From The Latest Semi Annual Report: Interpreting The Innovation Strategy Of Big Brands

This is an era with both value and strength. Male independent aesthetic consciousness is rising, especially with the Internet aborigines becoming the main consumer group after 90 years. As a major brand in the men's clothing industry for more than 30 years, the pace of transformation has also been faster and faster, and the image of "tidal wave" has become increasingly prominent.

In August 13th, Li Lang released the 2019 interim results announcement, which pointed out that in the 6 months ended June 30th, the income of the company rose 19.1% to RMB 1 billion 540 million yuan, the net profit increased 14% to RMB 389 million yuan, the total number of retail outlets increased by 83, and the total number of retail stores in the country reached 2753.

Obviously, the steady growth of data in the performance announcement is a corroboration of the success of the brand. Besides, what information has been released in the announcement?

　　 Performance highlights: double-digit growth in revenue and net profit

According to the 2019 interim results announcement, in the first half of the year, the income of the company increased 19.1% to RMB 1 billion 540 million yuan, of which the income of the "LILANZ" brand increased by 20.3%, and the net profit increased 14% to RMB 389 million yuan.

Income is the most important source of income by product line, which accounts for 53.6% of LILANZ revenue and 22.5% of sales.

According to regional income, East China and central and southern China account for 58.7% of the total revenue and two regions with larger income contributions. The growth in North China is the most significant, and the sales growth in the period is 40%. In East China, the sales growth in the period of LESS IS MORE is 26.8%.

China's chairman and executive director, Mr Wang Dong Xing, said the increase in the first half of the year mainly reflected the further improvement in sales effectiveness of the retail store and continued to operate for more than 18 months. On the other hand, the new shops opened last year, which also led to income growth.

　　 Product development: footwear products total orders increased by more than 50%

In 2001, Li Lang put forward the brand subdivision of "business casual" men's clothing, and served the elite of the workplace with "LILANZ" products. Today, the company has upgraded this series of products to "business fashion" style. In 2016, Li Lang locked in the new workplace youth and launched the LESS IS MORE products, locating in "urban commuter". The two major product lines are two pronged, providing business fashion suits and developing fashion apparel in the pursuit of fashion and personality.

In the two major product lines, the "LILANZ" main line for consumers of 25-45 years old is very popular in the three or four line market, and gradually increases the layout in the first and second tier markets. The LESS IS MORE series focuses on 20-30 year old consumers with diversified, fashionable and fashionable product design. Since the launch of this series of products, it has been well received by the majority of young consumers.

In 2019, the launch of the new shoe production line enabled the company to achieve the full coverage of men's wear, men's wear, shoes and socks, accessories... It has created a three-dimensional whole category matrix.

Zhang Xingfa, assistant to President of Li Lang (China) Co., Ltd., said that the development of the footwear products from the shoe sole technology to the shoe design is all original research and development, and some advanced concepts of clothing design and manufacture will also be applied, which will promote the overall level of footwear products. Although the footwear market is relatively late, it has a higher starting point. This kind of merchandise is mainly matched with clothing sales, and it also plays a greater role in improving the style of clothing in the store.

Semi annual report shows that in the first half of this year, the sales of the products continued to grow. Last year, the total orders increased by more than 50% in 2019, and sales increased by more than 3 in the first half of this year.

　　 Original design: 2019, the original proportion of sales products is expected to reach 70%.

In the era of consumption upgrading, the consumption concept is constantly changing, and original design is increasingly pursued. The younger generation of consumers expresses themselves through the original design of the product, and tends to find a brand that knows more about themselves. Since its opening and transformation, Lee has been fully aware of the originality of the product.

At present, the R & D department brings together about 400 high-quality design elites at home and abroad, and comprehensively improves the core competitiveness of the products from product design, material development and production arrangements.

In fact, the independent design of garment enterprises is the most important part besides the style, craft and edition. To this end, Li Lang set up its own fabric research institute, covering the fabric color distribution system and fabric printing machine, grading the plate making centers, processing centers and factories, and persisting in original homemade from the source of yarn, fabric, printing and dyeing, and patterns.

Set up R & D team, absorb the design elite at home and abroad, and set up own fabric research institute. Through the personalized design of products and the strategy of upgrading quality, Li Lang not only achieved a qualitative leap in product original design, but also opened up differences with competitors.

Semi annual report pointed out that in 2019 sales products, the original ratio is expected to reach 70% of the target. Among them, the proportion of unique fabrics developed by Li Lang has been further raised to nearly 50%.

　　 Store layout: a total of 2753 stores, shopping malls accounted for nearly 4 of the shops.

Since its establishment in 1987, Li Lang has built a marketing network covering 32 provinces and autonomous regions and more than 80 retail branches nationwide. As of June 30, 2019, there were 2753 stores in the country, with a total shop area of about 394 thousand and 100, an increase of 3.7% over the end of last year. Among them, LESS IS MORE independent specialized shop has reached 255.

From the regional perspective, in the first half of this year, the central and southern region increased by 32 stores, far ahead of the rest of the world. In North China and East China, the net sales increased by 19 and 18 stores in second and third respectively.

At the moment when the 90's group is entering the ranks of the main force of consumption, shopping mall has become the trend consumer channel, and also the commanding point of cultivating brand influence and radiation.

In line with the development trend of the industry, Li Lang began to turn to shopping mall to open up shop and seize the commanding heights of the mainstream consumer groups. As of the end of the reporting period, the number of shops in Lai Lang shopping mall has increased to over 680, accounting for nearly 25% of the total number of stores.

In 2018, Li Lang put forward plans to open about 200 stores in 2019. Data show that in the first half of the year, there were 83 new stores, including 43 new stores of LESS IS MORE. According to the report, in the second half of the year, Li Lang still maintained the goal of increasing about 200 stores throughout the year.

　　 Renovation of stores: the seventh generation of stores in the second half of the year

In recent years, in order to cater for the aesthetic of modern consumers and create a comfortable shopping experience in stores, the store image has become the most important part of offline store operation. Therefore, through offline experience to make customers produce instantaneous viscosity and interact with fans, it is the focus of the channel construction.

Taking LESS IS MORE series as an example, in order to get close to young people's preferences, this series creates a warm and simple shopping experience for consumers by creating a store's visual ecosystem, with a simple and avant-garde image and a clear and concise style.

Wang Liangxing, President of the lon Lang group, has indicated that the layout of the offline channels should be close to the life circle of male consumers, improve the static display of store displays and communicate with consumers, and at the same time, we should strengthen the value-added services of information dissemination to male customers about fashion information, clothing collocation, dressing techniques and so on.

In order to further enhance the "LILANZ" brand image and consumer shopping experience, Le Lang plans to launch the seventh generation store decoration image in the second half of the year.

The seventh generation of decoration will be provided by Li Lang to store decoration materials, and plans to be extended to existing stores in phases next year, to ensure that all shop images remain the same and to display a more fashionable and brighter brand image.

　　 New retail business: Sales of electricity suppliers year-on-year record growth

It can be said that since the opening and transformation, Li Lang has made a comprehensive transformation from product, design, channel, scene creation and so on. Among them, in the transformation of the channel, Li Lang has made the reshaping of diversity. In addition to fighting for shopping centers, new retail is also one of the highlights of the development of the company.

Wang Liangxing, President of the Li Lang group, pointed out: "online channels are more likely to grasp consumers' habits through data, that is, using new technology to make user portrait more precise, to understand demand more clearly, and then to make docking and transformation of production."

At present, the "LILANZ" main line and LESS IS MORE series have set up online stores on major online sales platforms, and provide customer relationship management services through WeChat platform.

During the reporting period, Mr. Lee planned different activities to promote two series of e-commerce business, such as the introduction of online special edition products, recruitment net red promotional products, advertising on major portals and so on. The series of promotion led to an impressive increase in sales volume in the first half of the year. For example, the special version of the special launch of the 6.18 e-commerce shopping day has achieved satisfactory results.

It is understood that in the second half of the year, Li will also launch more special version of the electronic commerce for specific product categories, and increase the style of online store products to increase the passenger flow of electronic business.

"It is not simple to read the prosperous section." In the men's clothing industry, he has passed 32 spring and autumn years, and produced a beautiful transcript on the road of brand younger.

WIN DATA research released 2019 half year shopping center's attention to clothing brand list TOP50, LILANZ (LESS IS MORE) ranked fourth. Among them, 9 of the leisure / fashion men's wear brands entered the list.

Semi annual report pointed out that in the second half of the year, the "LILANZ" main line will continue to focus on the three or four line market; the LESS IS MORE series plans to intensify development in the capital markets of Zhengzhou, Xi'an, Hefei, Changsha, Guiyang and Nanchang; opening up stores in the core consumer market of Zhejiang, Wenzhou, Suzhou, Nanjing, Nanjing and niche market, and gradually promoting brand development; and the construction and promotion of the focus and the market focus on other markets.