Net Profit Fell More Than 80% News Birds Did Not Show Significant Pformation Effect

Against the backdrop of the continued downturn in the domestic apparel industry and the impact of the Internet business platform, the traditional men's clothing enterprises reported their attempts to boost their performance through private customization, but at present there is little success.

Yesterday, the first quarter of 2016 announced that the net profit fell 80% year-on-year.

According to the insiders, at present, the domestic men's wear brands have entered the private custom and high-end custom market. The blue ocean has gradually become red. If the enterprise can not launch differentiated products, it will be very difficult to grasp the market initiative.

Net profit will drop sharply

The first quarter results announcement issued by the news birds showed that the net profit attributable to shareholders of listed companies was 0-1371.62 million yuan during the 31 months of 2016 -3 January 1st, and the net profit attributable to shareholders of listed companies reached 68 million 580 thousand and 800 yuan in the same period last year, down by 80%-100% compared with the same period last year.

As for the decline in performance, the newspaper bird said that as the boom in the clothing industry continued to slump, on the one hand, the main brands of the wedding birds and professional wear brands declined, but labor costs continued to rise. On the other hand, HAZZYS brands continued to grow, but the growth rate slowed down.

Other brands, San Jack and flangton, were subjected to external pressure and contracted strategy.

Eventually, the net profit fell sharply in the first quarter of 2016.

It is understood that the birds are mainly engaged in the design, production and sale of men's clothing products such as brand suits and shirts, and so on. Its clothing brands include the main brands, the birds and HAZZYS, the Kay Mitchell, and the brand names Saint Angelo and flangton.

Seeking diversified pformation

Looking through the past years, we found that net profit has declined for three consecutive years.

In 2013, net profit attributable to shareholders of listed companies was 160 million yuan, down 66.35% from the same period last year. In 2014, the net profit attributable to shareholders of listed companies was 134 million yuan, a decrease of 16.6% over the same period last year, and net profit attributable to shareholders of listed companies decreased to 108 million yuan in 2015, down 19.55% from the same period last year.

The recession of clothing retail industry, high inventory and traditional expansion channels are no longer effective. It is an important reason for the decline in performance of the birds in the past three years.

Under the pressure of net profit decline, the news birds began to try to stimulate their performance through diversified pformation.

In early 2015, the news bird announced the development of private custom business and the development of Internet banking sideline.

The wedding bird said that in the next three years, 1000 smart tailoring business platforms will be developed, and 1000 wedding custom cooperation projects will be connected to 1000 private shops in Shanghai.

Through private customization to achieve the company's online and offline channel operation, to achieve O2O plus C2B business model.

Wu Zhize, founder and chairman of the wedding bird, is full of confidence in the pformation of enterprises. He expects that with the popularity of private customization to all its brands, the proportion of sales of customized birds will reach 50% by the end of 2018.

In June last year, Jim, a wholly-owned subsidiary of news bird company, invested 20 million yuan to increase its investment in the venture capital investment company. After the completion of the capital increase, the company had 35% stake in the Jim brothers network.

It is understood that Jim brothers are mainly engaged in the Internet custom service of shirts, and owns two brands of Jim Brothers and Net6543, which are located in high-end and middle and low end business dress.

After the investment is completed, Jim brothers will gradually enter the cross-border electricity business, and the birds can also extend their private custom to overseas markets.

Private customization is not a "golden oil".

In recent years, YOUNGOR, Shanshan, seven wolves, Hinur and other clothing brands have begun to enter the private custom market.

According to the first half financial report released recently, the company has fully promoted the multi brand and whole category customization business, promoted the business of customizing business of the company, the Royal bridegroom's wedding custom business and other customized businesses, and accelerated the multi brand custom shop, single brand custom shop, compatible Custom Shop multi-channel construction.

But the industry believes that high-end customization and private customization are not the "golden oil" of clothing enterprises.

Cheng Weixiong, general manager of clothing industry expert and Shanghai Liang Qi Brand Management Co., Ltd. believes that many garment enterprises get together with the Internet to carry out online and offline interactive private customized services, but there is no obvious difference between them.

If we can not identify the direction of pformation and follow suit, the seemingly high-end "private customization" will eventually become "standardized customization".

It is difficult for companies to get together to boost and boost their performance through this business.