Where Is The Development Of Traditional Men'S Clothing Industry?

Comparison

Tradition

Warmer speed is relatively slow.

Among them, some men's clothing enterprises try to improve their performance through cross-border operation.

Why does men's clothing industry slow down, and where will the future men's wear industry go?

Industry slow down

According to the first quarter earnings report disclosed by enterprises in 2018, women's clothing enterprises generally increased a lot, of which women's clothing brand Vigna S's revenue growth reached the highest value of 142.4%.

However, compared to traditional men's clothing enterprises, only 5 revenue and net profit achieved two digit growth compared to the same period last year.

Specifically, the fastest growing bird in the first quarter of 2018 achieved operating income of 737 million yuan, an increase of 32.94% over the same period last year, and realized a net profit of 35 million yuan, an increase of 150.21% over the same period last year.

In the same period,

Revenue grew 20.88% to 693 million yuan, and net profit increased 51.3% to 47 million yuan over the same period last year.

Hai Lan's home sales increased by 12.16% to 5 billion 786 million yuan over the reporting period, while net profit increased 11.97% to 1 billion 131 million yuan over the same period.

Seven wolves revenue grew 13.90% year-on-year, net profit increased by 18.44% over the same period, while the revenue of nine Mu Wang increased by 12.47% compared to the same period last year, and net profit increased 21.37% over the same period last year.

In addition to the above enterprises, there are also many enterprises in the traditional men's wear industry.

As of the end of 2018 three, YOUNGOR realized revenue of 1 billion 680 million yuan, down 50.46% compared with the same period last year, net profit 297 million yuan, down 91.95% compared with the same period last year.

The operating income in the report period decreased by 15.72% over the same period.

about

The reason for the slow recovery is that CEO Yang Dayun, an international brand management (Beijing) Co. Ltd., told Xinhua in an interview with Chinese business daily that the consumption demand of men's wear market has changed, and traditional men's clothing enterprises are still in the process of product pformation.

Yang pointed out that the frequency of men buying goods is relatively low. The current male consumers are mainly 80% and 90%. While the traditional men's clothing buyers are mainly 60 and 70, their purchasing power is decreasing.

In the past, male consumers tended to pay more attention to brand and ignore design. With the change of consumption concept, more and more consumers promoted the pursuit of fashion. This also reduced the consumption demand of traditional men's clothing.

Min Guangya, an expert in clothing retailing management, expressed the same view to reporters. The products of traditional men's wear industry are relatively simple. While the consumption demand is changing, the product mix of the enterprise, including styles and prices, has not responded quickly to the changes.

Although many men's clothing enterprises have launched new brands to cater for the consumption needs of young men, the main brands have not yet been greatly adjusted.

In addition, Min Guangya pointed out that sales channels are also factors that influence the speed of traditional men's clothing warmer.

Traditional men's clothing enterprises mostly adopt franchisee's business mode, involving multi party relationship, and not enough flat management mode makes managers easier to be influenced when making decisions.

In fact, the lack of innovation in the product itself and the lack of the core positioning of the brand itself make it difficult for the men's brand to achieve breakthroughs in the short run, and there is still greater uncertainty and risk for the men's clothing brand that tries to brand more.

Cross border operation

In the downturn of the garment industry, the traditional men's clothing enterprises are not idle, they have to cross the industry to maintain stable performance, and gradually divorced from the garment industry.

The Shanshan brand of Shanshan stock company made a stock offering from June 12, 2018 to June 15th, which means that the last part of the split listing of Shanshan stock business is about to be completed.

After the listing of Shanshan stock company, it started the industrial pformation and began to enter the lithium battery material industry.

At the same time, the company promotes new energy vehicle business and energy management service business.

In addition, Shanshan stock has expanded its business to the financial sector in recent years.

At present, Shanshan stock owns three major businesses: clothing, lithium power, new energy and financial investment business.

Its clothing business has been reduced to marginal business. In 2017, the clothing business revenue accounted for only 8.1% of the total revenue.

Although Shanshan's cross border business performance is good, it does not mean that other men's clothing brands can also do so.

Hinur, who recently bought the tourist company again, is selling assets to avoid being retreated from the capital market.

In 2014, the loss was 46 million, and its performance fell 165.26% year-on-year.

In 2015, the sale of Beijing shops contributed more than 100 million yuan to its overall operation. In 2016, the sale of houses and other assets resulted in a profit of about 45 million yuan.

In February this year, he changed the company's business scope, added cultural tourism, theatrical performances and other business, and was equipped with several executives with cultural backgrounds such as Wanda and Songcheng performing arts.

The industry believes that Hinur's main business can not help but sigh for it. After all, Hinur has been known for a long time in the Chinese apparel industry.

Although YOUNGOR founder Li Rucheng has repeatedly claimed to return to the main industry, it is impossible to abandon the real estate sector and investment plate.

Although YOUNGOR has come to market with clothing business, since 2015, the net profit of YOUNGOR's investment sector and real estate sector is higher than that of the clothing sector.

For the pformation of the development path of enterprises, Min Guangya believes that although the company's external strategy is a strategic pformation, it does not play a role in improving the performance of the clothing sector. This is the embodiment of the lack of ingenuity of the enterprise and has no advantage in shaping the brand.

Song Qinghui, a famous economist, told reporters that men's clothing companies have crossed the border business to find new profit growth points, but whether they can improve their performance for a long time remains to be further observed.

To return to the main business is the direction.

From the above 2018 first quarter earnings report, it is easy to find that the development of traditional men's wear industry is better than three enterprises, such as Hai Lan's home, red bean stock and good news bird. None of these three companies focus on the business and development of clothing business.

In recent years, the family of Hai Lan has shown strong momentum and has gradually occupied the leading position in men's clothing industry.

As the most valuable clothing company in China's A share market, Hai Lan's home has been on the rise of online shopping, and the situation of more and more fierce shops has gone bankrupt.

In August 2017, Hai Lan's home became a fast fashion brand UR of "China ZARA", and it opened the first stop of fashion layout.

In October of the same year, Hai Lan's home was put into the children's wear market, and 660 million yuan was invested in Ying Shi baby.

In January 20, 2018, the high quality "light business" women's brand OVV, men's wear brand AEX officially opened the first physical store, and the multi brand strategy further landed.

And then with Tencent's "marriage", the company deeply using Tencent resources, deep integration of the apparel industry chain, rewriting China's future clothing and even fashion industry territory.

As far as Hong Kong shares are concerned, since 2001, it has been the main garment industry for more than ten years.

In recent years, the red bean stock has been actively developing "intelligent red beans" to carry out digital pformation and development, including the joint efforts of the international consulting giant Accenture to build intelligent red beans, the introduction of information development blueprint plan, the promotion of flexible production lines, the construction of intelligent logistics, and the creation of intelligent stores focusing on consumers' deep experience.

In April 2018, in cooperation with Jingdong, the layout of "unbounded retail" and the creation of smart future have achieved good results.

At present, the red men's men's wear is strong, and it has developed well in recent years.

Compared with the former two, it is not plain sailing for the wedding birds to focus on the clothing business.

The company began to slow down in 2012 and continued to adjust from 2013 to 2016.

But income has improved since the first quarter of 2017, and the growth rate in the second quarter of 2017 to the first quarter of 2018 has remained at around 30%.

Everbright Securities research report pointed out that the birds in the sales side has shown a trend of improvement, the main brand sales return, net shop, HAZZYS and other small brand diversification.

Although the company's expenses and charges remain under pressure, it is at an improvement stage.

Compared with cross border operations, Min Guangya is more inclined to focus on the clothing industry in the development of traditional men's clothing enterprises.

He pointed out that if a company wants to develop for a long time, it must go through a long accumulation stage.

Deep ploughing an industry requires integration of resources such as funds and channels. When an enterprise develops poorly on the basis of existing resources, it will not be suitable for long term development to switch to other businesses.

In fact, the development direction of enterprises depends on the management concept of managers to a certain extent.

Yang Dayun believes that some entrepreneurs only do their own good areas, and are willing to continue to develop in the initial industry, while some entrepreneurs take into account the capital market reaction and investor returns, and are more willing to invest in higher profit industries.

Actually, there are interest driving factors in the traditional crossover operation of men's clothing enterprises.

Early clothing is a high profit industry. Nowadays, industry is hard to do, and enterprises are turning to real estate, finance and new energy.

Song Qinghui, a noted economist, points out that after slowly saving energy, the consumption demand of men may erupt.

At present, the men's clothing company in China has gradually developed from shopping mall to shopping mall, franchised store and electric three wings.

In the future, clothing companies will emerge the trend of industry consolidation, the bigger the bigger the stronger the stronger.

And seeking mergers and acquisitions, cross-border, development, investment, real estate and other businesses have become the main source of cash flow of these garment enterprises.