The New Season'S Orders Will Grow At A High Level, And Quality Improvement Is Not Welcome.

The results of the 2019 winter order meeting and the latest operational performance Bulletin released by the China winter Co., Ltd., one of the largest men's clothing brands in mainland China, were released in June 3rd. The total volume of orders for the company's 2019 orders in winter has increased by 10% to 13%.

The announcement said that the slower growth of orders was mainly reflected in the average unit price of products in the winter, which was slightly lower than that of last year due to the decrease in raw material costs. Retail sales growth has slowed down, and the confidence of distributors has been affected.

The order volume of the winter order society recorded a healthy growth of 15% to 20%.

In addition, the first class distributors and two level distributors in China, which operate and operate for more than 18 months in the "LILANZ" retail store, show that the same store sales during 2019 (calculated by retail sales) increased by an average of a high number of units compared with the same period last year.

The industry believes that with the Chinese Le Lang orders will maintain rapid growth, the future growth is sustainable.

According to the financial report, in 2018, the company's revenue increased 29.8% to RMB 3 billion 170 million yuan, and net profit increased 22.9% to RMB 751 million yuan.

The growth of income and net profit mainly reflects that the retail situation of the "LILANZ" series is consistently better than that of the same industry. The channel inventory is kept at a healthy level, so that the confidence of the distributors will rise, and the performance of the order will be improved and the sales of the group will grow well.

As of December 31, 2018, "LILANZ" had 2670 retail stores in the country. The total number of stores increased by 260 in the year. The total store area was about 379 thousand and 900 square meters (December 31, 2017: 309 thousand and 600 square meters), and increased by 22.7% over the end of the year.

The independent fashion shop (LESSISMORE) has 212 stores and an increase of 123.

During the reporting period, he also continued to push distributors to set up shop in shopping malls of provincial and prefecture level cities to meet new consumption patterns.

By the end of 2018, the number of shopping malls has increased to more than 600, accounting for more than 1/5 of the total number of stores.

At present, all shops in "LILANZ" are decorated in the sixth generation. All shop decoration, including design and shop decoration materials, are provided by Lai Lang to ensure that the brand image of the distribution network is consistent.

Li Lang plans to launch the seventh generation image in the second half of 2019 to further enhance the brand image.

Gao Xiang, an analyst with state Yuan International Holdings, said that 3 years ago, in the industry integration, China's "quality improvement and no price increase" was priced at lower prices than 20%-30%.

By improving product strength, controlling the retail system and improving operational efficiency, we can control costs and ensure profitability.

At the same time, we upgraded the R & D team and introduced designers with the experience of top international brands. As of 2018, 300 R & D teams were set up to continuously upgrade the proportion of original products to their own fabrics.

The new light business is precisely targeting the group of customers at the age of 20-30.

From this point of view, with the improvement of product competitiveness and high performance price ratio, the future growth prospects will be better.

It is understood that at present, China's Li in the north of Guangzhou Shenzhen + the provincial capital accounts for about 27% of sales, prefecture level city about 33%, 3, 4 line about 40%.

The data show that the per capita disposable income of the main three or four line cities in China is 10% CAGR compared with that in 2002 years. With the upgrading of the low level cities and the integration of industries, the companies with brand effect and high cost performance will benefit more.

In the future, China will make efforts on the second line and the three or four line according to the different characteristics of the main brand and light commerce, so as to increase its scale.

Gao Xiang introduced that China launched the light Business Series in the second half of 2016, aiming at a second tier city with a higher shoppingmall.

2017 young business accounts for about 5% of the total revenue. Since the autumn of 2016, 20% of the shops have made profits, 50% breakeven, and 30% loss. We can also see the overall quality management and operation ability of the company.

By the end of 2017, there were 89 light business stores, and 3/4 of the 200 new shops opened in 2018 will be light business. This trend will also be maintained in the next few years.

The business efficiency of light business is generally three to four million, higher than that of the main brand, and its pricing will be lower than the main brand 30%.

Although the price is low, the sales discount is not as low as the main brand to the distributor, so the gross profit is only slightly lower than the main brand, and the gross margin will not be lowered too much. At the present level, the gross profit margin is not expected to exceed 1%.

Half of 2017 is the mode of consignment, and 2018 will become a consignment mode after sale in autumn.

In addition, China plans to use light business and open online to form new retail formats, namely, online service, offline experience and logistics.

Under the same plan, online and offline sales of light business products will be sold under the same plan.

The strong cost performance of light commerce provides a good basis for business expansion.

Li Lang also said that it will continue to push forward the development of new retail business by taking advantage of the "LILANZ" brand advantage and LESSISMORE Series in line with the positioning and good momentum of online development.

In 2019, the company plans to open about 200 stores a year.

At the same time, shops will be opened in shopping malls.

In order to keep pace with the long term development of new retail, LESSISMORE will continue to increase the number of shops as a leader in the development of new retail. It will mainly use the consignment mode to attack Beijing and Shanghai markets, and continue to further develop the first and second tier markets in Qingdao, Tianjin, Zhengzhou, Xi'an, Hefei and Zhejiang.