The Industry Has Great Room For Development, But Who Can Become An Underwear Giant?

Underwear industry is in a diversified development.

While paying attention to their own changes, brands are also concerned about the most real needs of women.

Recently, there are new trends in local underwear brands, urban beauty and Ann Li Fang.

Let's take a look at the earnings released by urban beauty and Ann Li Fang.

As of December 31, 2018, the urban beauty realized a total revenue of 5 billion 96 million yuan, an increase of 12.2% over last year, a profit of 484 million yuan, an increase of 15.45% compared with that of last year, and a profit of 378 million yuan for the owners of the company, a 19.3% increase.

But gross margins declined, and gross margins fell by 1.5 percentage points in 2018 to 41.7%.

From the perspective of the majority of urban beauty income, urban beauty is still dominated by franchisee mode. It can be found that the number of franchisees is 2 billion 800 million, more than 50% of total volume, and 1 billion 495 million of retail sales.

In addition, e-commerce accounts for 712 million yuan, and raw material sales account for 89 million yuan.

It is not hard to forget that city beauty has a two-year bet with Fosun.

In the bet, the urban beauty needs to earn 4 billion 926 million yuan in 2018 and a profit of 334 million yuan. In the first half of the year, the urban beauty completion rate was less than 50%.

But according to this announcement, the urban beauty can be said to have completed the bet.

How do urban beauties achieve this goal? They are divided into three steps to achieve pformation.

First, optimize the brand image and distribution management.

Under the guidance of the new chief strategy officer, the brand store is moved into the middle and high grade shopping center, changing the low-end image of the shops and street shops in the past, improving the brand style and keeping close to the aesthetic needs of the young consumers.

At the same time, it is more fashionable to refurbish street shops.

Cooperate with Tencent to develop smart new retail stores and continue to develop e-commerce channels.

Two, improve product design and quality, and reform the supply chain.

The city beauty group has introduced various forces to enhance the quality of products, such as appointing Mr. Tang Qiansheng as the chief technology officer of the group, improving the function and quality of the products; for example, employing French designers to improve the design of products; and working with the American fashion trend expert Vincent Daudin to grasp the current trend and promote product development; and invite professional enterprise management companies to make suggestions for the management system and process of the supply chain department of the group to strengthen the supply chain system; to sign strategic investment agreements with eleven close fitting clothing products and materials suppliers, to integrate the development capabilities of new products and new materials of suppliers, to shorten the development and production cycle, so as to enhance the group's fast reaction capability.

Three, increase revenue and reduce expenditure.

Reduce unnecessary expenses of the group, close some unprofitable stores and save costs.

In 2019, the urban beauty will continue to maintain the 2018 changes and measures, continue to overcome the remaining problems of stores, products, new retail and supply chain, and optimize the internal organization to improve efficiency.

Lian Fang, who is also a lingerie brand, also released its 2018 earnings report.

During the reporting period, the revenue reached HK $2 billion 452 million, an increase of 4.8% over the previous year, a gross profit of HK $1 billion 960 million, an increase of 7.37% over the same period last year, and the net profit of HK $151 million for the company's owners, a decrease of 69.48% over the same period last year. The net interest rate dropped 0.58 percentage points to 6.17% due to the increase in advertising and decoration expenses.

It is understood that the income of the group is mainly retail, occupying 83.95%, and the electricity supplier and wholesale turnover increased by 32.68% to HK $389 million, accounting for 15.85%.

The main source of income was the mainland market. A total of HK $2 billion 375 million 600 thousand came from mainland China during the year, occupying 96.89% of the group's total revenue.

Annie Fang has been implementing the multi brand strategy. At present, there are seven brands, including Li Fang, Feng Di Shi, COMFIT, E-BRA, Andrew, IVU and LIZACHENG. In addition to the 2018, the turnover of other brands has improved, except that IVU and Andrew have invested heavily in the development of the second tier urban market.

Under the influence of personalized market and diversified demand, the group put forward several major planning points: first, in the sales network, the brand and product mix will be allocated from the regional market segments, so that the proportion of counters and specialized stores will be balanced. Secondly, we should continue to explore the channels of e-commerce, improve the logistics system, enhance the efficiency of shipping, and maximize the overall channel sales under the online and offline channels.

As the two largest underwear brand in China, the urban beauty is obviously in pition, while Ann Li Fang is in a relatively stable state.

At present, the concentration of Chinese underwear market is not high. No matter which brand has the power of World War I, through reform and development to become an underwear giant, it can be said that the revolution has not yet been successful and the brand still needs to work hard. Author: Wang Yiting