Jiangnan Cloth And Then Wear Men'S Designer Brand, Increase Designer Brand Market Share

Recently, Jiangnan Buyi announced that the group launched a new menswear designer clothing brand "A PERSONAL NOTE 73" in China to complement the group's multi brand expansion strategy and diversify its business through the combination of brand and category.

A PERSONAL NOTE 73 takes "All about Personality" as the brand philosophy, and its target customers are young groups with distinctive standards and judgement for uniqueness, design sense and cultural magnetic field. Their design concept is "High Street, self following, unique and fashionable".

The brand will gather multicultural and fashionable and literary characteristics, capture the classics in a playful way and reappear in modern ways, providing fashionable young people with fashionable clothing and accessories.

The company directors believe that the launch of the new brand will be an important move for the group to implement multi brand business operation strategy and to expand horizontally to the more men's wear market. It will add vitality and synergy to the diversified brand portfolio and the overall business, and help the group increase its market share and enhance the influence of the industry in the designer's brand apparel industry.

Jiangnan Buyi group earned more than 2 billion in six months

03306-HK announced that in the six months ended December 31, 2018, the Group recorded a total revenue of 2 billion 30 million yuan, an increase of 22.6% over the same period last year.

Profit attributable to shareholders of the company was 380 million yuan, an increase of 22.1% over the same period last year.

Earnings per share were 0.74 yuan, and the interim dividend was 0.28 yuan per share.

The increase in revenue is mainly due to the expansion of the retail network of the group, the rapid development of e-commerce business and new business.

In the mid 2018, the group's revenue showed a steady growth trend, thanks to the diversity of designer brand combinations.

Compared to the first half of fiscal year 2018, the absolute amount of revenue from the sale of offline and online channels in the 2019 half year is increasing.

Benefiting from the increase of fashion sensitive consumers in e-commerce platforms, new retail sales in online channels account for more than 20% of its total retail sales, while online channel revenue has increased from 8.5% in the 2018 half year to 2019 in the first half of fiscal year, with a growth rate of over 50%, driving the overall revenue growth of the group.

The gross profit growth is mainly due to the expansion of the group retail network, the rise of retail outlets and the development of new value-added businesses.

The gross profit margin of the group dropped from 62.6% in the first half of fiscal year 2018 to 2019 in the first half of the fiscal year, mainly due to the change in the channel structure (relative to the decrease in the proportion of self operated channels under the relatively high gross margin).

Jiangnan Buyi group launched the LASU MIN SOLA, a designer brand collection store in the first half of fiscal year 2019, making the brand portfolio more diversified and fragmented.

As of December 31, 2018, the group had a total of nine independent designer brands.

Physical retail stores

The total number of independent retail outlets operated by the company increased from 1831 in June 30, 2018 to 1994 in December 31, 2018, plus 161 sales outlets distributed overseas. The company's retail network covers all provinces, autonomous regions and municipalities in mainland China and 17 other countries and regions in the world.

The following maps and charts show the geographical distribution of retail outlets (including independent entity distribution stores and self owned stores) in mainland China, Hongkong and Taiwan in December 31, 2018 and the distribution of retail outlets in mainland China, China and the mainland.

Brand earnings

2019 in the first half of the fiscal year, the group's revenue showed a steady growth trend, thanks to the diversity of designer brand combinations.

The group's mature brand, JNBY revenue over 20 years has continued to grow steadily, increasing by 19.1% or RMB 185 million 800 thousand yuan (about 186 million yuan).

Growth brand portfolio:

The CROQUIS (sketch), which was launched in 2005 to 2011, recorded 402 million 100 thousand yuan (402 million yuan); jnbyby JNBY recorded RMB 285 million 100 thousand yuan (285 million yuan); less recorded 150 million 800 thousand yuan (151 million yuan); the total growth rate reached 26.8%.

Nascent brand portfolio:

The youth designer brand Pomme de Terre (Peng MA) and designer household goods brand JNBYHOME, launched in 2016, recorded a significant increase in revenue in the 2019 half and fiscal year of 24 million yuan (24 million yuan) and RMB 4 million 900 thousand yuan (4 million 900 thousand yuan) respectively.

2019 in the first half of fiscal year, the designer clothing brand SAMO, which was launched in 2018 for vanguard men, recorded a revenue of 1 million 900 thousand yuan (1 million 900 thousand yuan). The brand new fashion environmental protection brand REVERB recorded 2 million 600 thousand yuan (2 million 600 thousand yuan); the designer brand collection shop LASU MIN SOLA recorded a revenue of RMB 100 thousand yuan; the total proportion of the total income accounted for a steady growth trend.

By Region:

Compared with the first half of fiscal year 2018, the absolute revenue from sales in mainland China and non mainland China continued to increase in the 2019 half year.

From the expansion of the retail network, revenue increased by 47.2% in the first half of fiscal year 2019 through Hongkong, Taiwan and other overseas countries and regions.

Fans sales driven by economy

Driven by the economic strategy of fans, retail stores in the first half of fiscal year 2019 increased by 3.4% compared with the same store, mainly due to:

Membership size and membership stickiness continued to grow steadily.

In December 31, 2018, the group had a membership account of more than 3 million 100 thousand (June 30, 2018: more than 2 million 500 thousand), of which WeChat account number (more than 2 million 600 thousand) exceeded June 30, 2018 (over 2 million 100 thousand).

In the first half of fiscal year 2019, the proportion of retail sales contributed by the group members accounted for about 70% of the total retail sales.

In 2018, the number of active member accounts of the group (active member accounts for more than 395 thousand members' consumption accounts in the past 12 months, 2 days or more), among which the number of WeChat active member accounts increased from over 340 thousand in fiscal 2018 to over 376 thousand in 2018.

In 2018, the number of member accounts totaling more than 5000 yuan was over 182 thousand, and its consumption Retail sales reached 2 billion 170 million yuan in 2017: 1 billion 670 million yuan, which contributed more than 40% lines of retail sales.

In 2018, the number of WeChat membership accounts for more than 5000 yuan in total purchases in 2017 increased from more than 130 thousand in 2017 to over 178 thousand in 2018.

Under the effective drive of WeChat based social media interactive marketing service platform, the stickiness of fans continues to maintain steady growth.

2019 the incremental retail sales generated by the inventory sharing and distribution system in the first half of fiscal year amounted to 402 million yuan, accounting for 2019 of the total retail sales in the first half of fiscal year (2018 in the first half of fiscal year: incremental retail sales of RMB 368 million yuan).

Future development plan

In recent years, as China's economic growth slows down and consumption growth slows, the garment industry is facing greater challenges.

At the same time, the rapid growth of people pursuing life tastes, the increasing demand for personalization and fashion products, and consumers are increasingly seeking fashion products that can show their individuality. The fragmented market of designer brands still has great potential.

Benefiting from the diversity of designer brand combination and good operation management, as the leading designer fashion brand group in China, Jiangnan Buyi group will continue to maintain and consolidate its position as the leading designer brand fashion group in China, and is committed to creating a strategy for the development of a southern style cloth life style ecosystem.

Mainly include:

By further increasing input in design and R & D capability, expanding and diversifying designer brand combinations, we will continue to train new fans in Jiangnan.

Using Internet thinking and technology, we will further enhance our domestic and foreign retail network and optimize our all channel interactive platform, and create a reasonable scale of operation capability in every sub market.

Adhere to the fans economy as the core, encourage operational innovation, and continuously create and provide value-added services for fans to enhance the fans experience.