How To Rebuild The Brand Of Fujian Men'S Clothing

In the first half of 2020, for Fujian men's wear, it is difficult at home and abroad. Affected by the epidemic situation, the performance of apparel retail industry has dropped sharply; there is a proposition of brand aging, brand reconstruction and enterprise transformation still need to continue. It is even more difficult than the past road, many enterprises have handed in the worst half year report card. However, in the face of adversity, there will always be some strong "industry shoulderers" to turn the tide.

In the new round of competition forced to "accelerate", carbine changed the channel layout and explored the endogenous growth transformation from extensive growth to refined operation and efficiency improvement; LiLang's business performance continued to be better than its peers, and directly called out "to maintain the total retail sales volume of lilanz products in the second half of the year not lower than the median single digit growth target"; for the first time, there was a double decline in revenue and net profit of seven wolves All the way, jiumuwang tried hard to break the situation and basically maintained the "stock competition" situation Under the multiple environment, leading enterprises are increasingly anchored with consumers as the core, and continue to promote adjustment and Reform in product R & D, supply chain, marketing channels, brand promotion, member operation, and digital construction, so as to achieve diversified development with new growth contacts and seek endogenous growth.

Mixed joy and sorrow

From the performance of minpai men's wear in the first half of 2020, the business income has decreased to varying degrees compared with last year, which is a general trend. To some extent, this number may be expected. The retail industry, especially the clothing retail industry, is one of the most seriously impacted industries by the epidemic. According to the data of the National Bureau of statistics, between January and may 2020, 13119 Enterprises above the designated scale in China's garment industry have realized an accumulated operating income of 464.705 billion yuan, a year-on-year decrease of 16.89%; and a total profit of 18.047 billion yuan, a year-on-year decrease of 29.16%. In addition, Nike laid off employees, JeansWest closed 1300 stores, Reeves made a net loss of $364 million in the second quarter, and Zara's parent company lost more than 400 million euros This series of news is also oppressing the nerves of retailers, making more and more people panic. Even more companies survived the cold winter and fell before the dawn of recovery.

But in the half year financial report of Fujian men's wear, it is not pessimistic. Carbine was the first to release the semi annual report. During the period, carbine's income was 479 million yuan, a year-on-year decrease of 14.5%; the profit was 117 million yuan, a year-on-year increase of 6%. The basic profit per share was 17.32 points. With the decline of revenue and the increase of profits, carbine has proved that the more digital the retail enterprises are, the stronger their resilience and anti risk ability are in the epidemic situation.

The profit margin remained stable and the dividend ratio was relatively high. In the mid-term, LiLang paid a dividend of HK $17 per share. During the period, the profit decreased to RMB 0.069 billion. Looking forward to the second half of the year, LiLang said it was confident that its business performance would continue to outperform its peers, and maintain the target that the total retail sales of lilanz products in the second half of the year would not be lower than the growth target of medium units.

Affected by the epidemic situation, jiumuwang achieved 1.122 billion yuan of operating revenue in the first half of the year, a year-on-year decrease of 17.1%; the net profit attributable to shareholders of listed companies was 205 million yuan, a year-on-year decrease of 36.75%.

In contrast, seven wolves and tigers are seriously affected by the epidemic. During the period, qipilang achieved a total operating revenue of 1.354 billion yuan, an operating profit of 16.859 million yuan and a net profit of 24.421 million yuan, respectively, down 12.93%, 88.80% and 80.36% compared with the same period of last year; the income of hudu group decreased by 32.5% to 94.9 million yuan, and the gross profit decreased by 40.0% to 32.2 million yuan, and the loss attributable to equity holders of the company was 67.115 million yuan, an increase of 20% year-on-year.

It is worth mentioning that, in addition to the income of the main business, many enterprises also obtain income through investment and conversion of production. In the first half of the year, the investment income of seven wolf was 15.9247 million yuan, accounting for 76.04% of the total profit; due to the depreciation of inventory and other reasons, the asset impairment provision was 74.7419 million yuan, accounting for - 356.9% of the total profit. As of the end of 2020, the total assets increased by RMB 0.72 billion, accounting for RMB 0.79 billion.

During the epidemic period, in response to the government's call, since February 2020, carbine group began to produce and sell medical gowns and medical masks, and sold personal protective equipment to overseas buyers in different countries. During the period, the income and net income from sales of personal protective equipment by carbine were 383 million yuan and 71.7 million yuan respectively.

Accelerate digital layout

Although the offline earnings suffered heavy losses, but lost the east corner, the harvest. Enterprises including carbine and LiLang have a pleasant online sales channel, and the trend is surprising.

The data shows the most intuitive: in the first half of the year, the income of offline stores of carbine was 57 million yuan, accounting for 11.8% of the total revenue; while the income of online stores reached 243 million yuan, accounting for 50.9% of the total revenue, a significant increase compared with the same period of last year. This is undoubtedly due to the development and promotion of brand online business. Although the epidemic has hindered the overall development, it has a certain degree of positive impact on e-commerce business. Through the layout and operation of online channels, carbin mainly focuses on e-commerce stores such as tmall and Jingdong, supplemented by online micro malls and small programs, to develop online business through multiple channels. During the epidemic period, carbin can also operate stably and promote the good development of its brand.

In addition, as of June 30, the sold out rates of carbine's 2019 series products and 2020 spring and summer series products have reached 75.6% and 52.6% respectively. The inventory pressure is not obvious, which is related to the strong power of brand e-commerce business. From the perspective of brand, the revenue of carbine's main brand was 393 million yuan, accounting for 82.1% of the total.

LiLang also actively responded to the business challenges brought by the epidemic. Although the commercial market has gradually resumed business since March, the flow of physical stores needs a long time to recover. In order to reduce the impact of the decline in the flow of people in physical stores on retailers and distributors, LiLang has intensified efforts to promote e-commerce business. By increasing online promotion activities, strengthening e-commerce drainage, and organizing online promotion activities, the online retail sales in the period increased by more than 1.5 times compared with the same period last year. The sales of VIP customers in physical stores through wechat customer relationship management system also increased significantly.

In the face of the "flow restriction" problem brought about by the epidemic, some offline shops could not be opened, and the passenger flow dropped sharply. Seven wolves focused on new channels.

In the view of septenaeus, private traffic has shown its great power during the epidemic period, and "live", "small program" and "micro business" have become important sales channels during the epidemic period, and have been consolidated and strengthened in the post epidemic era. During the period, seven wolves took advantage of the "celebrity effect" of the chairman and CEO to launch the live broadcast of senior executives, and launched the "all staff marketing" activities, which achieved good results. Seven wolf also takes the store as the center, takes the staff as the backbone to carry on the live training, carries on the live broadcast to the store members regularly, and matches the delivery and fitting and other activities, so as to realize the sales without the customers going out.

More and more enterprises have proved that the retail enterprises with higher digital degree have shown their competitiveness under the epidemic situation. When we come back to the heavy damage that the "black swan" has brought to the industry, the answer is ready to come out - "digital" has strategic significance for retail enterprises.

The reporter observed that the closure of physical stores during the epidemic period led to a decline in retail sales, accompanied by the cultivation and development of consumers' online shopping habits, e-commerce ushered in a more favorable trend after the epidemic, significantly accelerating the speed of channel adjustment. Online, in the context of the trend of "decentralization" of traffic and the increasing cost of drainage, diversified channels such as the third-party e-commerce platform, social e-commerce, micro mall, community, live broadcast and other channels have become business contacts for brand clothing to actively seek change. In addition, brand clothing enterprises continue to promote online and offline connectivity by building information and digital systems, so as to achieve two-way integration and two-way empowerment in the fields of brand construction, big data empowerment, consumer operation, inventory sharing, and smart stores.

Deepen channel adjustment

In view of the market situation in the first half of the year, the consideration of enterprises is becoming more and more pragmatic, and store efficiency has become a common concern. During the period, LiLang continued to optimize the physical retail network, closed a number of stores with unsatisfactory operating efficiency, and carefully selected high-quality shopping malls to open stores, so as to improve store sales. During the period, the number of retail stores decreased from 98 to 2717, of which 768 were shopping malls, accounting for 28% of the total number of stores and about 31% of the total area.

Among them, there are 268 independent specialized stores of less is more. In the first half of the year, LiLang announced the plan to replace the consignment mode with direct marketing mode. As of July 1, 2020, 228 existing less is more stores have been converted to direct sales, and the remaining 40 stores will continue to be operated by distributors, and some of them are expected to close when the existing sales contracts are terminated. In LiLang's words, in the long run, replacing sales with direct sales will help less is more strengthen inventory management, market development, brand marketing and retail talent training.

At the same time, LiLang also pointed out in the semi annual report that in the second half of the year, it will be cautious to expand the shop network, and it is expected that the total number of stores by the end of 2020 will be basically the same as that at the end of 2019. In addition to implementing the plan of promoting distributors to open stores in outlets stores in the second half of the year, the group also continues to promote distributors to open more stores in high-quality shopping malls. However, it is expected that some stores with low operating efficiency will close down.

Carbine's set of data is worth noting. During the period, the gross profit rate was 48.6%, an increase of 0.8 percentage points over the same period of last year; the operating profit margin was 35.5%, an increase of 6.8 percentage points over the same period of last year; the net interest rate was 24.4%, an increase of 4.8 percentage points over the same period of last year.

Under the epidemic situation, carbine can stop the loss in time and fight back in time, which is closely related to open source and reduce expenditure. The future of carbine is uncertain. Carbin said that the opening process of new physical stores and other major investment have been shelved, and e-commerce marketing, advertising promotion and logistics expenses have decreased. Data show that the sales and distribution expenses of carbene in the period decreased by 13.8% compared with the same period in 2019.

The increment of carbine's "open source" benefits from the layout of online channels and the mature operation of all channels. It is reported that, in addition to the e-commerce flagship stores of tmall, Jingdong and vipshop, cabin developed online and small programs a year and a half ago. At the same time, the construction of digital middle desk and flexible supply chain have also enabled the online multi-channel and back-end inventory, supply chain and business to realize mutual circulation. When consumers are suffering from being unable to go offline and flocking to online channels, carbine's fast response supply chain and digital platform are able to cope with the rapid increase of online traffic in a short period of time, and realize the stable operation of orders. There is no system downtime, inventory update delay and service lag caused by order explosion And so on. Thanks to this wave of "traffic dividend", as of June 30, the flow pool of carbin's wechat fans and members has increased to 2.7 million.

The dynamic adjustment and optimization of journalists' observation channels has become the norm. On the line, shopping malls are constantly "refreshing", while traditional department stores are becoming increasingly "shopping centers". High quality and mature shopping centers, department stores and OLE stores have become the key resources pursued by brand merchants. In the business sector of brand clothing, the proportion continues to expand, while the traditional street shops and shopping malls are shrinking or growing intensively. On the whole, "closing down the small and opening up the big", closing inefficient stores, creating benchmarking stores, continuously promoting location optimization, store status upgrading, and opening up online and offline will continue to be the direction of channel adjustment. In particular, under the impact of this round of epidemic, the withdrawal of more channel resources and the wait-and-see of some brands provide a valuable "time window" for leading enterprises to carry out channel inventory and optimize the layout.

Facing the proposition of youth

Brand rejuvenation is a common problem faced by almost all clothing brands. How to use products to talk with young consumers and how to create products that really move consumers, men's wear enterprises make great efforts.

With a series of creative products, this year, we will create a series of social hot spots. Seven wolves launched the "retrograde fighter" series to record the brand of the times with the power of design and pay tribute to the retrograde anti epidemic heroes; it also launched the "nature Guardian" series, and jointly launched the animal diversity protection program with public welfare organizations. The product creativity of these key time nodes expresses the brand attitude, reflects the brand temperature and heat, brings sales revenue to seven wolves, but also breaks the fixed brand image and attracts the attention of young customers.

"Product upgrading + cross-border integration" not only improves cultural attributes and fashion, but also enriches the connotation of "younger" products. During the period, seven wolves and Liepin have carried out cross-border co branding cooperation to encourage people to work hard after the epidemic; the "seven wolves x baozhilin" series of CO branded products has demonstrated the charm of "national tide upper body" With the help of cross-border, joint brand and other new tricks, through a series of cooperation to create marketing event topics, seven wolf set off waves of young waves, opened a brand-new imagination space, constantly annotated the spiritual connotation of "more than one side of men, consistent character", showed consumers its courage and strength to break through the existing circle, and let the brand in the young market There are more possibilities in performance.

it happens that there is a similar case. In recent years, LiLang has been making efforts to communicate with young people through diversified playing methods. China Daily, DC justice alliance, artist Nick, Guoman under one person, Doraemon by Riman, rare words In the spring and summer of 2020, LiLang will continue to cross-border co branding with Dahe IP, accelerate the brand upgrading, and capture the young market with diversified and cutting-edge fashion. In order to cooperate with the launch of LiLang × China Daily co branded products, LiLang also hired several online celebrities to perform new products on platforms such as shuoyin, xiaohongshu, Weibo, douyu, etc., to attract market attention and enhance brand value.

In 2020, LiLang once again pressed the "accelerating key" of rejuvenation, officially announcing to the outside world that LiLang has opened the "new business" era. For a brand, putting forward a new concept means doing a big job. In LiLang's view, business is always LiLang's brand gene. Changes in the market also mean changes in the audience. LiLang is constantly producing clothes that are more in line with the brand concept of the young people and in line with the current aesthetic.

The reporter observed that in order to comply with the iteration of the mainstream consumer groups of the post-80s and 90s, and the increasingly common "younger" dressing psychology, brand clothing enterprises upgrade or develop younger and fashionable product lines based on the original product style and product line, and continue to enrich product categories. From the fashion brand to the traditional business men's wear, it is the same. In particular, with the enhancement of the national self-confidence of Chinese people, national tide, domestic products and national brands have been paid close attention to and favored. Clothing brands make full use of Chinese elements, organically combine with domestic and foreign trend elements and cross-border elements, constantly create hot and popular IP products, enhance the cultural attributes and fashion degree of products in multiple dimensions, and add new fabrics, new technologies and new technologies, which enrich the connotation of "Youth" and "quality" of clothing.