Semir: High Inventory, Clothing Industry, Kun Multi Brand Strategy, Planning And Acquisition

Since the beginning of this year, domestic brands, such as a target= "_blank" href= "//www.sjfzxm.com/", "dress less than /a", have been plagued by high storage problems, which has been a drag on business performance.

Reporters recently learned from the "Semir clothing media reception day" that Semir clothing, the largest leisure wear brand enterprise in the country, will also suffer negative growth for the first time this year.

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< p >, but Zheng Hongwei, vice president of Semir apparel and Secretary of the board of directors, said: "the pformation and upgrading of < a target=" _blank "href=" //www.sjfzxm.com/ "> clothing < /a > will inevitably eliminate many small and medium-sized brands, and China's 600 billion casual wear market still has much room for us.

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< p > < strong > Semir's performance growth or first slowdown is less than /strong > /p >

< p > every year from November 18th to December 18th, it is all a href= "http://sjfzxm.com/news/index_f.asp" > Semir dress < /a > corporate culture activity month, Semir apparel chairman Shao Guang and told reporters that this year Semir's corporate culture activity theme month is "walking out of the cold winter and embracing spring".

This theme undoubtedly reflects from one aspect that Semir's life is not good this year, but it also reflects Semir's confidence in the future.

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< p > looking at the three quarterly report of Semir costumes, the net profit of the first three quarters of the company was 473 million yuan, down 41.4% from last year, and net profit of 225 million yuan was achieved in the three quarter.

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< p > "autumn and winter clothing profits will be relatively high, the net profit of the whole year depends on the performance of the fourth quarter."

Zheng Hongwei, vice president of Semir apparel and Secretary of the board of directors, said.

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< p > however, the decline in net profit of clothing brand enterprises this year is probably a fact.

It is understood that Semir achieved net profit of 1 billion 200 million yuan last year, and only 473 million yuan in the first three quarters of this year. Even if net profit in the fourth quarter can reach the sum of net profit in the first three quarters, Semir's annual net profit will also show negative growth.

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< p > "this year is the 16th anniversary creation of Semir brand. In the past ten years, it should be said that Semir has maintained an annual growth rate of more than 40%, but it did encounter challenges this year, but this is not a problem of an enterprise, it is a problem facing the whole industry."

Zheng Hongwei said frankly, "Semir's performance growth this year may slow down for the first time."

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< p > < strong > > high inventory becomes a "/strong" > /p > clothing industry.

< p > influenced by the low consumption demand, high inventory has become a difficult problem for the clothing industry.

At the media meeting held on that day, Semir's clothing inventory problem has also become the focus of attention.

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< p > Qiu Guang and the other day said that inventory is the problem facing the whole industry. The growth rate of clothing market in the past has reached 20%-30% per year, or even more than 30%, but this year's growth rate is only 8%-9%, less than 10%.

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< p > Zheng Hongwei also said that this year's clothing industry inventory problem is indeed more serious than before, and Semir storage also increased compared with previous years.

Three quarterly report shows that as of the end of September, Semir stock was 1 billion 439 million yuan, an increase of 31.28% over the beginning of the year.

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< p > however, Zheng Hongwei said that the company's inventory reflected in the report of the listed clothing industry company can be divided into two parts: over season products and ready for sale products. The over season products only account for a small proportion in the clothing enterprises' stock, while the products for sale are mostly seasonal clothing, there is no selling problem, and there will be no backlog.

The product for sale is not the burden of the enterprise, but the product that the enterprise must realize its normal profit.

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< p > in addition, the reporter has learned that Semir has about 10% Direct stores and 90% is a three or four tier city franchise, and the annual orders will be determined at least six months or more to determine the clothing production. This mode of operation makes the company mostly in the hands of distributors even if there is stock.

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< p > in analyzing the reasons for increasing inventory in clothing industry, Zheng Hongwei believes that "the pformation of garment industry development mode" and "consumer consumption upgrading and subdivision" are two major reasons for the recent increase in clothing inventory.

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< p > Zheng Hongwei analysis shows that this year's inventory is higher than in previous years, which is related to the traditional "consumption driven growth mode" of garment industry in the past few years.

"In the past, growth was driven by demand driven by the expansion of the mode of opening up shops, which attracted various capital imports, including foreign brands and capital."

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< p > in addition, after the export is blocked, many other industries also turn to the garment industry, and the competition is more intense.

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< p > the inertia of traditional mode is bound to lead enterprises to increase their inventory in a period of time, and enterprises need to clean up inventory for a period of time.

The reality of "consumer consumption upgrading and subdivision" requires garment enterprises to take the lead in the market segmentation and meet the increasingly personalized needs of consumers in their niche market.

The existing popular products will inevitably produce some "backlog" in the segmented consumer market.

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< p > strong > multi brand strategy to plan merger and acquisition < /strong > /p >

< p > "domestic garment industry is in the process of increasing from quantity to quality. This process is bound to bring pains to the whole industry, but such a situation should be temporary."

Zheng Hongwei said.

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At P's meeting, Zheng Hongwei repeatedly expressed his optimism about the future of the clothing industry.

He said, regardless of exports or investment, the market environment is not so optimistic, but after the "Eighteen big", the country has begun to stress domestic demand, and the pace of urbanization in China will also continue to accelerate, which brings many opportunities for the development of clothing brands.

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< p > "and the pformation and upgrading of garment industry is bound to eliminate many small and medium-sized brands. Clothing brand listed companies will occupy more market share due to brand effect and strong financial strength. China's 600 billion casual wear market still has much room for us."

Zheng Hongwei said.

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"P" is based on this optimistic expectation that Semir is already planning acquisitions of other brands.

"4 billion yuan of cash flow, 10% of the debt ratio, we have sufficient cash flow can consider cooperation with other brands, in the future Semir will adhere to the way of multi brand development strategy."

Shao Guang he said.

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< p > Zheng Hongwei revealed that Semir has already started negotiations with some of its clothing brands on mergers and acquisitions, and does not rule out the possibility of making high-end men's wear, women's wear and more high-end children's clothing in the future.

However, Zheng Hongwei disclosed that the company will not consider involvement in the garment manufacturing industry. In the future, it will still adopt the mode of production outsourcing to develop multi brand strategy.

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< p > according to the introduction, at present, Semir clothing owns two brands, one is the youth clothing brand "Semir", which is positioned between the age of 16 and 30, one is the "children's clothing brand" balbala, which is located between 0 and 14 years old.

The annual sales volume of the former is around 15 billion yuan, ranking the first tier of the domestic casual wear brand, while the latter's annual sales volume is around 4 billion yuan, which has become the largest brand of children's clothing brand in China.

In addition, the "GML" brand has 30% shares.

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