Fujian Style Clothing Force Online Business New Way Of Playing

In recent years, CABBEEN, Li Lang, seven wolves, nine Mu Wang and so on have issued the 2019 annual report. Several listed Fujian shoe and garment enterprises increased their operating income slightly last year, but net profit has declined. Among them, the annual profit of China's real estate increased by 8.1% over the same period last year.

From the annual report, the listed clothing enterprises not only continue to make efforts to enhance product competitiveness, but also spare no efforts in marketing, continue to expand channels to expand, expand the brand covered consumer groups, online business has become an important part of the sales channels of listed clothing enterprises.

Insiders pointed out that the relevant enterprises should pay attention to the improvement of gross margin, especially to strengthen cost management and marketing management. After all, net profit and cash flow are the king's way to survive.

Low growth in service revenue

With the publication of the annual report of nine shepherd kings, the performance of several major clothing listed companies in Fujian Province in 2019 was basically released.

In April 23rd, nine year old Wang published the annual report of 2019, which achieved 2 billion 857 million yuan in revenue during the reporting period, an increase of 4.53% over the same period, but its net profit attributable to 370 million yuan, a decrease of 30.64% over the same period last year, and a net profit of 202 million yuan, down 44.05% from the same period last year.

In April 18th, seven wolves announced the 2019 financial year's annual earnings report. During the reporting period, the revenue of the seven wolves was 3 billion 623 million yuan, up 3.02% over the same period, and net profit was 347 million yuan, up 0.29% from the same period.

As early as March 11th, Hong Kong listed companies, CABBEEN, released its 2019 annual performance announcement. Last year, CABBEEN group gained 1 billion 275 million yuan, a slight increase of 0.1% over the same period last year, and 158 million yuan in the year, a 24.8% decrease compared to the same period last year. In terms of revenue, online store sales increased in 2018.

In contrast, the performance of Li Lang was outstanding last year. In March 19th, the annual report released by Li Lang showed that the company achieved revenue of 3 billion 658 million yuan, an increase of 15.5% over the same period last year, and realized an annual profit of 812 million yuan, an increase of 8.1% over the same period last year. In 2013 -2016, with the overall decline of the domestic garment industry, the performance of Li Lang fell back in succession until 2017.

Online marketing has become a consensus

Online marketing has now become the consensus of the apparel industry, and live broadcast business is also hot.

In recent years, the company has worked hard on the online business, especially in 2019, through different brand promotion activities to strengthen drainage, drive the growth of e-commerce sales, provide distributors with effective channels to clean up inventory. At present, the first 2020 spring and summer IP joint products have also been launched.

CABBEEN's e-commerce division is now the mainstay of brand business development. CABBEEN said it will invest mainly in the whole channel and business area, develop CRM (Customer Relationship Management) capability, upgrade store experience and invest in brand building, and be cautious in expanding physical stores. In addition, CABBEEN group has invested in upstream garment production business to actively respond to customer needs and start developing its own production facilities to solve the obstacles of supply chain management.

Seven wolves relevant responsible person revealed that at present, 70 of the seven consumers consume 30% and 40% of the consumers after the line, but on the online channel, the number of consumers on the 90s and after 80s is as high as 70%. As for the difference between the consumers under the online and offline channels, the seven wolves responsible person said that the company will not force the online and offline to make the same stock, the same price and the same service. Different channels will have different consumer structure. Accordingly, they can have different brand structure, different product structure and different price and service modes. There are two ways to play.

Continuously improving product quality

Good channel strategy must be guaranteed by good products.

In recent years, the seven wolves have actively developed new brands with their own Incubator + investment and acquisition mode. Up to now, besides the main label "seven wolves" products, the brand of the seven wolves also includes "16N", "Wolf Totem" (Wolf Totem) and the international light luxury brand "Karl Lagerfeld".

In 2019, the proportion of men's trousers in main business was 39.3%, while T-shirt business income increased by 17.24% compared with the same period last year, and the business income of suit business increased by 23.01% over the same period last year. The revenue of 2019 was increased compared with 2018, mainly due to the growth of FUN brand business and the merger of ZIOZIA brand revenue.

The jackets of Le Lang remain the main source of income, accounting for 60.3% of LILANZ revenue and 15.8% of sales. In the past few years, the company has increased the number of footwear products invested in R & D over the past few years, and its sales growth has exceeded 60% in the year. Its share of "LILANZ" income has increased from about 7% in 2018 to over 10%. It is reported that since 2017, Li Lang has deeped its business strategy and launched the "LILANZ" light business series to target young consumers, which has led to its overall sales and increased profits. In addition, the proportion of original products has remained at 70%, and the proportion of unique fabrics developed by the company has increased to nearly 50%.

Pay attention to raising gross margin

For the future, the seven wolves will continue to optimize and adjust their business strategies according to the macro environmental changes, continue to consolidate the existing brand management, cultivate new brands, and increase the intensity of the extension acquisition, and expand the consumption crowd of the company's brand coverage.

CABBEEN said that in the era of rapidly changing customer preferences, garment enterprises should respond quickly to customer needs and shorten delivery time, so that they can stand out among many competitors. To this end, CABBEEN began to develop its own production facilities to solve the obstacles in product supply chain management and reduce costs.

However, the decline of the net profit of Kun Wang was mainly due to the increase of channel expansion and related channel costs during the reporting period. The increase in overseas ZIOZIA and FUN brand losses and the increase in inventory depreciation were also important factors.

The industry pointed out that the current clothing industry products have become more competitive, but because the supply price is difficult to rise, and the cost of raw materials and labor costs continue to rise, which has brought pressure on the improvement of the gross profit margin of garment enterprises. Therefore, the gross profit margin of many enterprises is actually weakened under the condition of a substantial increase in sales volume. In the future, garment enterprises should pay more attention to the improvement of gross margin. In particular, we should strengthen cost management and marketing management to raise the turnover rate of inventory. Net profit and cash flow are the golden rule for enterprises to survive in the normalization of epidemic prevention and control.