High-End Baby Business Is Also Hard To Do? The Korean National Brand Aka State Lost 93 Million Last Year.

The local high-end women's clothing brand -- the Limited by Share Ltd (hereinafter referred to as "long Zi stock"), today (March 20th) released the company's overseas holding subsidiary company akaban 2019 annual performance report, during the reporting period, akaban achieved operating income of 795 million yuan, the total loss of 40 million 539 thousand and 800 yuan, the net profit attributable to shareholders of listed companies was 93 million 741 thousand and 900 yuan.

As of the end of the reporting period, Akabon's total assets amounted to 1 billion 132 million yuan, belonging to 814 million yuan of shareholders' equity of listed companies.

The first textile net reporter read the announcement to understand that in 2014, Longzi shares invested about 310 million yuan, becoming the largest shareholder of Akiba, a famous Korean children's clothing listed company with a history of about 40 years. Akabon, in Korean, means "children's room". Its products cover 0-4 years old children's clothing, supplies, skin care products, toys and other children's growing products, and owns a series of private brands such as Agabang, ETTOI, Putto, Designskin, Dear Baby and so on.

Akabon has built excellent brand recognition and the largest circulation network in South Korea. For many years, the Korean Enterprise Efficiency Association's "first well-known brand" and "the first children's clothing enterprise" and other honors have won popularity among the Korean people and are known as the national brands of Korean baby products. Akbar products are positioned as high-end clothing and supplies for mothers and children. It has accumulated rich experience in the management of store development in the field of high-end women's clothing, and has accumulated about 300000 loyal high-end female customers and 513 high-quality offline sales terminal channels, which will contribute to the promotion and sale of akbang brand in China.

As a Korean national brand, the company's baby business aka is the main body in South Korea. After the acquisition, the company has set up a Chinese operation team and has made a strong improvement in its operation in China and a broad market layout. As of the first half of 2019, aka state Korea has improved its sales revenue and business performance by adjusting the shutdowns and business models of inefficient shops. China has completed the establishment of a design team composed of Korean and Chinese designers, with a domestic product team composed of young people, to meet the domestic consumers' fashionable and comfortable products for babies and girls online and offline. The next step is to continue to increase the opening speed of sales terminals and extend the layout of terminals from Beijing, Hangzhou and Chengdu to key cities in China.

Xu Yi, a securities analyst at the League of nations, said earlier that Akabon had lost about 40000000 in the first half of 2014 after the acquisition of the shares. In 2015, the company basically completed the adjustment of Akabon's management system and its original sales and organizational structure in the country, reversing its past losses. In 2015, the state of cash in the state of CAC was 6 billion 600 million yuan (equivalent to RMB 3564). Ten thousand yuan) acquired the Designskin100% stake. Designskin was founded in 2007. The star product is a multi-functional children's home mat made of environmentally-friendly materials. It has dozens of awards including the IF design award, which has authoritative and influential design awards for baby products in Korea and Asia. At that time, the market share in Korea was 10%.

In 2017, Akabon's sales revenue and performance in Korea were relatively stable, and domestic sales revenue increased by 40% because of the increase of channels. Due to the acceleration of domestic channel laying, the cost of store opening has increased, and the overall performance has declined. At present, the sales and marketing channels of the Korean market have matured, and the future development will turn to the domestic market. The diversified operation mode of "Online + offline", "self run + agent" and other diversified business models will expand the industry and seize the bonus that the domestic second child releases.

After the acquisition, the group did not rush to introduce Akabon to China, but first stabilized its competitive position and advantage in the Korean local market. In 2015, the company basically completed the adjustment of Akabon's management system and its original sales and organizational structure in the country, reversing its past losses, and then began to fight in the domestic market. In October 2015, akakon and Tmall carried out strategic cooperation, opening up the online layout of akakon, aka Tmall flagship store, ettoi Tmall flagship store, aka bang Taobao store opened one after another. In 2016, front-line and second tier cities will be built in real stores. Meanwhile, personalized sales and low cost drainage will be promoted through the net red effect, which has made a good start.

According to the financial report, relying on the sales channels of the existing women's clothing, the customer groups of young mothers and the good reputation established by the industry, as of the end of the first half of 2019, there were 892 sales terminals on the aka line, including 845 in South Korea and 47 in the country (including 2 domestic online channels). The lower sales terminals are mainly located in shopping malls and shopping centers in three important regions of Beijing, Jiangsu, Zhejiang and Sichuan.

Xu Yi believes that although the current domestic channels are few, but in the future, the plan is 3. During the year, the layout of shopping centers and department stores in China has been extensively distributed. Meanwhile, according to the different attributes of their products, the scale and influence of the products in department stores, shopping centers, mother and child stores, parent child institutions and other channels have been made. Online channels will also experience products under the synchronized lines, offline experience, online word of mouth, and jointly build brand image, and the rapid expansion of future channels will bring costs. Faster growth, while the new store also needs a period of climbing, which will bring pressure on performance growth in the short term. But in the medium to long term, the rapid expansion will help the company open the baby market and occupy the market place in the growing competition pattern.

In the Chinese children's clothing market, the high-end children's clothing is mainly dominated by international brands, and domestic brands are mainly concentrated in the high-end. Due to the short time of the development of the domestic independent brands, the overall market concentration is low and the competition is more intense. However, it is also necessary to see that the akakbang brand's baby business has a wide range of brand awareness in the country of origin. And customer base, which has a certain market and influence in East Asia, is still in the stage of brand promotion in China, and the industry has less influence.

CITIC Securities researcher Xue Yuan said frankly, the baby industry gradually entered the mature stage, supporting the growth of the scale, competition and channel dividends have weakened. The business model has reached a watershed, and industry development has shifted from "scale expansion" to "structural optimization and service overlay". It is difficult to maintain stable customer relationship only by making goods. The competition of baby platform in the future is essentially the competition of user resources and traffic. Who can control the core and stable user resources can control the sustainability of high profits and profits, enhance the gross profit through the "service + commodity" mode, enhance the core profitability of enterprises, and bring the stability and sustainability of profits.

Public information shows that since its inception, Langer has been committed to the design, production and sales of brand women's clothing, and has been focusing on high-end high-end women's clothing market. Now it has formed a pan fashion ecosystem with fashionable women's clothing, green baby, medical beauty and multi industry interconnection.

According to the financial report, in the year of 2019, the operating income of the group reached 3 billion 15 million yuan, up 13.27% compared with the same period last year, operating profit reached 167 million yuan, down 30.30% compared with the same period last year; net profit attributable to shareholders of listed companies fell 68.23% to 66 million 858 thousand and 200 yuan, and basic earnings per share declined 69.13% to 0.1624 yuan year-on-year.

From the main business point of view, the business income of women's clothing business during the reporting period was 1 billion 512 million yuan, up 9.60% from the same period last year, and the income of medical beauty business was 625 million yuan, an increase of 30.47% over the same period last year.

The decline in net profit is mainly the Korean L& P Cosmetic Co held by the company during the reporting period. The Ltd.9.1% equity interest was estimated to be 118 million yuan after the assessment was made.

As of the end of the reporting period, the total assets of the group were 5 billion 355 million yuan, down 26.45% from the beginning of the period, mainly due to the sale of the controlling shareholder of Beijing's Right Bank Asia Asset Management Limited, which is no longer included in the merger.