Homemade Men'S Performance Is Declining, And YOUNGOR Has Closed 35 Stores.

In the past two years, China

The industry has been in a downward trend, leading to the fact that men's clothing companies have to face the crowding out of the bubble and have to shut down several stores that have been vigorously opened.

From the 2015 annual earnings report of domestic menswear listed brands, it seems that the retail industry is generally depressed.

In the environment, it seems that men's wear brands are beginning to get out of the shadows and some are still in the mire.

Under the pressure of continuous weakening of the environment, the pformation of men's clothing enterprises is also imperative.

Numerous

In order to get rid of the slump and depression of its main business, a listed company began a series of reforms to raise funds to invest in the real industry and seek self-help.

At the same time, there are frequent mergers and acquisitions in garment enterprises, such as overseas mergers and acquisitions, shell regrouping and diversified investments.

In the face of the overall market downturn, the industry believes that this year is still an adjustment year for men's clothing industry.

"Under the pressure of net profit decline, although we have begun to try to diversify the pformation to stimulate performance and invest more energy, we must undergo a certain period of labor pains, and we can not see the obvious effect immediately, so the pition period is also a test for enterprises."

An industry man is worried about the prospect of these enterprises.

Shen Wan Hongyuan's research report is optimistic that from the fundamentals and the rotation of different sectors, the adjustment order of sub sectors is generally sports shoes, casual wear, home textiles, men's shoes, men's wear, high-end men's wear and women's wear.

At present, the sub industry turns to the men's clothing industry. It is expected that the men's wear industry will see the bottom in 2016, and the performance elasticity will be greater. The success or failure of the pformation is the key to decide whether the business performance can rebound.

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Homemade men's performance is declining, and YOUNGOR has closed 35 stores.

Recently, YOUNGOR announced the first quarter of 2016, operating income of 5 billion 558 million, down 11.41% compared with the same period last year, net profit 2 billion 447 million, an increase of 76.30% over the same period last year.

Among them, the apparel business achieved 1 billion 40 million yuan of business revenue and a net profit of 208 million yuan, representing a decrease of 12.03% and 28.12% compared with the same period last year.

Other brands in the industry, such as the seven wolves, the good news birds, and the nine herd kings, have not yet achieved good results.

The first quarter performance report of the seven wolves showed that the net profit of the company in the first quarter of 2016 was 64 million yuan, down 5.18% compared with the same period in 2016.

The net profit of news birds has fallen by a larger margin, reaching 86.16%.

The net profit of the nine Mu Wang increased by only 0.36% over the same period last year.

Only the net profit of Dayang creation and Hinur has increased.

However, it is worth noting that Hinur's net profit has achieved a 10% digit growth of two, but the total amount is only about 5 million yuan.

From the perspective of the reduction of stores in the first quarter, YOUNGOR has closed 35 stores, and nine Mu Wang has closed 26 stores.

The performance of the seven wolves has been declining since 2013 and has been closed every year.

According to public data, there were 3155 stores in the first half of 2014, and 2636 stores in the first half of 2015, representing a decrease of 519 over the previous year.

The store of Dayang's creation reached 44 by the end of March this year, with 5 stores closed in the first quarter, mainly due to the closure of the mall or the loss of management.

Insiders said that in the past two years, the domestic men's wear industry has been in a downward trend. This is because, compared with the traditional retail industry, the current market changes and consumer behavior changes lead to men's clothing enterprises have to face the end of the bubble.

The ultimate outcome is the closure of several stores that have been very popular.

According to the recent retail sales data of consumer goods released by the National Bureau of statistics, in March 2016, sales of clothing, shoes and hats and needle textiles increased by a new low, an increase of only 4.4% to 348 billion 200 million yuan, far less than the 9.8% increase in 2015, and also a sharp slowdown compared with the 8.4% increase in 1-2 months.

And for the growth and decline of performance, many local men's clothing enterprises generally also said that weak market demand is a major factor affecting performance.

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Homemade men wear shop up? Business cost can not be avoided.

For the growth and decline of performance, a number of local men's clothing enterprises generally say that weak market demand is a major factor affecting their performance.

According to the recent retail sales data of consumer goods released by the National Bureau of statistics, in March 2016, sales of clothing, shoes and hats and needle textiles increased by a new low, an increase of only 4.4% to 348 billion 200 million yuan, far less than the 9.8% increase in 2015, and also a sharp slowdown compared with the 8.4% increase in 1-2 months.

According to the Southern Metropolis Daily, increasing operating costs has become an inevitable problem for garment enterprises.

Such as the "noble bird", its clothing industry, business income increased by 3.09%, but operating costs increased by 4.2% year-on-year, gross profit margin decreased by 0 .55%; the footwear industry's operating income decreased by 0.5% compared to the same period last year, operating costs increased by 7.7%, gross margin decreased by 4.77%; accessories business income decreased by 39.42%, operating costs decreased 38.63%, gross margin decreased by 0 .86%.

The Hodo menswear of red bean has increased its operating income by 32.83%, but its operating cost has increased by 34.41%, and its gross profit margin has dropped by 0.87%.

The business revenue of Meyer direct store increased by 3.70%, but its operating cost increased by 12.36%, and gross profit margin dropped by 3.91%.

The situation of clothing enterprises closing shop is not allowed to be ignored.

There are 71 new retail outlets in 2016, closing 148 retail terminals.

As of the end of the reporting period, YOUNGOR's sales outlets decreased by 35 compared with the beginning of the year.

Meyer brand joined franchise stores to close 2 stores.

There are 12 new stores in the nine branches, but 23 are closed, 28 new stores are open, but 44 are closed.

In view of this, Xiong Xiaokun, a researcher at CIC light industry, said that the decline in clothing industry revenue was mainly due to the decrease in demand.

In addition, under the pressure of inventory, enterprises have to sell the revolving funds at a reduced price, making the market price war frequent, and the garment industry situation is more severe.

Chen Ke pointed out that China's garment enterprises used to rely mainly on the development mode of "brand plus distributors to open stores quickly".

In the face of factors such as the increase of store and labor costs, the decline of traditional department stores and the lack of fine operation ability of dealers, the traditional growth model relying on brand bonus is difficult to support the demand for rapid growth in the future.

On the other hand, along with the structural change of consumer groups, consumers' purchasing behavior tends to be rational, and the factors such as offshore purchase, clothing sale website and designer brand emerge, so that consumers have more clothing purchasing channels than in the past.

Making money out of clothes?

Nowadays, making clothes is not easy! Making money making clothes is not even easy. Many companies have pformed themselves: adding some sideline; some are blind, others are doing Hi, and others can not tell whether the sideline is the main business or the main business is sideline.

Everyone has only one aim: to survive, to develop, and to realize the dream in mind.

Zheng Yonggang, founder of Shan Shan, said: "the era of making money by clothing is over."

Recently, the clothing listed company is planning to divestiture its clothing business and apply to Hong Kong for its apparel business.

In the description of Shanshan stock, this does not mean "abandonment", but it has arranged a new place for clothing business that has made great contributions to Shanshan.

If the plan is successfully completed, the capital territory of Shanshan will be extended to Hong Kong stock. By that time, Shanshan will hold 6 listed companies.

It is said that after the completion of the spin off, the garment business with poor performance will no longer be "dragged".

Let the clothing business "fly away from home", is interpreted as a "dump" strategy.

In the overall downturn of the garment industry, garment enterprises are seeking new growth points through various ways.

At the end of last year, YOUNGOR's wholly-owned subsidiary invested 50 million of its investment in the new energy industry. This investment aims to grasp the investment opportunities of big health and new energy industry, and is the beginning of the company's exploration of new energy field. It is in line with the company's medium and long-term development strategy plan, is conducive to the pformation of the company's investment business to strategic and industrial investment, and expands the investment business interface, which is conducive to increasing the brand value of the company and promoting the overall development of the company.

In the first quarter of 2016, YOUNGOR's net profit increased sharply because of the real estate business.

It is understood that although the real estate sector and investment sector performance is good, but the clothing business is still the main business of YOUNGOR group, the group also stressed the need to return to the main industry, the investment can help the company to open up the apparel industry chain, sideline industry to feed the main business.

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Frequent events of "cooperation" in clothing enterprises: looking for new space for development

Behind the frequent occurrence of cooperation events in clothing enterprises is the result of the comprehensive promotion of China's economic structure pformation, the integration and reconstruction of garment industry, the pformation and upgrading of garment enterprises, and the change of clothing consumption market.

In the past two years, the strategic cooperation of garment enterprises has occurred frequently.

Typically, YOUNGOR and CITIC share strategic cooperation, investing billions of CITIC shares.

YOUNGOR announced in June 10th last year that the company signed a strategic cooperation agreement with China CITIC Limited by Share Ltd. The two sides agreed to set up the two sides' strengths to jointly seek and seize major strategic opportunities in China and the global market, and to cooperate with each other to make use of their existing resources, channels and advantages to cooperate and provide business partners with convenience and support to enhance their value.

Then in July 17th, YOUNGOR announced that its wholly owned subsidiary, Xin Ma international, subscribed for 859 million shares of CITIC new shares at a price of HK $13.95 per share, with a total paction value of HK $11 billion 986 million.

YOUNGOR said the move is aimed at consolidating the established strategic cooperation relationship between the two sides, and promoting the strategic resources and business opportunities of YOUNGOR through CITIC share platform, promoting the pformation of the company and strengthening profitability and influence.

AOKANG international and Skech strategic cooperation, strategic investment Lanting Pavilion gathering potential.

In August 2015, AOKANG International announced its strategic cooperation with Cage, the second largest sports shoes brand in the United States, and plans to open about 1000 AOKANG brand stores in mainland China in 5 years. This shows that AOKANG, which is mainly engaged in leather shoes, has begun to march into the sports sector.

AOKANG International said it will establish long-term strategic cooperative relations with Cage, establish information sharing mechanism, business matching mechanism, communication and communication mechanism, cooperative research mechanism, and integrate resources between both sides.

In addition, in April 2015, Luo Lai home textile announced its strategic cooperation with the company and planned to jointly research and produce a series of smart home and family health products for bedroom. Meng Jie home textile announced a strategic cooperation with the company and developed and manufactured intelligent bedroom products.

The two major home textile enterprises have worked with the same company successively. They should value the strength and leading position of the company in the home electronic intelligent controller industry.

The purpose of cooperation is a win-win situation. It is a synergistic effect, which requires the two sides to take out complementary resources to share.

This means that, just as mergers and acquisitions need to avoid integration risks, garment enterprises should also choose the right objects to avoid opportunistic behavior, manage the cooperation process, establish mutual trust relationship, and reduce the competition risk in the process of cooperation.

Once we play the power of "two swords", we will find new directions, create new spaces and form new competitive advantages for garment enterprises in pformation and upgrading stage. This is also an important way and way for garment enterprises to pform.