It is worth noting that men’s clothing and casual wear have a clear recovery trend. Looking at the table above, among the top 10 companies in the first three quarters, there are four casual clothing companies, Souyute, Semir, Smith Barney, and Peacebird, and three men’s clothing companies, Heilan House, Youngor, and Shanshan Co., Ltd. Among them, Souyute surpassed Heilan Home for the first time and ranked on the list with a revenue of 12.577 billion yuan. Semir also ranked among the top three on the list after Heilan Home with revenue of 8.042 billion yuan.
Search on Chief Executive Chao Hai Lan’s Home, but said that the clothing sector has been held back
Souyute is a fashion industry group company covering many fields such as casual clothing brand operation, supply chain management, brand management, Internet finance and foreign investment. The casual clothing brand “Trend Frontline” operated by it takes “affordable fashion” as its brand positioning, focuses on the domestic third and fourth tier markets, and targets young consumers as its consumer group. There are currently nearly 2,000 “Frontline” brand clothing stores across the country.
At the same time, in order to adapt to the development and changes of personalization, differentiation and niche in the clothing market, Souyute has successively launched Paxun, Free·Ruilu, Munster, Bimi, Mimier, Peconi, etc. to the market. Ten trendy clothing brands, including Nogawa, D Chaopin, J21, and Hallelei, serve as sub-brands of “Trend Frontline”.
But in fact, Souyute’s outstanding performance in the first three quarters was not due to the clothing sector. According to the data disclosed in the third quarter, Souyute’s brand apparel business has continued to decline, but its supply chain management business has grown relatively rapidly.
In fact, this series of breakthroughs must start with its transformation. Souyute has shifted from solely operating the design and sales business of “Trend Front” and a series of sub-brands, to engaging in brand apparel operations, supply chain management, brand management, commercial factoring and other businesses. It hopes to build a multi-level, all-round comprehensive service system for the fashion and lifestyle industry and build Souyute into a comprehensive service provider for the fashion and lifestyle industry in China.
Facts have proved that its transformation has achieved remarkable results. Souyute said that the reason why the performance in the first half of 2017 was so eye-catching was mainly due to the rapid business development of the many supply chain management companies established during the period, which provided many merchants and customers with efficient and low-cost centralized procurement, design and R&D, warehousing and distribution, etc. Value-added services.
Among them, the supply chain management company achieved a total revenue of 4.822 billion yuan in the first half of the year, accounting for 73.44% of the company’s total revenue during the reporting period; the net profit was 212 million yuan, accounting for 58.83% of the company’s net profit.
In the first half of the year, Souyute opened two new indirect holding subsidiaries for supply chain management. As an operation platform for supply chain management business, Dongguan Souyu Ying Chain Management Co., Ltd. has invested in and established a number of holding subsidiaries in various textile and garment industry clusters across the country. Currently, it has a total of 9 subordinate supply chain management holding subsidiaries, mainly distributed In Guangdong, Zhejiang, Fujian, Hubei and other regions.
Semir squeezed into the TOP3, children’s clothing and shopping mall channels helped a lot
Semir’s revenue and net profit increased in the first three quarters. Among them, revenue was 8.042 billion yuan, a year-on-year increase of 12.89%; net profit attributable to the parent company was 1.012 billion yuan, a year-on-year increase of 1.01 percentage points.
Among them, children’s clothing and shopping mall channels can be said to be the two carriages behind Semir’s success. As Semir’s No. 1 in the field of children’s clothing, Balabala’s performance has been relatively impressive, and its share of the Chinese children’s clothing market is also far behind the second place. In the e-commerce Double Eleven promotion that just ended this month, Balabala once again ranked firmly in the maternal and infant category.
In the first three quarters, Semir’s children’s clothing business still maintained a relatively rapid growth trend, with revenue growth remaining above 20%. It can also be seen from the 2017 interim report that Semir’s children’s clothing operating revenue was 2.2 billion yuan, a year-on-year increase of 25%, accounting for 51% of the total operating revenue, surpassing adult clothing for the first time.
Compared with the children’s clothing business that started earlier (Balabala was established in 2002), Semir’s expansion in shopping mall channels seems to be late. In the second half of 2016, Semir officially elevated the expansion of shopping mall channels to a strategic level for the company’s development, and established a commercial complex project team to focus on the expansion of shopping mall channels.
It is reported that since the beginning of the year, Semir has opened a Qianping Shopping Center store in Jiangqiao Wanda, and has opened stores in Shanghai Longemont Store, Nantong Impression City Store, Beijing Xinzhongguan Store, Tianjin Aegean Sea Store, Yunnan Qujing Wanda Store, and Chongqing Qijiang Wanda Store. Then go to the Wujiaochang Wanda store that just opened on Double 11. In just one year, Semir has opened more than 160 shopping mall stores, including stores with sales exceeding one million in two days and stores with sales of nearly 700,000 per day.
At the same time, in order to better interact and communicate with 20 million fans, establish a good bond with target consumers. Semir pioneered the “Super Fan Festival” to reach offline consumers in the form of live broadcast interaction, conceptualize marketing activities, and launch innovative live broadcasts.
According to Sun Yulong, deputy director of the Retail Research Center of “Lianship.com”, judging from the financial reports of major apparel listed companies in the Shanghai and Shenzhen stock markets in the first three quarters, the overall revenue and profitability of apparel companies have shown a relatively obvious upward trend. This comes from the fact that apparel companies have faced overall oversupply in recent years and have had to carry out transformation responses and business structure adjustments, which have brought about a cyclical recovery effect; on the other hand, it is also due to the overall slowdown in competition pressure in the apparel industry. After the economic cycle in recent years Adjustment There has been a more obvious reshuffle in the brand apparel industry and wholesale and retail.
But at the same time, we can also see that the improvement in revenue and net profit of the apparel industry also shows relatively obvious personalized characteristics. In addition to men’s clothing brands such as Youngor, Heilan Zhijia, Jiumu Wang, and Hongdou, women’s clothing brands Anzheng and Gelisi, and casual clothing brands. With the exception of Semir and Footwear’s Red Dragonfly, whose overall net profit remains above 10%, the overall net profit of other companies is less than 5%. This also reflects that most clothing brands are still in the stage of insufficient sell-out rates and large inventory price declines. This type of The overall operating pressure of apparel companies is still high, and transformation and upgrading are still urgent.
For apparel companies with relatively high net profits, except for the women’s wear and leisure industries, the net profit improvement of men’s wear and footwear companies does not come from the improvement of the operation of the main apparel business itself. Therefore, in a period when consumption upgrades and economic transformation are synchronized, how apparel companies as a whole can achieve successful upgrades under consumption upgrades is still a big challenge.
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