"Brand Upgrading" And "Market Demotion", The Transformation Path Of Underwear Listed Companies

City beauty, Hui Jie share and Fang Li Fang hold three underwear retail listed companies. They share something in common with their business development strategies. But under the influence of market macro environment and their own development, they have begun to make more different choices.

Urban beauty annual performance growth, plan to promote brand upgrading

Urban beauty 2018 annual report shows that group income in 2018. Fifty point nine six Billion yuan, an increase year on year 12.2% Operating profit Four point eight four Billion yuan, an increase year on year 15.4% Company owners should account for profits. Three point seven eight Billion yuan, an increase year on year 19.3% 。

Urban beauty said that the increase in group revenue was mainly due to the sales performance of franchisees and e-commerce channels, and sales to franchisees rose by about the same year. 15.1% The main reason is that the group promotes franchisees to refurbish stores, and the quality of products is improved. E-commerce sales rose by about a year ago. 31.2% The main reason is that the group has invested resources in the development of e-commerce channels. Sales of self run stores fell by about a year ago. 4.6% This is mainly due to the fact that in 2017 the group adjusted sales and distribution channels to close many stores that lost money, so that the average number of self operated stores in 2018 was lower than that in 2017.

In terms of operational indicators, the gross profit margin of the group was from 2017. 43.2% Down to about 41.7% It is mainly due to the intense competition in e-commerce business and the group's efforts to promote the old stock. Average turnover days of inventory from 2017 One hundred and sixty point two The sky is shortened to One hundred and thirty-nine point eight The main reason is that the group has improved inventory management. Average turnover days of accounts receivable from 2017 Forty point four The day increased to about Forty-nine point four The main reason for this is to encourage large franchisees to open larger stores and shop in shopping centers, giving them a longer time. As of mid March 2019, the group has recovered over 70% of accounts receivable.

The annual report shows that the group's revenue comes mainly from five main body clothing products: bra, underwear, pajamas and home clothes, thermal clothing and others. Brassiere is the main product line, and sales accounted for total revenue in 2018. 49.1% 。 The sales growth of pajamas and household wear reached about 2018. 22.3% This is mainly due to the promotion of promotional activities and the optimization of product design and product mix.

About the future channel and brand development strategy, the city beauty said it will continue to implement the shopping center. Two It plans to enter the middle shopping mall, and launch "fashion shop" into the middle and low shopping center, and continue to promote the young brand "O+" derived from the original brand of Europe to enter the high-end shopping center. The seventh generation of image stores will be launched to continue to renovate the stores on the pedestrian street, continue to transform the store into a smart retail store, and use smart shopping guide, and plan to increase the investment of electronic business. The group brand will launch new products in four styles (Flirt seduction, Free simplicity, Function functionalism and Fun playism).

Hui Jie shares annual net profit decline, plans to expand more market segments

Hui Jie shares annual report 2018 showed that the company achieved operating income in 2018. Twenty-three point five five Billion yuan, an increase year on year 10.22% Net profits attributable to shareholders of listed companies. One point six six Billion yuan, down compared with the same period last year 25.48% 。 Hui Jie shares said that in 2018 the company's direct sales, e-commerce, distribution channels have achieved business income growth, but decoration decoration fees, advertising fees have also increased. In addition, the company cancelled its wholly-owned subsidiary, Shantou city man Ni Finn Garments Co., Ltd., resulting in a larger sum of dismissal benefits. As a result, the company's operating income has increased, but the profit index has declined.

Hui Jie shares said that in 2018, the company expanded its rich categories and increased its stock investment. The company acquired the brand and related inventory of Manifen, and the brand launched the cotton life sub brand. The Lan Zhuoli brand launched the mobile Da Da and ah family brand. The company adopts multi brand development strategy. There are eight main brands: "Manifen", "Yves", "Lan Zhuoli", "Sang Fulan", "Qiao Bai Shi", "Yi Shang Shang pin", "secret weapon" and "potato". They also have Manifen beauty dressing, Manifen cotton life, MW1, Manifen children, Manifen sports, home decoration, mobile phone tat, Lan Zhuoli, ah family and other sub brands; products include women, men, children's underwear, home, function, sports, thermal, swimsuit and accessories, ladies skin care products and beauty products.

Hui Jie shares that the expansion of market share in different market segments is an important factor in the company's future profit growth. The company will exert its strength in sexy underwear, body underwear, underwear, no steel rim and soft steel underwear, big cup underwear, cotton underwear, sports underwear, children's underwear, men's underwear, top grade underwear and so on. The company will develop shopping centers, Oteri J, new e-commerce channels, and continue to tap the potential of the two or three tier city market.

According to the annual report, as of December 31, 2018, there were 1300 direct outlets and 1545 distribution outlets. The company's terminal was mainly located in the main business circles of all provincial capitals and major prefecture level cities except Tibet, and the outlets were mainly located in three or four cities and towns outside Tibet. In addition, the book value of the company's stock Seven point two five Billion yuan, an increase year on year 33.28% 。 Hui Jie shares in 2019 a quarterly report shows that the first quarter of 2019 to achieve business revenue. Six point four nine Billion yuan, an increase year on year 15.32% To achieve net profits attributable to shareholders of listed companies. One point one four Billion yuan, an increase year on year 8.07% 。

Ann Li Fang's annual performance decline, plans to force the middle and low consumption market.

Anne Fang holdings annual report 2018 shows that the group realized revenue in 2018. Twenty-four point five two HK $1 billion, an increase year on year 4.80% Gross profit Nineteen point six zero HK $1 billion, an increase year on year 7.37% The company owner shall account for the annual profit. One point five one HK $1 billion, down compared with the same period last year. 69.48% 。

"The increase in turnover is mainly due to the group's promotion of all channels and multi brand strategies," said Fang. At present, there are seven brands in the group, namely flagship brand, an Li Fang, Feng Di Shi, IVU, COMFIT, Andrew, LIZA CHENG and E-BRA. Among them, an Li Fang is the main source of income of the group, accounting for the proportion of the total income. 45.42% 。 The group has invested more in the second tier market, focusing on E-BRA and Ando. 23.17% Sales grew year-on-year.

According to the annual report, as of December 31, 2018, the group had 1837 retail outlets, including 1557 department stores in mainland China, Hongkong and Macao, and 280 retail outlets. The number of retail outlets of the group decreased by 88 compared with the end of last year. The group opens multi brand complex stores in many cities, and runs several brands in the store.

On the future business plan, an Li Fang Holdings said that the group plans to continue to implement multi brand strategy, while facing the middle and high-end market, and strengthening the development of the low and middle consumption market. The group will be cautious in locating sales outlets, focusing on department stores and shopping centres, and will continue to close inefficient stores. In view of the growth of the electricity supplier market, the group plans to develop more e-commerce monopoly commodities and continue to implement full channel sales.

In April 26th, Anli Fang holdings released the latest sales data bulletin from January 2019 to March, announcements that the overall sales in the first quarter of 2019 fell by about 7% compared with the same period last year, owing to the depreciation of the renminbi against the Hong Kong dollar and the weakness of the overall retail atmosphere. During the period, the sales of the same store for more than 15 months showed a year-on-year decrease in the number of units per unit. By the end of March 2019, the total retail sales point of the group was 1798, of which the number of sales counters and specialized shops was 1520 and 278 respectively. The group's retail sales decreased by 39 compared with the end of December 2018. An overall reduction in retail sales is due to the group's implementation of the strategy of adjusting sales network, which distribus branding and product mix to retail outlets and integrated stores according to the characteristics and location of market segments.

Hua Shang observation: underwear retail listed companies choose different transformation strategies

On the whole, the brand concentration of underwear retailing market is relatively low. Urban beauty, Hui Jie share and an Li Fang holdings are large scale underwear retail listed companies. Their operation and development strategies have certain representativeness and common ground in the industry. At the same time, under the influence of the market macro environment and their own development conditions, various enterprises are also developing strategies. It began to show some trend of differentiation.

What is more common is that underwear retailers are stepping up efforts to expand their brand and multi category products and strive to occupy more market share. In 2018, the city beauty joined the Jingdong to establish a merger fund. It established a joint venture with China to sell men's body clothing and women's sports underwear, and to sell cotton socks products with kin Sheng group, and plans to develop the young brand "O+" derived from the European brand. Hui Jie shares acquired the brand and related inventory of San Fu Lan, Manifen brand launched cotton life sub brand, Lan Zhuoli brand launched the mobile Da Da, ah family brand. The company's product lines include women, men, children's underwear, home products, women's skin care products and beauty products, etc. the company says it will exert itself in sexy underwear, sports underwear, men's underwear and other underwear market segments. At present, there are seven brands, including Fang Li Fang, Fei Di Shi, an duo and E-BRA. In 2018, the company adjusted its brand strategy, E-BRA adjusted to Internet brand, and faced with the online market, the brand was adjusted to the next wholesale brand, facing the three or four line market. These actions are the embodiment of expanding brand and product line. In addition, in terms of channel development, enterprises are also interested in opening more shopping center stores and integrated stores, attracting more people's traffic, and planning to increase investment in e-commerce channels.

However, apart from the joint action, the focus of the development of these three underwear retailers has begun to show more differences. Urban beauty is the leading underwear retailer in the leading position of revenue scale and market value. Its main brand is mainly for the three or four line market, basically belongs to the mass brand. At present, the company has the intention to "upgrade" in the direction of high-end brands, including the acquisition of high-end brands, Europe, and promote the brand of "O+", which is derived from Euro Fen, into the high-end shopping center. The introduction of new image stores in high-end and high-end shopping centers is the embodiment of this brand's "upgrading" thinking. As a medium and high-end brand, the company said it will continue to tap the potential of the two or three line city market, and subdivide more product lines in this brand positioning, and intends to go to the lifestyle brand. As an intermediate and high-end brand, an Li Fang is now "inferior" in terms of performance and market value. Therefore, the company has intensified efforts to develop the three or four line market. In 2018, the fast growth of brand revenue in the low and middle consumption market has become an important factor to support the company's performance. The popular brands should be upgraded, while the middle and high grade brands intend to "downgrade" or excavate more market segments to find room for development. These different choices reflect the transformation strategies of the underwear retail enterprises in the face of market demand changes and their own business conditions, and these strategies are expected to continue. Author: Xiaopeng