Who Will Win The Competition Of Underwear Brand In China?

Underwear is just needed. It seems that women can not get away from the topic of underwear. In recent years, China's women's underwear industry has been well developed, but compared with the per capita consumption level of foreign women's underwear, there is still room for growth in China's women's underwear industry. At the same time, the competition structure of Chinese women's underwear industry is very loose, and the low market concentration also provides a great imagination for the future development of Chinese women's underwear industry.

Recently, the underwear enterprise admired Limited by Share Ltd (hereinafter referred to as "love shares") submitted a prospectus to the SFC to raise funds of not more than 760 million yuan for marketing network construction, information system construction and investment and construction of production bases in Vietnam.

Aimer is the high-end brand underwear of AI group. Born in Beijing, China in 1993, it mainly produces underwear products. At present, the company adopts a multi brand and multi category operation mode. Its brand includes love, love, love, beauty, love, children, Mu Lan, and Lanka, and its products are extended to warm clothing, household clothes, socks, household accessories and so on.

The brand name has always been relatively high. As a leader in the women's underwear industry, however, the gap with its competitors has not been opened yet. Because of the popularity of the sea and the brand of foreign underwear, the competition in the domestic underwear market is becoming more and more intense.

In recent years, brand performance has been disappointing. Data show that in 2017, -2019's operating income was 2 billion 947 million yuan, 3 billion 119 million yuan and 3 billion 318 million yuan respectively. In 2018 and 2019, the growth rate was 5.83% and 6.39% respectively. Net profit from the parent company was 552 million yuan, 449 million yuan and 335 million yuan respectively, and net profit in 2018 and 2019 decreased by 18.66% and 25.45% respectively.

The competition pressure of admiration is increasing, because its competitors not only come from the old local enterprises such as Ann Li Fang, Hui Jie share, and urban beauty, but also include underwear, such as Wacoal, Ttiumph, L Brands and so on, which have emerged from the Internet in recent years.

For the decline of net profit, Adam shares said that the decline in net profit was mainly due to the gradual upgrading and upgrading of its brand since 2018. The brand image and terminal image have been upgraded comprehensively. Meanwhile, the company's investment in brand promotion, channel construction, product development and other aspects has increased, so the company's period cost level has shown an upward trend in the reporting period, making the company's net clear. The profit level dropped by stages.

In addition, the new crown epidemic has had a more serious impact on the first quarter results of Adam shares. In order to slow down the impact of the epidemic on offline retail sales, the focus of 2020's work has been placed on the online channel.

According to the prospectus issued by Adam shares, the company is facing the problem of excessive inventory. Its book value in 2019 has reached 1 billion 130 million yuan, accounting for 32.05% of the company's total assets at the end of the year, accounting for 55.57% of the final liquid assets.