A Apparel Semir Costumes

1. Management of Semir apparel

The company has two major brands, namely, the adult casual wear represented by Semir brand and the children's clothing represented by the balbala brand.

Semir brand positioning young, fashionable, dynamic, cost-effective public casual wear, facing the 16-30 year old fashion and trend of young people, positioning is the same as ZARA.

Semir is trying to integrate suppliers, agents, design research and development, brand communication and other domestic and foreign resources, and establish a set of cooperation systems that are compatible with their own business models throughout the design, production, logistics, sales and brand business links.

As we know above, the core concept of ZARA is "all customer centered, fast and efficient fashion products that provide customers with parity."

For this reason, ZARA has cut down all the costs which are not related to "fast and efficient" and "parity", such as the use of "two design" to reduce the cost of clothing design, insist on not using high-grade fabrics, save material costs, insist on not advertising, reduce marketing costs.

For this reason, ZARA has its own production plant, controllable suppliers, self built logistics delivery, R & D information system, and 90% stores are proprietary stores.

However, the whole operation and structure of Semir dress is totally different from that of ZARA. Semir is characterized by virtual operation, and has no own factory, mainly based on franchisees.

In the April 18, 2017 chart of investor relations activities, Semir apparel believes that its development will be more like ZARA. The future direction of development is that agents will be pformed into direct operated stores.

Feng Yunjun believes that ZARA's proprietary stores collect and analyze customers' preferences, which are easier and more precise than those of Santa Ma clothing. If Semir clothing has to take the fast response and zero inventory of customer demand, the whole "procurement production sales" mode will change accordingly.

(1) supply chain

From Semir's clothing inventory structure, we can see that Semir has only stock goods and turnover materials, 99.8% of which are stock goods, no raw materials, products and finished products, indicating that Semir clothing production clothes are outsourced.

Semir apparel went public in 2011 and improved supply chain management after 2014, from the original 400 to about 200, from the past loose to the close cooperation type.

Semir is more inclined to have large scale, high quality and high efficiency suppliers, making the orders more centralized, enhancing bargaining power and controlling costs.

Judging from the proportion of the top 5 suppliers of Semir costumes, it began to improve in 2015. The proportion of the 5 largest suppliers in 2016 (11.95%) was significantly higher than that in 2015.

Semir clothing accounts have a large amount of accounts payable which are not paid to suppliers. The ratio of accounts payable / operating costs is generally around 15%, which increased sharply in 2016 and 2017, 24% and 18% respectively.

From the cash flow situation, operating cash flow in 2017 was much higher than net profit, mainly due to an increase of 682 million in accounts payable and a 522 million decrease in accounts receivable.

(two) design

Semir apparel R & D expenditure is mainly related to R & D projects related to R & D projects related to the remuneration, travel expenses, information, clothing and other expenses, since the listing of the proportion of Companies in R & D design is increasing.

In 2017, Semir invested 353 million in R & D, an increase of 29.71% over the same period last year, and two main brands exceeded 100 million yuan respectively.

Taking Barbara as an example, designers and buyers of Semir costumes have been stationed overseas to capture the trend of international trends every quarter.

In addition, Semir has established strategic cooperation with several world-class fashion information companies to ensure the first time to get the information of the global popular style. In 2014, balbala SKU exceeded 7000.

The research and development of Semir clothing in 2017 covered intelligent workshop, market research, fabric research and development, 3D design, experience technology and so on.

R & D cost is also the highest proportion of management cost, 55% in 2017 and 5.31% in management cost.

R & D cost is also the highest proportion of management cost, 55% in 2017 and 5.31% in management cost.

(three) sales

1, Semir brand VS Barbara brand.

Casual wear is mainly for Semir brand, children's clothing is mainly Barbara brand. From the perspective of income structure, Semir's clothing revenue is driven by sales growth of children's clothing.

(1) the income of children's clothing increased rapidly, increasing by 26.4% over the same period in 2017, accounting for more than half of the total income.

(2) the growth of leisure clothing income has stagnated, indicating that the competitiveness of leisure apparel is not enough.

From the perspective of gross profit composition, children's clothing has contributed more than 60% gross profit: from gross profit composition, children's clothing has contributed more than 60% gross profit:

(1) the gross profit margin of casual wear business has been declining, from 37.72% in 2011 to 29.31% in 2017.

(2) gross profit margin for children's clothing has been rising, rising from 38.02% in 2011 to 41.52% in 2017.

From the number of stores, the store of casual wear brands reduced from 4420 in 2012 to 3628 in 2017, and the store of children's clothing brands increased from 3308 in 2012 to 4795 in 2017.

Judging from the core performance indicators, the flat effect of children's clothing business (9 thousand and 100 / x) is higher than that of casual clothing business (7 thousand / x), the efficiency of children's clothing business is rising, and the efficiency of clothing business is decreasing, which is consistent with the gross margin level.

However, even the flat effect (9 thousand and 100 / 4600) of Semir clothing children's clothing business is very low compared to the flat effect of ZARA.

From 2017, the average leveling effect of the top ten stores in Semir clothing announcement was 13 thousand and 800, and Semir's target was 40 thousand.

2, offline franchisee VS self run shop

From the data of franchised stores, the number of franchised stores is higher and higher than that of Semir stores.

As of June 2018, the total number of franchisees and stores was 92.34%.

From the point of view of sales revenue, the proportion of Semir apparel's revenue / offline revenue is also higher than 80%. In 2017, it joined 7 billion 372 million in revenue and 83.44% in revenue.

The development of Semir apparel franchisee is responsible for Semir's market planning department and Barbara's investment promotion department. The first level franchisee has the right to develop the two level franchisee after signing the sub franchise management agreement with the company.

The two level franchisee is managed by a franchisee and the product is shipped by Semir apparel.

The first tier franchisees are divided into three categories: provincial, prefecture level and county level. Semir brand needs to pay a certain franchise fee according to the actual situation. The franchise fee includes brand usage fee, advertising support fee and on-site support fee, while balbala brand does not accept franchise fees.

Semir costumes will support franchisees and assign credit lines to single franchisees.

The total amount of credit is determined according to the past credit situation, capital status and estimated sales volume, market development plan, and the receivables turnover rate of the industry. The total amount of credit generally does not exceed 5% of the annual sales quota, but the franchisee needs to pay Semir clothing capital occupation fee.

Semir clothing only accounts receivable without receivables. In 2014, the proportion of accounts receivable / revenue increased sharply to 18% in -2016, and decreased to 12% in 2017.

Accounts receivable structure, the proportion of accounts receivable in 1 years is 95%, which shows that Semir clothing sales refund rate is very high, and Semir clothing standard is more stringent: 2-3 years of accounts receivable 50%, more than 3 years are all bad debts, which shows that Semir's clothing assets quality is guaranteed.

In the past, Semir clothing held a dealer conference once every quarter. Customers would take part in the order meeting and place orders after the order meeting. Now they also learn ZARA to speed up the ordering frequency.

At present, Semir clothing ordering mode has been developed into a 4+4 batch order from the original 4 orders per year, that is to say, it will increase 4 online orders on the basis of the original order mode, and the target will be 12 in 2018.

At the same time, Semir apparel in the direct system and shopping center channel system try 12 batches of goods, so that the company's products can respond quickly to market needs, close to consumption, and achieved good results.

Semir costumes are now in order to deliver goods to and without margin.

Semir apparel regards franchisee's stock as part of its own, and the agent can return a certain proportion.

(1) the order part of the franchisee is not allowed to return, the distribution and replenishment part can be returned according to the 10% of the quarterly product purchase volume, and the order system is adopted after October 2007.

(2) the distribution of children's clothing can be returned according to the 15% of the quarterly product's purchase volume, and the order customers can return the product according to the 10% of the quarterly product's purchase volume.

The return rate of Semir casual clothing before 2011 (return / current income) is shown below.

After 2011, the estimated liabilities of Semir clothing are expected to be returned by customers. In 2015, the expected price decline was also included in the estimated liabilities.

It is estimated that the ratio of liabilities to operating income may be understood as the expected return rate of the company, which increased sharply in 2013 and was 4.95% in 2017. -2015

Semir apparel only disclosed the inventory life in 2010. It can be seen that 98.68% of the inventory is concentrated in the first year.

Semir apparel only disclosed the inventory life in 2010. It can be seen that 98.68% of the inventory is concentrated in the first year.

More than 6 months of inventory is mainly unsold inventory and franchisee returns, Semir clothing for more than 6 months old stock merchandise main processing methods for clearing and buyout.

Judging from the inventory turnover, the proportion of the total sales this year was generally higher than 80% this year, which indicates that Semir's clothing inventory is in good condition.

3, offline VS line

Semir clothing processing franchisee returns mainly through the electricity supplier channel, half of the electricity supplier sales are second-hand clearance, half of the sales are new products, the company expects the proportion of new products sales will be higher and higher.

Therefore, Semir clothing business income to some extent reflects the company's ability to inventory.

In May 2012, Semir clothing set up specialized e-business companies to start online sales. In 2017, online sales revenue was more than 3 billion 100 million, an increase of 40.13% over the same period last year, accounting for 27% of total revenue, and 1 billion 604 million in the first half of 2018, an increase of 32% over the same period last year.

4, sales cost analysis

The sales expenses of Semir clothing are mainly sales staff salaries, store rental and advertising costs. In 2017, these three accounted for 63%, and the sales cost rate was 14.66%.

Two, operation efficiency

The core is around the net asset yield index (net interest rate * asset turnover * interest multiplier). Feng Yun Jun takes ZARA, Hai Lan's home and Semir costumes for comparison.

1, Semir clothing VS ZARA

Gross profit margin, the gross profit margin of ZARA in 2017 was 56.28%, which was 35.06% higher than that of Santa Ma apparel.

In 2017, the ROE of ZARA was 25.70%, which was more than doubled than that of ROE ROE. Compared with the index of ROE expansion formula, ZARA's net interest rate, asset turnover rate and equity multiplier were higher than that of Shen Ma clothing.

On the whole, ZARA's assets turnover rate is 1.27 higher than that of Santa Ma apparel asset turnover rate of 0.90, mainly due to less receivables and quick turnover of inventory, but ZARA has its own production plant and Semir outfits are all outsourced, which results in a lower turnover rate of ZARA's fixed assets than that of Santa Ma's.

2, Semir clothing VS Hai Lan's home

Haolan's home only went back to A shares after 2014, so only after 2014 data, the gross profit margin of Semir clothing and haolang's home were not much different.

However, the net interest rate of Semir clothing declined significantly. In 2017, the net interest rate was only about half of that of Hai Lan's home, and the leverage ratio of Shanghai's LAN home was higher. This caused the ROE (31.37%) of Hai Lan's home in 2017 to be much higher than that of ROE (11.33%) of Santa Ma dress. 9.47%.

On the whole, the turnover rate of Semir clothing is higher than that of Hai Lan's home. The main reason is that inventory turnover and fixed assets turnover are higher than that of Hai Lan's home.

Feng Yunjun thinks that Semir clothing is a popular clothing product, while the Hai Lan home is a basic clothing product. In order to avoid inventory impairment, the turnover rate of the former is generally higher than that of the latter.

Three, management analysis

When analyzing a company, we also need to analyze the company's operation and management from various details, especially the background and entrepreneurial experience of founders. This helps to avoid many companies with management moral defects or financial fraud.

1, entrepreneurial story

About the real controller Qiu Guang and the story of starting a business, it has gone through a lot of ups and downs. In 1996, 45 year old Qiu Guang and Semir founded the brand. Feng Yun Jun did not elaborate on it. He recommended two articles to understand:

1, Qiu Guang and I am going to be 90 years old.

2, "Qiu Guang and he used to be poor, and built up Semir and Barbara brand through their efforts."

2, corporate culture

Semir's clothing business philosophy is "the river is full of water," which is the corporate culture of win-win thinking.

Semir apparel regards the franchised dealers' inventory as their own business and work. Dealers will have difficulties through credit support, relaxation of accounts, and increase of returns.

In addition, suppliers, agents and distributors have begun to establish partner mechanism to become an interest community, a business community or even a fate community, from efficiency management and human nature management.

3, talent selection

Semir costumes are family businesses, and the actual control is Qiu Guang and Qiu Jianqiang, Zhou Pingfan, Qiu Yanfang and Dai Zhiyue, with a shareholding ratio of 74.87%.

Semir apparel gradually promotes professional managers, giving full play to the role of outstanding management personnel, and selecting talents for internal competition, taking the current general manager Xu Bo as an example.

Xu Bo entered Semir dress from graduation, and was also the first manager to run Barbara children's clothing.

Xu Bo, from the initial market manager to the general manager, has gone through many positions, head of marketing management, logistics director, planning supervisor, sales manager, etc. now, the recruited college students start from the pre job training of clothing sales.

In November 2008, the board of directors removed the position of general manager of Xu Bo and replaced it as deputy general manager and general manager of Barbara Business Department. The position of general manager was held by Qiu Guang and his son Qiu Jianqiang (family business), and Xu Bo was elected general manager by the board of directors in August 2018.

The two executives, Xu Bo and Shao Feichun, bought 0.3% of the shares from the actual controller Qiu Guang and the company based on the confidence of the company's long-term development prospects.

4, internal incentives

Semir costumes cooperate with well-known business schools, consulting companies and training institutions at home and abroad to promote the professional quality and ability of employees, focusing on the training of salesmen, buyers, salesmen and operators.

In 2011, the number of key management salaries rose by about 20%.

After the listing, the salaries of key managers rose overall, from 6 million in 2011 to 13 million 290 thousand in 2017.

In addition, Semir apparel made two equity incentives in September 2015 and May 2018 respectively, including directors, senior managers, core managers and core technicians.

In order to encourage employees to start business innovation, implement the partnership mechanism of entrepreneurs, build a large platform for Semir development, so that employees can enjoy the interests of the company's development, Semir apparel has implemented several partner projects.

For example, Semir costumes jointly invest in Zhejiang Sloan Garments Co., Ltd. with its own funds and the core management team of Wenzhou jaino Garments Co., Ltd. and the joint-venture company to be established. It is dedicated to the development of "COCOTREE" brand.

Shanghai Sen he Enterprise Management Co., Ltd., established in the form of GP, is also engaged in foreign venture capital investment.

5. Organizational structure

On the organizational structure, in order to encourage internal competition and innovation, and activate the enthusiasm of employees, Semir apparel strongly advocates the amoeba mode.

The Amiba model was first proposed and implemented by Inamori Kazuo, the Japanese God of management, similar to Ma Huateng's concept of redundancy in the seven dimensions of the gray rule.

Semir costumes and professional consulting companies have developed and perfected the Amiba long training curriculum system, and formulated the personal development plan (IDP) for Amiba, who has been selected, to help them improve their management skills comprehensively.

In 2017, the company set up 166 amoeba organizations, and trained a large number of enterprising and innovative management talents for the company.

Amiba mode relies on internal teams to compete with each other. The core is independent operation and independent accounting, not suitable for all industries.

The clothing industry can accurately calculate the cost and performance. Many clothing companies use this kind of organizational structure in the Department. The most typical example is Han Du Yi house (new three Board Code: 838711.OC).

The Amiba organization of Han Du Yi house is called the product group. Like ZARA, the aim is to achieve "multiple, small and fast" products.

The product group is mainly composed of 3-5 people. The core is the three links of design, production and sales. The general principles of the group are:

(1) in order to avoid vicious competition, the planning center is set up at the company level to coordinate the overall situation and confirm the overall style of the brand.

(2) employees choose freely to form a buyer group, which is responsible for non standardized links, such as design selection, order production, publicity and operation.

The company only stipulates the minimum pricing standard, and the price of the specific products, the quantity of production, the specific style, the timing and price of promotion are all decided by the group itself.

(3) standardization links, such as customer service, marketing, logistics, photography, etc., are done by companies.

(4) the backstage of human resources, finance and administration is the responsibility of the company, which directly serves the buyer's group.

After entering the buyer group, the initial amount of funds per person is 2-5 yuan, group bonus = sales volume * gross profit rate * royalty coefficient.

The top 3 teams were awarded the special quota, and the group that ranked the top 3 after the performance was disbanded and regrouped.

This has both incentive system for profit distribution and elimination mechanism for internal competition.

With the innovative mode of amoeba, the Korean home was established in 2013. In a few years, the income from zero to 1 billion 432 million in 2016, and net profit was 85 million.

From the gross margin, the gross profit margin of Korea's clothing house is rising, the gross profit margin is 44.77% in 2015, and the gross profit margin is 37.85% higher than that of the Santa Ma dress.

The net assets earning rate (ROE) of Han Du Yi house is higher than that of Santa Ma, and ROE is 22.34% in 2016, mainly due to higher asset turnover ratio.

In 2016, the assets turnover rate of Han Du Yi house was 2.32 higher than that of Santa Ma clothing. The turnover rate of accounts receivable, inventory turnover and fixed assets turnover rate were higher than that of, especially the turnover rate of accounts receivable.

In 2016, the accounts receivable / business income of Han Du Yi house was only 2.3%, while the data of Semir costumes was 18%, 7 times the former.

6, management standard

Semir clothing is relatively standardized in terms of Finance and operation. Since its listing in 2011, its annual report has never been corrected every year, and has never received any administrative measures such as inquiry, supervision, punishment and so on.

The opposite case is 2.510,0.00,0.00%, which is not very standard in finance and management (Feng Yun Jun once wrote the Metersbonwe defeat: former Xu Xiang's playmate, the abandoned child in the market today), for example, the 2013 annual report was corrected.

In the first half of 2015 -2018, the annual reports were asked by the Shenzhen Stock Exchange.

In 2012, it was also shown by the SFC that it was concerned about the issue of connected pactions.

"The company's affiliate Shanghai AI Bang Bang buys Mdt InfoTech Ltd's products from the company.

As of June 30, 2012, a total purchase of 479 million yuan, the same time Shanghai AI Bang Bang Information Technology Co., Ltd. external sales of 189 million yuan.

Your company should pay attention to the above situation, and further standardize related party pactions and strictly accounting.

7, financial leverage

The asset and liability ratio of Semir apparel is rising, at 15% in 2011, currently at 29% levels, with no interest rates before, 30 million short term loans after 2016 and 159 million long term borrowing in the three quarter of 2018.

8, dividends return

Since its listing in 2011, the cash dividend has been 5 billion 36 million and the cash dividend rate is 63.82%, which means that Semir has made most of its profits in cash dividends.

Semir clothing IPO raised 4 billion 583 million, the current dividend amount has been greater than IPO raised funds.

Concluding remarks

Semir has unique strategic vision to explore the potential of children's clothing market. However, in recent years, the growth of children's clothing is only the bala Bara brand, and the fashion Semir brand's business capability needs to be improved.

The pursuit of "fast fashion" trend in fashion clothing companies is reflected in brand management, which is "fast, fashion, more money and less quantity". It is reflected in the high turnover of zero inventory in operation, which is reflected in less inventory and accounts receivable in finance.

This requires enterprises to always focus on customer needs, not only from all aspects of "demand design purchasing production logistics sales", but also need to increase investment and R & D from capital flow, logistics and information flow, so that the entire production and operation process can be seamlessly linked.

In order to respond quickly to customer demand, excellent enterprises have made many innovations, including strict supply chain management, cross functional design team, amoeba internal competition, intelligent workshop and flexible production, convenient logistics system, efficient internal network connecting production and distribution, and timely collection and analysis of customer needs.

Although Semir apparel has made a lot of efforts, including supply chain upgrading, staff motivation, talent selection, organizational structure, expanding new channels (electricity suppliers, shopping centers), accelerating order frequency, spot and futures mode, but still need to break the existing pattern of big pformation.

Semir needs not only time but also capability.