The Performance Of Home Textile Enterprises Is Generally Better In 2018, And The Future Development Path Is Facing Different Choices.

Judging from the development momentum of the past two years, the home textile industry has become a strong and highly concerned subdivision industry in the textile and garment industry.

With the continuous advancement of the urbanization process, the development of home textile enterprises still has great space, but the road of enterprise development has different choices.

Luo Lai life increased channel sink, Carlyle Group Investment

In February 25th, Luo Lai life released the 2019 performance bulletin. The report shows that in 2018, the business income of Luo Lai realized 4 billion 815 million yuan, an increase of 3.28% over the same period last year, with a total profit of 648 million yuan, an increase of 19.07% over the same period last year. The net profit attributable to shareholders of listed companies was 524 million yuan, an increase of 22.47% over the same period last year.

The report said that the growth of total business revenue mainly came from the increase of sales revenue, and the growth of net profit of profit attributable to shareholders of listed companies was mainly due to the growth of sales revenue, the influence of LEXINGTON HOLDING, INC. and the increase of investment income.

Living in the 2018 semi annual report, Luo Lai said that the company continued to implement the strategy of "home based textiles, actively explore the whole category of home mode", and take a big store strategy in the channel construction. During the reporting period, the national brand added 65 more than 300 or more flagship stores in the reporting period, while increasing the intensity of the channel sinking, and the net opening area increased by more than 30 thousand square meters in 1-6 months.

The company adopts the mode of combining direct operation and joining together, and consolidates and penetrates the three or four line market while consolidating the advantages of the front-line and second-line market channels.

The company adopts multi brand operation strategy, and its brand covers high-end (gallery Bay), middle and high end (Luo Lai, Luo Lai children) and mass consumption (LOVO Le Yue family).

In March 18th, Luo Lai life announced that CA Fabric Investments, which was managed by Carlyle investment group, signed a share pfer agreement with the shareholders of Shihezi and Shihezi. Xue Junteng and Xue Junteng respectively pferred 6.63% shares and 3.37% shares of the company to CA, and the pfer price was 9.62 yuan / share.

After the pfer is completed, CA will own 10% of the company's shares.

According to the announcement, Carlyle investment group agrees with the development strategy of Luo Lai's life and looks forward to the future development prospect of Luo Lai's life. It intends to invest strategically in the company through its management of CA Fabric Investments.

Luo Lai life believes that this strategic investment will lay a foundation for the development of strategic cooperation between Carlyle investment group and Luo Lai, and the introduction of CA Fabric Investments as a strategic investor is also conducive to the optimization of corporate governance structure.

Fuanna continues to open stores to promote home business

In April 9th, fuanna released the 2018 annual report. The annual report shows that the company achieved operating income of 2 billion 918 million yuan in 2018, an increase of 11.55% over the same period last year, and realized a net profit of 543 million yuan attributable to shareholders of listed companies, an increase of 10.11% over the same period last year.

Over the past five years, the compound growth rate of company revenue has been 10.33%, and the net profit compound growth rate is 9.6%.

According to the report, the company focuses on art home textiles, opens up art home life, layout "art home textile + art home", owns VERSAI (light luxury art brand), fuanna (fashion classic brand), Xin Le music (popular fashion brand), Ku Zhiqi (children's brand) and other brands, the company's offline channels mainly focus on the first tier, second tier cities and the three or four tier cities with good economic conditions. By the end of 2018, there are about 1310 outlets under the company's lines, and about 53% of the terminal layout in the first and second tier cities in the country. About 129 new stores (cabinets) have been added in the year, and more than 250 of the company's stores occupy nearly half of all the terminal stores.

In addition, the proportion of online outlets under street shops has gradually increased, and the proportion of shops along the street and shopping malls is about 6:4.

In terms of electricity providers, the sales revenue of the company's e-commerce channel accounts for about 29% of the company's revenue, and its growth rate has increased by 16% over the same period last year. It is one of the channels for the company to expand in the future.

The company promotes the "v+" member marketing management system, and V+ membership reaches 532 thousand.

Fuanna said that the company positioned the household product series as a personalized light luxury art home, and the finished household was VERSAI light luxury home brand. The flagship store has opened to 12 businesses, covering a total area of 13000 square meters.

Regarding the plan for 2019, the company plans to add about 170 franchisees and direct battalions, formulate membership growth targets, create more star model stores, and home business as the strategic reserve business of the company, and plan to join in the business.

Mercury home textile revenue double profit increase, adjust e-commerce business

In April 10th, mercury released its annual report in 2018. The report shows that in 2018, the company achieved a revenue of 2 billion 719 million yuan, an increase of 10.44% over the same period last year, and realized a net profit of 285 million yuan attributable to shareholders of listed companies, an increase of 10.77% over the same period last year.

The annual report shows that Mercury home textiles focuses on the research, design, production and sales of medium and high grade household textiles. The main products include bedding, quilt, pillow and other bedding. The company adopts the brand name of "category brand" to form the brand matrix. The brand matrix is based on the "mercury" brand, and the "brand" is the subsidiary. With the "Mercury home textile wedding hall", "Mercury baby", "mercury KIDS", "Jane life" and "Hello Kitty (Hello Kitty)", the brand is authorized to use the brand as a combination to subdivide the category brand.

The company has formed a sales network which is mainly composed of distributors, direct channels and network sales channels, supplemented by international trade, TV shopping and group buying.

The company builds "grid layout" in the three or four tier cities, builds "key layout" in the first and second tier cities, and develops the three or four tier cities through the two tier distribution mode of "the company - the total distributor - dealer".

In terms of business, the company said that in 2018, the company further expanded the platform distribution business of vip.com, Jingdong and other platforms, such as platform purchase and selling to consumers, and expanded the social platform sales business (such as Bei Dian, yun ji, etc.), and the company entered new social business providers, and increased its business growth in these platforms. The growth of its business was more than that of the self growth of e-commerce. This mode was characterized by lower platform costs and lower gross margins than the self operated business, making the gross profit margin of online business decreased by 2.78 percentage points from 45.23% in 2017 to 42.46%. On the other hand, the gross profit margin of online business was higher than that of offline businesses, while the proportion of online businesses decreased, while online business grew by 7.28%, which was lower than the overall business growth of 10.44%, making the proportion of online business decreased by 1.11 percentage points from 37.60% to 38.71% in 2017. Online

The performance of Meng Jie shares is growing, and diversified investment performance is not good.

In February 27th, Meng Jie shares released the 2018 performance bulletin. The report shows that in 2018, the total revenue of Meng Jie shares reached 2 billion 348 million yuan, an increase of 21.40% over the same period last year, mainly due to the company's new terminal, the strengthening of market and brand promotion and the growth of sales brought by new business expansion, and so on. The net profit of shareholders belonging to the listed company was 92 million 727 thousand and 300 yuan, an increase of 80.88% over the same period last year, mainly due to sales growth.

On the same day, Meng Jie shares issued a notice on the provision for impairment of assets in 2018. The announcement showed that the company participated in the wedding hall in 2016. After the market environment changed, the gap between the performance and the actual performance was relatively large. The company decided to prepare 16 million 241 thousand and 200 yuan for the sale of financial assets at the end of the 2018 fair value less than the investment cost.

In addition, Meng Jie shares in the previous announcement of the 2018 performance amendment notice, prompted by the impact of foreign trade environment, the company's holding subsidiary's generous sleep performance decline, the company's reputation due to the acquisition of generous sleep there are signs of impairment, so it is necessary to prepare the corresponding goodwill impairment preparation.

Meng Jie 2018 semi annual report shows that the company has dream, sleepers, dream baby, dream mattress, plain aesthetics, search, Dreamcoco, Poeffen and other brands. In the first half of 2018, the company opened 175 new terminals and added 44 terminals. The company built a full flagship store in key cities to 44. The company promoted the construction of intelligent factories. Most of the supply chain processes were automated. Personalized customization, small batch and multiple batches of production methods were basically realized, and the number of home furnishing services provided by housekeepers and stars was more than 100 thousand times.

In the international market, the company has established business relations with dozens of foreign businessmen. Its products have been exported to many countries and regions such as the United States, the European Union, Southeast Asia and so on, and have registered the "MENDALE" brand. Besides, the company has a "Poeffen" brand in Europe.

Many likes love to focus on the main business, intending to sell the shell.

In March 29th, the annual report of 2019 was released. The annual total revenue of the company was 903 million yuan, an increase of 32.61% compared with the same period last year. The growth of revenue was due to the growth of the company's traditional home textile business and the growth of the new Internet business in the second, third quarter. The total profit of the company was 49 million 258 thousand and 400 yuan, up 62.86% from the same period last year, mainly due to the total profit growth of revenue growth. The net profit of the shareholders attributable to the listed company was 27 million 784 thousand and 800 yuan, up 20.09% over the same period, mainly due to the profit growth brought by the revenue growth.

The annual report shows that many people prefer to locate the high-end home textile market in the two or three tier cities. In recent years, the company has upgraded its brand from middle and low end products to high-end products. Facing the modern urban women's market, it meets the pursuit of light luxury and exquisite life, and puts forward the "light luxury fashion" brand proposition.

The company has developed a multi brand and multi channel development strategy, with five brands such as "multi love", "mikon Kang", "Hi rose", "Le Bei Kang" and "HB".

Future Ltd said that the development of home textile business as a major strategy would suspend investment in the Internet and related businesses and adjust the development of unstable businesses.

In 2019, the company will continue to develop the home textile business, adhere to the multi brand and multi-channel development strategy, adhere to the brand positioning of light luxury fashion, continue to reload and expand the existing stores and enhance the image of the shop under the offline channels. The online channel will promote the development of electronic business from expanding new products, co operating with well-known IP, adjusting product structure, providing key products and details of explosive materials.

While publishing the annual report, it likes to announce the announcement of suspension of major asset restructuring in March 31st.

The announcement indicates that the 100% stake in the Zhejiang construction investment group Limited by Share Ltd (hereinafter referred to as "Zhejiang construction group") is being planned to issue shares, and the matter may involve changes in the controlling shareholders and actual controllers of the company.

It is understood that the controlling shareholder of Zhejiang construction group is state-owned capital operation company of Zhejiang Province, and the actual control is Zhejiang SASAC.

Much love is believed to be "selling shell" in the case of growth and less than four years of listing.

Hua Shang observation: home textile enterprises will continue to expand this year, but there are different choices for their development.

To cover the consumption demand of different levels and different groups of people, in addition, under the promotion of multi brand strategy, home textile enterprises are more active in implementing big store strategies, such as Luo Lai's life. The company added 65 more than 300 flagship stores in the first half of 2018, and more than 250 of Ping An stores occupy nearly half of all terminal stores. In addition, household business is also a key business in the development of many categories of home textile enterprises. Meng Jie's life, fuanna and her shares have been laid out in this regard. Another common practice is the sinking of channels or expansion of different markets. An important factor in the growth of home textile enterprises' performance in 2018 is the sales growth brought about by channel expansion. Judging from the listed home textile enterprises, the performance of home textile enterprises has generally increased in 2018, and their practices have some similarities. First, the implementation of multi brand strategy, basically every home textile enterprise has four or five brands.

Looking forward to this year's development trend, these home textile enterprises are still likely to maintain growth momentum in their performance. One possible reason is that this year's real estate market seems to be showing a rebound trend, especially in the second tier cities, and the momentum of recovery is more obvious. The deeper factor is that the urbanization process is still advancing and the real estate market will remain stable for a long time.

As an industry closely related to the real estate industry, the home textile listed companies have become the most popular subdivision of the clothing market in the capital market. An example is Carlyle Group's investment in the "head" enterprise of the home textile industry, and many home textile enterprises have increased their efforts to expand their home business.

However, from the perspective of enterprise development, although there may be some similarities with the development of the industry, there are many similarities in the development of enterprises, but the road of development may not be the same.

Some enterprises are further strengthened by capital gains, while others may choose to cash in the capital market.

In the sustained growth trend, the phenomenon of industry differentiation and the stronger the stronger will also appear in the home textile industry, and further promote the concentration of the industry.