The Analysis Shows That The New Brand Of Jiangnan Buyi Needs Cold Market Education.

Emerging brands are hardly the mainstay of Jiangnan cloth.

On the evening of March 21st, Jiangnan Buyi released the interim report of 2019/20 fiscal year. According to the financial report, the total income of Jiangnan cloth was 2 billion 136 million yuan during the period, an increase of 5.3% over the same period last year. It is worth noting that its mature brand JNBY accounts for 57% of the total revenue, while the emerging brand NOTE 73 is the lowest, accounting for only 0.1%.

The increase in revenue is mainly due to the upgrading of the group's retail network and the continuous rise in online channel revenue, Jiangnan Buyi group said.

Specifically, compared to the first half of fiscal year 2019, sales increased through online channels in the 2020 half year. At the same time, it benefited from the increase of new products released by the cooperation with the electronic commerce platform and the increase of fashion sensitive consumer groups. The new retail sales in online channels exceeded the total retail sales by 20%, driving the overall revenue growth of the group.

However, the financial report also pointed out that most of the brands were not performing well due to the overall climate factors, so the total number of independent retail entities operated by the group was reduced from 2018 to 1993. From the brand point of view, the first tier of the mature brand JNBY revenue growth in the first half of fiscal year 5.4% to 1 billion 218 million yuan, accounting for 57.1% of total revenue.

The growth brand portfolio of the second tier companies, including the CROQUIS (sketch), JNBY by JNBY and less brand products launched during the 2005-2011 years, continues to grow, accounting for 40.6% of the total revenue.

The third tier emerging brand portfolio, including POMME DE TERRE (Peng MA), JNBYHOME and other 6 brands, has a total income of 49 million 300 thousand yuan, accounting for 2.3% of the total income. Among them, the lowest sales period was NOTE 73 brand, accounting for only 0.1%.

According to public information, NOTE 73 is the abbreviation of "A PERSONAL NOTE 73", which is launched by the southern Apparel Group in 2019. It aims to complement the group's multi brand expansion strategy and diversify its business through diversification of brand and category mix. At present, the brand has not yet achieved its desired expectations.

Some analysts believe that the current situation of NOTE 73 is due to the single brand operation of the group over the years. In addition, the positioning of emerging brands is not clear enough, and the brand competition at the same level is too intense. "The Chinese men's wear market is still in the stage of initiation and development. The group appeal is more practical and practical. The personalized designer brand is far less favored than the foreign men's wear market. In this regard, there is still a need for stronger market education." A clothing retailer said.

In this regard, Jiangnan Buyi group also said that the latter will optimize the diversification of brand portfolio and enhance operational management, for example, by further enhancing the design and R & D capability, adjusting the designer brand portfolio, and constantly training new Jiangnan cloth lovers. At the same time, we will further enhance the retail network at home and abroad with the Internet thinking and technology, and increase our strategic investment in visual image development of shops. At the terminal retail level, the group will also focus on the fans economy, encourage retail business innovation, and continuously create and provide value-added services for the fans to create scenes and contacts to enhance fans' experience.