For China’s apparel industry, a sudden epidemic in 2020 brought the industry into its darkest moment.
Affected by the special period, the production and operation of local clothing and apparel companies suffered significant adverse effects in the first half of last year. Most apparel companies experienced an overall decline in revenue and profits. .
Faced with the challenges and tests brought by the epidemic, many apparel companies have actively sought changes, adjusted marketing strategies, and conducted refined operations around private domain traffic. During this period, community operations, Live streaming e-commerce has become an industry keyword.
As the domestic epidemic situation becomes increasingly stable, the industry has begun to “recover” since the third quarter of 2020, with the decline narrowing quarter by quarter.
Among the 49 Shanghai-Shenzhen-Hong Kong textile and apparel listed companies followed by Lianshang.com Retail Research Center, the first quarter reports of 33 companies in 2021 have been disclosed. Among them, more than 60% of apparel companies’ performance in the first quarter of 2021 increased significantly year-on-year, achieving “double growth.”
▲Hong Kong listed companies generally do not announce first quarter financial reports
“Double growth” in the first quarter, digitalization and private domain become keywords
The first quarter reports of 33 listed companies in the textile and apparel industry show that in 2021 , 22 companies achieved a double increase in operating income and net profit, and 4 companies experienced a double decrease in operating income and net profit.
Judging from the increase in net profits attributable to shareholders of listed companies, the net profits of 18 companies including Heilan House, Shanshan Co., Ltd., and Meibang Apparel increased by more than 100%. Among them, the net profits attributable to shareholders of listed companies increased by 1916.78%, 2222.00%, 1209.16%, 15661.80%, and 1738.42% respectively for Semir Apparel, Peacebird, Langzi Group, Jinhong Group, and Aokang International.
From a data perspective alone, most apparel companies have achieved impressive growth in a single quarter. However, it is worth noting that the first quarter of 2020 was the most severe period of the epidemic. Therefore, there were many rapid “double increases” this year. In fact, it was because the sales of most apparel companies dropped significantly due to the impact of the epidemic in the same period last year.
Through the financial reports of various companies in the first quarter of 2019, “LinkBusiness.com” found that the good performance of most companies is actually a return to the 2019 data benchmark.
Take Aokang International as an example. Its revenue in the first quarter of 2021 was 844 million yuan, a year-on-year increase of 92.15%, and its net profit attributable to the parent company was 46.9665 million yuan, a year-on-year increase of 1738.42%; Its revenue in the first quarter of 2019 was 736 million yuan, and its net profit attributable to the parent company was 79.1392 million yuan.
Nevertheless, considering that the domestic epidemic still recurred on a small scale in January this year, the fact that most apparel companies were able to return to pre-epidemic levels also reflects the continued recovery of the apparel industry. .
Compared with most of the apparel industry, which has only returned to pre-epidemic levels, Peacebird’s performance in the first quarter of this year is quite impressive. Even compared with the first quarter of 2019, operating income Heguimu’s net profit also increased significantly: Peacebird achieved operating income of 2.67 billion yuan in the first quarter of 2021, and net profit attributable to shareholders of listed companies was 203 million yuan; its operating income in the first quarter of 2019 was 1.659 billion yuan, attributable to listed companies Net profit for shareholders was 87 million yuan.
Peacebird said that in addition to the lower base compared to the previous year, the strong growth in performance is also related to the increase in the scale of its brand directly-operated retail stores, the increase in order volume from franchisees and e-commerce. The growth rate is stable.
It is reported that in terms of sales channels, Peacebird continues to improve the operational quality of stores and e-commerce, taking the growth of store efficiency as the starting point to achieve flexible supply of spring clothing; in terms of product management, , Peacebird relies on industry big data and commodity data systems to implement rolling development and flexible supply, effectively improving commodity turnover efficiency and reducing inventory risks.
In addition, Peacebird’s layout in building private domain traffic cannot be ignored. During the epidemic last year, when the sales of a large number of offline stores almost “returned to zero”, Peacebird launched innovative scenarios such as WeChat online member specials, WeChat flash sales, mini program distribution, and rotating live broadcasts in different regions, achieving sales in half of the temporarily suspended stores. , with an average daily total retail sales of 8 million+.
It can be found that data-driven and private domain operations have not only become the “life-saving straw” for major brands to survive the darkest moments and achieve rapid recovery, but will also become their way to improve their performance in the future. , a “sharp weapon” for growth.
The “fallers” in the industry heading towards Hershey
Although the performance of the apparel sector in the first quarter of this year was strong, and the performance of most apparel companies increased significantly year-on-year, there are still a few companies that did not get on this “train” and instead experienced a decline in performance or net profit.
It is said that most happiness is similar, but misfortune is always different, and this sentence is also quite suitable in the clothing industry. The few apparel companies that have seen a “double decline” have their own difficulties.
La Chapelle is a typical example. La Chapelle’s unaudited performance report for the first quarter showed that in the three months ended March 31, 2021, La Chapelle’s revenue plummeted 83.53% year-on-year to 158 million yuan; the net loss attributable to shareholders was 70.161 million Yuan, with a loss of 85.762 million yuan after non-exclusion, while the net loss in the same period last year was 423 million yuan.
Although losses narrowed significantly, La Chapelle still faces huge challenges.
Since 2015, La Chapelle has been stuck in the “mud” of continuous decline in performance.”Bog”, blindly expanding brands and opening stores on a large scale have become one of the main reasons. The most unbearable pressure in the clothing industry is inventory pressure. In the early days, La Chapelle’s accelerated expansion resulted in huge losses, multiple delisting warnings, and the earlier Investments and mergers and acquisitions have also become a burden, making La Chapelle have entered a very difficult period.
Since 2019, La Chapelle has launched a large-scale strategic contraction. , La Chapelle can be said to be very determined, but judging from the latest first-quarter financial report, the results are not satisfactory.
Different from La Chapelle’s success in consecutive years The “double decline” of Hongdou shares in the first quarter of this year is directly related to the epidemic last year.
Data show that the net profit of Hongdou shares in the first quarter of this year was only 50.68 million yuan , a year-on-year decrease of 16.57%. The main reason for the “double decrease” is that due to the outbreak of the epidemic in the first quarter of 2020, Hongdou “entered” the mask and medical protective clothing business with a large amount of money. Therefore, taking advantage of the epidemic, the company’s performance in the first quarter of last year Amid the general slump in the industry, net profit bucked the trend and rose. However, as the epidemic became more stable, the red bean mask and protective clothing production lines were in a state of significant reduction in production, which directly led to the decline in first-quarter performance.
In fact, since May 2017, Hongdou Shares sold its 60% stake in Hongdou Real Estate to its controlling shareholder Hongdou Group, its performance has been declining.
Data show that from 2018 to 2020, Hongdou Co., Ltd. achieved operating income of 2.483 billion yuan, 2.54 billion yuan, and 2.384 billion yuan respectively, with year-on-year increases of -8.89%, 2.31%, and -6.14% respectively; the net profits achieved were 2.07 100 million yuan, 169 million yuan, and 145 million yuan, with year-on-year decreases of -66.06%, -18.14%, and -14.44% respectively.
Whether it is a slowdown in revenue or a The decline in profitability reflects Hongdou’s lack of sufficient growth in its main men’s clothing sector.
In addition to La Chapelle and Hongdou, Baibaolong and Busen The shares also experienced a double decline in operating income and net profit attributable to shareholders of listed companies, and this downward trend is not just a single quarter. Behind the continuous decline, either missed development opportunities, sluggish main business, or excessive aggressiveness, capital chain Fractured, repeated changes of ownership resulting in internal turmoil…
The beginning of a domestic product consumption boom :p>
If the continuous layout in the private domain and digitalization is the basis for the rapid recovery of apparel brands, then the BCI incident boosted the rise of domestic apparel brands in the first quarter.
Anta’s operating performance report for the first quarter of 2021 shows that the operating data of the three major business units exceeded analyst expectations. During the reporting period, the retail sales of the group’s Anta brand recorded a year-on-year increase of 40% to 45%. % positive growth, FILA brand retail sales recorded a year-on-year positive growth of 75% to 80%. Product retail sales of other Anta Group brands (including DESCENTE, KOLON SPORT, SPRANDI and KINGKOW, etc.) recorded positive growth of 115% to 120%.
Li Ning also continued its high year-on-year growth trend in the first quarter of this year. Li Ning’s operating data announcement for the first quarter of 2021 shows that Li Ning’s points of sale (excluding Li Ning YOUNG) are on the entire platform. The retail sales volume increased by 80% to 90% year-on-year, recording high growth. In terms of channels, Li Ning’s offline channels (including retail and wholesale) recorded a low-end growth of 80% to 90%; among them, the retail channel recorded a low-end growth of 90% to 100%, and the wholesale channel recorded a low-end growth of 80% to 90%. % low growth. The e-commerce virtual store business has grown even more rapidly, recording a doubling of growth.
The BCI incident has damaged the image of foreign brands to a certain extent and inspired the cultural confidence of domestic consumers. This hot event has also ushered in a new round of reshuffle in the domestic apparel industry, giving domestic brands an opportunity to rise. Judging from the performance in the first quarter, domestic brands continue to improve their core competitiveness through efficient supply chains, original designs, and omni-channel retail, and are expected to achieve rapid rise. </p