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It Is The Hard Truth For The Garment Industry To Bear The Pain And Keep Improving

2019/9/20 11:23:00 231

Hailan Home

"Divorce" is false, revolution is true.

  1

What is the purpose behind the "sale"?

Yes, Hailan Family finally cut off the women's clothing business Aiju Rabbit.

The transfer price is 382 million yuan in total. Its Aiju Rabbit Women's Wear has been stripped off since it was founded nine years ago. "Men's wardrobe", after all, "can not fit" women's clothing.

On the surface, it seems to be throwing away his wife, but behind it is shrewd business logic.

Some people say that good chopping, look at these years, what kind of men's clothing has been made? But you still have the energy to develop women's clothing and children's clothing, and to build a furniture and life museum. Others said, can't we do it at last? If you want to eat all men and women, it's hard to have a bowl of water!

To complain is to complain. It is no longer important whether it was good or bad. What matters is whether it is stable or dangerous now. What will happen to women's clothing after stripping? This is worthy of attention and expectation.

Today, let's not talk about who gave the women's clothing to, nor whether it will shine in the future, but only analyze the current reason and logic.

   01 Stop loss rationally and catch big fish in the long run

As one of the three major brands of Hailan Home, Aiju Rabbit has been positioned as a popular fashion women's wear brand. Since its establishment in 2010, due to market reasons such as the slowdown in growth rate of popular women's wear and the dispersion of concentration, the average single store operating income of "Aiju Rabbit" has been declining year by year.

Although there are gains in the middle, from the perspective of the proportion of operating revenue, the revenue of iju rabbit in 2018 was 1.098 billion, accounting for only 5.7% of the total revenue. The separation of this business will not have a great impact on the revenue.

And from the data, Aiju Rabbit is still in the brand investment period. After the brand is transferred out, it is expected to improve the profitability of the listed company of Hailan Home and reduce the risk of business fluctuations.

Therefore, it seems that "throwing away your wife" is false, and revolutionary rectification is true.

The temporary divestiture can not only stop losses in time, but also make the big structure more stable and improved. More attention will be paid to the cultivation and adjustment of other businesses, and the vision will be more long-term.

  02 Clean the busy line and use good steel on the blade

On the surface, it seems that women's clothing has been abandoned, but in fact, it is not completely abandoned, but more diversified.

Through mergers and acquisitions, it has expanded the children's wear brands of boys and girls, Yingshi, and fostered new luxury brands such as Hailan Optimality, luxury women's wear OVV, and young brand Heijing through independent cultivation.

At the same time, when many domestic brands are still engaged in national fashion and brand cross-border, Hailan has already extended its tentacles overseas.

It is reported that its main brand Hailan, together with the luxury brand OVV and the young brand Black Whale, has gone abroad. At present, there are 46 overseas stores, respectively in Malaysia, Singapore, Thailand, Vietnam, Japan and other places, achieving a revenue of 54 million yuan, up 134% year on year.

Therefore, it can be seen that its brand strategy pattern is very clear, and the trend of multi brand internationalization is becoming increasingly clear.

Stripping and rectifying the capital consuming business, increasing the cultivation of existing new brands, while cleaning up the busy line, using good steel on the cutting edge, constantly improving the efficiency of resource allocation, and thus enhancing the brand competitiveness and profitability of the company.

03 Team activation, rich water does not flow into the field

Speaking of this, I have to mention the successor of Aiju Rabbit.

Hailan transferred 66% of the equity of Aiju Rabbit Women's Wear to Zhao Fangwei, Executive Director and General Manager of Aiju Rabbit Clothing Co., Ltd. (resigned as a director of Hailan Home on September 15); 19% equity was transferred to Hailan Investment (Hailan Investment is a wholly-owned subsidiary of the listed company Hailan Home); The remaining 15% was transferred to Dehe Management (99% of Dehe Management was held by Zhao Fangwei).

So you can see that Hailan Home actually transfers its controlling shares to the core manager and management team of the brand.

Zhao Fangwei, the main successor, has been the executive director and general manager of Jiangyin Aiju Rabbit Clothing Co., Ltd. since August 2010, and served as the director of Hailan Home from March 25, 2015 to September 15, 2019.

So in this way, on the one hand, it is to control the operating costs and risks, on the other hand, it is also to encourage the core managers and management teams of iju rabbit. Of course, the most important thing is to collect funds, focus on developing their own core competitive brands, and lay a solid foundation for mutual development in the next stage.

  2

The big ones are not stable yet. How can the small ones survive?

Therefore, judging from the rectification action just taken by Hailan, the development has not always been smooth. The total market value is about 38 billion yuan. Since the beginning of 19 years, a single share has always hovered between 8 yuan and 10 yuan.

And then we turn our attention to other fast fashion brands. Recently, there have also been new moves.

It is reported that the Swedish brand H&M and the American brand GAP will also test the leasing business at the end of this autumn.

Although the clothing rental business is not new, and many clothing rental APPs have already been launched in China, there will be new challenges and incentives for the offline operation of the clothing industry under the sharing economy.

The development process of large brands is still difficult, and small and medium-sized brands are even more like walking on thin ice. If you are not careful, they are easy to fall into difficulties and difficult to escape. What is the future development direction? What adjustments should be made?

In the last article, we discussed whether the clothing industry really entered the cold winter. In fact, this time is a cold winter but also an opportunity for the clothing retail industry.

For Jack Ma, the past 20 years of starting Alibaba are also the 20 years of rebuilding China's Internet business foundation. From the beginning, the infrastructure has been basically completed from scratch to the current online payment, online stores and systems.

All of these have a great impact on our production and life. Food, clothing, housing and transportation are changing. What will be the future situation of the clothing industry, as the first priority? Here are three points for you to sort out.

01 Clothing stores opened in the community

Can community stores really be realized? In fact, there have been quite successful cases.

For example, open a community store in a residential building to provide different services for different people. In other words, the community clothing store here is more like a buyer's shop.

In this community, there may be housewives, white-collar workers, students and younger sisters, middle-aged and elderly people who help their children take care of children, etc. These are the objects you can serve.

And you select products for them based on their needs, so as to achieve good quality and price, and save them the time cost of selecting and purchasing.

According to the different demand information sent by different people, we can select them online. Consumers can directly browse and place orders online, or make an appointment to the store to try on.

At this time, when consumers fully trust the community shop assistants, they will recommend them to others at home, which will effectively extend the product line.

Therefore, garment enterprises need to spread their thinking more widely. The era of "never dealing with users and never knowing who to sell clothes to" has passed.

Only by changing ideas and acting quickly can we avoid being revolutionized by others and survive the cold winter.

02 Clothing stores in remote suburbs

Of course, clothing stores should be opened in crowded places. If they are opened in the suburbs, they will send themselves to death?

  NO。 As we all know, inventory has always been the biggest problem in clothing business, and quite a few operators have been dragged down by inventory.

If you move the clothing store to a remote suburb, you can rent a very cheap warehouse with a large area, and then transform it into a future store like a "clothing factory".

All clothes in the store can be tried on for free, and all clothes are lower than the price of the online store.

At the same time, all the shop assistants will be replaced by professionals who have learned fashion design. Once the customer enters the store, she will give advice and transformation from the aspects of modeling, matching and image design according to her innate characteristics and personal preferences. The designer will take her one-on-one to do shopping and matching, and enjoy the highest level trial wearing experience.

Finally, after finding the right clothes, online or offline payment can not only establish a long-term close customer relationship, but also in clothing inventory management, we can take the way of first producing samples, giving trial wear, and then booking production. Through various system analysis, we can solve the problem of clothing inventory backlog.

In this way, the agency costs and expensive rental costs will be removed, and these high profits will be returned to consumers. At the same time, excellent experience and services will be provided. They will be willing to spend time on consumption.

03 Flexible and changeable, taking advantage of innovation to break into the world

Big brands with strong strength, gradually adjust the enterprise promotion mode, deeply cultivate, and continue to expand the market share

For small and medium-sized brands, try to take a diversified path, constantly try new business models, and consider from the perspective of consumers in order to move towards sustainability.

Of course, in the future, there may be more ways and forms, and more emerging brands will be merged and expanded. Only by being more flexible and independent in the business model, and constantly seeking changes in products and services, can consumers continue to recognize them.

No matter the impact of e-commerce or the diversified economic development, we should not be afraid. The clothing industry is facing a new reshuffle.

This is a new challenge and an excellent opportunity for counter attack. In the future, the development and transformation of the clothing industry will always be worth looking forward to!

Source: Retail experts

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