Weak Online Strong La Natsu Bell Competition Fast Fashion

At present, the clothing market is still in the doldrums. The breakthrough of clothing brands is driven by product innovation, business ability and marketing methods.

But the earnings report still shows that

The net profit has dropped for the first time since its listing. The number of stores that have increased significantly has led to overall revenue and increased cost pressures such as rent.

As a traditional clothing brand, La Natsu Bell looks forward to a diversified way to break through the performance bottleneck, but there are still many uncertainties about the effect.

For La Natsu Bell, as a listed company, the same business sales data will be more valued.

Many stores now have advantages, but it is hard to predict how big the advantages will be. It depends on the business strategy of the enterprises. Different development can turn the scale into advantage or disadvantage.

With the influx of foreign brands, local brands have been greatly affected.

And the brutal growth of the electricity supplier has also made a solid start for the clothing store, and with the expansion of the previous horse race enclosure, the garment industry is ushering in the most turbulent "closing shop tide" in history.

However, La Natsu Bell did not seem to have been influenced by "closing shop tides".

On the other hand, we need to accelerate the opening of our store, and lay out a multi brand strategy.

For this reason, a professional has suggested that for La Natsu Bell, as a listed company, business data such as same store sales will be valued.

Many stores now have advantages, but it is hard to predict how big the advantages will be. It depends on the business strategy of the enterprises. Different development can turn the scale into advantage or disadvantage.

Shanghai La Natsu Bell clothing Limited by Share Ltd recently released the 2016 annual report. In 2016, La Natsu Bell's revenue was 10 billion 233 million yuan, an increase of 12.5% over the 2015 year. This is the first time La Natsu Bell's revenue has broken 100.

The increase in revenue directly contributed to gross profit and 6 billion 813 million gross profit grew 9.9% year-on-year.

La Natsu Bell attributed the increase in revenue to the increase in monopoly channels and the growth of online platform revenue.

In 2016, La Natsu Bell maintained a steady expansion rate, and the number of retail outlets increased from 7893 to 8907.

In terms of channels, La Natsu Bell mainly focuses on retail outlets and online shops.

Retail outlets, which are divided into department stores and monopoly, are the main source of income.

Counter revenue increased from 5 billion 977 million yuan in 2015 to 5 billion 992 million yuan in 2016.

The monopoly revenue during the period was 32 million 180 thousand yuan, an increase of 28% over the same period last year.

The number of retail outlets mainly increased from 2272 at the end of 2015 to 3175 at the end of 2016.

Contrary to the high growth rate of stores, La Natsu Bell's same store sales growth rate is declining. Combined with prospectus data, in the 2011-2012 years, La Natsu Bell's same store sales growth rate is as high as 41.6%, and 2012-2013 years growth rate has dropped to 6.6%. The latest data show that in 2016, although La Natsu Bell still added 1014 stores, the same store sales growth rate has been in a negative growth state, from -3.2% in 2015 to -6.4%.

In fact, the same store sales data can better reflect the operating condition of a mature store. The growth rate of sales growth of La Natsu Bell same store is reflected to a great extent. The reason for the growth of revenue growth is probably that the bulk of the growth is due to the increasing contribution of new stores, while the operation of "old stores" is still not satisfactory.

From the perspective of the operation mode of stores, most of them are based on self-management, and the cost of opening stores is heavier.

According to the annual report, La Natsu Bell's gross profit margin dropped from 68.1% in 2015 to 66.6%.

And operating margins also fell with gross margins. Operating profits in 2016 did not increase with revenue growth, down 9.18%, or only 752 million.

The reason for this is high sales and administrative expenses. The total cost of the two items increased by 707 million last year, which directly affected the net profit. The net profit of its shareholders fell to 532 million in 2016, or 13.5%.

Clothing expert Zhang Qing explained that the same store sales decline is the plight of most garment enterprises at this stage. The decline in the same store sales rate indicates that the lack of maintenance for mature shops is becoming more and more important as the new outlets gradually turn into the same store. How to maintain the same store sales will become a pressure.

It is noteworthy that La Natsu Bell's online growth momentum showed a strong eye-catching, reaching 1 billion 40 million yuan, an increase of 70.4% over the same period, 9.8% of Dzhan La Natsu Bell's total revenue, and the performance of the electricity supplier has become a new bright spot.

Many people first knew La Natsu Bell Du from its offline store.

However, with more and more brands developing online channels, as well as Amoy brands set up offline stores, the two are no longer clear-cut.

In 2014, La Natsu Bell had already set foot in the layout of the electricity supplier. At that time, he set up an electric business team of 20 people, but the effect of online expansion was not significant. So he chose to change his strategy to find a more professional team to carry out the operation of the group electricity supplier.

At the beginning of 2015, La Natsu Bell bought the online brand seven grid which was built online, and gave the online business authority to the seven grid team operation.

From the perspective of scale, the seven grid is considered the second tier in the domestic Amoy brands, which is next only to Han Du Yi and Yin man, and more importantly, its marketing mode is not the traditional mode of buying traffic.

Under the endorsement of more than 8000 stores in La Natsu Bell's country, seven grid has played its own experience of online marketing promotion and fans operation for many years. Jean La Natsu Bell has strengthened online sales channels, and has significantly improved online sales capabilities.

In 2015, La Natsu Bell ranked third in Tmall's flagship store women's clothing category, ranking only third of Tmall's flagship store, only behind UNIQLO and Amoy brands.

As a matter of fact, in recent years, luxury brands have been closed shop, but the brand of the mid end market, including fast fashion, is still expanding. From department stores to shopping centers, from offline to online, it has become the development trend of the whole industry.

La Natsu Bell is located in the middle end market, but in some respects it is very much like fashion brand. Although its renewal cycle is not fast enough, it is close to ZARA, H&M and other fast fashion brands in terms of price.

This also means that with the expansion of La Natsu Bell, there will be direct competition with fast fashion brands.

Originally, the expansion of local brands such as La Natsu Bell was in the three or four tier cities, while the fast fashion brands were mainly concentrated in the first tier cities. However, with the gradual saturation of the first-line market, ZARA and other foreign brands began to sink.

The popularity of ZARA and H&M has no advantage in the low tier cities before, but time and information dissemination will solve this problem. With the development of online sales channels, foreign fast fashion brands will also be recognized by consumers in low level cities.

"In the first tier cities,

Brand is dominant.

"After all, brand recognition, fashion and fashion, upgrading speed and number of stores are all the advantages of fast fashion brands abroad," said Huo Jing, an analyst with apparel industry.

However, in the low tier cities, local brands are more acceptable to consumers.

In terms of style, ZARA and other brands are too fashionable for consumers in the low line market. They are more popular than basic brands such as uniforms or uniforms.

For example, you will see a pparent LACE SLING coat or a blouse shirt at ZARA, but La Natsu Bell will not have such a bold style.

In order to meet the aesthetic requirements of the main market, La Natsu Bell positioned himself as "popular fashion", that is to say, a garment should meet the needs of all kinds of people and have better wearability.

In fact, La Natsu Bell has hired European and American designers to design clothes for its brand Molly Phil in accordance with the European and American fashion style, but the result is a sales difficulty problem, and the market reaction is very bad.

In the end, the company decided to design according to the Chinese popular preferences, and it was more localized in the print and fabric selection.

The aesthetic of consumers is not static.

Especially when the fast fashion brands sink rapidly, consumers will be educated sooner or later, and La Natsu Bell will face greater challenges.

Just like many local clothing brands have been faced with - the lack of innovation in product styles and the gradual aging of brands.

Usually we think that the personalization and identification of clothing brands are the key to stand out. However, Wang Yong, executive vice president of La Natsu Bell, believes that the more individualized brands are, the older they are. But the more popular brands are, the longer the vitality will be.

Over the past year, garment industry is still facing many challenges such as channel adjustment, personalized consumption trend and foreign brand impact.

Many garment companies have gone through a period of adjustment through thorough pformation or increasing the pace of brand acquisition at home and abroad.

La Natsu Bell also pursued a multi brand line, enriching the brand portfolio through the development of foreign investment cooperation and internal private brand development.

At present, La Natsu Bell owns 10 private brands, including La Chapelle, Puella, 7m, La Babit, Candie, s, JACK WALK, Pote, WALK, and La.

In 2012, the brand revenue of the two women's clothing brands 7m and La Babit was increased by more than 20%, and the men's brand Vougeek/Pote and MARC ECK grew by more than 30%.

The proportion of UlifeStyle brands launched in the second half of 2015 increased from 0.7% in 2015 to 4.6%.

However, by the same store sales decline, the main brand La Chapelle and Candie 's women's clothing brand income decreased by 6.4% and 1.6% respectively over the same period.

In addition, through external holdings or participation, La Natsu Bell added a number of clothing brands, including OTR, OTHERMIX, Siastella, Tanni, Maria Luisa, NN, Mum Meet Me, Kin and sardni, etc.

Among them, the new brand Siastella launched in 2016 has reached 5 million 660 thousand yuan.

In 2016, La Natsu Bell also invested in TNPIHK Co, Limited, and gained the franchise in South Korea, China and Hongkong to run and manage the coffee shop under the Segafredo brand.

At the same time, it signed an investment agreement with a man's clothing supplier, Shanghai penson Industrial Co., Ltd.

Just a month ago, La Natsu Bell launched again, less than ten million yuan to invest in BeCool brand entity "Dora dream" -- a female garment rental business platform.

Traditional clothing brands, which have many years of experience in brand retailing, may also be looking for new growth points.

This investment is a test of the new business model that emphasizes the rental platform for women's clothing.

"In 2017, we will invest more in mergers and acquisitions, participate in industry integration, and invest in the large consumer industries."

The report shows.

Recently, La Natsu Bell also announced that in April 5, 2017, the company's wholly-owned subsidiary of La Xia enterprise management intends to subscribe to the new shares issued by Beijing Ming Tong, with a cost of about RMB 15 million yuan.

The latter is a brand of Internet glasses mainly sold through online channels.

Beijing Ming Tong owns and operates China's leading Internet eyewear brand INMIX.

In recent years, INMIX has been one of the top selling brands in many brands of glasses in the Chinese market Tmall sales platform, and has maintained a high growth rate.

After the conclusion of the purchase agreement, the group will benefit from the development of Beijing, and help the group enter the high margin market of spectacles and enrich its product portfolio through the resources of INMIX brand and Beijing Ming Tong.

The announcement indicates that La Natsu Bell group can use existing retail channels to help INMIX brand upgrade its offline retail market penetration.

At present, the clothing market is still in the doldrums.

The breakthrough is driven by product innovation, business capabilities and marketing methods.

La Natsu Bell's constant attempts at pattern innovation and multi-channel development are also raising chips for winning the market.

After all, the growth of sales volume driven by the number of shops over the years is very easy to touch the ceiling.

For more information, please pay attention to the world clothing shoe and hat net information report.