the same period last year.

In terms of channels, the main revenue of online channels was 172 million yuan, an increase of 40.38% over the same period last year, and the main line business revenue was 395 million yuan, an increase of 9.72% over the same period last year.

The scale of electricity supplier income has also increased rapidly, accounting for 30.24% of operating revenue and maintaining a high growth rate.

As of June 30th, he has set up 1387 offline stores in 31 provinces, autonomous regions and municipalities directly under the central government, including 943 outlets and 444 franchisees.

At the same time, the company has established online sales channels in many well-known e-commerce platforms such as Taobao, Tmall and vip.com.

Analysis of China Merchants Securities, upgrading of offline formats and optimization of channel structure have promoted the growth of the company's internal growth, and its whole channel has also been steadily promoted. In view of the trend of consumption upgrading, we have expanded the high-end high-end department stores and shopping center stores: Alan has settled in many high-end high-end department stores in Tianhong, Huarun Wanjia and Maoming department stores, and actively layout the shopping center. It is expected that the number of direct shops will continue to increase in the future.

As a leading brand of high-end children's clothing in China, since 2017, the product quality improvement and the offline channel optimization and adjustment effect have been gradually manifested. Under the background of continuous upgrading of formats, direct channel has obvious advantages and endogenous growth power has been promoted. Meanwhile, efforts have been made to increase the layout of business channel, and the whole channel strategy has been steadily advancing.

In the first half of this year, driven by strong growth on line and straight line growth, the revenue increased by 17% compared to the same period last year. Although profit margins declined slightly during the digestion process, the control fee was tighter, and net profit from non profit making companies increased by 18% over the same period last year.

What's the main benefit of being the first child in the country?

At present, nearly 180 billion of children's clothing market, of which 42 billion of children's clothing, children's clothing accounted for about 130000000000 of the market size, very clear trend is that the growth of children's clothing has far exceeded children's clothing.

After 99 years of birth, he concentrated on the children's wear (4~12 years old) and expanded the children's clothing (0~3 years old) in 2012 to achieve the full coverage of children's wear.

The company's product pricing is higher than Barbara, similar to Mini Peace of Taiping bird, JNBY by JNBY of Jiangnan cloth dress, international sports brand Adidas kids and Nike Kids.

According to Euro data, in 2017, the company ranked third in the children's wear market with a market share of 0.8%.

What are the secrets behind the success of China's children's wear market from an unknown small business to the top three brands of children's clothing brands in China?

1, highlight the brand effect and enhance competitiveness.

In the mid 90s, he was one of the earliest children's clothing brands. He founded the same pig brand in Guangdong in the same year.

By contrast, the first ballet in children's clothing was founded by Semir in 2006, and a number of international brand children's wear lines including gxg.kid, Gap Kids and so on went even later.

In the middle and high-end position, the product is priced between Barbara, Anta kids, and high-end international sports brand Adidas kids and Nike Kids.

After more than twenty years of entrepreneurial innovation, the "Annil" brand has won wide market recognition and has developed into one of the famous brands of children's clothing in China, with its high-quality, environmentally friendly, simple and innovative style and comfortable and generous products.

The brand strength and product strength of the company are in the first tier of the industry. With the deepening of inventory reform and the deepening of national channel layout, it is expected that it will achieve a 2018-20 year net profit growth target of 15%/20%/20%.

2, open up the whole channel to expand the advantages.

After years of marketing practice, he has gradually established a terminal retail network characterized by direct integration, reasonable hierarchy, wide distribution, and complementarity between online and offline businesses.

As the leading brand of middle and high end children's clothing in China, since 2017, product quality improvement and offline channel optimization and adjustment effect have been gradually manifested. Under the background of continuous upgrading of formats, direct channel has obvious advantages and endogenous growth power has been promoted. Meanwhile, efforts have been made to lay emphasis on the layout of e-commerce channels, and the whole channel strategy has been steadily advancing.

The upgrading of offline formats and the optimization of channel structure have promoted the growth of the company's internal growth, and its all channels have also been steadily promoted.

According to the observation, in order to adapt to the trend of consumption upgrading, expand the high-end high-end department stores and shopping center stores: Ann has settled in Tianhong, Huarun Wanjia, Maoming department store's many high-end high-end department stores, and actively layout the shopping center, it is expected that the number of direct shops will continue to increase in the future.

In the first half of this year, driven by strong growth on line and straight line growth, the revenue increased by 17% compared to the same period last year. Although profit margins declined slightly during the digestion process, the control fee was tighter, and net profit from non profit making companies increased by 18% over the same period last year.

3, ferment marketing force, create word-of-mouth brand.

At present, multi media "brand" marketing is one of the important means of taking advantage of the city.

While focusing on brand promotion and image display through terminal decoration such as store decoration, window design and merchandise display, he emphasizes the use of various emerging media in brand marketing and forms a promotion strategy focusing on vertical mother and child community, enhancing mobile terminal interaction, and working hand in hand with famous print media.

At the same time, the company will combine the trend of advertising mobility to strengthen cooperation with mobile terminal mother to child APP, so as to expand the potential customers of the company.

The interaction between online platforms and offline channels effectively promotes the promotion of brand advantages, expansion of consumer groups and enhancement of customer stickiness.

4, sales are mainly direct battalions, and brand influence is increased.

In terms of sales mode, unlike most other clothing companies, in order to make bigger and stronger brands, the company always sells direct sales mode, so as to enhance price management and quality control, and adopt a unified brand publicity strategy to establish a company's brand image.

2016, the proportion of annual revenue (including online and offline) income and franchise income (including online and offline) accounts for 79.34% and 20.66% respectively.

In 2017, there were 1458 stores in the company, including 970, 488 and 67.87%, 32.13% respectively.

A kind of

Under the online sale of direct store structure, the company also accelerated the adjustment of the store structure under the line, closed down department stores with poor performance, and actively expanded the shopping center shops.

He is actively strengthening the density of the direct channel in the core areas, catering to the rapid development trend of the shopping center's business format, creating more profit margins for the company, and strengthening brand publicity step by step.

5, join online and offline to escort the brand.

In recent years, he has also been expanding franchising and online sales.

He mainly uses direct sales and franchised sales mode. Franchisee mode is conducive to the rapid expansion of the marketing network, saving capital investment and sharing investment risks.

Most of the distributors are located in the three or four line cities, while the outlets are basically distributed over three lines.

In addition to offline affiliate, Ann's online franchising mode is more distinctive. Apart from the flagship store, the online franchising mode makes full use of customer service resources, including logistics resources and drainage resources.

In the first half of 2017 and the first half of 2018, the revenue of the main business income was 19.71% and 15.29% respectively.

According to the financial report, in the first half of 2018, online direct and online franchising increased by 39.32% and 45.47% respectively, and maintained a relatively fast growth rate.

The share of an an an ER line increased from 8.6% in 2014 to 17.g% in the first half of 2018.

Relying on the development experience of the brand for many years, he has gone out of the different profit strategy for the franchise system, and creates the brand rendering power through the win-win cooperation with the franchisee.

To win the market of children's wear, product strength, brand power and channel power are indispensable.

What are the injuries that Ann is unable to get rid of in these years?

Nowadays, the competition of children's wear market is much fiercer than before. All the big brands, whether in the clothing industry or across the border, are aiming at this business opportunity. The pressure on the brand of Chinese children's wear is getting bigger and bigger.

1, excessive inventory.

He can not escape the danger of high inventory in clothing industry.

As of June 30, 2018, the combined book value of 362 million 268 thousand and 300 yuan, accounting for 32.35% of total assets, including 213 million 779 thousand and 900 yuan of inventory commodities, accounting for 59.01% of the book value of stock.

The main reason for the large stock balance is the continuous expansion of the company's business scale and direct channel, which has led to the increase of the inventory of goods such as goods.

According to the accounting standards of enterprises, the company made provision for inventory depreciation by 37 million 199 thousand and 700 yuan as of June 30, 2018, accounting for 9.31% of the inventory balance.

In this regard, he said Future Ltd will continue to enhance the planning of R & D, procurement and outsourcing production, and take measures such as marketing and market promotion to keep inventories at a reasonable level.

2, frequency detonation quality inspection but Guan Guan.

In the fierce market competition, more and more quality problems have been exposed. Semir group's children's wear brand balbala and Armani children's clothing have exposed the problem of quality testing unqualified, and Ann also faces the same predicament.

Despite the fact that he always attaches importance to product quality and takes "different comfort" as the core brand theme, he controls the whole process of weaving, dyeing and dyeing, and processing of fabrics.

But in recent years, many products have been put on the blacklist of clothing inspection in various provinces and cities.

Children's clothing products attach more importance to the safety and comfort of products than adults' clothing, and the infant products implement the national textile product basic safety technical specification class a standard.

If the product quality problem of a specific children's clothing brand appears, it will not only face the risk of administrative punishment by the competent departments, but also have a huge negative impact on brand reputation.

For the queries about the quality of the products, he said that the company would purchase raw materials by itself and send samples to the designated quality third party inspection and testing organizations for internal quality inspection, and then send them directly to the processing plant after being qualified. They will also send quality inspecting personnel to the processing plants to conduct on-site process guidance, problem solving and whole process tracking monitoring and garment inspection. After making the garments, the company will send samples to the third party quality inspection institutions for inspection. After the garments are inspected, they will be sent to the warehouse of the company and checked by the quality inspection team independent of the quality department.

3, do we need to rely on customs clearance?

According to Anne's annual report and so on, in June 30, 2016, Anne has set up 1466 stores in the country, including 952 outlets and 514 franchises.

The information disclosed in Anne's semi annual report shows that as of the end of June this year, the company has established 1387 offline stores in 31 provinces, autonomous regions and municipalities directly under the central government, including 943 outlets and 444 franchisees.

By contrast, the total number of stores has decreased by 79, of which, 9 outlets and 70 franchisees have been reduced.

When he opened the shop, he changed the store.

In response to this, he explained that he took the initiative to close the department stores that adjusted poorly managed stores, and further increased the strength of the store brand stores.

4, the cost is too high, the balance of payments is balanced.

In recent years, the gross profit margin has declined. Through analysis, it has been found that the increase in raw material prices, processing fees and the promotion of online and offline marketing channels have led to a clean up of inventory. The company's continuous expansion of direct channels, joining direct pfer battalions, and strengthening the shopping Center store construction have led to an increase in the sales rate. The cooperation between Disney and IP in 2017 years led to about 4000000 of the company's expenses, and the cost of bringing IPO to millions of businesses. The cost of hiring Roland Begg to increase the cost of 3 million yuan, and the depreciation of office buildings by 360 yuan and 10000 yuan were all factors contributing to the rise in costs.

The main business of the company is direct sales channel, which makes the company pay higher sales expenses to the sales people (mainly shopping guide) and the higher rental cost.

By comparison, the cost rate of 18Q1 was reduced.

In the first half of 2018, the sales cost rate was 38.84%, and the management fee rate was 6.98%, which was 38.91% in the first half of last year, and 6.36% in the same period last year, which was flat compared with the same period last year. The financial expenses were affected by the interest income earned by the company, and the absolute number in the first half of 2018 was negative. The same period last year was only 570 thousand yuan, and the cost of the company was reasonable during the same period.

5, brand is single, sales depend on department stores.

At present, all the income of its company is derived from the brand "Annil", and 83.79% of its income comes from the children's wear products, and there is too much reliance on the risk of single brand and children's wear products.

The company's channel is mainly offline.

2017, the income of channel and e-commerce channel is 77% and 23% respectively.

According to the offline channel format, the company's offline stores can also be divided into shopping arcade stores and brand exclusive stores, including shopping arcade stores.

According to official data, the company plans to use 2018-2020 years of investment funds to expand more than 242 stores, of which more than 80 new homes are newly expanded every year, and shopping centers are the main ones. The number of stores will be stabilized and picked up. Once again, the store opening cycle will be reopened, the channel efficiency will be maintained and the store efficiency will keep growing. The online growth is still at a fast growing stage, and the leading position of the high-end children's clothing in the future is expected to consolidate, and the 2018 year performance is expected to improve.

If you want to wear a crown, it will take its weight. As an individual brand grows, it needs to be cautious about future development. Even if it has been listed successfully, it still needs to face fierce market competition.