Revealing The Hidden Worries Behind The Steady Growth Of Fujian Men'S Men'S Clothing

"Welcome to the summer, the whole house buy one get one free!" this summer, all the major shopping malls and street stores across the country can see signs of price promotions everywhere.

Although the sales staff shouted their voices, the sparsely popular popularity still made people feel a bit desolate.

This month, the industry has been greatly discounted.

The six months' report cards have been released. The figures show that most of the enterprises are growing steadily. However, the description of the inventory in the earnings report is still strongly felt for this half year, smoke-free promotion war.

Hidden worries behind performance

Although in the first half of the year, the performance of men's wear plates was generally stable, and even had a growth rate of 20%, the high storage pressure still existed.

Stable collective performance

As the leader of Fujian men's Menswear, the business men's clothing is undoubtedly the strongest. The first half of the year has achieved good results and outperformed expectations.

Among them, the turnover of the company was RMB 1 billion 259 million 300 thousand yuan, an increase of 22% compared with the same period last year, and the profit attributable to shareholders was 278 million yuan, an increase of 21.8% over the same period last year.

It also achieved a revenue of 1 billion 486 million yuan, an increase of 24.47% over the same period last year. The net profit attributable to shareholders of listed companies was 245 million yuan, an increase of 40.61% over the same period last year. The income of nine Mu Wang was 1 billion 190 million yuan, an increase of 23.6% over the same period last year, and net profit of 340 million yuan, representing an increase of 43.6%.

Listed in the US

It is a sad day for him.

In the two quarter of this year, the report showed revenue of 221 million yuan, an increase of 24.9% over the same period last year, and net profit of 20 million 200 thousand yuan, down by 42.9% compared with 35 million 400 thousand yuan in the same period last year.

The left bank will announce its two quarter earnings in August 22nd, which is expected to look better.

It is worth mentioning that the first half of Shanshan stock company

Business income was 789 million yuan, an increase of 16.57% over the same period last year, and the operating profit rate was 25.92%, down 3.21 percentage points compared with that of the previous year. The net profit of garment business was 4 million 60 thousand yuan, 73.06% lower than that of 15 million 70 thousand yuan a year ago.

The expected growth rate of YOUNGOR and Smith Barney apparel is also between 10%~20%, while Semir apparel is expected to grow flat or negative.

The industry believes that the overall size of the men's clothing in the forefront of China's men's wear, diversification in recent years has dispersed its energy, leading to the current situation of the clothing business today.

Inventory turnover increased slightly

However, from the inventory situation, men's inventory pressure can not be underestimated.

The stock turnover days in the first half of the semi annual report generally increased slightly.

In terms of operating indicators, in the first half of the year, nine Mu Wang stock was 620 million yuan, an increase of 39% compared with the same period last year, and the turnover period was 239 days, up 192 days from the same period last year.

Accounts receivable increased by 206% from 179 million in the same period last year, up 50.86% from the beginning of the year, and the turnover days of accounts receivable increased from 12.74 days in the same period last year to 22.52 days.

"This is mainly in the first half of this year, the operation of the company is affected by the decline of the department stores, and there is a certain pressure on the stock.

At the same time, the support policy for franchisees has also increased.

Liu Jinhu, a researcher familiar with Fujian Style Men's wear, said.

Wang Congxing, vice chairman of the group, also admitted that the inventory turnover in the first half of the year increased by 14 days per year, and the receivables day also extended, reflecting the slowdown in its sales.

As of June 30th, the inventory of the seven wolves was 492 million yuan, although it was 53 million yuan lower than the quarterly report, but increased by 20% compared with the same period last year. The share of inventory accounts for 33% of the revenue, and the inventory turnover rate is 1.48, lower than 3.31 at the end of 2011, indicating that the inventory turnover rate has decreased.

Profit from management

Through the upgrading of the product structure, the gross margin level will be promoted, and the fine management efficiency will continue to play, and the cost control will be appropriate. This is the main reason why men's clothing performance is generally good.

Product segmentation effect appears

It is worth mentioning that the gross profit margin of the above three men's clothing enterprises has reached the highest level in history.

Among them, the total price of seven wolves is 43.45%, the highest level since 2008, 3.4 percentage points higher than the same period in 2011, and the gross profit margin of Li Lang increased by 3.3 points to 39.7%. The total gross profit margin of the nine Mu Wang was 57.71%, up 1.03 percentage points from the same period last year.

Wang Congxing, vice chairman of the company, concluded that the main reason for the increase in profits is that the overall turnover should maintain an ideal growth rate and that the cost control should be appropriate to offset the rise in the effective tax rate.

The summary of other men's clothing is also very similar.

The seven wolves' semi annual report also analyzed another main reason. The proportion of direct sales in the channel structure increased and the proportion of "black label" brand income increased. The contribution of black label main business revenue has exceeded 50%.

In addition, under the strategic policy of "wholesale to retail", the proportion of company's direct store accounts for a steady increase is also an important reason.

In terms of retail operation, King Mu increased the image of stores and trousers cabinet in the mall, and the construction of staff motivation training system.

From the income of various products, the sales of male trousers for core products exceeded 600 million yuan during the reporting period, an increase of 17.21% over the same period.

Sales of shirts, jackets and other products increased by 40%, depending on the reputation of men's trousers.

"At the same time, the smooth implementation of PLM (commodity Lifecycle Management) project phase I and the further improvement of supplier evaluation system have further strengthened the company's internal management level, which has kept the consolidated gross margin stable."

The nine herd kings summed up their earnings.

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Channel cautious expansion

Facing the unusually weak market, slowing down the pace of channel expansion has become a consistent strategy in the first half of the year.

The seven wolves admitted that in the first half of the year, 80 blue chip shops and children's wear shops with poor performance were closed, and the shops increased by only 5 to 3981.

This kind of store has been strategically contracted, so the net shop speed is not fast enough.

Nine Mu Wang terminal only increased by 67, reaching 3207, lower than the previous rate.

"From the past experience, the three quarter is the peak for men's clothing stores. It is expected that the three quarter will speed up the opening of stores, and the annual sales will be 300 to 400, which is slightly lower than the number of 430 outlets opened last year."

In addition, there were 81 and 37 brands in the first half of the brand respectively.

This shows that the expansion speed of men's clothing is obviously slowing down.

Li said that it would prudently adjust the pace of opening up to the market and reduce the risk of store expansion in the unstable economic situation. The annual net shop target was adjusted to 200 to 250, with a target of 250 to 300 at the beginning of the year.

Multiple inventory

Faced with the pile up of new and old clothes in the warehouse, all brands are trying their best to promote the inventory movement, and have achieved certain results.

Massive discount

Good performance only showed the first half of the year. In fact, from July to August, Fujian style clothing launched an unprecedented collective discounts.

Although it is summer and autumn changing season, business discount is normal, but people who often stroll are not hard to find. This year, the discount season of major brand summer wear came ahead of schedule in May.

Reporters visited some large shopping malls in Quanzhou and found that men's overall discounts were over eighty percent off lower than in previous years.

According to industry insiders, men's wear in the past year is more than 40 percent off to 30 percent off.

In the face of high inventory pressure, the seven wolves also couldn't resist.

Last month, seven wolves joined the Wanda's thousand department stores to launch a super low discount marketing new attempt: the seven wolves offered their full line brand "1 fold up the whole market, the mainstream commodity up to 75% off" super low discount, thousands of department stores completely emptied a floor space for their use; Wang Congxing, vice chairman of the company, revealed that the company will start upgrading the shop image of 300 to 350 stores in the second half of the year, and it is expected that it will take about three and a half years before the decoration, the company will conduct promotional activities, with an average discount of about 30 percent off.

"Focus on dealing with the backlog of stocks from last winter's winter to spring and summer."

The days of Quanzhou leisure fashion men's wear board are even more sad. Many brands have launched seventy percent off or even eighty percent off jump prices. Men's clothing, such as Giordano, mapon, Shanshan and other sectors, is also reduced to 3~5 discount.

What is worrying is that the reporters found that some Quanzhou brands just put on the autumn clothing, and also hit the "new product two pieces 32% off" promotional slogans early.

The discount will continue.

"Big business men's clothing big brand, this time also join the discounted army, we carry these small and medium brands where to hold."

Liu Yiqun, the general manager of the wolf dress, said helplessly.

In fact, this round of large-scale Chinese clothing inventory war started from last year's warm winter.

What the costumes boss did not expect is that the cold air will not go away this spring, plus the continuous rainy weather. There is no time for spring clothes to be sold.

There was no sign of war in the stock market.

"As far as the current weak market is concerned, the high pressure of China's clothing industry is far from being alleviated.

Prices will continue in the second half of this year. "

Madison (Beijing) International Advertising Co., Ltd., general manager, well-known marketing expert Zhang Fasong said.

According to the statistics from the China National Business Information Center for hundreds of major retail enterprises in China, the retail sales of clothing commodities increased by 9.82% in 1~6 months in 2012, representing a sharp decrease from 21.81% in the same period last year.

E-business digest inventory

It is another magic weapon to reduce pressure by making efforts to clean up e-commerce channels.

"Seven wolves have made progress in eliminating inventory, and the contribution of e-commerce is also great."

Zhang Fasong analysis said that in the first half of the year, total sales of the seven wolves reached about 76 million yuan, up 137.50% from the same period last year.

It is understood that e-commerce discount is generally 5~6 discount, mainly used to handle inventory goods.

It is reported that under the promotion of net sales and the sale of "thousand - seven wolves", the seven wolf inventory decreased by 23.45% compared with the beginning of the year, and the cash flow back smoothly, and the operating cash flow increased 3 times compared to the same period, reaching 134 million yuan.

Lowering orders will be a task.

In order to reduce the pressure of agents, the major men's clothing brands also adjusted the order policy in the second half of the year, vowing to move forward with the provincial and franchisees.

Seven wolves said it would encourage franchisees to actively withdraw funds and assist franchisees in launching promotional activities to help dealers enter the goods and conduct centralized inventory processing. At the same time, we should consider recycling some inventory of distributors and conduct centralized processing.

Another killer of the seven wolves is to implement the "old goods for new products" to revitalize the stock, thus forming a benign cycle of ordering and opening stores.

Lee management revealed that it is actively working with distributors to solve the problem of inventory backlog, allowing distributors to purchase orders from 85% to 90%, down to 70% to 80%.

"The overall picture is still worse than before."

Wang Liangxing, President of Li Lang, told reporters that if the sales are ideal, distributors can also place additional orders. The new policy will make better use of the flexibility of group production arrangements, so as to help control the inventory of distributors and control risk management.

How to discount but not price?

It is worth waking up to alleviate the high inventory problem through low discount and other means.

But can consumers adapt to non discount clothing in the future?

"If the industry is discounted, the price of brand will be less.

But this is not a good phenomenon.

Of course, if we can come up with some new ideas in marketing strategy, especially how to communicate effectively with customers is the core.

This may hurt the brand. "

Marketing expert Zhang Fasong said.

This year, "8. 3" is the second advocate and launched the "men's Day" celebration.

In addition to emotionally caring for "God", the national stores and the Taobao's flagship store also conduct promotional promotions during men's day.

Through advocating "men's Day" and caring for male consumers, it is easy to arouse their emotional resonance through the topic of responsibility and emotion, and can also enhance the cognitive status of the local brand when enjoying low discount.

Ding Huiru, chairman of the group, is looking forward to it.

In the same way, the nine year old "Seiko art" tour, which was not long ago, has been recruiting large events throughout the country, and has launched the "men's trousers Festival" at the same time, offering various preferential activities.

After the event, consumers can visit the headquarters of the nine herd Wang to see how a man's trousers are made.

Liu Yiqun is also worried about the depreciation of the brand. For this reason, Wolf Road is seldom discounted, but it is a man-made holiday, and promotions are launched through emotional appreciation.

"We make it a Wolf Road cowboy festival every week before and after June 17th. As long as consumers take an old wolf jeans, they can go to the store to exchange a pair of trousers."

Liu Yiqun believes that this can help the consumers to recognize the brand and not to depreciate the brand.