Deal With Market Differentiation, Clothing Segmentation Industry "Head" Enterprises Want To Increase The Main Industry Investment

YOUNGOR, Hai Lan's home, Anta sports, Lai Lai life and Pathfinder have all the similar business operations in the subdivision industries of the clothing industry, which is "focusing" on the main garment industry, and the majority of brands in the main industry.

YOUNGOR announced in April 29th that the company intends to make a major adjustment to the development strategy, and will further focus on the development of the main garment industry in the future. In addition to strategic investment and continuing investment commitments, the company will no longer carry out financial equity investment in the non principal sectors, and invest in the existing financial equity investment projects.

The announcement shows that as of the end of 2019 3, YOUNGOR invested 39 projects, with an investment cost of 30 billion 456 million yuan and a final face value of 32 billion 20 million yuan.

In addition to fulfilling the original investment commitments, the company plans to take different strategies such as two level market reduction, agreement pfer, withdrawal after the expiration of the stock market and exit after the listing, according to the different investment characteristics.

YOUNGOR's 2018 annual report shows that the company achieved revenue of 9 billion 635 million yuan in 2018, down 2.07% compared to the same period last year, and realized a net profit of 3 billion 677 million yuan attributable to shareholders of listed companies, an increase of 1139.14% over the same period last year.

Among them, the fashion apparel sector finished 5 billion 644 million yuan, an increase of 13.22% over the same period last year, and realized a net profit of 830 million yuan attributable to shareholders of listed companies, an increase of 9.34% over the same period last year.

In the annual report, YOUNGOR reconstructs the brand matrix in 2018, YOUNGOR develops the workshop series of YOUNGOR LADY (YOUNGOR women's dress), Hart Schaffner Marx opens out outdoor and women's clothing series, MAYOR enriches product category, HANP focuses on developing socks, underwear and bed products.

In November 2018, YOUNGOR launched a "online offline" activity, the first attempt to "online promotion, offline experience", "online sales, offline services", the realization of the online orders, nearby stores, the completion of sales revenue of 502 million yuan, a 11.6% increase in the year.

The company continues to push forward the strategy of big stores, focusing on core cities' core resources.

By the end of 2018, the total number of various outlets was 2258, representing a decrease of 98 compared with the beginning of the year, with a business area of 411 thousand and 700 square meters, an increase of 17 thousand and 100 square meters compared with the beginning of the year.

The introduction of face recognition, service robots, intelligent voice shopping guide and other technology means.

YOUNGOR plans to open 500 new HANP socks counters in 2019, re launch the brand of YOUNGOR women's clothing, build online bestsellers, use popular IP and launch joint funds, increase investment in first tier cities, launch YOUNGOR shop concept stores, enter high-end shopping centers, and plan to build flexible manufacturing factories.

Hai Lan home 2018 annual report shows that the company achieved operating income of 19 billion 90 million yuan in 2018, an increase of 4.89% over the same period, and realized a net profit of 3 billion 455 million yuan attributable to shareholders of listed companies, an increase of 3.78% over the same period last year.

The company's revenue and net profit continued to grow, but the growth rate slowed down compared with the same period last year.

Hai Lan's home said in its annual report that the company adheres to the principle of "golden section and diamond shop" to expand channels, and continues to increase the strength of shopping centers to develop a shopping mall with benchmarks.

The international strategy of multi - state and multi - brand is adopted, the Southeast Asian market is ploughed deeply, and 4 countries in Malaysia, Thailand, Singapore and Vietnam are stationed.

It is reported that the fast fashion brand of Hai Lan family, the black whale HLA JEANS and the high-end women's clothing brand OVV, have entered the Thailand market recently, and jointly launched the launching ceremony with CPN business group in April 25th.

In 2018, the company opened 1181 new stores, closed 300 stores, and made a total increase of 881. The total number of stores was 6673, of which 5097 were Hai Lan's brand, 1281 were AI Chu's brand, and 295 were other brands.

In the 1 quarter of 2019, the company added 62 stores and 7607 stores.

Electricity supplier business, the company through the mainstream e-commerce, vertical electricity providers, social networking and other channels to promote the company's electricity supplier business, promote online ordering, the nearest store delivery mode, explore online and offline linkage O2O mode, nearly 3500 stores have launched a full channel zero sale system.

By the end of 2018, the total number of online members of the company reached 13 million 840 thousand, an increase of 28% over the same period last year, and the annual operating income of the company was 1 billion 151 million yuan, an increase of 9.25% over the same period last year.

Hai Lan's home said that in the future, it will focus on expanding the shopping center, taking advantage of the quality store resources of core shopping centres and shopping centers, adjusting and optimizing the marketing network layout of street stores, maintaining the coverage of stores in the 234 line cities, expanding the overseas market in Southeast Asia, exploring the market of Japan and Korea, improving the layout of online multi brands and various formats, and testing the water to join hands in the online cross-border platform.

We should promote the development of new brands and form multi brand development of popular brands, light luxury brands, fashion trend brands and home life brands, so as to realize the multi brand strategy of corporate life and consumption.

Anta sports 2018 annual report shows that the company achieved operating income of 24 billion 100 million yuan in 2018, an increase of 44.4% over the same period last year, and realized operating profit of 5 billion 700 million yuan, an increase of 42.9% over the same period last year, achieving a net profit of 4 billion 100 million yuan, an increase of 32.9% over the same period last year.

The company emphasized that these three indicators were all new and high, and maintained double-digit growth for five consecutive years.

According to the annual report, as of the end of 2018, there were 10057 Anta stores in the mainland (including Anta children's independent stores), and 1652 FILA stores in mainland China, Hongkong, Macao and Singapore (including FILA KIDS and FILA FUSION independent stores), and 117 DESCENTE stores in the mainland.

The company said that by the end of 2019, Anta stores in mainland China, including Anta children's independent stores, will be expected to reach 10100 to 10200.

The mainland, Hongkong, Macao and Singapore FILA stores (including FILA KIDS and FILA FUSION independent stores) will reach 1800 to 1900.

DESCENTE's stores in the mainland are expected to reach 130 to 140. KINGKOW is expected to have 90 to 100 stores. SPRANDI expects 140 to 150 stores, while KOLON SPORT expects 170 to 180 stores.

Anta sports said that the company will continue to implement the strategy of "single focus, multi brand and all channels", and the "value retail" strategy launched by the company in November 2018 will grasp the consumption big data through smart retail applications.

In addition, it is expected that technology products including running new technology series and KT basketball shoes will lead to performance growth.

Sales channels will further increase the proportion of shops in shopping centers and department stores in Anta, and continue to promote the growth of the group in the business channel.

Anta sports believes that China's consumer segmentation varies with different cities, including population attributes, distribution channels and consumption capacity.

Consumers' preference for "sports leisure" fashion increased, and the demand for "functional", "differentiated" and "high-end" sports products became stronger.

Anta sports latest business performance bulletin in the first quarter of 2019 showed that the retail sales of Anta brand products (calculated at retail value) in the first quarter of 2019 compared with the same period in 2018, and achieved a low growth rate of 10%-20%. The retail sales of other brands (calculated by retail value) increased by 65%-70% compared with the same period in 2018, and continued to grow.

Luo Lai life 2018 annual report shows that the company achieved operating income of 4 billion 813 million yuan in 2018, an increase of 3.24% over the same period, and realized a net profit of 535 million yuan attributable to shareholders of listed companies, an increase of 24.92% over the same period last year.

Luo Lai life said that in 2018 the company focused on home textiles, bedding based home textile products are the main source of company revenue.

The company adopts multi brand operation strategy, and now the company brand covers high-end market (gallery Bay, Lexington, Chino), middle and high-end market (Luo Lai, Luo Lai children) and the mass consumer market (LOVO).

The company has adopted a direct and joint business model. As of December 31, 2018, the company had nearly 2700 terminal stores.

In 2018, the company focused on its main business, focused on its main brands, recombed its brand positioning, and switched to Tmall's flagship store and LOVO brand, and the LOVO of the brand was independently operated.

Through the gallery brand and Lexington brand, the company explores the whole category household business and promotes the "home textile small household" business, extending from the home textile products mainly made of bedding to many categories such as bathroom, kitchen, living home and so on.

In 2019, the company plans to achieve an increase of 5-15% in business revenue, and plans to achieve net profit growth of 10%-20% over the same period last year.

In March 18th, Luo Lai life announced that CA Fabric Investments, which is 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.

Pathfinder 2018 annual report shows that the company achieved operating income of 1 billion 992 million yuan in 2018, down 34.34% compared with the same period last year. The net profit attributable to shareholders of listed companies was 182 million yuan, down 114.40% compared to the same period last year.

The main business of outdoor products reached 1 billion 337 million yuan in 2018, a decrease of 5.85% compared with the same period last year.

Pathfinder said, in 2018, the company subdivided the product line and divided its product line into four main product lines: outdoor Explorer (outdoor product line of Pathfinder brand), outdoor traveler (brand name travel product series), outdoor artist (Discovery Expedition brand), small kids Pathfinder (Toread kids, Pathfinder brand children's wear). The company closed down inefficient shops with poor profitability, and promoted the proportion of shopping mall and outlets under the Internet. By the end of 2018, the total number of shops under TOREAD line was 1210, the total number of shops under Discovery Expedition line was 171, and the total number of shops under TOREAD KIDS line was 32.

For the future business plan, the Pathfinder plans to gradually peel off and withdraw from the main business of outdoor business, and will continue to peel off and withdraw business and investment projects related to outdoor main business in travel, sports and other fields. In addition, it intends to introduce or create new outdoor brands with complementary and complementary relationship with the existing brand system, so as to form a focus on outdoor international multi brand operation strategy.

The company plans to expand the expansion of shopping centers, and plans to strengthen the operation of members, through the Pathfinder is now offline shop, online platform, green field, six foot community system membership system.

Pathfinder 2019 quarterly report shows that the company achieved 320 million yuan in the first quarter of 2019, a decrease of 27.06% compared with the same period last year. The Pathfinder said that the main reason was still reducing the scale of the travel service business, resulting in a substantial reduction in travel service revenue. In addition, the main income of outdoor products was 233 million yuan, an increase of 16.05% over the same period last year. It mainly benefited from the implementation of the relevant strategic measures of the company focusing on outdoor products. The company controlled various expenses, while the current non recurring gains and losses increased over the same period last year, making the net profit of the company belonging to the shareholders of Listed Companies in the first quarter of 2019 was 40 million 477 thousand and 900 yuan, an increase of 82.45% over the same period last year.

YOUNGOR, Hai Lan's home, Anta sports, Luo Lai life and Pathfinder belong to the clothing sub sectors of men's clothing, public leisure wear, sportswear, home textiles and outdoor products. Although the size of the enterprises is different, they are basically "head" enterprises with relatively large revenue scale in each subdivision industry. The recent performance of these garment enterprises is also different, but their development ideas are similar, that is to increase investment in the main garment industry, cut off cross-border investment in non main industries, and at the same time, they want to focus on the fashion consumption industry chain to carry out multi brand and multi category extension to cope with the more subdivided market demand and to occupy a larger market share.

The introduction of women's clothing, and the introduction of socks, outdoor, underwear and even bathroom products lines; in addition to the popular brands, Hai Lan home also needs to make light luxury brands, Shi Shangchao flow brands and home life brands. Anta sports latest business report shows that the growth of non Anta brand is still higher than that of Anta's main brand, while the company continues to promote the acquisition of AMER SPORTS to implement multi brand and multi category strategy; the company of Luo Lai textile says that the company will further gather the main business and main brand of Jiao Jiafang, and promote the "home textile small household" business, extending to many categories such as bathroom, food, home, etc., while the Pathfinder will continue to implement the strategy of returning to the main industry, and relocate and subdivide its product line. For example, YOUNGOR issued a special announcement that it would no longer carry out the financial equity investment in the non main sector, and intends to reopen it.

Generally speaking, these garment enterprises have made new positioning and planning for their brands and products in different degrees in 2018.

The similar development ideas of garment enterprises generally reflect the increasing concentration of clothing industry and the diversification of market structure under the current market environment and development.

From the point of view of the scale of revenue, it seems that companies with smaller volume tend to cross border diversification to find business outlet or complete pformation.

And YOUNGOR, Luo Lai life, Pathfinder and other enterprises have crossed the road of cross-border diversification. At present, it seems that more attention has been focused on the main garment industry, which can be called the trend of "reverse diversification".

However, whether cross border diversification or industrial chain diversification is the strategy adopted by garment enterprises in the face of increasingly fierce market competition, there is no absolute right or wrong strategy. Survival of the fittest is the winner.