Differentiation Intensified, Men's Clothing Enterprises To Compete And Upgrade

Some men's clothing enterprises have made clearer directions on the road of adjustment and transformation, and their performance scale and profitability have been improved to varying degrees. But at the same time, the competition of men's clothing enterprises is also gradually upgrading.


YOUNGOR returns to main garment industry


This year is the 40th anniversary of YOUNGOR's establishment. In April 30th, YOUNGOR announced that in order to achieve the goal of maximizing its value, the company intends to make a major adjustment to the development strategy. In the future, it will further focus on the development of the main garment industry. Besides strategic investment and continuing investment commitments, the company will no longer carry out financial equity investment in the non principal sectors, and take the opportunity to deal with existing financial equity investment projects. At the shareholders' meeting in May 20th, YOUNGOR chairman Li Rucheng once again expressed his plan to return to the main garment industry. This also means that YOUNGOR has implemented the strategy of "three carriages" (clothing, real estate, investment) in the past 11 years. This year, the investment business will be stripped. YOUNGOR will refocus on the main garment industry, and real estate will become the only sideline.


GXG landing port exchange


In May 28th, the domestic men's wear GXG officially landed at the Hong Kong stock exchange, with the stock code of 1817.HK. The group was founded in 2007. In addition to its core brand GXG, the group also operates 5 brands, including Gxg Geans, Gxg Kids, Yatlas and 2XU. GXG is the group's biggest performance engine. GXG obtained its investment from LVMH's L Catterton Asia fund in 2016. L Catterton Asia invested 4 billion yuan to purchase 70% of its shares as its largest controlling shareholder. By the end of 2018, the company had 2250 retail outlets nationwide, including 720 self operated stores, 532 partnership shops and 998 outlets, and incorporated into Tmall three, WeChat vip.com and other three business platform. Since the launch of the VIP membership plan in 2009, the total membership of the group has reached 11 million 200 thousand.


Nine Mu Wang invested Maison Kitsun Ye


In February 15th, the contract signed a cooperation agreement between Kitsune and France to jointly invest in the establishment of a joint-venture company, fox (China) Limited. In the mainland of China, Hongkong and Macao, the business of Maison Kitsun Ye brand and Kitsun e brand clothing, accessories, bags, cosmetics and perfume products will be carried out. Nine Mu Wang invested 76 million 500 thousand yuan, holding 50% stake in the joint venture company; Kitsune intends to operate in the area including, but not limited to clothing, accessories, bags, except coffee, perfume and cosmetics category of the ownership of the trademark rights, holding 50% stake in the joint venture company. The company will implement the strategy of "platform, multi brand and all channels" to build a Seiko quality platform, fashion quality platform and personality trend platform to help Kitsun AI brand quickly open up the Chinese market.


Hai Lan's home layout overseas market


Hai Lan's home recently opened the first Japanese store in Tokyo's wing dream city, marking the first time that the brand entered the Japanese market. It is reported that Hai Lan's home will open 3 new stores in Japan this year. Since last year, Hai Lan's home has further accelerated its overseas market expansion process, opening its stores in Singapore, Malaysia and Thailand. In May last year, the 350 square meter Hai Lan home HLA Singapore opened its first store, and the 8 month Hai Lan home HLA opened its first store in Thailand in Bangkok. In the next 3 years, Hai Lan's home will continue to set up shop in Singapore, Malaysia and Thailand, and gradually realize the strategic goal of "entering new Asia" as a starting point for the full march into Southeast Asia, and moving out of Asia to the world.


CABBEEN purchases Fujian Shishi industrial property


In May 19th, CABBEEN announced that in May 17, 2019, the wholly owned subsidiary of CABBEEN China as a buyer entered into a equity transfer agreement with Jing Zhuo investment, Shishi Jun Yuan Development Co., Ltd. and Yang Ziming. CABBEEN China has the conditions to agree to invest fully in the development of all registered capital, and the provisional cost is RMB 105 million 500 thousand yuan. After the completion of the transaction, Chun Yuan development will become an indirect Affiliated Companies. Chun Yuan has a property under the industrial park in Shishi, Fujian, China, including two total land area of 45241.80 square meters and ten industrial and supporting buildings with a total construction area of 96445.25 square meters. The company said that the group leased part of the property at an annual rent of 1 million 700 thousand yuan for the purpose of office, warehousing and staff quarters. Through the acquisition of Chun Yuan, the property will become a group asset and can be used for future expansion by the group.


News birds add money to clothing and smart


In May 24th, the announcement announced that the wholly-owned subsidiary of the company was planning to sign an agreement with Taizhou leap and Yi Na intelligent, and the 22 million 800 thousand yuan was awarded to Taizhou's 4.56% stake. Yi Nai intelligence is a new supplier of textile and footwear manufacturing line intelligent logistics and new retail intelligent transmission and quick sorting comprehensive solutions provider, in addition to providing support for the 4 intelligent manufacturing of the Phoenix bird industry, it also provides intelligent manufacturing support services for women's clothing winner, Amoy brand fashion, Ali's big fat run, Jingdong's 7 FRESH, traditional stores, big business group Mackay supermarket and Decathlon Singapore store. The company says it is a partner of intelligent plant transformation project in 2015, which enables the company to improve its 4 intelligent production and support the whole category of private volume customization business.


Red beans and Internet of things enterprises cooperation


In April 4th, the red beans announced that the company signed a strategic cooperation framework agreement with the perception Group Limited. The two sides decided to establish a strategic partnership to promote the application of the Internet of things and other technologies in the apparel retail enterprises. The perception group can provide intelligent Internet of things solutions for the production, storage and sale of red beans. The two sides plan to cooperate in smart stores, smart warehousing and intelligent manufacturing model factories. In terms of smart stores, through the Internet of things program, we can collate and analyze the data of effective entry passenger flow, portraits of customers, hot areas and so on. In terms of smart warehousing, the perception group provides an IOT solution for intelligent inventory management, intelligent fire protection, smart security, environmental monitoring, electricity safety and other systems in the warehouse; in the intelligent manufacturing sample factory, sensors and RFID are used to collect information and complete the real-time processing of orders, procurement, production and design information in the intelligent factory. Red beans said that the signing of the framework agreement, the company intends to rely on third party technology to enhance the consumer experience, do not involve in the new industry, do not change the main business direction.


Men's clothing enterprise competition upgrade


In the past two years, the performance of men's wear listed companies can be said to be uneven, and each has its own advantages. But in general, the performance of men's wear enterprises has shown a continuous improvement since last year, and the trend of recovery and improvement has gradually strengthened. The men's clothing economy is becoming a new industry hotspot.


According to the relevant data, the Chinese men's wear market will maintain a steady growth of 13.1% in the 2016~2020 year. By 2020, the retail market of men's wear market will reach 979 billion 300 million yuan. Observing and focusing on some recent capital operation and brand strategy dynamics of local men's wear listed companies, we can easily see the development trend of the industry.


Specifically, YOUNGOR has cut down investment business and adjusted its internal development strategy to refocus on the main garment industry; Tmall's GXG brand has been established at the Hong Kong Stock Exchange; the joint venture between YOUNGOR and international brands has further expanded and enriched the enterprise product line; Hai Lan's home has continued to layout the international market to speed up the internationalization process of the brand; CABBEEN has spent 100 million yuan to buy Shishi industrial property for future expansion purposes, and the company has launched the cooperation in the field of intelligent manufacturing. All these signs fully show that in the process of development, adjustment and recovery, local men's clothing enterprises are constantly looking for new directions while creating their own main businesses and markets, creating new space, and seeking new breakthroughs in performance growth.


To be sure, under the background of the increasingly strong capital of garment industry, although the development focus and development direction of all men's clothing enterprises are different and different, the profit pattern is different. But in the process of continuous integration and differentiation, the gap between men's clothing enterprises is gradually widening, and the effect of leading enterprises is more and more obvious. Some men's clothing enterprises have made clearer directions on the road of adjustment and transformation, and their performance scale and profitability have been improved to varying degrees. But at the same time, the competition of men's clothing enterprises is also gradually upgrading. In addition to listed men's clothing enterprises, more local men's wear brands are fostering their own development mode and enhancing endogenous growth capability. Men's clothing enterprises will continue to develop their way of restructuring, setting up models and consolidating their advantages, and the industry pattern will also further split up.