Semir Is Heavily Supporting New Brands And Launching Citydaily Shuangcheng Notes

Zhejiang Semir apparel Limited by Share Ltd (hereinafter referred to as "Semir dress") announced in the evening of August 14th that in order to protect the business expansion of the wholly owned subsidiary of Sanger (Shanghai) Trading Co., Ltd. (hereinafter referred to as "szi") and its subsidiaries, the company intends to provide more than 1 million 650 thousand US dollars guarantee to Sen sum and its subsidiaries.

Sanger, founded in July 18, 2019, covers clothing, clothing, footwear, knitwear, stationery, business and entertainment consulting, and so on.

Semir apparel said that the company's external guarantee object is a wholly owned subsidiary of the company, and its financial risk is within the controllable range, which will not affect the interests of the company and shareholders. The company's guarantee is beneficial to Sen Sen and its subsidiaries to raise financing efficiency, reduce financing costs, ensure the company's daily business activities, and support the development of new brand businesses.

Public information shows that Semir clothing is a brand clothing company dominated by a series of adult casual wear and children's clothing. The company is based on the main industry, vigorously promoting the extension of main business to the children's industry, the electricity supplier industry and the investment industry. In the future, it will gradually create a new pattern of the common development of the four major production clusters. At present, the company owns two core brands: "Semir" and "Barbara".

According to the financial report, in 2018, Semir's apparel revenue reached 15 billion 719 million yuan, an increase of 30.71% over the same period last year, operating profit of 2 billion 80 million yuan, an increase of 37.65% over the same period last year, and the net profit attributable to shareholders of listed companies was 1 billion 694 million yuan, an increase of 48.83% over the same period last year. As of December 31, 2018, the total assets of the company amounted to 16 billion 568 million yuan, and the net assets attributable to the parent company owners were 11 billion 146 million yuan.

In the first quarterly report of 2019, Semir apparel realized business income of 4 billion 118 million yuan, an increase of 63.9% over the same period last year. The net profit attributable to shareholders of listed companies was 347 million yuan, an increase of 11.06% over the same period last year. The net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 313 million yuan, an increase of 10.68% over the same period last year.

By the end of 2018, the total number of Semir clothing shops was 9905, of which 782 were newly acquired by KIDILIZ group. There was a net increase of 700 stores in the original business, of which 202 were adult clothing stores and 498 were children's clothing business.

The industry believes that Semir apparel casual wear and children's clothing business in product strength improvement, supply chain effectiveness, channel structure optimization and other aspects of continuous improvement, and operation is robust. TCP, Kidiliz and Bala brand complement each other in brand positioning and customer groups, and have integrated value in product R & D, international market operation and global sourcing. In the weak market environment, Semir clothing, as the leader of public leisure and children's wear, has a steady and steady growth. The Kidiliz net profit is not as good as income in 2019.

Yu Jian, a securities analyst at Zhejiang Merchants Group, said that the benefits of Semir clothing and its business growth were fast and steady, and that the performance of Semir clothing was strong. It also provided a certain margin of safety. The casual wear business is expected to become a super expected point. The performance of casual wear is expected to improve at the edge of the improvement of external competition pattern and continuous progress of internal reform, and it has a larger elastic space. Judging from the observation, the key driving factor for the future performance of Semir clothing is the marginal improvement of casual wear business, not the sustained and rapid growth of children's wear.

At the same time, we must also see that the international brand, the only remaining UNIQLO market share in China continues to rise, Forever21, NewLook, Topshop have been withdrawn from China, ZARA revenue growth slowed down further, H&M net profit fell, GAP has become a huge burden on group performance, and has fallen into a state of weakness at the time, "fast not broken" is failing, domestic brands, once the most popular Hong Kong brand Baleno, JEANSWEST and so on also quickly fell into a downturn. After the industry shuffled, the competition pattern improved, while the domestic brands gradually emerged. Among them, the pattern of Semir remaining was king.

Yu Jian stressed that from the perspective of the big cycle, the reform and upgrading of casual wear continued in recent years. Since 2014, Semir clothing has refined its internal strength, and constantly implemented product and supply chain reform and channel optimization, laying a solid foundation for the two growth. In 2018, Semir dress changed the head of casual wear business, and Xu Bo, general manager of the children's clothing Barbara, took office and began to relocate casual clothes. Since 2019, the brand new concept of "quality in daily life" has been released, and its products, channels and marketing methods have been upgraded and optimized around its strategic positioning. In the autumn and winter of 2019, it has already achieved initial success. With the improvement of external competition pattern, Semir apparel itself has experienced 5 years of continuous improvement, accumulated thick and thin, casual wear has continued to recover and two growth can be expected, and it is expected that the leisure wear business in the next 2-3 years is expected to achieve double-digit growth. As far as positioning is concerned, Semir clothing also released the brand new strategy: "quality in daily", positioning the mass daily lifestyle brand, emphasizing quality cost performance. The company puts forward the "quality in daily" brand strategy, in which "quality" represents the connotation of product quality, which is characterized by quality cost performance. The "Daily" representative is integrated into the daily life value chain of consumers, which is reflected in multi age, multi category and multi scene, and meets the needs of 18-35 year old consumers across scenes. Around this strategy, Semir made a series of change actions: products, the introduction of new basic series and scene product line; channel, through the "seed shop project" to promote the terminal quality improvement, meet the needs of the scene product line display, explore the single store standard model, so that later replication can be promoted; marketing, through the transmission of texture culture to establish emotional connection with consumers. Under the full range of changes, Semir casual wear is expected to continue to recover and open up the two growth cycle of the brand.

The first textile net reporter here learned from Semir costumes, according to Semir brand deputy director Zhou Ti, previously introduced, Semir clothing put forward "quality in daily" brand value proposition and as a brand philosophy, aims to discover and create public "everyday life quality sense", so that everyone can enjoy, easy to enjoy the beauty of life, to bring more improvement to the life of the public, to give life a little more "what".

Zhou Tiying revealed that during the recent transition of new and old brand positioning, Semir brand made a series of innovations in product, channel and communication level.

At the product level, Semir apparel was ordered in 2019 winter. The Semir brand launched the new basic line of brand DNA. Based on the commonality of the basic wear requirements of the 18-35 year old people across the scenes, it proposed a necessary wild product with a sense of quality promotion. The goal was to open up the mass flow and get a good order result and customer reputation at the ordering meeting. At the same time, based on the needs of users' high frequency scenarios, we provide products with corresponding subdivision scenarios, so that Semir can get more viscous traffic and joint growth opportunities.

At the channel level, Semir launched the seed shop plan, by building an ideal shop model to match brand positioning, interpreting different life scenarios and core value categories. Shop No. 1 of Semir seed shop has chosen a shop in the county town, Anhui Qianshan store. After the whole renovation, it replaced the past big leisure style style zoning with life scene subarea, and laid out more than 10% areas as a rest experience area. The "quality in daily" brand philosophy has also been skillfully integrated with Qianshan's local pottery culture experience. After reloading, the performance continues to improve. The cultural experience zone not only conveys a brand's cultural sense, but also improves the length of consumers' stay. Next, Semir will continue to open more seed shops, and the sense of life scene will be further strengthened. Brand connotation and multi category exploration will be further reflected. Based on the food, housing, transportation and entertainment of life, it is appropriate to combine different industries from store design, goods and interaction to further reflect "quality in daily life".

At the level of communication and communication, Semir will pay more attention to and enlarge the link between the circle communication and the "quality in daily" connotation, and link the sense culture and the public aesthetic to the daily scenes. In the second half of this year, Semir brand will launch "CityDaily Shuangcheng" as the first show of its independent IP platform. It will generate more valuable links between fashion week hotspots and resources and daily life of consumers, so that consumers can easily get the popular fashion of seeing, dressing and experiencing. In the spring of 2020, the brand will bring traditional Chinese culture to the public's daily life through the new spring campaign of "Semir x heritage culture x new spring Mickey", to help the public experience and experience the "quality in daily life" of the national culture.

Yu Jian, an analyst at Zhejiang Merchants Securities, said that Semir clothing products were "younger" in the past and less suitable for people over the age of 24. In order to expand consumer groups, Semir launched a new basic line. The new basic series is "quality in daily" in the "quality" performance, is suitable for multi age, multi scene wear, with a sense of quality enhancement essential must-have products, the purpose is to break the crowd income, class, circle barriers, open public traffic. Benchmarking, the new basic series is simple and not simple.

In terms of design, the new basic series implemented some minimalism while adding some personalized design, which is more fashionable than UNIQLO.

In terms of fabric, the new basic fabric and texture gradually come closer to UNIQLO due to the partial overlap of the supply chain.

In terms of color, the new basic series is more colorful than UNIQLO, which can better meet the diversified needs of consumers.

In terms of pricing, as Semir apparel continues to strengthen its cooperation with core suppliers, the cost of orders is reduced by scale advantage, and the company helps through lean production projects.

Suppliers reduce costs, so that the new basic series in the quality close to UNIQLO under the premise, the price is lower than UNIQLO low 10-20%, cost-effective.

Yu Jian believes that after the launch of the new Semir basic products series, the market has received wide acclaim. It is estimated that the order will arrive in autumn and winter in 2019. The proportion of the series has reached 22%. With more and more consumers advocating simplicity and paying attention to cost performance, the new basic series has great potential for development and is expected to become the main product line. After repositioning of Semir casual wear, the all-around reform of products, channels, marketing and supply chain, driven by the "quality and daily" brand connotation, is steadily progressing. After the adjustment period, it is expected to usher in a turning point of performance. Besides, the brand matrix of children's clothing has been perfected, and the effect of new brand cultivation has gradually emerged. The electricity supplier business has maintained a rapid development trend, and the Matthew effect is expected to continue to expand.