According to the latest figures from the National Bureau of Statistics, in 2019, the total retail sales of consumer goods was 41,164.9 billion yuan, a nominal increase of 8.0% over the previous year.
Judging from the retail sales of shoes, hats and apparel, the national retail sales of shoes, hats and apparel in December 2019 The total amount reached 149 billion yuan, an increase of 1.9% compared with the same period last year; from January to December 2019, the total retail sales of shoes, hats and apparel nationwide reached 1,351.7 billion yuan, a year-on-year increase of 2.9%, which was 5.1% lower than the growth rate of the total retail sales of consumer goods in the same period. percentage point.
1 Consumers no longer like to buy clothes. Will clothing brands still have an easy time?
“Lianship.com” selected 27 apparel and footwear brands that issued profit warnings to see how apparel companies respond to crises and find opportunities in adversity.
These numbers are very important:
01 Among the 27 listed companies, Only 9 companies have pre-increased or turned losses into profits. These 9 companies are women’s clothing merchants Ying Global and Collatier; men’s clothing Busen Co., Ltd.; casual clothing Ordos; shoe brands Saturday and Hasen Co., Ltd.; sports brands Anta Sports, Pathfinder and Bienlefen.
02 Four companies turned losses into profits, namely Shangying Global, Busen Holdings, Hasen Holdings, and Pathfinder.
03 Two companies are expected to suffer losses for the first time, namely Modern Avenue and Sanfu Outdoor.
04 Among the 27 listed companies, Modern Avenue is expected to decline the most, with the highest expected decline of 5485.09%, followed by Meibang Clothing and La Chapelle.
05 Among the 27 listed companies, the one with the largest net profit increase in early warning is Saturday Shares, with the highest expected growth of 2138.74%, followed by Pathfinder and Busen Shares respectively.
06 Among the 27 companies, 16 are expected to decline, accounting for 66.67%.
2 Store closures, inventory, and gross profit decline have become the main reasons for losses
In previous interviews with “Lianship.com”, many shopping mall projects have mentioned that one of the main phenomena in shopping malls in 2019 is the serious decline in youth casual wear, while sports categories are still rising.
“Lianship.com” reviewed 16 companies that issued profit forecasts and found out the main reasons for their declines.
1. Store closures
La Chapelle pointed out in the announcement: The loss was mainly due to the initiative to shrink focus and concentrate resources on core development. In the women’s clothing business, we accelerated the closure of loss-making and inefficient stores. During the period, the number of domestic operating outlets dropped from 9,269 at the beginning of the year to more than 4,800 at the end of the year, with an average of 13 stores closed every day.
2. Macroeconomics, warm winter and other social issues
Jinhong Group stated in the announcement that 2019 The decline in annual net profit was mainly due to factors such as the decline in macroeconomic growth and intensified market competition, which resulted in a year-on-year decrease in operating profit for the current period;
Shanshan Co., Ltd. 2019 Net profit attributable to shareholders fell by 70%-90%, mainly due to the slowdown in China’s domestic economy and domestic demand growth; the increase in various operating costs such as group personnel wages and decoration;
Modern Avenue, which suffered its first loss, pointed out that one of the reasons for the decline in performance is that affected by the overall macro environment, the performance of the company and some of its subsidiaries did not meet expectations, and the company’s controlling shareholder and actual controller made unauthorized transactions in the name of the company and its controlled subsidiaries. After review and untimely disclosure of guarantee matters and the collection of some of the company’s receivables and other receivables during the reporting period were less than expected, the net profit loss in 2019 is expected to be 1 billion to 1.5 billion yuan. In the same period last year, Modern Avenue made a profit of 2785 Ten thousand yuan.
Giordano expects to achieve a decrease of approximately 38% in profit attributable to shareholders in 2019, mainly due to the weak retail environment in the Greater China market due to the Sino-US trade dispute, mild winter and social issues;
Souyute’s net profit fell by 14.12% in 2019, mainly due to the increasing downward pressure on the economy due to the impact of many macroeconomic uncertainties. For this reason, the company continued to actively slow down supply. The development speed of the chain management business, the reduction of customer development, and the optimization and adjustment of some customers have caused the supply chain management business to decline compared with the same period of the previous year. In addition, Shaoxing Xinglian Supply Chain Management Co., Ltd. was changed from a holding subsidiary to an associated enterprise;
Red Dragonfly is expected to achieve a net profit attributable to shareholders of listed companies in 2019 that will decrease by 68.6193 million yuan to 107.8303 million yuan, a year-on-year decrease of 35% to 55%. Mainly due to the impact of weak consumer demand in the domestic consumer goods market, its main business income has declined slightly compared with the previous year. The expected decrease in operating income is between 130 million yuan and 180 million yuan. At the same time, in order to support agents, credit policies Moderate loose adjustments were made, resulting in an increase in the balance of accounts receivable at the end of the year compared with the beginning of the year.
3. Brand sales are poor, inventory is cleared, and gross profit is reduced
Langzi Shares is A typical representative of poor brand sales is South Korea’s L&P Cosmetic Co., Ltd., in which the company has a stake, which has led to a sharp decline in the performance of Langzhi. Ribo Fashion also said that the decline in performance is mainly due to proactive adjustments and optimization of sales channels, and the revenue and gross profit of some brands have declined. , while accelerating the cleanup of goods from previous years, the gross profit margin has declined significantly;
Mushang Group pointed out that the net profit for the year ending December 31, 2019 is expected to be The decrease was approximately 40% to 45% compared to the year ended December 31, 2018, mainly due to the decrease in customer traffic in certain business districts, which resulted in the decline of certain offline stores.change. Hangzhou Yaowang Network Technology Co., Ltd. performed well in 2019, enabling the company’s operating performance to achieve substantial year-on-year growth.
5. Strong sales
Unlike other companies, Anta’s growth is attributed to its own strong sales. According to the announcement, Anta pointed out that the proportion of retail business revenue of the group’s FILA, DESCENTE and other brands has increased, and the gross profit margin has increased. Coupled with the increased contribution from the retail business and the relatively stable operating expense ratio, Anta expects its operating profit margin to increase year-on-year in 2019. Anta said that compared with the previous fiscal year, product sales of Anta’s main brand and other brands have maintained strong growth in 2019, and the annual revenue growth is expected to exceed 35%.
6. Improve product competitiveness through research and development
In 2019, Biyinlefen is expected to achieve Net profits attributable to shareholders of listed companies increased by 30%-50% over the same period last year, with profits ranging from 380 million yuan to 438 million yuan. Mainly because of the continuous increase in investment in product research and development, product competitiveness has been continuously improved. At the same time, we have increased brand promotion, optimized marketing network construction and supply chain management, strengthened employee training, and continued to launch employee stock ownership plan incentive programs to enhance team cohesion. .
Cui Hongbo, founder of Chuangbian Island and expert in brand strategy management, believes that 2019 may be the best day for many clothing brands in the next few years. Overall, China’s apparel industry has entered a cycle of structural adjustment. The market space has peaked and production capacity is overcapacity. The rest is optimization and adjustment.
Cui Hongbo told “Lianship.com”: From a macro perspective, China has entered a period of economic adjustment. In this cycle, everyone’s consumption behavior and characteristics will actually change.
In addition, the current trend in the clothing industry is an increase in production and a decrease in sales, which is similar to some countries in recession in Japan, Europe and the United States.
In addition, many of the current listed companies are old listed companies. The challenge faced by these companies is that the ship will turn around, which leads to an obvious aging trend of the brand and a shift in customer base. ——The purchasing power and clothing consumption concepts of the main customer groups 10 years ago have changed, but the main brands of listed companies have not changed much, and the new generation of consumers has no interest in these brands.
These problems have led to several trends in the clothing industry:
First, consumption differentiation is serious, which has a negative impact on product structure adjustment and clothing Design brings great challenges. If it cannot adapt to the market, it will be eliminated sooner or later.
In addition, the traditional franchise model faces very big challenges. The efficiency of agent franchise needs to be improved, and sufficient links with customers must be established, but this is still not in place.
So I think more companies will adopt multiple brands to resist the impact. From a product and marketing perspective, brands may now have to rethink the ratio of online and offline models. This The epidemic will make all brands think about their own marketing models.
That is to say, from products, brands, marketing business models, including supply chain models, I think all aspects may need to be changed.
There are two ways to adjust the business model. One is to transform into a lifestyle, and the other is to transform the clothing industry into a manufacturing industry. The competitiveness of this business model will A little more obvious. </p
