Suddenly, more than half of 2020 has passed, and the performance of the clothing industry in the first half of the year, which has experienced a life and death battle, has begun to emerge.
Among the 53 listed apparel companies that have disclosed financial reports, the two leading companies, Shenzhou International and Anta, performed strongly, with revenue exceeding 10 billion and net profits respectively. Achieved 2.512 billion and 1.658 billion; nearly 70% of the companies achieved profitability, including sports brand Li Ning, women’s clothing brand Gelisi, men’s clothing brands Xiangniiao and Hongdou, and casual brand Carbine Clothing, all of which achieved positive growth in net profit.
However, from the perspective of the entire industry, sharp declines in revenue, sharp declines in net profits and even losses are still the norm. The former “leisure giant” Meiban Clothing lost 478 million yuan in the first half of the year and closed 504 stores; the Chinese version of “ZARA” La Chapelle lost a huge 2.1 billion yuan and sounded the delisting alarm; the former “women’s shoe giant” Daphne closed more than 6,000 stores Home, announced to withdraw from the mid-to-high-end physical retail business…
According to data from the National Bureau of Statistics, the total retail sales of textiles and clothing nationwide from January to July was 595.9 billion yuan, a year-on-year decrease 17.5%, 7.6 percentage points lower than the growth rate of retail sales of consumer goods during the same period.
This also fully shows that compared with rigidly needed products such as food and household appliances, the textile and apparel industry lacked rigid demand during the epidemic, resulting in a historically rare drop in market demand. regression phenomenon. Especially in the clothing industry, the market competition is extremely fierce. Under the influence of the epidemic, offline sales of clothing are at risk, and big brands are difficult to survive alone.
Shenzhou International achieved revenue of 10.234 billion yuan in the first half of the year, a decrease of 0.4% from the same period last year; the net profit attributable to the owners of the parent company was approximately 2.512 billion yuan , a year-on-year increase of approximately 4.0%. At present, Shenzhou’s market value has approached 200 billion, making it the well-deserved leader in the domestic apparel OEM field. Chairman Ma Jianrong’s personal worth has also reached 50 billion in the Hurun rankings in 2018, ranking first in the apparel industry.
Industry insiders believe that due to the impact of the epidemic in the first half of the year, Shenzhou International’s casual clothing product revenue fell significantly, down 19.2% year-on-year. However, due to the better performance of the company’s mask and shoe upper business in the first half of the year, which made up for the larger decline in casual clothing revenue, Shenzhou International’s overall revenue fluctuated little and was basically the same as the same period last year.
Anta Group achieved revenue of 14.669 billion yuan in the first half of the year, a slight decrease of 1% year-on-year; its gross profit margin reached 56.8%, a record high. In the financial report, Anta specifically mentioned its e-commerce business in the first half of the year. The sales volume increased by more than 50% year-on-year, and the 618 promotion growth rate was as high as 78%; the online business revenue of FILA, Descente, and KOLON SPORT increased year-on-year. Both exceed 100%.
In mid-August this year, Anta’s market value once exceeded 220 billion Hong Kong dollars, setting a record high. Ding Shizhong, Chairman and CEO of Anta Group, said: “In 2010, we made an important transformation of our business model from wholesale to retail. Ten years later, Anta transformed and upgraded again and entered a new stage of development direct-to-consumer. This is to maintain the brand’s permanent Long-term layout for vitality and competitiveness.”
As the entire clothing market becomes saturated and the space for growth is limited, the market share of many small and medium-sized enterprises has been squeezed by leading companies in recent years. This year’s sudden epidemic has made it even more difficult. This makes it difficult for some big brands to stay alone.
“Men’s Wardrobe” Heilan Home’s revenue in the first half of the year was 8.102 billion yuan, a year-on-year decrease of 24.43%; net profit was 947 million yuan, a year-on-year decrease of 55.42%; The inventory of up to 8.217 billion, the label-cutting incident, etc., made the former men’s clothing giant perform “astonishingly” compared with similar companies.
“Leisure giant” Semir Clothing’s revenue in the first half of the year was 5.734 billion yuan, a year-on-year decrease of 30.24%; net profit was 21.6 million yuan, a year-on-year decrease of 97.01%. Since its children’s clothing business surpassed women’s clothing and became the largest source of revenue in 2017, Semir has begun to significantly expand its children’s clothing brand matrix. However, affected by the epidemic in Europe this year, Semir had to sell its wholly-owned subsidiary French Kidiliz Group for 680 million yuan (the previous purchase price was 840 million yuan), which aroused industry attention.
Daphne, the “shoe king” of the generation, saw its first-half revenue drop by 85% year-on-year to HK$212 million, with a loss of HK$141 million. As the most successful women’s shoe brand in China, Daphne once had 6,881 stores at its peak, but now it has been significantly reduced to 293. At the same time, Daphne also announced that it will completely withdraw from the physical retail business of mid-to-high-end brands (including mainland China and Taiwan).�Relevant topics even occupy the hot search list, which is sad.
Looking at companies with relatively stable performance such as Li Ning, Carbeen, Baobaolong, Hongdou Co., Ltd., shifting to the online front has become a major issue for the apparel industry in facing the impact of the epidemic. One of the most effective ways, the current pressure is huge, and it is also a good time for clothing companies to truly develop an Internet sales system.
The apparel industry is facing an accelerated reshuffle in 2020. It remains to be seen who can hold the position and achieve a breakthrough.
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