Clothing industry crisis affects men's field

In the past, in the first half of 2013, even the first “double-sliding” of operating income and net profit since the listing of the “male trousers expert” Jiu Mu Wang put on t-shirts, shirts, suits, but the performance did not usher in the facelift.

Slower development of men's clothing companies is not only a family of nine animal husbandry.

According to incomplete statistics, among the 13 men's listed companies, there were 7 negative growths in operating income and net profit in the first half of 2013, of which the declines in the net profits of both the Busen Group and the Annunciation exceeded 30%.

In addition, the high inventory levels prevailing in the apparel industry are also evident in the men's wear sector. The total inventory of the 13 companies was as high as 10.321 billion yuan (Ya'erol's clothing inventory), of which the stock of Jiumuwang was 588 million yuan, accounting for 11.36% of the total assets, while the value of Li Ning, which was plagued by high inventory, was only 13.45. %.

It is not difficult to see that this confirms the industry’s previous view that the crisis in the apparel industry will spread along the path of sportswear – casual wear – men’s – women’s/children’s wear. The men’s market, which has always performed well, has not been spared.

The era of extensive expansion ended In the first half of 2013, Jiumu Wang closed 59 sales terminals, of which, the number of direct-operated stores increased by 42 to 736, while franchise stores decreased by 101 compared with the beginning of the year. In 2011 and 2012, the number of sales terminals increased by 430 and 124 respectively over the beginning of the year.

Coincidentally, Septwolves announced 152 closed stores in the 2013 semi-annual report, but maintained the number of direct-operated terminals at 462. Kanudi Road and Baoxi Bird also slowed down the speed of opening stores. In the first half of the year, the number of newly opened stores was far lower than previously expected, and new stores were mainly based on direct sales.

Forefront Industry Research Institute analyst Ouyang Xinzhou told reporters that in the past few years, the growth of domestic men’s clothing has not been unrelated to the massive expansion of stores, and under the dual pressure of weak terminal demand and sports brand stores, men’s wear brands have begun Feel the importance of channel fine management.

Take seven wolves as an example. According to Li Jiajia, an analyst at Guotai Junan, the company is undergoing a process of changing from “wholesale” to “retail” and from “extended” to “extensive” stores. In the management of commodities, merchandise planning has been introduced and strengthened. The concept of distribution, and in the terminal management mode, it focuses on the application of data, which greatly improves the ability to control the terminal.

“Because of the large investment in the direct-entry system construction and refined management, it may appear that in the short term, it may lead to a decline in performance, but it will be of great benefit to the long-term development and upgrading of the company. This is also the only way for domestic garment enterprises to undergo transformation. "Ouyang New Week said.

It is worth noting that the net amount raised by Jiumu Wang was 2.553 billion yuan, of which 1.32 billion yuan was used for "marketing network construction projects." In fact, this fund had 2.083 billion yuan lying on the account as of the end of 2012, and Jiumuwang's investment in marketing network construction is also extremely cautious, and it can even be called "conservative." As of June 30, 2013, only 11 of the fund-raising shops purchased by the company were put into use, and 12 stores were accumulatively leased, accumulating actual investment of 397 million.

Multi-brand operation is difficult to see the brand consultants Lin Yifan, director of the brand research center, told this newspaper that the market capacity of a single brand of clothing enterprises is limited, companies often explore more sub-brands in order to find new profit growth points, thus forming a multi-brand Operational situation.

Nine animal husbandry is no exception. According to public information, on September 20, 2009, Jiumu Wang acquired 18 million yuan from Xiamen Fanpai Garments Co., Ltd. and acquired the fashionable fashion brand “fun”. On August 6, 2010, he purchased Italian high-end trousers for 449,800 euros. Brand vigano's permanent trademark use rights in Greater China. The calliprimo, a menswear brand that was jointly established in Italy in 2003 with Gripemont (International) Development Co., Ltd., was also independently operated as an e-commerce brand owned by Jiumuwang.

Ouyang Xinzhou believes that the development of sub-brands for apparel companies is nothing more than self-creation, acquisition and agency. The self-selection is most appropriate when the main brand is mature, the performance growth is rapid, and the store’s ping effect is high. The acquisition and agency brands are often relatively high-end and can play a role in enhancing corporate image and integrating with high-end brands. "Men's domestic companies tend to consider creating sub-brands when the main brand is still in a period of development and when performance hits a bottleneck. It is actually more difficult to cultivate large-scale, high-input investments at this time."

Jiumu Wang did not become a model of multi-brand operation. The data shows that the wholly owned subsidiary of Jiumu Wang Masi (Xiamen) Investment Management Co., Ltd. mainly operates the fun brand, and disclosed in the 2012 annual report that it has been losing for three consecutive years. Guotai Junan Research also pointed out that the brand’s first-half income was only RMB 2 million in the first half of the year, and the road to reversing losses was still very long; Gillippeng’s contribution to e-commerce was minimal; vigano disappeared in public information.

According to the statistics of the newspaper, 9 of the above 13 listed companies have carried out multi-brand operations. However, there are only a few companies that seem to be contributing to the performance. The Annunciation is one of them.

At present, Baotuo Bird's banner includes seven brands such as Annuncier, Santo, Roby, and Hazzys. In the first half of the year, the income of the main brand, Shengxin Bird, fell. The income of the sub-brand hazzys increased rapidly to 140 million yuan, surpassing the brand's full-year revenue last year, and its revenue ratio also increased to 16%. In addition, all of the subsidiary brands such as Flinton and Oerlikon have also grown, driving the primary business to increase by 3.1% year-on-year.

However, in the multi-brand layout, Baoxin Bird adopted the brand integrated store model and implemented a terminal and multiple brands. This also means that the enterprise structure and product category must be fundamentally adjusted. The cost and pressure in each item may not be applicable to other companies. .

Weakening the family color Lin Yifan stated that China's garment enterprises are mostly family-owned enterprises, and now they are also faced with problems of corporate inheritance. Coupled with the mobility of management personnel in the garment industry, how to deal with the relationship between family management and professional managers? Differences in business philosophy are crucial.

As early as the beginning of the listing, Jiumu Wang was questioned because of the strong family color. According to its prospectus, 99.35% of Jiumuwang’s shares are held in Lin Congying’s family shares. The top five shareholders, Jiumuwang Investment, Shunmao Investment, Smart Investment, Platinum Investment, and Zhicuban Investment are controlled by Lin and his four Chen’s in-laws respectively. .

Since then, the king of nine animal husbandry gradually introduced **. As of the first half of this year, there were 4 **** holding Jiumuwang, a total of 9.791 million shares held, and some bank securities investment**.

In recent years, Jiumu Wang has also been trying to achieve a balance between family control and the management of professional managers.

Recently, the deputy general manager of Jiumu Wang Zhu Jianshi resigned, and this is also the fourth deputy general manager of the relocation of Jiumu Wang since listing. Not only that, but in March 2012, the company also replaced the chief financial officer and replaced Chen Jinggao as the chief financial officer.

In fact, among the five executives who have changed positions, the deputy general manager Lin Yuxiong is the father of Lin Congying, Zhang Jingyi is Lin Lianxuan, and the other three deputy general managers who resigned due to “personal reasons” are the Jiumu Wang. Li Ning Sports Products Co., Ltd., ibm and Philips Lighting hired.

A person who once worked for King Jiumu told the newspaper that the company “does a lot of hard work and the results are good” in introducing professional managers. Lin Cong-ying also repeatedly stated in public that he wanted to reduce the humanity of family businesses, but he really practiced it. It is not so easy.

In February 2012, Jiumu Wang launched an equity incentive plan that involved 13 million shares and 150 incentive targets.

In the first half of this incentive plan, Lin Cong Ying personally asked hr vice president Ke Minjian to resign. Afterwards, Zeng Yong and Zhu Jianshi, who left one after another, each held 132,000 incentives to grant equity. When the former resigned, the equity did not even reach the date when the restriction was lifted. All of Jiumu Wang repurchased and cancelled.

The equity incentive market was interpreted by the market as an incentive for the company's "Golden Fortune," but it failed to retain the company's core employees. The reason for this is worth pondering.