Old Belt Is Small Feasible: Semir Support New Brand Sen Sen Clothing Industry Growth Bottlenecks

A guarantee announcement made Semir's new brand emerge.

In August 14th, the Zhejiang Semir apparel Limited by Share Ltd (hereinafter referred to as Semir) announced that in order to protect the business expansion of the wholly owned subsidiary of Sanger (Shanghai) Trading Co., Ltd. (hereinafter referred to as "szi") and its subsidiaries, and to support the development of the new brand business, the company intends to provide financial guarantee to Sen and its subsidiaries. Sanger's business range includes clothing, footwear, knitwear, stationery and other businesses.

In recent years, Semir has been trying to diversify its performance. From expanding children's clothing category, increasing cosmetic business and creating seed shops, we try to maintain steady growth in the clothing industry. However, in the industry view, now Semir continues to expand the clothing brand new strategy behind, the clothing main business growth has already encountered the bottleneck, whether can sen Sen become Semir's achievement another support point, the prospect is not clear.

　　 Guarantee new brand

In order to protect the development of new brand business and support the development of new brand businesses, Semir, a large brand of Semir, announced in August 14th that it would provide a financing guarantee of not more than 1 million 650 thousand US dollars to its wholly owned subsidiary, Sam Zi and its subsidiaries, providing joint and several liability guarantee for its financing to domestic and foreign commercial banks (including letter of credit issuing, bank guarantee, import and export bills, etc.), and the relevant documents signed by the legal representative of the Licensing companies or its authorized representative.

In the announcement, Semir said that the subsidiary of the security company was a wholly owned subsidiary of Semir. Its business scope includes clothing sales, shoes and hats, knitwear, leather products, feather and down products, bags and other business sales, engaged in import and export of goods and technologies. As of the announcement date, the company did not carry out its business.

Sky eye showed that Sen was founded in July 2019, 18, so far, no trademark, patent, website filing and other information have been displayed. Semir's official website has not yet shown the relevant brand business and positioning.

Economist Song Qinghui said that Semir's business is numerous, giving the outside world a feeling of disunity. It is hard to speculate on the internal impact of Semir on Semir.

In fact, the emergence of Sanger is not accidental. In recent years, Semir has been seeking diversified development. Prior to this, Semir acquired the French high-end children's clothing brand Kidiliz, quickening the layout of children's clothing business, and announced in July 2019 that it will expand children's clothing category. In June 2019, Semir announced the addition of its "cosmetic sales" business on the basis of its original business scope. In the same year in July, Semir said in its research activities that the seed shop plan should be launched during the transition period of brand positioning, and the sense of life scene should be strengthened, so as to explore the multi category exploration from the aspects of store design, goods and interaction.

In response to the Guarantee Corporation's main business and brand positioning, the Beijing Commercial Daily reporter interviewed Semir's responsible person. As of press release, no reply has been received.

Growth bottlenecks

Although Semir's performance has resumed growth in the past three years, the establishment of the new Brand Company is not only related to its guarantee, but also to the fluctuation of Semir's performance.

The annual report shows that in 2016, Semir achieved operating income of 10 billion 667 million yuan, an increase of 12.83% over the previous year, a net profit of 1 billion 402 million yuan, an increase of 4.45% over the same period last year, a slight decline in Semir's performance in 2017, and an operating income of 12 billion 26 million yuan, but net profit fell 19.38% to 1 billion 130 million yuan. In 2018, its operating income was 15 billion 719 million yuan, an increase of 30.71% over the previous year, with a net profit of 1 billion 682 million yuan, an increase of 48.75% over the same period.

It is noteworthy that Semir's main business performance is also unstable. Semir children's clothing business in 2017 revenue of 6 billion 321 million yuan, an increase of 26.4% over the same period, gross margin 41.52%, down 1.35% compared to the same period. Revenue in 2018 was 8 billion 824 million yuan, an increase of 39.6% over the same period last year, and the gross profit margin was 42.23%, an increase of 0.71% over the same period last year.

Casual wear business in 2017, the revenue of casual wear business was 5 billion 634 million yuan, an increase of 0.6% over the same period last year, and the gross margin was 29.31%, down 5.49% from the same period last year. Revenue in 2018 was 6 billion 791 million yuan, an increase of 20.54% over the same period last year, and gross margin reached 36.98%, an increase of 7.67% compared with the same period last year.

The proportion of Semir's main business has also changed. Annual report data show that Semir children's clothing accounted for 52.56% of total revenue in 2017, and accounted for 56.14% of total business income in 2018. The sales of casual wear, which was the main business, decreased year by year, accounting for 46.85% of total revenue in 2017 and 43.21% in 2018.

Judging from the composition of performance, Semir's children's wear brand has been supporting the performance development. However, the industry believes that Semir's children's clothing dominated by Barbara has fallen into a bottleneck of serious homogenization and low quality of design. Compared with the existing children's clothing products in the market, there is no obvious difference in design and quality, resulting in a low recognition rate of children's clothing products in Semir. At present, the major clothing brands are not dominant in the situation of children's clothing.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd. believes that the emergence of Sen Zi is because Semir's main brand continues to decline, and Barbara has already been the main force in its performance. However, Barbara has also developed bottlenecks since then, so Semir is eager to have new business responsibilities.

Sam's prospect geometry

Qiu Guang, chairman of Semir, and the WenZhou Railway Station in March 23rd, said that Semir had achieved a breakthrough of 80 billion yuan in 2023 through five years of efforts in 2023. To achieve the sales target of 80 billion yuan, it is bound to transform the development pattern and change the development of Semir's clothing and accessories.

Data show that in 2016, the apparel industry's revenue was 10 billion 602 million yuan, and the apparel industry's revenue in 2017 was 11 billion 956 million yuan, up 12.77% over the same period last year. In 2018, Semir's clothing industry's operating income was 15 billion 616 million yuan, up 30.62% over the same period last year. Although Semir has maintained a certain growth in performance, it still has a great distance from the target of 80 billion yuan, and how to develop Semir into a small target in the next three years.

According to the insiders, the guarantee of Sen Sen is one of Semir's breakthroughs in its performance and rapid growth. It may stimulate growth with other strategies. Beijing Business Daily reporter found that in the range of sengzhi's business, including the import and export business of goods and technology, this industry is regarded as an important measure to increase internationalization and layout overseas markets.

However, for Semir, the new brand is not the best choice for its diversified development. Semir's official website shows that Semir has already included 12 brands, including the main leisure brand Semir, the main children's wear brand balbala, the school uniform brand Hey Junior, the high-end men's wear brand GenioLaMode, and the experiential creative town dream many.

Cheng Weixiong said that in the process of diversification and multi brand, the problems that Semir specializes in brand has not been fundamentally solved. Instead, investing in brands and categories that are not professional and not good for them will have adverse effects on performance in the long run.

Song Qinghui also believes that Semir's performance has been unstable in recent years, and Sam Zi may not have a beneficial impact on Semir, because Semir has 12 brands, and Sen will undoubtedly consume some of Semir's resources, and how the future development needs to be further observed. Author: Lan Zhaohui Li Meng