In Japan'S Hai Lan'S Home, We Should Use "High Quality And Low Price" To Get More Markets.

Recently, Hai Lan's home opened the first store in Japan in Tokyo, the first store in Japan. This is the first time that Hai Lan's family has entered the Japanese market, and plans to open second stores in Ibaraki County in June and strive to open three stores in 2019.

According to "Japan economic news" reported that many Chinese brands are entering the Japanese market, and the flagship "high quality and low price" Hai Lan's home can set off a "CoolChina (cool China") Cyclone in Japan.

The report also pointed out that Hai Lan's home recently opened in Japan focused on men's clothing, which is relatively rare in the Japanese market where women's clothing stores are concentrated.

The first shop in Japan is simple and decorated with grey, white and log colors.

The shop area is about 190 square meters, and the target customer group is still 20-45 years old. The clothing type covers business, fashion and leisure.

It is now selling 2800 products of 31 Series in spring and summer 2019.

The price of goods is similar to that of the mainland of China.

According to the insiders, at present, under the pressure of macro economy and rational consumption, the high cost performance strategy of Hai Lan's home will win a broader market. According to the overseas expansion plan rooted in Southeast Asia, the Asia Pacific region and the global perspective, Hai Lan's family actively and orderly promotes the process of brand internationalization. The company currently has 29 overseas stores, and some of its shops have made profits. As the company has opened stores in Malaysia and Singapore, it has gradually opened up Thailand and Vietnam markets.

First textile network reporter learned that after two years of terminal channel farming, Hai Lan's home has achieved 56 million 150 thousand yuan in overseas markets, and successfully entered 4 countries in Malaysia, Thailand, Singapore and Vietnam. It is expected to deepen the Southeast Asian market in 2018.

According to public information, the home of Hai Lan was founded in 2002 and was successfully launched on 2014 by shell technology.

The company is a white horse leading enterprise in the textile and garment sector. Its scale advantage is obvious.

At present, its own brand of Hai Lan home, AI Ju rabbit, San keno, black whale and other private brands, and at the same time participate in Ying Shi, boys and girls, ABLEJEANS and other brands.

The company's strategy is to create a multi brand management platform for consumer life.

At present, Hai Lan's family owns its own brand, such as Hai Lan's home, AI Ju rabbit, San keno, black whale, Hai Lan optimization, AEX, OVV, Hai family and so on. At the same time, it also takes part in Ying Shi, boys and girls, ABLEJEANS and other brands.

Through decades of channel sinking and early years of advertising, as the men's clothing brand, Hai Lan's home has developed rapidly, and the market share has been steadily ahead of the industry. The scale of revenue is about 15 billion yuan / year (main brand men's clothing).

However, the product positioning which focused on cost performance and relative neglect of design and fabric has gradually shown a short board in the process of consumption upgrading in recent years - age narrowing of consumer groups, loss of young consumers and solidification of brand image.

This is also reflected in the performance. The growth rate of the main brand's revenue has slowed down, and the gross profit margin has declined.

Chen Bo, a wealth securities analyst, said that in recent years, Hai Lan's home has made some innovative attempts in product design and fabric upgrading.

In 2016, the company launched a limited number of costumes with the first Chinese designer, Zhou Xiangyu, who boarded the London Fashion week. The market is enthusiastic about XanderZhou.

Since 2018, the company has carried out the key work of "fabric upgrading and quality upgrading". The creative video of "scenery king and universe" created by macro photography has made consumers feel more directly about the upgrading of materials.

"Two times a year, Hai Lan's home, every time there are new feelings" and "men's wardrobe sea LAN home" brand slogan has maintained a high exposure rate in the past quite a while, which has played a more significant role in promoting the channel expansion and performance scale growth of Hai Lan's home.

However, due to the evolution of consumption generation and the progress of the aesthetic level of the times, the original brand slogan has been out of date, the image of the brand has been solidified, and the brand value has also been hurt.

Since 2017, Hai Lan's home has launched a new spokesperson for the main brand, whose image is healthy and friendly, and focuses on performing arts as a new spokesman for the main brand. With the addition of the new brand advertisement of "ideology" + "post-modern art", the tunability of the main brand has been promoted, and the brand has been younger and continuously promoted.

In addition to the new spokesperson who agrees with the company's image concept, Hai Lan's home also conveys the professionalism and cultural connotations of Hai Lan's brand through thematic marketing and IP grafting, and strengthens the interaction between the brand and consumers, and outputs the brand value.

Public information shows that Hai Lan's home is the largest listed company in the scale of textile and apparel sector's performance. The performance base is relatively high. In the past 5 years, the composite growth rate of the company's operating income was 9.12%, and the compound growth rate of the net profit to the parent company was 7.78%.

In 2018, the company achieved operating income of 19 billion 90 million yuan, an increase of 4.9% over the same period, and realized a net profit of 3 billion 460 million yuan attributable to the parent company, an increase of 3.8% over the same period last year.

Chen Bo believes that the future profitability of Haolan's home has two logical supports: 1) the slow speed of the rabbit extension shop, the performance release period after the opening of the store quality + the new store into the break even point, the brand gross interest rate is expected to recover steadily, and 2) the performance contribution of the black whale and the Haolan preferred brand.

But these two points still need to focus on the company's opening up plan and brand development progress in 2019.

Observation, as a brand of white horse leading, Haolan home's performance accounted for the highest, the scale advantage is obvious; performance growth is steady, gross margin is improved significantly, the report quality is better overall, it is expected that its love rabbit dress will keep double-digit growth in the future, and gross margin will have room for improvement. Black whale, Haolan optimization, AEX, OVV and other brands can be released after maturity.