Domestic men's clothing companies almost fell collectively last year, and profits fell sharply

Release Time:

2015-04-02

The downturn in the menswear market has brought not only a decline in performance for listed companies, but also the closure of stores. According to public statistics, in the first half of last year, Kanudi Road closed 53 stores, Jiu Muwang closed 73 stores, Xinur closed 46 stores, and the most powerful one was Seven Wolves, which closed 347 stores.

2015-04-02

Source: First Financial Daily

With the release of annual reports one after another, domestic men's apparel brands, which have suffered from "high inventory and terminal downturn", performed almost collectively in 2014. According to statistics, the performance of many men's clothing companies in 2014 was dismal: Septwolves' annual revenue was 2.39 billion yuan, a year-on-year decrease of 13.79%, and its net profit fell by 24.19% year-on-year; and the loss of Busen men's clothing was even more alarming. .8

100 million, down 26.21% year-on-year; net profit -104 million, down 1820.16% year-on-year.

Wang Liangxing, chairman of Lilang Menswear, does not deny that his brand also has such a status quo. According to him, Lilang has also closed a lot of stores. Now is the retail era, and more professional retail management managers are needed. In the past, there were many unprofessional dealers. If you have money, you can open a store at will, but now such a store must be transformed. or eliminated.

An industry insider told the "First Financial Daily" reporter that in fact, the decline in the performance of men's clothing was not a cold one last year. In the past two years, the industry has been in a downward trend. The person believes that men's clothing companies can no longer increase their performance by increasing the number of stores opened as before, and men's clothing brands will face the end of the bubble after opening stores and expanding frantically.

In the face of the sluggish market, men's clothing brands have proposed to change their brand positioning and achieve differentiation. In order to seek new profit growth points, many local leading companies have chosen to deepen their diversified layout.

Taking Shanshan Group as an example, Zheng Yonggang, chairman of the board of directors, said in an interview with the media that the clothing sector only accounts for about 20% of the entire group. Shanshan is involved in lithium battery materials, commercial real estate and financial investment. In addition, Zheng Yonggang also revealed his strong interest in the field of big health. He said that the next step to enter the life and health industry will definitely be investment, and the level of involvement will be very deep. It will not only start from the basics, but intervene from the middle level.

Youngor, which has extended from the main clothing industry to real estate and investment many years ago, also announced in early March this year that it plans to invest 1 billion yuan to set up a health industry fund in Ningbo, Zhejiang. According to the information disclosed by Youngor, the wholly-owned subsidiary Youngor Investment Co., Ltd. is the manager of the health industry fund, and is responsible for finding investment projects around the medical and health industry, including project development, due diligence, analysis and demonstration and Post-investment management, etc. The duration of the fund is five years, and it can be extended for two years with the approval of the partners' meeting.

In November last year, Septwolves cooperated with an investment company in Shanghai to launch a domestic RMB fund. The fund mainly invests in consumer brand companies, chain operations, retail companies and Internet-related companies. Investment industries include but are not limited to large consumer industries such as clothing, accessories, food, beverages, catering, and supermarkets.

The above-mentioned person said that although these men's clothing companies are actively transforming and trying to find new profit points, it will take time for the recovery of corporate performance in the face of the overall market downturn. The research reports of many institutions also believe that this year is still the adjustment year for the men's clothing industry, and it is difficult to see the effect of various attempts in the short term.

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