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    No Longer Blindly Imitate Zara, The United States And The United States Made A Successful Loss In 2018.

    2019/3/5 16:52:00 53

    American ApparelMetersbonweZara

    Metersbonwe, a domestic fashion group, seems to have found the right way to pform and restructure after its failure to emulate the Zara mode. In 2018, it succeeded in turning losses into profits.

    According to the 2018 performance report released in February 27th, the group's business income rose 18.42% to 7 billion 664 million yuan, operating profit rose 188.46% to 56 million 400 thousand yuan, and net profit increased 114% to 42 million 908 thousand and 600 yuan over the same period.

    At the same time, the overall cost rate dropped by 4.59 percentage points as compared with that in 2017 due to the organization's optimization and efficiency.

    It is noteworthy that in 2017, the state's apparel business income fell 0.71% to 6 billion 473 million yuan, a net loss of 306 million yuan, up from 2016 to 36 million 160 thousand yuan in 2016.

    According to the information released by Smith Barney apparel, the recovery of last year's performance was mainly due to the group's promotion of brand, product, channel, retail and other upgrading strategies to further enhance the competitiveness of the company's brand and products.

    The picture shows the main performance data of 2018

    Metersbonwe was founded in 1995, mainly through the "star endorser + CCTV advertising + agent sales channels" mode of development, the same mode of development of the domestic clothing brands, including Hai Lan home, Semir and so on.

    According to Euromonitor statistics, in 2006, Metersbonwe accounted for 0.95% of the domestic casual wear retailing industry and ranked first in the main leisure wear brands in the domestic market. In 2008, the United States in Shenzhen realized the 33% coverage of the 66% and three tier cities in the first tier cities of the 100% tier cities and the second tier cities.

    But from 2011 to 2012, high inventory and weak retail sales hit China's apparel industry. The rapid rise of Taobao led business led to a huge impact on offline stores. At the same time, domestic clothing brands also faced challenges from foreign fast fashion giants such as Zara, H&M and UNIQLO, which poured into the Chinese market.

    In 2012, the first time in Waterloo, the net profit fell 42% to 850 million yuan, and faced with a bad situation such as terminal pressure, extensive management, and the project being unable to make ends meet. In 2012, the United States began to close its stores. In 2012, the total number of stores was 5220, with only about 3900 left at the end of 2016.

    In order to pform, Zhou Chengjian, the founder of the group, has considered introducing the Zara mode. When he launched the high terminal brand ME&CITY earlier, he said he wanted to follow the Zara supply chain, and even went deep into the Zara generation factory to make an investigation. He was determined to build "China Version Zara". However, in 2009, ME&CITY sold only 350 million yuan, but it became a drag on the performance of the United States.

    Some analysts pointed out that Smith Barney could not learn Zara and other fast fashion, because the initiative of ordering system was in the hands of a large number of joining agents, and in fact formed a bottom-up group cargo system.

    On the one hand, in order to maximize profits, the franchisee wants to get the overstocking of the non bestsellers, and on the other hand, in the direction of the fast fashion of the fashion industry, the new speed of the 2 to 3 months of the apparel supply chain has passed the popular season, which has led to the continuous increase of the stock.

    In addition, the United States has tried different pformation plans, and opened online stores in Taobao in 2008. It is one of the first local clothing groups to test water suppliers. After that, it launched the electronic business platform "state purchase network" and tried to start the O2O strategy, aiming to integrate entity shops and Internet operations to achieve interoperability between online and offline businesses.

    However, due to the consequent supply chain and logistics problems, these pformation schemes have failed. After 2010, the state owned apparel inventory problem was serious, and the inventory assets accounted for more than 20%. After that, the United States could only rely on discount sales to reduce inventory.

    Industry personages pointed out that the advantage of the American state has been in the store marketing, and the pformation strategy of blindly following the wave of e-commerce has made it lose its original competitiveness. The increase in the number of departments has resulted in the barriers to communication with each other, the choice of purchasing, the reduction of supply chain efficiency and the accumulation of stock.

    In 2016, the founder Zhou Chengjian resigned from the post of chairman of the board. In 2017, his daughter Hu Jiajia took over the group's re pformation after taking over as chairman and CEO of the group.

    In order to make the group better youthful, the board of directors after the reorganization was in addition to three people for "70 after", and the remaining 7 were "post-80s". Zhou Chengjian's 19 year old son, Hu Zhoubin, served as assistant to the president of group dress, responsible for Internet and innovation business.

    In terms of development strategy, Hu Jiajia first stopped his father's plan to invest 4 billion 200 million yuan in Internet big data and O2O business, and pointed out in his 2016 annual report that the key word for future development is "focusing on the main business and returning to the main business".

    Since then, the United States has begun to regain the advantages of offline channels, and based on consolidating the business of the second tier cities, it has cast its eyes on the three or four tier cities with greater potential.

    In December 23, 2017, the group's main brand Metersbonwe opened the activities of "100 shops opening together, 1000 shops celebrate the same time", and opened more than 100 stores nationwide, and said it would mold the brand into a lifestyle brand representing young culture.

    In addition, the group rapidly upgraded the brand strategy of the products, subdividing the main brands into five styles: MTEE Street interest, ASELF Sen, Novachic city light business, HYSTYL trend and NEWear leisure style. It shows the image of the store or style store, and fully meets the diversified needs of consumers under the upgrading of consumption.

    It also enriches its brand matrix. At present, it has five main brands of Metersbonwe, ME&CITY, AMPM, MooMoo and CH'IN, and operates B2C B2C e-commerce platform.

    Data show that ME&CITY brand last year's physical retail revenue rose 21% over the same period last year. Moomoo and ME&CITY KIDS children's wear realized retail sales revenue grew by 32% over the same period last year.

    For the current pformation of the group, Zhou Chengjian admitted earlier that the rapid development of Internet commerce enjoyed the bonus of price sensitivity. Now the era is over. The competition around price is unsustainable. The future competition will revolve around brand, creativity and offline experience.

    In fact, in the face of the fierce impact of electricity supplier and the change of consumer structure, Zara and other fast fashion business pformation is also imminent. According to the survey of consumers by fashion agency Thredup, 25% of female consumers said they would not buy fast fashion dress from 2019, most of them were young consumers. Fast fashion is losing young people's market, and the American fashion dress no longer blindly imitate the fast fashion development mode, and it seems to be able to develop better in the local market by regaining its advantages and optimizing the product.

    However, analysts pointed out that although Hu Jia Jia found the source of the dilemma of the US state or became a turning point in the narrowing of the deficit, the US bond group, which appease investors and make up for the funding gap, may not be able to achieve quick results in the short term.

    Now, in addition to facing Zara, H&M and other fast fashion and the impact of the electricity supplier, the United States has to face more competitors in the same industry.

    In addition to the American Apparel, Taiping bird began to pform into a young market and actively expand its international market. In 2018, net profit rose 23% to 560 million.

    The domestic sports giant Anta and Lining have also implemented the pformation plan by increasing the group brand matrix and changing the design style.

    (extended reading: Anta's sales rose 44.4% to 24 billion 100 million yuan over the same period last year).

    As of today's end, the price of Smith Barney apparel has fallen by 0.37% to 2.71 yuan, and the stock price has risen 16% since the beginning of this year, with a market value of about 6 billion 800 million yuan.

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