The Wardrobe Of Hai Lan'S Home: It Can'T Afford To Win The Brand.

600398.SH continues to expand its wardrobe and has to face many difficulties.

Recently, hailing home issued a notice of performance, the overall performance growth is slow, the main brand has become a "drag". In the industry, in recent years, haelan's family has been expanding its brand range from "men's Wardrobe" to women's clothing, sportswear, children's clothing and other categories. However, rapid diversification has not brought about positive results. While profit growth is slow, the number of stores is growing, but it has not solved its high inventory. Over the past year, the company has launched a series of younger strategies, including the Tencent, the US group, the famous variety, and so on, but the effect is not satisfactory.

Growth bottlenecks

"Men's Wardrobe" Hai Lan's home is experiencing growth bottlenecks. Recently, Hai Lan's home office released its 2018 performance report. Data show that the company achieved operating income of 19 billion 80 million yuan in 2018, an increase of 4.89% over the same period last year, and net profit attributable to shareholders of listed companies was 3 billion 450 million yuan, an increase of 3.78% over the same period last year.

It is worth mentioning that although the performance of Hai Lan's home has been increasing in recent years, the trend has gradually slowed down and the growth rate has been getting smaller and smaller. In the 2014-2017 years, the net profit of Hai Lan's home was 2 billion 374 million yuan, 2 billion 953 million yuan, 3 billion 123 million yuan and 3 billion 328 million yuan respectively, and the net profit growth rate was 75.83%, 24.50%, 5.74% and 6.5% respectively.

Statistics show that at present, there are 8 brands of Hai Lan's family: Hai Lan home, San keno, AI Ju rabbit, black whale, OVV, AEX, Hai Lan optimization living hall and boys and girls. Among them, the black whale, OVV and AEX were founded in 2017, respectively, for sports brand, women's wear brand and men's wear brand. Boys and girls were Hai Lan's home in 2018, through holding their children's clothing brands to increase their capital, the target group is 6 months to 16 years old children, positioning high quality, high performance price ratio; Hai Lan preferred living hall is lifestyle brand, main office supplies, toiletries, bedding and other ten commodity series products.

Up to now, Hai Lan's home is no longer a "man's Wardrobe" but a variety of consumer groups. However, rapid diversification has made the main brand of Hai Lan home "limp". The bulletin shows that the main brand of Hai Lan's main business has achieved 15 billion 154 million operating income, an increase of 2.62% over the same period last year, and the operating income of AI Ju rabbit is 1 billion 97 million, an increase of 22.68% over the same period. The business revenue of San Keno was 2 billion 120 million, an increase of 12.82% over the same period last year. The other brand's operating income was 376 million, an increase of 25.78% over the previous year, and the growth gap was obvious.

What is interesting is that under the slow growth rate, the store of Hai Lan's home has soared. Announcements showed that during the reporting period, Hai Lan's new store opened 1181 stores, and closed 300 stores, with a net increase of 881. At present, the total number of stores is 6673, of which 5097 are Hai Lan's brand, 1281 are AI Chu's brand, and 295 are other brands.

Inventory is high.

While the growth rate is slowing down, the inventory problem of Hai Lan's home for many years has not been solved. According to the performance report, the inventory of Hai Lan's home in 2018 was 9 billion 473 million yuan, up 11.55% from 8 billion 492 million at the end of last year, and the turnover time was 286 days.

In this regard, Hai Lan home explained that the stock growth is mainly due to the company OVV, Hai Lan preferred life hall, AEX, boys and girls and other brand stock increased.

In fact, the problem of high inventory has troubled Hai Lan's home for many years. In 2015, the inventory of Hai Lan's home was 9 billion 579 million yuan, an increase of nearly 3 billion 500 million yuan compared to 6 billion 86 million yuan in 2014. The company said that the increase in inventories was due to the expansion of the company's business scale, and the warm winter weather in 2015 led to the unexpected sales. In 2016, although the inventory dropped to 8 billion 632 million yuan, the turnover time increased by 18 days. After two years of remission, in 2018, Hai Lan's home stock once again approached the highest level in 2015, almost ten billion.

Insiders told the blue whale producer that the high inventory is related to its distribution mode. It is understood that franchisees entrusted the store's internal management to the responsibility of Hai Lan's home. The sales settlement between Hai Lan's home and franchisees is commissioned by consignment mode, and the franchisee's stock can be returned to the LAN LAN's home. The products displayed or stored in the store are also the inventory of the Hai Lan's home, and the franchisee does not undertake the risk of unsalable inventory. After the final sale of the goods, the franchisees and Hai Lan's family agreed the revenue of Clearing Corp according to the agreement.

In addition, Hai Lan's home does not charge a franchise fee. The franchisee is a self financing agent of the franchisee, and the business tax registration procedure is set up in its own name. Franchisees have the ownership of the franchisee.

Cheng Weixiong, an independent analyst in shoe and garment industry and general manager of Shanghai Liang Qi brand, told the blue whale producer that in the process of increasing the brand of Hai Lan's home, it is difficult for suppliers to get tens of millions or even hundreds of millions of yuan to get the goods, which led to the purchase of goods by Hai Lan's home, and the cost of procurement continued to increase. In addition, there are more and more brands that follow the trend of Hai Lan's home business mode. The alternative brands are gradually increasing, and the space for consumers to choose is also increasing. This has also created an impact on the sales of Hai Lan's home.

Youth is not yet effective.

Hai Lan's home, which has long been criticized as "brand aging", has been moving towards younger consumers. However, from the current situation, its younger strategy has not yet been effective.

In the aspect of new retail, Hai Lan's home in 2018 developed cooperation with Tencent and the US group respectively. In February 2018, the company announced that Tencent bought a 5% stake in Hai Lan's home at a price of 2 billion 500 million yuan. In addition, the two sides set up a clothing industry investment fund of 10 billion yuan.

In July 2018, the WeChat public number of Hai Lan home announced that it was officially taken away from the US group. Hai Lan House said that after the US group took delivery, the US group take away personnel to the next store of the Hai Lan home line to pick up the goods and deliver it to the users within one hour.

However, the new giant retailer did not achieve immediate results. According to the company's performance report, in 2018, Hai Lan home line achieved 1 billion 151 million yuan of business revenue, an increase of 9.25% over the same period, while online sales accounted for only 6.14%, an increase of 0.23 percentage points over the previous year.

In fact, in addition to hand in hand to launch new retail giants, Hai Lan's home has also been stationed in a number of social networking platforms such as gathering, bedian, Xiaohong, global catcher, to increase brand awareness and dissemination. In addition, a lot of money has been invested in sponsorship of the variety show "the fifth seasons of wonderful flowers" and "next station legend", trying to attract the attention of young consumer groups.

But the industry is not optimistic about this. At the same time, the last clothing brand Metersbonwe, which was named the net ensemble, also gave a warning to Hai Lan's home. Public information shows that in 2014, the United States and the United States to spend 50 million Title variety show "wonderful flower", also entered the electronic business platform to open flagship store, fully expand the Online layout, promote the layout of O2O with various patterns. However, the layout of the Internet channel has brought heavy pressure of achievement to the US state. Data show that in 2015, the US bond loss reached 431 million yuan, and it ceaselessly shut down. In 2014 alone, the number of stores in the United States reached 800.

Cheng Weixiong believes that the home of Hai Lan is a traditional brand, and the meaning of the Title Network and the new retail business is not significant. Moreover, the naming itself has strong uncertainty, vertical marketing has changed, and consumers are pursuing more diversified and personalized things.

According to the financial report, in 2018, Hai Lan's advertising expenses amounted to 627 million yuan, which was 5-10 times that of the seven wolves and nine shepherds in the same period. In sharp contrast to the high advertising investment, R & D costs accounted for only 49 million of the company's R & D investment in 2018, accounting for 0.26% of its revenue.

The mode of Hai Lan's home does not have much brand trade, and it does not design and develop itself. It only takes goods directly from the factory, which is also the reason why the cost of R & D is low. This will also lead to the lack of personalization of the brand, and more and more brands begin to adopt this mode, which leads to the loss of their competitiveness. Cheng Weixiong said.