Listed Companies: Overall Good Performance In The First Three Quarters

For the traditional clothing industry, the third quarter is usually the off-season of demand, and the performance of clothing enterprises will decline compared with the past.

Judging from the overall situation, this year is no exception. According to the data of the National Bureau of statistics, from January to September of 2021, the total retail sales of clothing goods of units above the designated size in China reached 691.8 billion yuan, a year-on-year increase of 22.9%, a decrease of 14.5 percentage points from January to June, and an average increase of 2.7% in two years; Affected by the frequent domestic epidemics and the decrease of residents' going out shopping, the retail sales of clothing goods of units above the quota in August and September decreased by 7.6% and 4.7% respectively year-on-year.

The growth trend of online retail is slightly better than that of the entity, and the pulling effect of online retail on the domestic clothing market continues to show. According to the data of the National Bureau of statistics, from January to September 2021, online retail sales of wearing goods increased by 15.6% year-on-year, 12.3 percentage points higher than that of the same period of last year, 8.5% lower than that of January June, with an average growth of 9.3% in two years.

As for each brand, it can be said that several companies are happy and worried, such as Hailan home and taipingniao, as well as brands such as burbot dragon and metsbawi, which are suffering from the plight of sharp drop in revenue

What is the performance of the major clothing brands in the first three quarters? The retail research center of lianshang.com selected 34 clothing listed companies in Shanghai and Shenzhen stock markets to find out their performance reports in the first three quarters of 2021 (as Hong Kong listed companies generally do not publish the third quarter financial report, and other Hong Kong listed companies such as Li Ning and Anta are not included in the statistical category of the list).

Performance of 21 clothing enterprises in 2019

According to statistics, in the first three quarters of 2021, 34 clothing listed companies achieved revenue of 85.453 billion yuan and net profit of 7.574 billion yuan. Compared with the same period in 2019, the operating income and total profit of the clothing industry decreased by 12.65% and 21.9% respectively.

It can be found that although the domestic epidemic situation is gradually stable, but due to the impact of the epidemic situation in some areas and the repeated epidemic situation, the consumption confidence and Consumption Willingness have declined, and most clothing enterprises have not yet recovered to the level before the epidemic.

Among the 34 clothing listed companies, Hailan home ranked first with a performance of 14.156.1 billion, while only three brands of Hailan home, Youngor and SEMA clothing entered the 10 billion club in the first three quarters.

In addition, among the 34 clothing listed companies, 18 achieved double growth in revenue and net profit. From the data level, more than half of the enterprises have achieved "double increase". However, it is worth noting that due to the serious epidemic situation in the first half of 2020, the performance of many clothing enterprises in the first three quarters of last year has actually "fallen to the bottom", and the rapid "double increase" situation is actually "not small".

Therefore, we also compared the revenue and net profit of 34 enterprises in the first three quarters with the same period in 2019. The results show that there are only 7 enterprises achieving double line growth in 2019 and 2020, respectively: taipingniao, baoxiniao, Jinhong group, langzi, Desu fashion, biyinlefen and georgebey white. Among these seven brands, taipingniao is the only one with a revenue of more than 5 billion yuan.

There is a double increase, and naturally there is a double decrease. According to statistics, among the 34 enterprises, the revenue and net profit of 21 enterprises with "double decline" compared with that in 2019, which also reflects that most clothing enterprises are still climbing slowly and have not recovered to the level before the epidemic.

Although 2020 has been recognized as the darkest time in the industry, the revenue and net profit of souyute, start-up shares and bergolong are still "double down" compared with the performance in 2020. In particular, the year-on-year decrease in revenue and net profit was 81.07% and 131.06% respectively.

"Eighteen martial arts" marketing: investment for growth?

On the whole, in the first three quarters of 2021, although garment enterprises have not recovered to the level before the epidemic, the overall market is gradually warming up. In the past year, after the epidemic situation has gradually stabilized, major clothing brands have also used "18 kinds of martial arts" in the management level in order to achieve performance growth.

Take Hailan home, which ranks first in terms of revenue and performance, as an example. Hailan home, which focuses on offline sales, has continuously upgraded its offline layout in the past three quarters. The most intuitive manifestation is the increase of Direct stores and the closure of franchise and joint stores. As can be seen from the financial report data, as of the end of the third quarter of this year, the number of all brand stores of Hailan home reached 7537, the net opening of direct sales stores of Hailan home brand was 164, and the number of franchise stores and associated stores was 104.

It can be found that most of these new stores choose the shopping centers that the young consumers prefer, rather than the street stores that they used to prefer. The fundamental reason for this change is that the strategic layout of Hailan home is gradually inclined to younger.

Based on this strategy of rejuvenation, Hailan home has made great strides towards a new ecological flow circle in the field of online consumption.

For example, in July this year, the anchor tieshanxiyin wore a dress of Hailan home during the live broadcast, which was called "war robe", which attracted Hailan family to brush gifts for the anchor. Later, tieshanrely's fans began to buy the same jacket, and shot and upload videos to attract more netizens to imitate. As a result, the top was sold hot and once out of stock.

Find the most popular and topical anchor to reward, guide the anchor fans to buy the same product in the store, and trigger the marketing route of the whole network to follow suit, so that Hailan home can convert the Internet traffic into real sales profits.

However, the cost of traffic is not small, to a certain extent, eroded the net profit. According to netizens' rough estimation, Hailan's home has at least 10 million sound waves for Tieshan to rely on in one night. The level 0 entry and level 43 exit are equivalent to about RMB 1 million. And this kind of large-scale marketing behavior is also reflected in the financial report. According to the data, the sales expenses of Hailan home in the first three quarters were 2.223 billion yuan, an increase of 31.51% year-on-year. Among them, the advertising and publicity expenses were 342 million yuan, an increase of 189 million yuan compared with 153 million yuan in the same period of last year, with a growth rate of 123.26%.

Also want to marketing close to the young people represented by generation Z is the Pacific bird. In the past two years, taipingniao has made unremitting efforts on the road of CO branding IP and star endorsement: in March 2021, leting women's wear of taipingbird announced Yu Shuxin as the brand spokesperson; On October 14, 2021, taipingbird announced that Bai Jingting was the brand new spokesperson of taipingbird men's wear brand; On October 19, 2021, Taiping bird announced that Wang Yibo became the global spokesperson of taipingbird brand.

The layout and investment in marketing really helped taipingniao achieve a high growth in performance. According to the performance data of the first three quarters, compared with the same period in 2019 and 2020, the revenue and net profit of taipingbird achieved double growth. But similarly, in the cost side, the Pacific bird also has a high sales cost. In the first three quarters of 2021, the sales expenses of taipingniao reached 2.671 billion yuan, accounting for 36.05% of the total revenue of the first three quarters.

"Fast fashion" in trouble

As the originator of fast fashion, Zara has attracted many domestic women's wear brands into a movement of learning Zara fast fashion. Time has changed. Now from the performance summary list of the first three quarters of 2021, we can see that the former "imitators" have their own sufferings, but they have their own problems.

In the first three quarters of 2021, the revenue of "unusual road" Metersbonwe was 1.933 billion yuan, which was 28.15% lower than that in 2020 and 52.08% lower than that in 2019; Net profit loss was 125 million yuan.

In fact, the performance of Meibang clothing has been in a downturn for a long time. The rapid expansion brings a lot of inventory, the revenue channel also presents a state of disordered competition, and the outdated clothing style has become the synonym of brand. In 2019, the company lost 830 million yuan in net profit attributable to its parent, and 820 million yuan after deducting non net profit; In 2020, the loss will further expand, with a net profit loss of 860 million yuan attributable to the parent and a loss of 870 million yuan after deducting non net profit. Meanwhile, in the past four fiscal years, the number of Meibang clothing stores has decreased by 3217, 61% of the stores were forced to close, and 365 stores were closed again in the first half of 2021.

On March 9, this year, Meibang clothing and its holding subsidiary, Shanghai banggou, intend to sell 100% of the shares of Shanghai Mold Co., Ltd., which are jointly held by the company, with a total amount of RMB 448 million.

Since then, Meibang clothing announced on June 23 that the company intends to sell its 10.10% shares of Shanghai Huarui bank to Shanghai Kaiquan Pump Co., Ltd. by cash transaction. The final transaction price of the transfer is 1.4 yuan / share, and the total transfer price of shares is 422.2 million yuan.

Meibang apparel said that through the asset sale, the company intends to divest the assets with low relevance to the clothing business of the company, realize the resource integration of the company, and focus on the main business, and strengthen the company's competitiveness in clothing design and sales, brand promotion and other related fields.

On the evening of October 19, MetS Bonwe held its first fashion show since the birth of the brand in Shanghai, and officially announced a new brand logo as a new starting point of the brand.

We don't know that brand rejuvenation can really help metsbouray recover from the dead, but at least it has a chance to fight again. La chapel, a fast fashion brand, may not even have a chance.

In the first three quarters of this year, the revenue of La chapel was 365 million yuan, and the loss was 289 million yuan. In fact, since 2018, lashabel has been in a state of loss. By the third quarter of this year, its liabilities had reached 3.86 billion yuan, while the total assets was only 2.889 billion yuan, with the asset liability ratio as high as 134%.

La chapel staged a "great rout", blindly expanding the brand and opening stores became one of the main reasons. The most difficult pressure for clothing industry is inventory pressure. In the early stage, La chapel's accelerated expansion, huge losses, repeated delisting warnings, and the earlier investment and M & A have become a burden, which makes La chapel enter a very difficult period.

On the evening of November 22, * ST lashia (603157. Sh, La Chapel) announced that the express delivery transferred from the people's Court of the new urban area of Urumqi learned that the creditors of the company, Jiaxing Chengxin, mangrove and Zhejiang Zhongda, had submitted bankruptcy application to them. The facts of the lawsuit of the three applicants are the outstanding debts of La charbelle in the litigation cases in 2020. And that means that La chapel faces bankruptcy.

In fact, in the first three quarters of this year, it is not only fast fashion brands that have had a hard time. According to the data, souyute, Hongdou shares, start-up shares and burbao dragon are all "double declining" in their performance. However, this downward trend is only this year. Behind the continuous decline, there are some problems, such as missing development opportunities, sluggish main business, over radical, broken capital chain, repeated changes of ownership, and so on.