Seven Wolf Group 2018 Sales And Operating Profit Increased By Two Digits

China's famous men's clothing enterprise Fujian seven wolf industrial Limited by Share Ltd (hereinafter referred to as the "seven wolf group") announced the 2018 fiscal year's earnings report recently, benefiting from the weak recovery of China's clothing market in 2018, and the Group sales and operating profit increased by two digits.

Founded in 1990, the seven wolf group is mainly engaged in the design, production and sale of "seven wolves" brand men's clothing and needle spinning products. The main products include shirts, Western-style clothes, trousers, jackets, knitwear, men's underwear, underwear and so on.

In recent years, the group has adopted the mode of "internal Incubator + investment and acquisition" to develop new brands. Up to now, besides the main brand "seven wolves", it also owns 16N, Wolf Totem (Wolf Totem), and French designer brand Karl Lagerfeld -- in 2017, the seven wolf group bought the Karl Lagerfeld brand's Chinese operation right through the Hongkong subsidiary company at the price of 320 million yuan.

(see "ornate ambition": "seven wolves" to buy 320 million yuan to buy Karl Lagerfeld brand China's right to operate, to enter the fashion and light luxury market).

The seven wolves group said that in the 2018 fiscal year, the company's overall performance improved steadily, mainly benefiting from continuing to deepen the new retail business, starting from the needs of customers, returning to the essence of business, focusing on customer value and promoting strategic landing.

In consolidating the main garment industry, steadily promoting the reform and innovation of the retail mode, we should base ourselves on the garment industry, and actively promote investment related work around fashion and large consumption areas.

Through years of efforts, the relevant reform measures have initially shown some results.

As of December 31, 2018, the key financial data of the seven wolf group were as follows:

Sales increased by 14.01% to 3 billion 517 million yuan over the same period, of which clothing sales rose 12.76% to 3 billion 380 million yuan, accounting for 96.12% of total sales.

Operating profit grew 17.53% to 463 million yuan over the same period.

Net profit increased 9.38% to 346 million yuan over the same period.

Diluted earnings per share increased 9.2% to 0.46 yuan over the same period last year.

The seven wolves group pointed out that in terms of clothing business, the group's 2018 strategy focused on strengthening brand building, improving product development and design, enhancing channel efficiency, optimizing supply chain management, and improving the existing business mode of main brands in many ways.

Brand and product development

"The group of seven wolves said:" the group focuses on the positioning and strategic direction of the business mode, and tries to reshape the brand positioning.

Through combing the core of the brand, deepening the understanding of the brand vision, mission, clear and core values of the internal team, and promoting the product to achieve innovation and breakthroughs under the premise of maintaining brand tonality.

In terms of brand communication, the group's systematic and diversified publicity has brought widespread concern to the seven wolves brand.

With the growth of consumers' demand for personalization and differentiation, the seven wolves group integrated into the western trend elements in the design while deeply cultivating traditional Chinese culture.

In 2018, the group has its own luxury brand Wolf Totem for four consecutive times in Milan fashion week.

In the 2018 fiscal year, the group continued to polish "artistic capabilities" and "technological capabilities". Its product design department achieved a good continuity and development of brand tonality on the basis of a deep understanding of the brand core.

The group also focuses on products such as accessories, printing, technology and so on, and constantly improves the manufacturing level.

Product design and product manufacturing are organically combined to create "product strength" for the group.

Seven wolves group said: "we will continue to tap the spiritual connotation of wolf culture, develop products containing wolves DNA, combine wolf elements, ethnic elements and popular elements together to achieve the combination of dress demands and spiritual appeals of consumers."

In March 2019, the seven wolf group announced that the "totem and craftsman Oriental" national totem culture exploration project, which was co operated with men's wear Museum, was launched.

Channel and supply chain

In 2018, the seven wolves group made great efforts to integrate offline stores and online channels, and strive to improve channel efficiency.

On the offline side, the group coordinates resources of regional agents and distributors, effectively extends management tentacles, improves staff management, supply scheduling, store image and so on, promotes terminal operation system upgrading, promotes terminal standardization, and improves terminal management level.

The group uses the management system and information technology to evaluate new stores, and improves the data screening, embedding channel system and analysis and evaluation by optimizing the algorithm, so as to achieve accurate matching of new stores.

In addition, the group also makes use of data analysis to carry out matching pformation of existing stores, with reference to new commodity positioning, new format strategy and new space image, to realize the matching of existing stores.

On the line, the group's electricity supplier departments should focus on dealing with the ever-changing rules and regulations of the major platforms and the problem of reaching the top of the traffic volume. On the one hand, they should actively expand the new channels of social sales, establish the direct selling and distribution business of the official website through social programs, and steadily push forward the business of e-commerce from the aspects of marketing, commodities, vision and services.

In the 2018 fiscal year, group online sales exceeded 1 billion 400 million yuan (including online sales of needle spinning business), an increase of more than 10% over the same period.

The seven wolves group also integrated resources on line and offline, and through effective coordination of goods and supply chain, tried to undertake online diversion to achieve effective pformation of online traffic online.

The group also continuously optimizes the supply chain system, especially for product allocation efficiency optimization, and strive to promote the sharing of orders on line stock sharing. Through the adoption of a more intelligent replenishment and allocation system, it can save the cost of logistics allocation while achieving full channel pfer of goods and reduce inventory recall.

Efforts are also made to improve the speed of supply chain reaction.

In addition to continuing to build strategic suppliers and innovative high-quality supplier cooperation with category advantages, the company also adopts the form of "first batch order and supporting surface accessories and spare parts synchronization" and "multi frequency batches" to adjust the main mode of deep fund order, which provides guarantee for the sale of goods at the terminal.

Cultivate new brands

In addition to the "seven wolves" main brand, the group also cultivated three brands of WolfTotem, 16N and Karl Lagerfeld by means of self incubation and external investment.

In 2018, the group continued to strengthen the incubation and cultivation of Wolf Totem to enhance product fullness.

16N is the young tide card of the group's pre investment. In the 2018 fiscal year, the group optimized the original business of 16N, tried to expand the franchise channel, and set up various incentive plans for the brand, including management and terminal staff, and exported experienced management team to make up for the shortage of the original operation capability.

These measures have promoted 16N's relatively good development.

In terms of Karl Lagerfeld, the Group strives to promote the integration of different business modules and optimize the business operation mode.

In terms of production and supply chain, the group optimizes the product design of the Greater China region with the strength of the brand Holland headquarters, while reducing the high production costs, and ensuring that the products are more in line with the shape and preferences of the local consumers and improve the marketability of the products.

The group pointed out that along with the millennial generation becoming the mainstream of consumption, the future will grow on the basis of the steady development of the seven wolves brand, and continue to enter into new businesses through internal incubation and external investment acquisitions, thus forming brand synergy and complementarity effects, thereby mining new profit growth points.