On The Nirvana Road, The Modern Avenue Has Gone Out Of The Road Of "Different" Development.

In recent years, apparel enterprises are seeking pformation and upgrading. Most of them are eliminated by the market, and a few of them are in the early stage of pformation.

Careful observation of such enterprises will find that such a A apparel enterprise "modern Avenue" has gone out of the "different" development path.

Transformation: "Pan main business" to create a fashion group with new growth points to avoid single business risk.

At the beginning of the market, the flagship product is the self owned men's brand, the card slave road. After years of development, it has expanded into a multi brand, multi-channel and multi category business mode. Its main business is expanding into clothing bags, jewelry accessories, skin care, beauty makeup and other fields.

Through the "Pan main business", its private brand sales account for about 96% of its market share, and its private brand sales account for only about 46% now.

Its traditional private menswear brand business has expanded to the brand of DIRK and BIKKEMBERGS.

The brand development of card slave road has developed three series: CANUDILO, CANUDILO H HOLIDAYS and advanced customization.

CANUDILO and CANUDILO H HOLIDAYS have a high reputation in China's high-end men's wear market. The channel mode is mainly direct and exclusive. According to public information, as of June 30, 2018, there were 233 CANUDILO brand stores, of which 148 were self owned shops, 85 were joined, and nearly 500 thousand were VIP.

The acquisition of the international brand DIRK BIKKEMBERGS can be regarded as an attempt to internationalize the modern Avenue, which will help to enter the high-end sports brand series.

DIRK BIKKEMBERGS's global operation capability, product design capability and the channel advantages of modern Avenue in the Chinese market have helped to achieve complementary advantages.

From the data analysis, private brand (CANUDILO, CH, card slave customization, DIRK BIKKEMBERGS) sales revenue increased by 58 million 493 thousand and 500 yuan in 2017 compared with 2016 revenue, an increase of over 14%. In 2018 1-6, the operating income was 29649.78 yuan, an increase of 36 million 378 thousand and 100 yuan over the same period last year, an increase of 13.99%.

The gross profit of its own brand increased by 48 million 229 thousand yuan in 2017 compared with that in 2016, an increase of over 19%. In 2018, gross profit of 1-6 yuan was 213 million 34 thousand and 100 yuan, representing an increase of 48 million 360 thousand and 500 yuan compared with the same period last year, an increase of 29%.

On the whole, the sales of private brand lines are the main ones, while the online industry is subsidiary. As a whole, its own brand grows steadily and its gross profit margin is higher.

In addition, modern Avenue explores the pformation of international agency brand business.

It is understood that through continuous resource integration, the modern Avenue has established a long-term and stable agent cooperation relationship with the international first and second tier brands.

From the point of view of operation mode, its online and offline operation mode is integrated, online full channel operation, and offline operation through brand exclusive store and buyer shop mode, such as the ANTONIA brand collection buyer shop opened in Macao, with an area of 3000 square meters, operating over 300 fashion brands, and cooperation with the first largest duty-free company, German hymen, in Macao Jinsha city center, offering Esscents perfume and beauty duty duty-free shops.

From the data analysis, the agent brand sales performance increased by 94 million 230 thousand and 700 yuan in 2017 compared with 2016, and the growth rate exceeded 50%.

By the end of 2017, the To B and To C of the online retail platform of the group were set up, and the operating income in 2018 was 243 million 348 thousand and 300 yuan in 1-6 months, an increase of 113 million 929 thousand and 300 yuan compared with the same period last year, an increase of 88.03%.

The gross profit margin of agent brand increased by 32 million 57 thousand yuan in 2017 compared with 2016 gross profit, increased by over 44%, and gross profit in 2018 1-6 was 70 million 247 thousand and 700 yuan, an increase of 25 million 41 thousand and 900 yuan compared with the same period last year, an increase of 55.40%.

Overall, online and offline growth is increasing. Online sales are growing faster and absolute profits continue to increase.

It can be seen that in the context of expanding the self brand product line and maintaining the traditional clothing business steadily, the modern Avenue has launched the "broad main industry" layout with the main line around the strategic orientation of the fashion industry group.

Acting as an international brand, expanding the business mode of brand franchised stores and buyer shops, the main line of development and mutual promotion of the main industries and complementary resources bring new business growth points to enterprises, and at the same time disperse the operational risks of the original single proprietary brand, and the road of pformation has achieved success.

Upgrade: embrace the Internet and new retail strategy, upgrade traditional business

The traditional clothing companies are not accustomed to change. The changes in the market environment make a batch of traditional enterprises disappear from the market and be eliminated by the market.

The essence of embracing the Internet and the new retail strategy is to embrace consumers and embrace the market and trend. This can be verified by the strategic adjustment and capital operation of modern Avenue development.

Morden Avenue began to build the online sales system from 2016, and built the electronic business platform "the modern road platform". At the same time, it carried out the full channel operation with the help of the mature third party e-commerce platform.

Online sales have made breakthroughs, and online sales in 2018 have been impressive, especially on the online sales of incense chemicals.

Sales channels have been under the single line of successful pformation line and online sales channels.

In addition, based on the new retail, the modern Avenue takes "fashion x technology" as the starting point. In 2016, YouSpace invested in the AI field of artificial intelligence in the United States, entered 3D modeling and content production, and explored in depth how to integrate technology with fashion.

Through the combination of multi-dimensional magic mirror and Silicon Valley YouSpace company launched the "smart store", through the "Smart Mirror", "3D shopping wall", "smart window", real-time and fast and accurate access to the user's body data, intelligent identification style and collocation recommendation, realize what you see and wear, and constantly explore the future fashion new retail.

It can be said that the layout of modern Avenue coincides with market trend and consumer demand.

Investment: pleasing to the heart, a good investment, a paction that has the imagination to follow.

The 490 million acquisition of modern Boulevard is a company that focuses on mobile Internet social product matrix. Now it has independently researched and developed dozens of applications including third party input method (Fancykey keyboard) and other products.

At present, the total number of users is over 120 million, and the number of active users is more than 24 million.

Yue Yun heart has a stable product advantage in the mobile application market. Its personalized tool was launched in 2014, iOS ranked top2, Android ranked top5, micro task tool was launched on 2015, and social assistant tools were launched online in 2012, and now occupy a larger market scale.

The earnings of Yuet's heart are mainly composed of IAP income and advertising revenue. In 2018, 1-6 yuan realized 98 million 315 thousand and 300 yuan in revenue and 24 million 977 thousand and 900 yuan in net profit.

From the data point of view, the sustained and steady growth of Yuet's heart scale and profits is a good quality Internet sea going enterprise with good growth. It has a positive addition to the operating income and net profit of modern Avenue and is a good investment in modern Avenue.

Yue's heartbeat will also achieve synergy and complementary resources with modern Avenue in many ways.

The team's good Internet professional and working background can complement the fashion and retail industry of the listed company. The core competitiveness of the company is product development capability, which is complementary to the product development and operation of the modern Avenue online platform. The modern Avenue has a strong overseas supply chain system. The main business is mainly concentrated in the European and American countries, and the resource integration can be realized through commodity realisation in the future.

Review: "light boat has passed over the great mountains", from the investment stage to the harvest period.

Any enterprise in pition will run in and experience pains.

The pformation period of modern Avenue was mainly in 2016 and 2017. In 2016, it was mainly to integrate agency brand business to improve quality and efficiency. From the public information, it also knew that it also suffered a lot of losses in 2016. The main step is to take greater efforts to optimize and integrate the offline stores and Macao stores. As new channels and new business models are expanding, they are still in the exploratory stage, and they can not achieve their business goals in the short term. In a timely manner, some shops with poor performance in 01MEN and new channels in Macao have been shut down. Accordingly, a one-time amortization of decoration fees, provision of inventory depreciation and recognition of margin losses has led to a negative growth in operating profits.

The loss of the year allowed enterprises to re run in the new business at the same time, and also allowed the enterprises to unload historical burden.

After running in 2016, the agency brand business is very healthy after 2017.

In addition, the investment in building online sales network is mainly in 2016 and 2017. These are one-time investments. According to the data of June 2018, the proportion of online revenue in the 1-6 months of 2018 has accounted for more than 34% of the enterprise income. Online sales operation has entered the orbit, and has continuously contributed to the enterprise's revenue.

From the data point of view, operating income increased by 167 million 110 thousand and 500 yuan in 2017 than in 2016, an increase of 22%. In 2018 1-6, the operating income was 643 million 731 thousand and 500 yuan, an increase of 184 million 686 thousand and 200 yuan compared with the same period last year, an increase of 40.23%.

Gross profit in 2017 increased by 129 million 617 thousand and 200 yuan over the 16 year gross profit and increased by over 34%. In 2018, gross profit in the 1-6 months was 330 million 578 thousand and 600 yuan, an increase of 88 million 300 thousand and 200 yuan compared with the same period last year, an increase of 36.45%.

On the whole, online and offline growth is synchronous, sales are rising steadily, and profit contribution continues to increase.

For net profit, the sale of Cafu assets in March 2017, investment income (98 million 800 thousand yuan) increased profits and amortization of the new headquarters building after the opening in 2018. From the net profit combination caliber, the net profit in 18 years was lower than that in 17 years, but from the actual production and operation, the single pure operating income remained stable in 2018 than 2017.

For such a pformation has achieved results, choose the right way of business, time is the best witness to harvest.