Last Year, A Loss Of 160 Million.

After several years of crazy expansion, "national dress" La Natsu Bell seems to be falling from the altar.

Recently, the La Natsu Bell clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "La Natsu Bell") announced that it intends to sell the 54.05% stake of the controlling subsidiary, Hangzhou, which involves Agel Ecommerce Ltd (hereinafter referred to as "Hangzhou dark"), and the paction price is about 200 million yuan.

Statistics show that Hangzhou was founded in 2010, and its main business involves clothing brand sales and online business operations. The company mainly sells and sells online clothing brands such as seven grid, OTHERMIX and OTHERCRAZY.

For the reasons for selling the subsidiary, La Natsu Bell told time finance that the sale items will help the company speed up the pformation of its business mode, concentrate resources on the competitive advantage of the core brand, and combine the company's development strategy to sort out the existing brand matrix, so as to achieve strategic focus.

However, in the recent annual report released in 2018 and the first quarter of 2019, La Natsu Bell fell into a predicament of a sharp decline in performance and a sharp decline in market value.

2018 annual report shows that during the reporting period, La Natsu Bell realized operating income of 10 billion 176 million yuan, down 2.58% compared to the same period last year, and net profit loss to the parent company was 160 million yuan, down 132% compared with the same period last year. The net loss was 245 million yuan, down 164.43% compared to the same period.

This is also the annual report of La Natsu Bell's first full year since the 2017 A share listing.

Public information shows that La Natsu Bell was founded in 1998 and was listed on the main board of the stock exchange of Hongkong in 2014. In 2017, La Natsu Bell returned to A share market and became the only "A+H" dual listing clothing enterprise. It was once regarded as the leading domestic dress brand with rapid rise in China. At the beginning of the market, it had been competing for the Chinese version of ZARA.

Cheng Weixiong, general manager of Shanghai Liang habitat Brand Management Co., Ltd., told time finance that La Natsu Bell's biggest problem now was "multi stores and multi brands", while multi brands led to the same quality of La Natsu Bell's brands, products, stores and operations.

Behind the loss 160 million

La Natsu Bell's data are not optimistic.

The 2018 annual report shows that at the end of the year, the company paid 329 million yuan in advance, an increase of 35.52% over the previous year, and 327 million yuan in the provision of inventory depreciation, and 5 million 179 thousand yuan in the reporting period.

The sales cost was 6 billion 32 million yuan, an increase of 38.52% over the same period last year, and the management cost was 504 million yuan, an increase of 29.51% compared with the same period last year. The financial cost was 52 million 465 thousand yuan, an increase of 216.42% over the same period last year.

La Natsu Bell's cash flow also gradually tightened. From 2016 to 2018, the net cash flow generated by La Natsu Bell's business activities was 705 million yuan, 557 million yuan and 157 million respectively, showing a sharp downward trend.

In response, La Natsu Bell said that in addition to existing bank loans and project financing, in addition to existing bank loans and project financing, the company can effectively increase the amount of cash inflow generated by operating activities through channel structure adjustment, order optimization, member marketing implementation and product lifecycle management. By increasing the stock of long-term assets, it can effectively reduce the long-term capital occupation and increase the cash source of the current period.

After La Natsu Bell disclosed his annual report, in April 10th, the Shanghai stock exchange sent a letter to La Natsu Bell asking La Natsu Bell to disclose whether the company's performance was consistent with the development of the industry and similar products.

Time finance and consulting La Natsu Bell's reply to the inquiry letter of the Shanghai Stock Exchange found that in addition to La Natsu Bell, the other garment enterprises had different levels of growth in 2018, while La Natsu Bell was the only loss making company.

In this regard, the company in 2018 can be called "contrarian loss".

La Natsu Bell told time finance that the company's strategy of "multi brand + full channel + full direct operation" has brought many years of rapid development to the company, making the company the head of the domestic women's clothing market. However, as the market continues to change, the company's "multi brand, direct business oriented" business model is facing tremendous pressure of increasing operating costs such as labor and rentals.

In the direct battalion, the pressure of the cost of labor and rentals brought by the direct channel will increase the profitability of the single store if it fails to achieve the growth of single store sales.

This is also an important reason for the loss of the company in 2018.

Cheng Weixiong told time finance that all direct battalions and multi brands are not contradictory, but La Natsu Bell's "full direct + multi brand" mode is only a single channel driving behavior, but not in the brand positioning, commodity businesses, channel store standards, marketing operation efficiency and so on. The maximum operation efficiency of multi brand products in Direct stores is also difficult to achieve, and supply chain procurement is incomparable with ZARA and UNIQLO.

FMCG industry expert Li Xingmin said publicly that the decline of La Natsu Bell's performance is not only related to the environment of the industry, but also related to its old development concept: "the clothing industry has changed very rapidly, and La Natsu Bell has not kept pace with the change of consumer psychology, but still stays in the" factory mode ", and the production line can not compete with the competition.

Expansion sequela

Before 2011, La Natsu Bell had only three women's clothing brands, including La Chapelle, Puella and Candie 's, with only 1841 stores.

As of December 31, 2018, the number of La Natsu Bell outlets was 9269, expanding by 5 times in 8 years. This scale is "amazing".

Inditex group, one of the four fashion retail groups in the world, as of the end of 2017 fiscal year, the total number of stores opened by Inditex group in several Chinese brands was 593, of which 183 of Zara stores, and more than 7000 of the total stores in the world.

In 2012, La Natsu Bell put forward the development strategy of "multi brand and direct camp", opened the crazy expansion mode, first expanded from the brand, launched 7m and La Babit Er two women's wear brands, and launched three POTE men's clothing brands, JACK WALK, MARCECK and so on.

After 2015, La Natsu Bell owned or launched Siastella, OTR, GARTINE and other brands through the holding company, and supported or participated in the development of Maira Luisa, Tanni and other brands through joint venture and participation.

La Natsu Bell is also playing overseas mergers and acquisitions in addition to opening up stores and developing new brands.

In April 10, 2018, La Natsu Bell invested 20 million 800 thousand euros in the acquisition of French women's clothing brand NafNafSAS 40% stake.

In November 26, 2018, after the twentieth meeting of the third board of directors of the company, the company intends to continue to acquire NafNafSAS60% equity. However, the delivery process of this equity has not yet been completed.

After the crazy expansion, La Xia Bei began to develop sequelae. Apart from his achievements, the store plummeted.

As of the end of March this year, the number of outlets in the company was 7653, a net decrease of 1887 from the end of March 2018, and the decrease of the number of outlets was 19.78%.

In just three months this year, the number of outlets has dropped from 9269 to 7653, and 1616 stores in three months.

In order to solve the problems brought by the strategic mode of "multi brand + direct camp", La Natsu Bell said that the plan will speed up the process of channel pformation and adjustment, and implement the mode of joint operation and franchisee to accelerate the formation of the channel structure layout of direct operation, joint operation and joining together.

Cheng Weixiong told time finance that the low efficiency of stores has always been the main problem of La Natsu Bell's existence. The growth brought by the expansion of extension stores has been fully spread along with the market coverage. The opening of new stores has not been enough to stimulate the growth of La Natsu Bell. The existing stock stores have accumulated to enhance the internal control that they have to face, and over the years, the problems brought by La Natsu Bell's negligent stock store terminal operation efficiency and low efficiency have finally broken out.