360 Degree Semi Annual Report: Revenue Thirty-Two Point Three Seven Hundreds Of Millions Of Stores Are Still Getting Better.

In August 20th, 360 degrees (demand area: 60-200 square meters, 98 shopping centers and 1000 planned for this year) announced the mid term results in 2019.

The report shows that as at June 30, 2019, the revenue reached 360%. Thirty-two point three seven Billion yuan, an increase year on year 7.3% The holder shall account for the overflow. Three point six seven Billion yuan, an increase year on year 9.7% 。 At the same time, the basic earnings per share are RMB. Seventeen point eight The company announces an interim dividend per share. Zero point zero seven two Yuan and special dividends Zero point zero one Yuan, equivalent to the total payout ratio. 46.2% 。

If we do not want to be abandoned by the times, we must catch up with the needs of the times. At present, 20% of the mainstream consumers occupy 70% of the total retail consumption of the country. The consumers have higher requirements for the function, price and appearance of the products. Therefore, 360 degrees indicate that in order to meet the needs of the new generation of consumers, it is decided to start the brand remolding plan.

In fact, from the various cross-border activities in the first half of this year, the initial "change" has achieved some success. In April 15, 2019, a series of basketball shoes with the theme of "traditional Chinese ceramic culture" was launched in the year of 31st. It attracted much attention in the industry. In June 24th, the joint series was built up to 40th anniversary days. The joint series was warmly received by the market. The series received more than 6 thousands of people before the sale, and the sale of the limited shoe box set on the same day was sold out in one second.

In the brand remolding strategy, 360 degree clearly stated that in the next three years, we should operate 1000 basketball courts in a second tier city, close to the most extensive mass sports market through "basketball into the community", and expect that the main force of consumption will shift from the middle and low end market to a second tier city.

In addition, the international application of the international line technology to the domestic supply chain has been accelerated. The domestic supply chain and production system will generate more high value and high functional products under the impetus of the international line technology platform. In the design, we will find the needs of the current consumers and help upgrade the brand image.

The trend of children's wear is obvious.

In the first half, children's clothing business revenue Three point eight eight Billion yuan, an increase year on year 6.6% Accounting for 12% of the group's revenue for the same period, the growth trend is obvious. Meanwhile, the children's football market is being focused on.

In June this year, the 31st degree child announced that it will become the strategic partner of Hengda football school, and the sports equipment sponsor of Hengda football school elite team, will provide professional sports equipment for Hengda football school, and deepen cooperation in product development, competition cooperation and other fields. At the same time, the 31st degree will further cooperate with Beijing Zhong He Guoan training football.

31 core brand, 31 degree international and e-commerce business account for the proportion of revenue. 86.8% Electricity supplier sales revenue increased year-on-year 28.5% to Four point two Billion yuan, accounting for the first half of the total revenue 13.1% 。 The 31st degree indicates that the business will continue to contribute and will continue to grow.

Continue to "shut shop tide" in the first half of the year to close 129

In the first half of 2019, the total number of stores in the country was 5444, compared with 5539 at the end of last year, and 95 stores closed. From the point of view of the region, there are 92 stores in the East, 37 in the south, and 129 in total, while the newly opened 34 stores are concentrated in the north.

It is no longer a new thing to close the store. In recent years, the market has closed more than 2500 stores. It is difficult for sports brands to seek transformation in the trend. Compared with the same brand, the 360 degree has fallen behind obviously.

Marketing "small profits" performance growth into slow lane

Large scale sports events marketing, new R & D centers and popular hot race competitions have been trying to diversify in the past few years in order to seize the main consumers. However, a large number of closed stores and sluggish achievements have produced results.

According to the results of the report, in the first half of 2019, there were 1837 sales outlets nationwide providing 360 degree children's clothing products, of which 536 were located in authorized retail outlets of the core brand of 331 degrees, and sold 331 core brand products and 360 degree children's clothing products.

The brand of children's clothing is clearly one of the main components of its performance growth. However, it is also clear in the earnings report that the average wholesale price of clothing products increased in the first half of this year. 8.8% With the increase of children's clothing business costs, the bonus period of children's wear market growth has disappeared. If the main market depends on children's wear market, once the market saturation and other factors will directly affect the growth of performance.

Advertising marketing is a serious disaster area. Only in 2018, 31st degree advertising was spent. Five point five seven Billion yuan, accounting for total revenue. 10.7% But it only increases turnover. Zero point three The effect of marketing is almost negligible. In the first half of this year, the proportion of advertising and publicity expenses decreased all the time, from the same period last year. 8.7% lower 8.5% 。

However 8.5% Compared to revenue, the ratio is still a huge output, and how much revenue it can bring to the 31st degree will still have to wait for the time to harvest. In addition, the proportion of staff spending and R & D investment in revenue declined. Employee cost from 8.5% lower 7.8% The proportion of R & D cost is from 3.6% lower 3.1% 。

epilogue

In 2019, it was listed on the Hong Kong stock market at 10th anniversary in the 31st degree, and the job performance has obviously recovered. However, the results of Lining's first announcement recently showed that Lining's operating income in the first half of the year increased by 33% to RMB. Sixty-two point five five Billion yuan, net profit surged 196% to Seven point nine five Billion yuan, the gap is high.

At present, few brands can get through the "10" mark. Now, 31st degree is still facing many difficulties, such as low performance, brand upgrading and difficulties. It is in the setback of folding wings or Jedi counterattack that it looks at how to go out of its own way to rebuild the brand.