Jiangnan Buyi 2019 Financial Year Performance, Innovation And High Diversity Design Brand Combination Tested

In August 27th, Jiangnan cloth Clothing Co., Ltd. (hereinafter referred to as "Jiangnan Buyi", stock code: 3306) disclosed the 2019 fiscal year results announcement as of June 2019 thirty, and achieved double-digit growth in revenue and net profit.

During the period, the total revenue reached 3 billion 358 million yuan, up 17.3% compared with the same period last year. Net profit was 485 million yuan, an increase of 18.1% over the same period last year. Its explanation is that the increase of revenue is mainly based on the expansion of retail network, the rapid development of e-commerce business and new business.

　　 Diversified design brand portfolio results are not obvious, new brands start shop

As a local original designer brand, Jiangnan cloth has accelerated the layout of its market segments since last year, and launched a new brand on average in 3 months. Since April 2018, SAMO has been launched, including fashion brand REVERB, fashion environmental brand REVERB, designer brand collection store LA SU MIN SO LA, and High-Street style A PERSONAL NOTE 73.

At present, Jiangnan cloth has its own designer brand "JNBY", "CROQUIS", "less", "JNBY by JNBY", "Pomme de Terre (Peng MA)", home series "JNBY HOME" and brand new men's wear brand, fashionable environmental protection brand, designer brand collection shop brand, less, and 730 styles of brand.

The rapid layout and multi brand design also put forward higher requirements for the operation capacity of Jiangnan cloth. Obviously, Jiangnan cloth is still running in. During the period, the main brand JNBY still contributed more than half of its revenue. Single brand revenue accounted for 56% of total revenue, totaling 1 billion 879 million yuan, more than the other 9 brands.

At the same time, Jiangnan cloth business earnings report has also changed its business segments in the past male (including CROQUIS (sketch)), women (including JNBY and less), children's wear and teenage dress (including JNBY by JNBY and POMME DE TERRE (Peng MA)) and other (including JNBYHOME) business to mature brands (including JNBY), growth brands (including the accelerated (sketches), the "73" and the "new" brands), and the emerging brands (including the ghosts and horses (including horses, bums, bums, bums, bums, etc.). It is enough to highlight the dependence of Jiangnan cloth on the main brand JNBY.

On the other hand, POMME DE TERRE (Peng MA), a new brand queue, and JNBY HOME are all suffering from negative growth of stores. POMME DE TERRE (Peng MA) reduced by 17 to 59, while JNBY HOME also closed down only 4 stores under the line, and directly put some of the products on the online channel.

　　 A net increase of 187 stores a year, an obvious increase in online sales

During the period, the total number of retail outlets in the south of the Yangtze River increased from 1831 in fiscal 2018 to 2018 in the current fiscal year, with a net increase of 187, with an average of 15.5 outlets per month. Among them, the number of JNBY by JNBY stores increased considerably, with a net increase of 53 to 514 in the period, followed by the main brand JNBY, with 52 stores in 884 stores during the period, while the rest included less, CROQUIS (sketch), REVERB, SAMO, LASU MIN SOLA net increase 36, 30, 23, 10 and 4 respectively.

In addition to its 161 sales outlets abroad, its current retail network has covered all provinces, autonomous regions and municipalities in mainland China and 17 other countries and regions in the world.

In terms of online channels, benefiting from the increase of fashionable and sensitive consumer groups in e-commerce platforms, the new retail sales in the Jiangnan cloth line channel accounted for over 20% of its total retail sales, and the proportion of online channel revenue increased from 9.3% in fiscal year 2018 to 11.7% in fiscal 2019, which increased by more than 40%, driving the growth of overall income in the south of the Yangtze River.

At the same time, it also means that the gross profit margin will be affected. Gross margin fell by 2.5 percentage points, from 63.7% in fiscal year 2018 to 61.2% in fiscal 2019.

　　 Fans economy is still strong, contributing revenue accounted for over 70%

During the period, Jiangnan Buyi had a membership (about 3 million 600 thousand), an increase of 100 thousand over the same period last year. Among them, the number of WeChat accounts is more than 31 thousand, an increase of 47.62% over the same period last year. According to the financial information, during the period, the proportion of retail sales contributed by the members of the southern part of the Yangtze River accounted for about 70% of the total retail sales, reaching 2 billion 400 million yuan.

Jiangnan Buyi said that in the future, we will further enhance the design innovation and R & D capabilities, optimize the brand portfolio of designers, and constantly train new fans in the south of the Yangtze River, adhere to the core of the fans economy, encourage operational innovation, and continuously create and provide value-added services for the fans and the construction of contacts, so as to enhance the fans' experience.