Profits Have Declined Year After Year. La Natsu Bell Has Rebuilt The Brand Value.

In 2018 this October, for the golden autumn of this year, the frustrated footnote was engraved. When people began to embrace the unexpected departure and the pain of being filled with blunt pain, the so-called perception of the changes of the times began to become more and more profound.

But in fact, we already know clearly that time goes on and on, the world turns over and turns, old prosperity falls, new things rise.

It's the normal rule of reality.

However, in the urban business circle that has pulled away from the personnel situation, everything will become more brutal and desolate.

Let's talk about La Natsu Bell, the popular casual wear brand (06116-HK), which has just announced the three quarterly report this past night. After two consecutive years of decline in profits, La Natsu Bell's growth path seems to be getting worse and worse in 2018.

On the evening of October 30th, La Natsu Bell published the three quarterly bulletin as at the end of September this year. From this fresh performance report, after 9 months' hard work, La Natsu Bell still can not escape the fate of his performance.

According to the financial report, La Natsu Bell's operating income in the first 9 months of this year was 6 billion 200 million yuan (RMB, the same below), a slight decrease of 0.5% over the same period last year. The net profit attributable to shareholders of listed companies was 239 million yuan, which was 29.58% weaker than the same period last year.

This is also the worst performance of La Natsu Bell's three annual publication this year. In the first quarter of this year, the company's operating income and net profit also recorded an increase of 9.88% and 33.68% respectively. In the interim results at the end of June, La Natsu Bell showed no increase in profits after last year's performance. Although the annual revenue increased by 2.3%, the net profit fell 16.3%. Until now, three quarterly reports have been issued, and La Natsu Bell's overall performance has finally collapsed.

A good hand has been smashed, and its operating efficiency has become increasingly bleak.

In response to such a poor pcript, La Natsu Bell explained in the announcement that the slight decline in operating income during the period was mainly due to the decline in the brand income of its women's clothing Puella and La Chapelle.

It is reported that La Natsu Bell's two brands were adjusted by special channel and in the process of product optimization and upgrading, and the income during the period dropped by 13.47% and 7.92% respectively.

In addition to the decline in revenue, La Natsu Bell's net cash outflow generated by business activities in the first three quarters of this year was 396 million yuan. The company said it was mainly due to the decline in sales revenue and the increase in operating capital expenditure in some new brand cultivation stages.

In the meantime, the gross profit of the company continued to decline, which led to a sharp decline in net profit of La Natsu Bell in the first three quarters of this year.

It is also sad to say that La Natsu Bell, who has come to this stage of the field, can be called a good card.

Looking back at La Natsu Bell, who landed on the main board of the Hong Kong Stock Exchange in October 2014, it occupied an important position in the Chinese popular female casual wear market. In 2013, its share in the domestic retail market reached TOP3, leading many famous international brands.

In September 2017, La Natsu Bell returned to A and was listed on the Shanghai Stock Exchange and became the first A+H listed clothing company in China.

In fact, in the years before and after the listing, La Natsu Bell Du achieved considerable growth in 2015. The development trend is also full of vigour.

But in recent years, La Natsu Bell, who has achieved two listings, failed to make further progress. On the contrary, he soon showed signs of weakness in his performance.

As mentioned earlier, since 2016, La Natsu Bell has been declining in net profit for two consecutive years.

How can it be easier to rebuild brand value by multiple factors?

Studying the turning point of La Natsu Bell's growth path, we have to mention nearly five years in China.

The impact of the great changes.

Roughly from 2013 to 2015, the retail industry in China was attacked, and the retail industry such as shoes, clothing and so on had a great depression. The time for the turbulent changes in the specific segments was likely to be more concentrated. With the change of consumption patterns and the sweeping of the new retail wave, Chapel's mass leisure clothing retailing industry also ushered in an unprecedented adjustment period. The industry market was faced with many challenges such as the pformation of channels, the trend of personalized consumption and the impact of foreign brands.

To a certain extent, this has affected La Natsu Bell's performance.

From its own development strategy, La Natsu Bell's growth path has also been hidden for a long time.

For many years, La Natsu Bell has been unable to reform his extensive management. After all these years, La Natsu Bell pulled the growth of his income through almost crazy stores, but at the same time, his single store income declined year after year, and the gross margin level was also low.

At the end of 2013, there were 5384 retail outlets in La Natsu Bell, which increased to 6887 at the end of 2014 and increased to 9448 at the end of 2017.

During this period, the gross profit margin of La Natsu Bell began to decline in 2014, and the same store sales began to decline in the following year. The sales decline of La Natsu Bell same store from 2015 to 2017 was 3.2%, 6.4% and 8%, respectively, and the decline was expanding year by year.

In 2018, the expansion of La Natsu Bell's store has not stopped. But at the same time, it opened a shop. Meanwhile, there were 1228 new stores and 1051 stores closed from 1 to September this year. Therefore, the number of net stores increased to 177, and the total number of stores increased to 9625.

On the whole, the mismatch between its low operating efficiency and the expanding scale is La Natsu Bell's biggest predicament.

In addition, La Natsu Bell's own brand is losing its advantage in competition.

Over the years, La Natsu Bell has been implementing its multi brand strategy, enriching its existing brand portfolio through internal cultivation and external investment. In June of this year, La Natsu Bell completed the acquisition of Naf Naf SAS 40% stake in France.

An important step.

At present, La Natsu Bell has nearly 20 clothing brands, forming a pattern of women's clothing, men's clothing, children's clothing and home products. However, the benefits of multi brand strategy for group development have not yet appeared. Even La Natsu Bell's own brand positioning is beginning to blur. La Natsu Bell's brand superiority is almost untenable in the increasingly competitive industry.

In other words, in this era of change, how can it be easier to reinventing an enterprise's brand value? Perhaps for La Natsu Bell, this road is still long and precious.

In October 31st, La Natsu Bell H shares closed at HK $6.98, down 2.65% from a full day, while A shares closed up 1.08%, at 9.34 yuan.