Semir Clothing And Children'S Clothing Business Is Developing Rapidly. Light Asset Mode Has Played A Great Role.

4 and 12 afternoon, the Shenzhen Stock Exchange "Investor Service season into the listed company" activities came to Wenzhou, Zhejiang Semir costumes, led investors to understand the company's production and operation status, and build a bridge between investors and the company.

As a branch of mass consumer goods, the apparel industry is an industry that has opened up competition earlier in China.

Semir clothing, founded in 1996, has been a leader in domestic casual wear after more than 20 years of development.

According to the company's latest disclosure of annual performance bulletin, in 2018, the company achieved operating income of 15 billion 716 million yuan, an increase of 30.68% over the same period last year, achieving a net profit of 1 billion 693 million yuan, an increase of 48.74% over the same period last year.

In fact, from 2012 to 2018, the annual compound growth rate of Semir's clothing revenue reached 14%, and the net profit compound growth rate was 14%.

In the face of fierce competition from many domestic and foreign brands, Semir can maintain such growth.

In this activity of entering the listed company, many investors first realized that Semir clothing did not have its own factory, and the sales mode was also based on the alliance and direct business as a supplement.

Apart from production and sale, what can Semir rely on in this fully competitive market?

Semir apparel Board Secretary Zong Hui Chun said that brand operation, product development and supply chain management capabilities are the company's greatest strength.

"Since the beginning of its establishment, Semir apparel has adopted the mode of virtual management and light assets. We believe that this pattern has advanced nature in the past, now and in the future.

Our production is totally outsourced, which is based on the decision made by China as a big textile country with sufficient capacity and outstanding buyer market status.

Zong Hui Chun said.

Semir's 2017 balance sheet can be seen (2018 annual report has not yet been disclosed), warehousing logistics parks, inventory and cash assets constitute the company's assets in three main forms.

According to Zong Huichun, the company now has a total of more than 900 acres of logistics park, and its investment adds up to more than 2 billion.

Strong supply chain management capabilities enable Semir to have strong control over upstream suppliers and downstream distributors.

"We entrust the low value-added links to the upstream suppliers and downstream agents. We do the middle brand management and design research and development. This mode is light asset management.

The rapid development of Semir in recent years also shows that our philosophy is correct.

Qiu Guang, chairman of Semir fashion, said.

At present, Semir's two major clothing brands have achieved billions of retail sales.

Among them, the brand of children's wear "balbala" is growing more rapidly.

According to the statistics of Euromonitor (Euromonitor), a third party consultancy, in 2018, the market share of BARBALA increased from 4.9% at the beginning of the year to 5.6% at the end of 2018, while the second children's clothing market accounted for only 1.2%, while the other ten brands accounted for less than 1%.

In the background of the overall competition environment of children's wear industry is more relaxed, Semir has repeatedly worked hard to further expand the company's position in the industry.

In 2018, Semir clothing carried out two important tasks, all related to children's clothing industry.

One is the acquisition of the French children's wear brand Kidiliz, the other is the North America's largest children's clothing brand THE CHILDREN 'S PLACE.

"Through the years of brand optimization, supply chain adjustment and carding, integrated channel layout, despite many challenges and pressures, the two brands of Semir department have achieved a sales scale of ten billion.

Through the development of the next five years, we will have 4 brands to achieve this level.

Qiu Guang and conclusion.