La Natsu Bell Pledge "Burst Warehouse"! La Natsu Bell Understands The Status Quo And The Trend Of Garment Industry.

A few days ago, La Natsu Bell, the first domestic A+H share listed clothing company, announced that the proportion of the controlling shareholder Xing Xing Xing's equity pledge was "close to 100%, and it has constituted a breach of contract". According to the announcement, xingjiaxing holds about 142 million shares of the company directly, accounting for 25.91% of the total share capital of the company, accounting for 42.62% of the total A share of the company. From November 2017 to June this year, Xing Jiaxing has mortgaged the shares held to Haitong Securities for the 6 time.

Why does the national dress "La Natsu Bell" go to the road of explosion? This paper sorts out the current situation of La Natsu Bell's management and the trend analysis of the future garment industry, with a view to bring a certain reference to the readers.

First, La Natsu Bell has many brands but unclear positioning.

In the clothing industry, La Natsu Bell was once a representative of civilian fashion. La Natsu Bell is a multi brand and all channel fashion group positioned in the mass consumer market. Since 2011, the company has adhered to the development strategy of multi brand differentiation, and has deepened the consumption demand of the domestic fashion market by accelerating brand development and deepening the layout of channels. Before 2011, the company only had La Chapelle, Puella, Candie 's three women's clothing brands, and the number of stores was 1841.

In 2012, the company put forward the development strategy of "multi brand and direct operation" based on the market competition and its own business base and core competencies (brand and channel influence, supply chain organization capability, etc.), and launched 7m and La Babit Er two women's wear brands, and launched three POTE men's and JACK WALK, MARC ECK, and so on.

Since 2015, the company has basically ceased its new brand, mainly through investment cooperation to develop new brands, so as to form a separate location and independent development with the existing brands of the company. In the past three years, it has owned or launched Siastella, OTR, GARTINE and other brands through holding companies, and has gradually supported or participated in the development of Maira Luisa, Tanni and other brands through joint ventures and equity participation.

But for La Natsu Bell, the big shop mode under low Ping efficiency is a burden. La Natsu Bell has a lot of similar stores in the country, but when he enters the shop, he looks at it repeatedly. In addition, most of the stores are multi brand shops, men's clothing and women's clothing, but there is not much difference in consumers' experience, but different brands are different labels, but the products tend to be homogeneous. For consumers, the biggest feeling is that the sub brand positioning is not clear, which has distracted La Natsu Bell's audience approval.

Source: La Natsu Bell, China Business Research Institute

Two, the first loss occurred in 2018. Net profit continued to decline in 2019.

From the operating point of view, the company's operating losses for the first time in 2018, and net profit decreased substantially compared to the same period last year. In 2018, La Natsu Bell realized a business income of 10 billion 176 million yuan, a decrease of 269 million yuan compared with the 10 billion 446 million yuan in the same period last year, down 2.58% from the same period last year, and a net loss of -1.60 billion attributable to shareholders of listed companies, representing a decrease of 658 million yuan compared with the same period last year, down 132% from the same period last year.

Puella business income decreased by 11.94% and 13.35%, respectively, compared with the same period last year. The sales growth of 309 million yuan and 284 million yuan were reduced compared with that of the previous year, while the sales growth of women's brand Candie's and children's wear and men's wear brands still can't make up for the decline of Lachapelle and Puella. The sales of the direct selling stores in the second half of 2018 were lower than expected in the second half of the year, and the income of three and fourth quarter income decreased by 12.90% and 3.74% respectively. (3) the revenue of department stores continued to decline. In 2018, the revenue of the department store counters was 4 billion 893 million yuan, which decreased by 3 yuan compared with the same period last year. The proportion of the total income decreased from 3 to 1. The company's operating income declined over the same period last year, mainly in the following factors: (1) the main women's clothing brand LaChapelle,

According to La Natsu Bell's announcement, it is expected that the net profit of the company will decline again in the first half of 2019, and net profit will be 440 million yuan -5.4 billion yuan, down 286.6%-329% compared with the same period last year.

Source: company announcement, China Industrial Research Institute collation

Three, 2019 in the first half of the year, the number of stores decreased by more than 2400, and the number of closed stores exceeded 13.

In the number of stores, by the end of 2017, the number of stores reached 9448, of which 1518 were closed, 2059 new, and 541 year-round. At the end of 2018, the number of direct cabinets was 9269, representing a net decrease of 179 over the beginning of the year. By the end of June 2019, the net operating outlets under the domestic line reduced more than 2400 more than the end of 2018. According to this calculation, the number of stores closed by La Natsu Bell exceeds 13 in the first half of this year.

Source: China Commercial Industry Research Institute

Four, sales of major products have dropped significantly.

In terms of production and sales volume, La Natsu Bell has no production business, and its production volume is the quantity of purchases, and the production volume has been increased or reduced over the previous year. 2018 La Natsu Bell's total purchases (excluding accessories) decreased by 26.3% compared with the previous year, and the total inventory (excluding accessories) increased by 2.3% at the end of 2018. Sales of the four major products declined to varying degrees, with sales of tops, bottoms and accessories dropped by 20.58%, 19.48% and 16.45%, respectively.

Source: company announcement, China Industrial Research Institute collation

Five, the company's profitability has dropped sharply.

From the perspective of profitability, La Natsu Bell's gross margin and operating profit margin dropped to negative in 2018. According to the gross profit margin of the sub products, bottoms, bottoms, skirts and accessories have declined to varying degrees. Among them, the gross profit margin of the top selling products, which accounted for the largest share of sales, fell 2.55 percentage points compared to the same period. In addition, the smaller proportion of the accessories sold in the company was mainly due to the decrease in the sale price leading to a 20.84% decrease in gross margin.

Source: China Commercial Industry Research Institute

Six, 2019 clothing industry development forecast

With the increase of Chinese income, clothing consumption is increasing. According to the National Bureau of statistics, from 2012-2017 years, retail sales of clothing in China have maintained a steady growth trend. In 2017, the total retail sales of clothing reached 1 trillion and 450 billion yuan, an increase of 477 billion 900 million yuan compared to 977 billion 800 million yuan in 2012. In 2018, the total retail sales of clothing were 1 trillion and 370 billion yuan. In 2019, the state issued a number of tax reduction and consumption reduction incentives to stimulate consumption. It is estimated that the total retail sales of clothing will increase slightly in 2019, and it is expected to reach 1 trillion and 380 billion yuan.

Source: National Bureau of statistics, China Industrial Research Institute

The total sales volume of China's clothing market in 2018 reached 2 trillion and 77 billion yuan, up 7.8% from the same period last year, the highest growth rate since 2014. Influenced by the upgrading of consumption and the steady demand of local consumers after raising their living standards and incomes, the Chinese clothing market reached the highest value in 2017 and continued to rise in 2018. But economic instability has brought great challenges to the development of the clothing market. The year-on-year growth rate of China's clothing market is expected to drop to 3.5% in 2019 and sales volume of 2 trillion and 150 billion yuan.

Data sources: Euromonitor Inter national, China Business Research Institute collate

The clothing industry is one of the traditional pillar industries in China and plays an important role in the national economy. In recent years, clothing consumption has shifted from the consumption demand of a single shelter and cold comfort to the consumption trend of fashion, culture, brand and image. The industry is facing the pressure of transformation. In the future, China's garment industry will develop towards the digitalization of production mode, the intellectualization of design methods and the interactive development of purchasing mode DIY.

For more information, please refer to the "2019-2024 year Research Report on the market prospect and investment opportunities of China's garment industry" issued by the China Industrial and Commercial Research Institute. At the same time, the China Industrial and commercial research institute also provides solutions such as industrial big data, industrial planning and planning, Industrial Park planning and industrial investment promotion.