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    In 2020, Lilang'S Channel Transformation Effect Will Gradually Show, With More Than 800 Shopping Malls

    2021/3/18 21:47:00 0

    LilangChina LilangLilang Performance

    On March 18, China LiLang Co., Ltd. (hereinafter referred to as "LiLang") released the annual performance announcement of 2020. According to the data, the annual turnover of LiLang in 2020 is 3.07 billion yuan (deducting 390 million yuan of inventory resale goods of repurchase distributors in 2020, and the net sales revenue is 2.68 billion yuan); the operating profit is RMB 651 million yuan; the net profit is RMB 557 million yuan; the gross profit rate is 6.5% year-on-year, and the overall development momentum of the group is strong.

    The year 2020 will be a difficult year for all walks of life. Under the influence of the epidemic situation, LiLang adopted flexible countermeasures, increased efforts to promote new retail business, gave full play to online and offline complementary advantages, tried to maintain channel health, resolutely cancelled some spring and summer orders and strictly controlled autumn and winter orders. Therefore, the total retail sales of lilanz products resumed growth in the second half of the year. At the same time, benefited from the national cold wave in the fourth quarter, the total retail sales increased by 10% - 15%.

       New retail development: online retail sales increased by more than 1.2 times year on year

    In 2020, LiLang strengthened its daily sales operation and maintained a high growth rate every month. Through the Ali creation Festival and tmall BML & BW, LiLang strengthened the drainage of e-commerce. During the double-11 period, LiLang broke through 201 million yuan of water, and drove the online retail sales to increase by more than 1.2 times on a year-on-year basis.

    In addition to traditional e-commerce, LiLang also actively develops social e-commerce and vertical e-commerce, uses social platform to promote brand, expand sales crowd, increase sales efficiency of single store and effectively control inventory.

       Channel Transformation: over 800 shopping malls

    Channel transformation has been the focus of LiLang in recent years. In the past year, LiLang has shifted its offline channels from distribution to direct marketing and from wholesale to retail, actively improving the management of sales channels. The data shows that the inventory management of LiLang less is more light business series has been improved and the inventory balance has also decreased since the second half of 2020. On the other hand, LiLang closed a number of stores with unsatisfactory operating efficiency and selected high-quality shopping malls to open stores in order to improve the store efficiency. As a permanent channel for inventory clearing, LiLang has been promoting distributors to open stores in outlets stores since the second half of 2020.

    After a series of optimization actions, LiLang sales stores decreased by 54 to 2761, including 807 shopping malls, accounting for 29% of the total stores and 32% of the total area.

       Brand promotion: a brand new spokesperson of official propaganda

    In 2020, Han Han, the latest spokesperson of LiLang official brand, attracted the attention of the market and consumers, and was rated as "the top 15 of word-of-mouth cases in 2020" by the advertising portal app, an authoritative media in the advertising industry.

    Since the concept of "new business" was put forward in early 2020, LiLang has increased its brand investment and carried out the cross-border co branding of fashion and art to the end. It has launched products with more topic degree and brand degree and won the market with China Daily, popular Guoman "under one person", Japanese cartoon "Doraemon", American graffiti artist Basquet and new sharp artist Nick approval.

       In 2021, 100-150 stores will be added, and the total retail sales target will increase by more than 10%

    LiLang pointed out that in 2021, we will continue to promote the transformation and upgrading of channels, develop e-commerce and wechat businesses, and expand brand promotion to achieve sustainable long-term growth.

    On the one hand, in 2021, LiLang will focus on optimizing the existing store network, further improving the retail network management, and continue to promote the opening of high-quality shopping malls in the first and second tier cities. On the other hand, it will continue to increase the number of outlets in outlets as a permanent channel for inventory sales. It is reported that in 2021, LiLang's offline stores aim to increase by 100-150, and the total retail sales target will increase by more than 10%.

    At the same time, LiLang will continue to open online stores in the wechat mall to help physical stores attract new customers, form complementary physical stores, share goods from cloud warehouses, and realize online and offline material communication.

    At the beginning of 2021, the main series of lilanz seventh generation flagship store and light business less is more flagship store have been officially opened to the public. Among them, lilanz's 7-generation flagship image store is inspired by mountain peaks, and its overall design uses geometric cone-shaped shape with neat and clear lines, with a total area of nearly 3000 square meters. The second generation super flagship store of less is more interprets the concept of "open, mobile, avant-garde and pioneer" through the design of immersive device with a strong sense of science and technology, with a total area of 1400 square meters. This year, the image of the main series of stores will be gradually extended to existing stores, and 500 stores are planned to be completed by the end of the year.

    In addition to the store upgrade, LiLang Cultural Innovation Park, a new headquarters in Fujian Province, was officially opened in February 2021. The first phase of the new logistics park is expected to start operation in the second half of 2021, so as to cooperate with the group to improve the efficiency of inventory management.

    The new year has begun, the epidemic situation has been effectively controlled, and the economy is recovering rapidly. In addition, the central government has proposed to build a new pattern of dual circulation to encourage residents to expand consumption and drive economic growth. It is believed that LiLang will further consolidate its leading position in China's men's wear industry and achieve sustainable long-term growth with its solid brand foundation and the combination of multiple measures to improve performance.

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