Positive And Negative Pacific Bird: Brand "Leader", What Has Been Reported In The First Half Of The Financial Year?

In the evening of August 19th, Taiping bird (demand area: 200-500 square meters, 87 shopping centers and 600 planned for this year) disclosed the results announcement for the first half of 2019, and both revenue and net profit declined.

During the period, the company realized revenue of 3 billion 120 million yuan, down 1.54 percentage points compared to the same period, and net profit attributable to the shareholders of the superior company was 132 million yuan, down 33.06% compared with the same period last year. This is also the first time since the first quarter of 2019, the second consecutive quarters of revenue and net profit fell.

　　 Breakthroughs have been made in products, channels and marketing.

In the first half of the year, the Pacific bird continued to focus on consumer demand, driven by data, and continued to work at product, marketing and channel ends.

In addition to continuing to strengthen the development capability and new capabilities of the band, we also focus on building cross border joint product research and development capabilities, and leveraging cross-border brands to enhance the freshness and topic of commodity design. During the reporting period, the R & D expenses of 52 million 795 thousand and 900 yuan increased by 3.93 percentage points over the same period last year.

In terms of brand building, Taiping bird once again appeared in New York fashion week to host the 10th anniversary celebration of the "lochting LEDIN" brand and the "BE ANOTHER ONE" show. With the "era magazine TIME" as the prototype, it appeared on the Chinese brand day. It continued to focus on the "National tide" fashion, showing the charm of the Chinese design to the world.

The "four wheel drive" mode of the former Street store, department store, shopping center and electricity supplier will be upgraded to "new four-wheel three dimensional drive" channel layout, and the development of OLE must be emphasized. During the period, the "ole plan" will be launched with Shanghai Bailian Group and Shanshan Group. According to the earnings information, the retail size of the Pacific bird in the half year has exceeded 170 million yuan, accounting for 2.69% from 3.52% in 2018. As of June 30, 2019, the number of stores under Taiping bird line was 4427, a decrease of 167 compared with the same period last year.

　　 High inventory, join in dragging behind

It is worth affirming that as the first batch of domestic Taiping birds to emphasize fashion and start from products, channels and marketing, the early stage effect is really good.

Vigorously advancing into the shopping mall, signing strategic cooperation with the high-quality real estate enterprises, including India and Longhu, pioneered the bird bird Music Festival, and exported bird culture in the pan entertainment era. Courageous "going out" became one of the first domestic brands to appear in New York fashion week China Japan.

Leveraging the crossover, joint with super IP including Phoenix Bicycle, Godzilla, Disney, Coca-Cola and so on, and launching a series of young and high quality promotional linkages including Natalie Westling, Prada, Dior and Tiffany, and Ruth Bell such as Saint Laurent and Burberry commercials, focusing on youth culture and launching the brand promotion of "Taiping youth" and so on, all have been a good card on Taiping bird's transformation road. Today, it is still regarded as a model of domestic brand transformation.

　　 Behind the collapse of traditional image is the further thinking of sustainable development.

In this connection, the retail mode plays a vital role. Based on the characteristics of its independent operation in business decisions, commodity management, personnel management, financial management and so on, it is inevitable that in the daily operation process, the implementation policy is not in place, the management capability is difficult to meet the requirements, and even the situation of replacing other brands of agents is changed.

Obviously, the Pacific bird is also facing the "hijacking". From the latest report of the first half of the year, we can see that the franchisee is still the core component of the Taiping bird store. The number of stores is 2830, accounting for 63.9% of the total number of stores, but its revenue has dropped by 20.93% over the same period last year.

The reason can be imagined: first, restricted by the order mode, the latest products are hard to reach the franchised stores directly, lack of fashion elements nowadays; moreover, the store image and display of goods will be restricted by joining, and the rate can not change with the brand at the same time. In this way, consumers will produce false appearances which are inconsistent with the actual situation, and directly lead to the damage of brand reputation.

Looking at the most troublesome inventory problem in clothing industry, although it has decreased by 1 billion 836 million yuan at the end of 2018, it is 1 billion 694 million yuan, but still accounts for 31.5% of total assets, which is higher than the average level of garment industry. This also explains why Taiping bird will upgrade the layout of the "four wheel drive" channel to "new four-wheel drive" and speed up the layout of the ole channel.

　　 Initially, the fashion of "pride" is also a double-edged sword.

On the positive side, Taiping bird has been revealed in the early stage. It has promoted a wave of new consumption through a series of new products, new images and new movements, and the brand voice has been released. After all, with the development of social economy and information technology, especially the rapid emergence and dissemination of new social networking, electronic payment, intelligent equipment and other new things, the emphasis and individuality expression of the emotional experience of young consumers are constantly changing.

As Cheng Weixiong, general manager of textile and clothing brand management experts and Shanghai Liang Qi Brand Management Co., Ltd., talked about the matter, said: "after 90, 95 and 00, the labels are uneasy. The commonality is hard to grasp and the brand loyalty is not high."

At the same time, as time goes on, the consumption groups of Taiping goal age group are also changing. This requires that Taiping bird can observe the clothing consumption preferences of target consumer groups in real time, and achieve timely and effective contact through product design and marketing methods. "We need to strengthen the research of young new users and speed up the pace of docking with young people. It is necessary to increase the differentiation, individuation and fashion trend of products. In order to achieve quick response, we need to make more money, reduce the proportion of orders, and increase the proportion of fast supply. Cheng Weixiong said.

　　 Written in the end

When garment industrialization collide with the demand of individuation, the contradiction is increasing day by day. How to balance the retail mode, channel layout, inventory management and other aspects on the basis of meeting individual needs is still worth considering for every brand.