Analysis Of The Economic Performance Of The Major Companies In China'S Underwear Industry In The First Half Of 2018

The rise and fall of underwear trend is very high frequency, color, style,

In order to make underwear brand go deep into consumer groups, market segmentation is essential.

At present, the annual sales volume of underwear in China is over 100 billion, and it is growing at a rate of nearly 20% per year.

The underwear industry has nearly 10000 manufacturing enterprises, mainly concentrated in the Pearl River Delta, Yangtze River Delta and other industrial gathering areas, and has become one of the fastest growing areas of the global underwear industry.

The underwear industry is the last piece of cake in the clothing industry.

But as we all know, the vicissitudes of underwear trend are very high frequency. Color, style, fabric and style are changing with each passing day. In order to make underwear brand go deep into consumer groups, it is essential to segment the market. Only by accurately positioning the types of consumer groups, can we better control the production and sale of controlled products and decide the production with consumers' preferences. This is the best way to solve inventory and achieve profits.

At present, in the underwear market of China, the male underwear market is relatively slow compared with the female underwear market, so that there are few men's underwear stores. The position of men's underwear in the market can be said to be ancillary, and its market position can be seen in general. Men's underwear is usually placed in men's clothing or in the small corner of women's underwear. Besides, men's underwear is still monotonous and uniform in style.

Similarly, the underwear market has not been fully valued.

Female underwear products are more subdivided, such as adjusting underwear, body underwear, sports underwear, smart underwear, and products with age and identity, such as girl underwear and lactation underwear.

Therefore, in order to locate consumers more accurately, the market segments that consume consumers are the future.

The trend.

With men's clothing, women's wear, sportswear and other clothing subdivision industry entering a mature stage of slow development, the underwear industry has attracted the attention of many entrepreneurs and investors in the garment industry due to its high gross profit level.

In terms of scale of revenue, the scale of urban beauty is far ahead, and its operating income is more than 2 times that of the other two enterprises.

In 2016, the scale of revenue of urban beauty and Ann Li Fang decreased, and revenue decreased by 8.9% and 12.6% compared with the same period last year. Both of them were greatly reduced by the impact of the electricity supplier, and the scale of revenue of Hui Jie shares remained stable year by year.

In the first half of 2018, the revenue of three companies increased steadily, and it is expected to increase slightly in 2018 compared with last year.

In terms of net profit, there is little difference between the 3 companies.

Similarly, in 2016, urban beauty and harmony

The size of net profit was nearly cut off in 2015 compared with 2015, which was greatly reduced by revenue. It began to pick up in 2017.

In the first half of 2018, Hui Jie shares achieved net profit of 200 million yuan, ranking first in the industry.

2015-2018 year's revenue of major companies in the underwear industry (unit: yuan)

Net profit scale of major companies in underwear industry in 2015-2018 years (unit: yuan)

From the first half of 2018, the scale of the expansion of the underwear industry enterprises, the best performance of the company, revenue growth and net profit growth ranked first.

In addition, the revenue growth rate of the 3 enterprises is relatively stable, between 10-15%, with little difference, while the net profit growth gap is obvious, and the net profit growth gap among enterprises is above 10 percentage points.

Comparison of revenue growth of major Underwear Companies in the first half of 2018

Comparison of net profit growth of major Underwear Companies in the first half of 2018

In terms of gross margin, the gross profit margin of underwear enterprises is generally high, at least above 40%.

Among the 3 listed companies, the price margin of an Li Fang was the highest, remained at about 80%, far higher than that of the urban beauty 43-44%, and the gross margin industry of Hui Jie ranked second, but still lagged behind the 12 percentage points of the company.

In terms of net interest rates, Hui Jie shares showed an obvious trend of increasing year by year, from 8.8% in 2015 to 17.1% in the first half of 2018, rising by 8.3 percentage points, which is now in the leading position in the industry. The net interest rate of urban beauty has not been good in recent years. After 2016 falls sharply, it is in a slow recovery stage, and is still lagging behind two other companies.

Comparison of gross profit margin of major companies in underwear industry in 2015-2018 years

Comparison of net interest rates of major Underwear Companies in 2015-2018 years

In terms of return on net assets, Hui Jie shares remain at a relatively stable level of around 10-15%, and are generally higher.

And Li Fang; the urban beauty is generally on a downward trend; in 2017, Ann Li Fang had a sharp increase in the impact of non recurring gains and losses, excluding the year, ROE also showed a downward trend.

Comparison of return on equity of major Chinese underwear industry in 2015-2018 years (unit:%)

In terms of inventory turnover, urban beauty inventory turnover is the fastest, but there is a clear trend of variation.

2015-2018 in the first half of the year,

Inventory turnover decreased to 1.2 times 3.9 times, but still far higher than other companies.

The inventory turnover rate remained relatively stable, and there was a trend of increasing speed. Among them, the inventory turnover of an Li Fang was the slowest and the inventory turnover rate was below 1 times for a long time.

In terms of total assets turnover, urban beauty is still in the leading position, but the gap between the three companies has decreased.

In addition, the turnover speed of the total assets of the 3 enterprises showed a marked slowing down trend.

The increase in overall inventory is associated with lower asset turnover.

Comparison of inventory turnover of major Underwear Companies in China in 2015-2018 years (unit: Times)

Comparison of assets turnover of major Underwear Companies in China in 2015-2018 years (unit: Times)

Underwear market is known as the "last piece of cake" in the clothing market. Although the market of women's clothing, children's clothing and other clothing segments has been saturated, underwear as a just needed product still has great room for development.

Women's underwear is usually replaced by a year, while a woman usually has at least five or six underwear. In China, there are 700 million women in the market, so the size of underwear market is at least 200 billion yuan per year.

In 2017, the annual sales volume of China's underwear market is over 100 billion, and its annual growth rate is nearly 20%.

In the whole market, the share of women's underwear is about 60%, and the market size is more than 50 billion yuan.

Behind the consumption gap of her economy, women

There are already abundant supply of brands. These lingerie brands meet the diversified needs of consumers through differentiated strategies.

The functional demand of Chinese consumers for women's underwear is mainly reflected in the gathering. Under the pull of demand, the gathered underwear has also become the mainstream of traditional underwear.

Online underwear sales by functional distribution

According to the relevant statistics, the total sales of underwear in China reached 20 billion to 50 billion in 2016, and continued to grow at a rate of 20% per year.

With the improvement of people's living standard, female consumers have different pursuits for underwear and pay more attention to the fashion and brand of underwear. Therefore, the underwear industry has been developing rapidly, and in 2016, domestic sales reached nearly 50 billion yuan.

However, this figure looks huge, actually accounts for only 5% of the proportion of women's clothing consumption. In many western countries, the proportion of women's underwear consumption accounts for more than 20% of total clothing consumption.

It shows that the underwear market of Chinese women is still at the stage of development, and there is still much room for development.

Trend 1: underwear market will be more subdivided

In the past, underwear industry mainly had women's underwear. With the increasing demand of consumers, underwear and underwear for the elderly will also enter the mainstream market.

As we all know, the elderly market and children's market have a huge scale. When the demand of these two consumer groups for underwear increases, it is a new outbreak of underwear industry.

In addition, the subdivision of the underwear market is also reflected in women's underwear. With the diversification of female consumer demand, the market of girls underwear, maternity underwear and so on will also be taken seriously.

Trend two: underwear style is more personalized.

Today, it has gradually entered the era of consumer upgrades. People are not satisfied with mass consumer goods, and are more inclined to pursue personalized products. For underwear, it is no exception.

In the coming years, all kinds of fashionable underwear with various styles and colors will become the new favorite of female consumers.

Trend three: underwear function is more diversified

The development of science and technology can promote the progress of many industries, and the underwear industry also benefits.

In the past, the function of underwear was only a protective function. With the development of science and technology, underwear, such as health care, beauty, intelligence and so on, has gradually appeared in the industry, meeting the needs of people in the new era.