Performance is lower than expected The adjustment period for the children's clothing industry has arrived?
Performance is worse than expected The adjustment period for the children's clothing industry has arrived? With the improvement of consumption concepts and quality of life, the mid-to-high-end market will become a must for all major children's clothing brands.
Up to now, there have been three children's clothing listed companies , including Semir , Anna, and Blond Rabbi , who have released the 2019 performance report, all of which have experienced a decline in revenue or net profit. Has the adjustment period for the children's clothing industry arrived?
Poor performance
Recently, the 2019 performance report released by Semir shows that during the reporting period, the company's operating income was 19.359 billion yuan, an increase of 23.15% year-on-year; net profit was 1.546 billion yuan, a decrease of 8.72% year-on-year. According to data from Euromonitor Consulting, Semir's children's clothing brand Barabara has a market share of 5.6% in China, ranking first.
In recent years, Semir has relied on the children's clothing business to achieve steady growth in revenue, but a reporter from China Business Daily noted that Semir's performance growth has slowed. The reporter inquired about the company's financial data and found that 2018 first quarter report, intermediate report, third quarter report and annual report show that Semir's net profit growth rate has remained at about 25%. But after entering 2019, this indicator fell from 11.06% in the first quarter to 2.79% in the third quarter.
At the same time, since the second half of 2018, the company's net operating cash flow has continued to decline year-on-year. According to the 2019 Interim Report, Semir's net operating cash flow was -418 million yuan, a year-on-year decrease of 4923.40%, and the pressure on cash flow continued to increase. In addition, the company's accounts receivable and inventory rose sharply. As of June last year, the company's accounts receivable was 1.547 billion yuan, an increase of 73.97% year-on-year; the inventory was 4.2 billion yuan, an increase of 58.97% year-on-year. From the perspective of the industry, the decline in net cash flow and the increase in accounts receivable and inventory indicate to a certain extent that Semir has not realized a real cash return and increased operating risks.
What is called "the first share of children's clothing" is still less optimistic. The 2019 performance report shows that the company's revenue was 1.327 billion yuan, an increase of 9.43% year-on-year, but its net profit fell significantly by 49.08% year-on-year to 42.605 million yuan. It is worth noting that during the reporting period, Anel received a government subsidy of 218.5 million yuan, which is expected to affect net profit of 15.7564 million yuan. In other words, excluding government subsidies, Anner's annual net profit was only 26.704 million yuan. At the same time, the company's high inventory levels have also been criticized by the outside world. From 2017 to the third quarter of last year, the company's inventory book value increased from 297 million yuan to 509 million yuan, accounting for the company's total assets increased from 27.34% to 42.94%, the inventory risk continued to deteriorate.
In addition to the above two children's clothing listed companies, the blond rabbi also had a hard time. The 2019 performance report shows that the company achieved revenue of 438 million yuan, a decrease of 3.39% year-on-year; net profit was 47.111 million yuan, an increase of 19.23% year-on-year. In response, Jinfa Rabbi said that during the reporting period, the company's adjustment of sales channels and sales policies led to a decline in revenue; strengthened control over product costs and expenses, and a small net profit base in 2018 led to an increase in net profit. It is worth noting that the sales price of blond rabbi is constantly increasing. A Southwest Securities research report shows that the rapid growth of blond rabbi fees will drag down performance.
In addition, the startup shares, which profess to be "leaders of children's shoes," also seem to be in a dilemma of development. Although the 2019 performance report has not yet been released, the performance of Startup Shares in recent years is not optimistic. According to the company's disclosure, from 2015 to 2018, the company's brand ABC KIDS children's shoes market share fell from 4.01% to 3.6%, and its share in the children's clothing market was only 0.5%. At the same time, the company appeared to increase revenue without increasing profits. In 2018, revenue increased by 4.43% year-on-year, but net profit fell by 7.05%. In the first half of last year, the company's revenue increased by 17%, while net profit fell by 2.42%. In addition, a reporter from China Business Daily noticed that the initial asset-liability ratio of the shares continued to increase. From 2017 to September last year, the data rose from 19.14% to 34.76%. This means that the company's solvency is weakening and financing difficulties are increasing.
The industry adjustment period has arrived?
Judging from the performance of the four children's clothing listed companies, each of them faces different operating risks. So, has the adjustment period of the children's clothing industry arrived?
Apparel industry expert Ma Gang said in an interview with China Business Daily that after the rapid development of the children's clothing market in recent years, major brands have gradually entered a period of slowing growth. With the post-80s and post-90s mothers becoming the main force of consumption, the trend of children's clothing consumption has become more complicated. This puts new requirements on the brand's products and marketing channels. If the brand cannot keep up with the changes in the market, it will be at this stage. Was gradually marginalized or even eliminated.
Textile and apparel management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong also told China Business Daily that although the size of the children's clothing market is still expanding, the expansion rate has slowed down. Cheng Weixiong believes that the low-end and mid-end children's clothing market is gradually saturated, and the brand's convertible profits are constantly decreasing.
Marching towards high-end
Li Yahui, a retail consultant for the clothing industry, said in an interview with China Business Daily that in fact, whether it is the entire clothing industry or the children's clothing industry, this segment of the industry is facing the development of the brand itself, only to truly grasp the needs of consumers Change will have the possibility of future development.
In Li Yahui's opinion, the current children's clothing market still has some room for development, and international and domestic brands are robbing this piece of cake. However, from the perspective of the development of children's clothing brands in China, it seems that they pay more attention to the layout of sales channels and there is a phenomenon of blind expansion. Li Yahui admits that for major children's clothing brands, the development pain point is that brands cannot adapt to changes in consumer trends, and it is difficult to accurately grasp consumer needs. In addition, the children's clothing market has serious homogeneity, and the brands have similar styles, which makes it difficult to gather stable consumer groups.
Faced with the ever-changing market environment, what exactly should children's clothing brands do to be invincible in the competition? Li Yahui told reporters that children's clothing brands need to work hard on product design, materials, quality and scene experience to comprehensively improve the shopping experience of consumers and meet the individual needs of consumers. At the same time, children's clothing companies also need to increase their brand influence through Internet marketing and experience marketing.
Cheng Weixiong said that with the improvement of consumer concepts and quality of life, the mid-to-high-end market will become a battleground for major children's clothing brands. Consumer demand will drive the development of the children's clothing industry to become branded, personalized and functional.
Up to now, there have been three children's clothing listed companies , including Semir , Anna, and Blond Rabbi , who have released the 2019 performance report, all of which have experienced a decline in revenue or net profit. Has the adjustment period for the children's clothing industry arrived?
Poor performance
Recently, the 2019 performance report released by Semir shows that during the reporting period, the company's operating income was 19.359 billion yuan, an increase of 23.15% year-on-year; net profit was 1.546 billion yuan, a decrease of 8.72% year-on-year. According to data from Euromonitor Consulting, Semir's children's clothing brand Barabara has a market share of 5.6% in China, ranking first.
In recent years, Semir has relied on the children's clothing business to achieve steady growth in revenue, but a reporter from China Business Daily noted that Semir's performance growth has slowed. The reporter inquired about the company's financial data and found that 2018 first quarter report, intermediate report, third quarter report and annual report show that Semir's net profit growth rate has remained at about 25%. But after entering 2019, this indicator fell from 11.06% in the first quarter to 2.79% in the third quarter.
At the same time, since the second half of 2018, the company's net operating cash flow has continued to decline year-on-year. According to the 2019 Interim Report, Semir's net operating cash flow was -418 million yuan, a year-on-year decrease of 4923.40%, and the pressure on cash flow continued to increase. In addition, the company's accounts receivable and inventory rose sharply. As of June last year, the company's accounts receivable was 1.547 billion yuan, an increase of 73.97% year-on-year; the inventory was 4.2 billion yuan, an increase of 58.97% year-on-year. From the perspective of the industry, the decline in net cash flow and the increase in accounts receivable and inventory indicate to a certain extent that Semir has not realized a real cash return and increased operating risks.
What is called "the first share of children's clothing" is still less optimistic. The 2019 performance report shows that the company's revenue was 1.327 billion yuan, an increase of 9.43% year-on-year, but its net profit fell significantly by 49.08% year-on-year to 42.605 million yuan. It is worth noting that during the reporting period, Anel received a government subsidy of 218.5 million yuan, which is expected to affect net profit of 15.7564 million yuan. In other words, excluding government subsidies, Anner's annual net profit was only 26.704 million yuan. At the same time, the company's high inventory levels have also been criticized by the outside world. From 2017 to the third quarter of last year, the company's inventory book value increased from 297 million yuan to 509 million yuan, accounting for the company's total assets increased from 27.34% to 42.94%, the inventory risk continued to deteriorate.
In addition to the above two children's clothing listed companies, the blond rabbi also had a hard time. The 2019 performance report shows that the company achieved revenue of 438 million yuan, a decrease of 3.39% year-on-year; net profit was 47.111 million yuan, an increase of 19.23% year-on-year. In response, Jinfa Rabbi said that during the reporting period, the company's adjustment of sales channels and sales policies led to a decline in revenue; strengthened control over product costs and expenses, and a small net profit base in 2018 led to an increase in net profit. It is worth noting that the sales price of blond rabbi is constantly increasing. A Southwest Securities research report shows that the rapid growth of blond rabbi fees will drag down performance.
In addition, the startup shares, which profess to be "leaders of children's shoes," also seem to be in a dilemma of development. Although the 2019 performance report has not yet been released, the performance of Startup Shares in recent years is not optimistic. According to the company's disclosure, from 2015 to 2018, the company's brand ABC KIDS children's shoes market share fell from 4.01% to 3.6%, and its share in the children's clothing market was only 0.5%. At the same time, the company appeared to increase revenue without increasing profits. In 2018, revenue increased by 4.43% year-on-year, but net profit fell by 7.05%. In the first half of last year, the company's revenue increased by 17%, while net profit fell by 2.42%. In addition, a reporter from China Business Daily noticed that the initial asset-liability ratio of the shares continued to increase. From 2017 to September last year, the data rose from 19.14% to 34.76%. This means that the company's solvency is weakening and financing difficulties are increasing.
The industry adjustment period has arrived?
Judging from the performance of the four children's clothing listed companies, each of them faces different operating risks. So, has the adjustment period of the children's clothing industry arrived?
Apparel industry expert Ma Gang said in an interview with China Business Daily that after the rapid development of the children's clothing market in recent years, major brands have gradually entered a period of slowing growth. With the post-80s and post-90s mothers becoming the main force of consumption, the trend of children's clothing consumption has become more complicated. This puts new requirements on the brand's products and marketing channels. If the brand cannot keep up with the changes in the market, it will be at this stage. Was gradually marginalized or even eliminated.
Textile and apparel management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong also told China Business Daily that although the size of the children's clothing market is still expanding, the expansion rate has slowed down. Cheng Weixiong believes that the low-end and mid-end children's clothing market is gradually saturated, and the brand's convertible profits are constantly decreasing.
Marching towards high-end
Li Yahui, a retail consultant for the clothing industry, said in an interview with China Business Daily that in fact, whether it is the entire clothing industry or the children's clothing industry, this segment of the industry is facing the development of the brand itself, only to truly grasp the needs of consumers Change will have the possibility of future development.
In Li Yahui's opinion, the current children's clothing market still has some room for development, and international and domestic brands are robbing this piece of cake. However, from the perspective of the development of children's clothing brands in China, it seems that they pay more attention to the layout of sales channels and there is a phenomenon of blind expansion. Li Yahui admits that for major children's clothing brands, the development pain point is that brands cannot adapt to changes in consumer trends, and it is difficult to accurately grasp consumer needs. In addition, the children's clothing market has serious homogeneity, and the brands have similar styles, which makes it difficult to gather stable consumer groups.
Faced with the ever-changing market environment, what exactly should children's clothing brands do to be invincible in the competition? Li Yahui told reporters that children's clothing brands need to work hard on product design, materials, quality and scene experience to comprehensively improve the shopping experience of consumers and meet the individual needs of consumers. At the same time, children's clothing companies also need to increase their brand influence through Internet marketing and experience marketing.
Cheng Weixiong said that with the improvement of consumer concepts and quality of life, the mid-to-high-end market will become a battleground for major children's clothing brands. Consumer demand will drive the development of the children's clothing industry to become branded, personalized and functional.
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