The Newspaper Disclosed That Jiangnan Buyi Will Launch 1-2 New Brands And Open More Than 20 Stores A Year.

The first Chinese listed brand designer Jiangnan cloth Co., Ltd. (hereinafter referred to as "Jiangnan Buyi") announced in February 15th that the company will hold a board meeting on February 27th (Wednesday) to consider and approve the interim results and releases of the company and its Affiliated Companies for the 6 months ended December 31, 2018 and to consider the issuance of interim dividends.

Reporters learned that Jiangnan Buyi series of leading domestic designer brands, the company set up in 1994, JNBY, since 2016 in The Stock Exchange of HongKong Limited listing.

At present, there are six brands of women's wear JNBY, high-end women's wear less, men's wear designer brand sketches, children's wear jnbybyJNBY, teenage clothes horse and home JNBYHOME.

According to the financial report, from 2014 to 2017 fiscal year, the operating income of Jiangnan cloth clothing increased from 1 billion 383 million yuan to 2 billion 332 million yuan, and the annual compound growth rate was 19%.

Gross profit was 1 billion 654 million yuan, an increase of 26.22% compared with the same period last year. The new brands (less and shorthand in the 2017 fiscal year) were 69.7% and 67.7%, respectively, higher than JNBY's 62.2%, while the 2016 year gross profit of children's clothing was 61.5% higher than that of JNBY, but the gross profit was much higher than that of JNBY. With the continuous rise of new brands, the gross profit margin increased from the growth of the fiscal year to the year of fiscal year. With the continuous increase in operating income, gross profit was increased. 2018 in the first half of fiscal year

Insiders said that the diversification of brand strategy driven the rapid growth of cloth performance in Jiangnan. From the point of view, the brand new brand of Jiangnan Buyi is still expanding rapidly, and the less of women's clothing brand has increased 40.5% to 238 million yuan compared with the same period last year. The income of men's clothing brand "sketch" increased by 15.5% to 565 million yuan compared with that of the previous year. The brand income of children's clothing increased by 34.3% to 394 million yuan compared with that of the previous year. In 2017, the newly launched brand "Peng Ma" increased 198.6% to 39 million yuan compared with the same period last year, still in a rapid expansion period, and the household brand JNBYHOME income was +269.2% to 6 million yuan over the same period in 2017.

In addition, Jiangnan Buyi also launched the men's wear designer brand SAMO and the fashion environmental protection brand REVERB in the first half of 2018 to expand the group brand portfolio.

Dai Weihao, an Orient Securities researcher, predicts that Jiangnan cloth will continue to diversify its brand and product mix. Its brand uniqueness and consumer groups are limited, and every designer brand in Jiangnan cloth has formed a natural brand barrier.

Although there are 8 brands in Jiangnan cloth clothing, each brand is targeted at a specific consumer group. Analysis shows that Jiangnan cloth will continue to launch new brands to meet the tastes and needs of different consumer groups.

Therefore, it is expected that 1-2 new brands will be launched each year, and the cost of each brand is estimated at RMB 1600-2000 yuan.

According to Jiangnan cloth management, its research team will conduct a comprehensive market research to ensure that the new brand market space exceeds RMB 1 billion yuan.

In order to reduce the cost of testing and error, the company will open 20-25 new stores for each new brand within two years, so as to get valuable information from consumers' feedback.

But what we need to see is that each new brand in Jiangnan cloth is expected to take 2-3 years to break even.

In the early days of the new brand, the company focused on "fans participation" instead of pursuing sales growth. In 2018, the company launched its new clothing brand "SAMO" and "REVERB". The two brands now have 3 stores.

In August 2018, Jiangnan Buyi launched a small program "more than a box". Consumers can buy customized services provided by professional collocs to create a new consumption scenario while providing value-added services for consumption.

In December of the same year, the company launched LASUMINSOLA, a designer brand collection store, which used the advantages of fabric development, supply chain management, and plate manufacturing to promote the new brand incubation and the local operation of international designer brands. It is expected that 3 stores will be opened in the near future.

Xue Yuan, an analyst with CITIC Securities, believes that Jiangnan Buyi has accumulated the design, operation and fans ability with the help of JNBY brand, and has stepped into the stage of continuous incubation and brand development.

In the medium to long term, the continuous growth of new brands will inject continuous momentum into the expansion of the group. In the short term, new brands need to be invested in the initial stage of development and contribute to the revenue and performance in accordance with the pace of development.

Taking into account the development stage of the company's existing brand, it is expected that in the next three years, the operating income and net profit of the southern garment industry will achieve double-digit compound growth.