China'S Top 100 Fashion Retailer List: Anta Ranked Third

Referring to the classification of National Bureau of statistics and drawing lessons from international experience and market realities, the Chinese chain store association divides fashion retailers into clothing, footwear, footwear, home textiles, jewelry, jewelry, cosmetics and skin care products, and conducts a statistical analysis of the financial reports and corporate reporting data of listed companies. According to the statistics of the business revenue of all enterprises in 2018, the list of top 100 Chinese fashion retailers ranked in 2018. The end of the statistical analysis ended in 2018. The top 100 fashion retailers in China (hereinafter referred to as the 2018 top 100 fashion retailers) were released in October 11, 2019.

I. Basic Situation and current situation

2018 fashion retail top 100 enterprises, including clothing, footwear, footwear, home textiles, 74, gold, silver and jewellery enterprises 15, skin care cosmetics companies 11. 2018 the total revenue of top 100 retailers is 651 billion 567 million yuan. Among them, clothing, footwear, footwear, home textiles, top 100 enterprises total revenue of 372 billion 827 million yuan, accounting for 27% of the total retail sales of footwear and clothing and textile enterprises above the national limit in 2018; the total revenue of gold and silver jewelry and top 100 enterprises was 197 billion 429 million yuan, accounting for 72% of the total retail sales of gold and silver jewelry, and the total revenue of top 100 enterprises with skin care and cosmetics category was 81 billion 311 million yuan, accounting for 31% of the total retail sales of cosmetics enterprises above the national scale.

In the list, there are only 20 enterprises with more than ten billion yuan in 2018, of which 11 are clothing, shoes, shoes and home textiles, 6 are gold and silver jewelry, and 3 are skin care and beauty care. Compared with the international comparison, the scale and market concentration of the three major fashion retailing brands in China are greatly improved. In 2018, China's clothing market CR5 (the market share of the top five enterprises in the industry) was only 6.9%, far below Japan (25.7%) and the United States (15.8%); in 2018, the market share of the top ten enterprises in the jewelry industry was only 18.8%, while in the United States and Japan, the market CR10 exceeded 20%; in the cosmetics market of China, CR10 was only 41%, compared with CR10 in South Korea and 62% in the US and Japan.

A comprehensive analysis shows that in the three main categories of the top 100 fashion retailers, the pattern of gold, silver, jewelry and other leading enterprises is relatively stable, but the market concentration still has much room for improvement. The concentration of other two industries is not high, and the size of enterprises needs to be improved.

The chain of fashion retailing has a high speed and maturity. In the top 100 list, there are five enterprises with over 9000 stores in 2018. They are Shanghai Jahwa (cosmetics franchised store, about 1.3), Anta (demand area: 100-200 square meters, 328 shopping centers, 300 planned this year), 12188 (BELLE), BELLE (shoes and clothing 11120), Semir (9905) and La Natsu Bell (9269).

The survey found that the high quality development pattern of garment industry is taking shape; the differentiation of shoes and shoes enterprises is serious and uneven, and the number of stores is widening; the sales volume of jewelry industry is declining and new opportunities coexist; the growth of skin care and beauty products consumption is "riding a dust" and outperforming the growth of total retail sales of consumer goods in the whole society.

Two, main features and trends

In the whole work process of the top 100 fashion retailers in 2018, we summarized and judged the four major trends of China's fashion retailers through collection, collation, interviews, surveys and comprehensive analysis.

1. multi brand strategy is a common choice to gain market share and sales scale, but challenges are enormous.

According to our analysis of the top 100 list of 2018 fashion retailers, 70% of the top 100 fashion companies have multi brand matrix. Of the 20 fashion retailing companies operating in 2018, only three enterprises are single brands, and five fashion retailers with over 9000 stores have multiple brands.

According to statistics, the top 100 fashion retailers have 4 brands on average, including 5 brands of clothing shoes and home textiles, and 2 brands of gold and silver jewelry enterprises. The average beauty care companies have 4 brands. The average sales volume of a single brand fashion retailer in 2018 is higher than that with 2-5 brands. The sales scale of 6 or more brands under the fashion retailing enterprise is obviously higher than that of a single brand enterprise.

The leading enterprises, represented by BELLE international, not only own many shoe brands, but also increase the market share through the acquisition and merger involving multiple garment brands and multi category products. Represented by Anta and Semir costumes, through the acquisition of international brand rich brand matrix, the layout of multi brand, multi category strategic development. At the same time, in order to cooperate with the strategy of multi brand extension and expand the business in a diversified way of brand and category combination, Jiangnan Buyi group also announced the launch of the designer brand collection store "LASUMINSOLA", covering clothing, shoes, accessories, daily necessities and so on.

We extracted six listed companies with 100 billion revenue and more than 5 sub brands in the top 100 list. We found that the average contribution rate of the main brands to total revenue and number of stores was over 80% through earnings analysis. Although Anta group did not disclose its brand sales in its 2018 earnings report, Anta and FILA accounted for 96% of all brand stores in the group, and disclosed in Anta's group's 2019 fiscal year interim report that Anta's main brand revenue accounted for 51.2% of its total revenue, while FILA's brand revenue contribution rate was 44.1%. Therefore, we conclude that there are 28 laws for the distribution of business income of multi brand matrix Enterprises: the 80% income of enterprises comes from a single or a few major brands.

2. direct camp + affiliate mode simultaneously, deep ploughing three or four lines and other markets.

2018 fashion retail top 100 enterprises, all kinds of enterprises are making efforts in the three or four line market.

Zhou Dafu, who topped the list, will expand market penetration as one of the strategic priorities for the next three to five years. In particular, she will use the franchise mode to develop three or four tier cities and county level urban markets.

The United States has adopted the parallel development strategy of "100 cities and 1000 stores" and shopping centers to develop the county level market; La Natsu Bell company has accelerated the channel transformation and adjustment so as to increase the profit of single store, and form the layout structure of both direct operation, joint operation and franchise. The home textile enterprises, Luo Lai Sheng and Fu Anna, have adopted the mode of combining direct operation and franchisee, while strengthening the advantages of the first and second tier market channels, and expanding the number of high quality franchisees in the three or four tier cities.

3. force the shopping center layout, pay attention to the outlets of the outlets, fashion retailers accelerate the development of all channels under the layout line.

Semir group will take the shopping center as the core point of the layout of the next 3~5 years, and will surpass the traditional street store proportion. As the main channel of the group, it will shrink the department stores and strengthen the layout, benchmarking and key department stores. Semir also pays attention to the low and fast growth characteristics of orter, and its strong strength. And the original Street store will be built into flagship store, concept store and experiential shop. Through shopping centers, benchmarking quality department stores, OLE and street stores to create a full line mode of development.

Before the Taiping bird group, the "four wheel drive" mode of street stores, department stores, shopping centers and electronic business operators was upgraded to "new four-wheel solid drive" channel layout: optimizing street stores, strengthening shopping centers, upgrading department stores and emphasizing the development of outlets. In 2018, the company's retail sales exceeded 300 million yuan, an increase of 70% over the same period last year.

The family of Hai Lan insists on the principle of "golden section and diamond shop". In channel development, it continues to increase the strength of shopping centers, seize the high-quality shop resources of core shopping centers and shopping centers, especially the shopping centers with benchmark stores, adjust and optimize the layout of the marketing network of street stores, and maintain the coverage rate of stores in the 234 line cities.

4. online and offline development

The online retail sales of clothing and footwear products reached 25.9% in 2018, and the growth rate of online retail sales of apparel products was 22%, and the growth rate continued to rise. In the jewelry industry, the proportion of jewelry online sales has remained between 4% and 5% over the past ten years. Jewelry industry experts predict that online jewellery sales will reach 10% in 2019, but it will not exceed that figure. Compared with other categories, high prices and special emotional expression (such as weddings, anniversaries, birthdays, etc.) make consumers more inclined to wear experience in physical stores. The particularity of jewelry category determines the importance of their physical store experience. In 2018, China's cosmetics business channel sales accounted for 27.4%, nearly five years of compound growth rate reached 56.3%, rapid development.