Plan To Expand 600-800 Stores, Balabalabala Will Be Located In The Third And Fourth Tier Cities

With the recovery of the market, children's wear market is active again. Local leisure clothing giant Samma apparel revealed that it plans to open 600-800 stores in third and fourth tier county-level cities to expand the layout of children's clothing business.

According to the public information, as a brand clothing enterprise with a series of adult leisure clothing and children's clothing as the leading products, the company has two business segments, children's clothing represented by Balabala brand and adult leisure clothing represented by SEMAR brand, which is the leading brand in China's leisure clothing industry.

Since its establishment more than 20 years ago, SEMAR clothing has been the main revenue force of the group. However, adult leisure clothing tends to be popular, which is difficult to surpass. Meanwhile, it is facing the dual competitiveness of domestic and international brands. Compared with the development of mass leisure business, it is difficult to go up to a higher level in terms of flat efficiency and income, resulting in the decline of SEMA clothing in recent years.

In 2002, the development of zhongtianguan's brand was just like that of bala. In 2017, the revenue of children's clothing business of SEMA clothing, mainly Balabala, reached 6.3 billion yuan. In 2019, it will achieve a revenue of 12.663 billion yuan and a net profit of 5.832 billion yuan, accounting for the main driving force of the revenue of SEMA clothing.

At present, there are still many gaps in children's wear market in China. According to the data, China's children's wear market will reach 239.147 billion yuan in 2019, with a compound growth rate of 13.48% from 2014 to 2019. By 2024, China's children's wear market will exceed 400 billion yuan.

Children's wear market potential has emerged, attracting many enterprises to start to increase the size of the field. According to the relevant survey data, there are 523000 enterprises related to children's wear in China. From January to April 2020, the number of children's clothing related enterprises in China will be 24000. In the same period last year, the number of children's clothing related enterprises in China increased by 28000.

Cheng moring Garment Co., Ltd. has been managing Tongma Garment Co., Ltd. for a few years, it has been a challenge for the company's clothing management

At present, balabalabala stores are mainly distributed in first tier cities, while franchise stores are distributed in second tier and third tier cities. For Balabala, the third and fourth tier cities are still a blank market.

Under the gradual saturation of the first and second tier cities, if Balabala wants to achieve transcendental growth, it is bound to speed up the third and fourth tier market layout, which is also the channel layout that SEMA clothing must do to consolidate its leading position in children's wear.

From the rise of fast hand, pinduoduo and other platforms, we can see the influence of consumption in the third and fourth tier cities. In the second half of 2019, e-commerce giants such as Taobao and Jingdong are also laying out sinking markets, which shows the popularity of this emerging market. Apart from the e-commerce level, the sinking market is also an undeveloped area with more potential.

It is reported that in addition to the third and fourth tier cities, Balabala will further integrate online and offline businesses, accelerate the integration of online and offline channels, strengthen the collaborative development of members, cloud stores, communities, live broadcasting and e-commerce platforms. In terms of products, it will also increase improvement, strengthen explosive products, cooperate with excellent IP, produce CO branded series with CATIMINI, and provide high-quality products Designers should cooperate to build flexible supply chain, strengthen the brand, and leave flexibility space for themselves in the epidemic environment.