Market competition pattern more complex men's clothing "inverse" a few true?
Menswear market prospects are good, "foreign aid" is not as good as "main industry"
From 2016 to now, driven by consumption upgrade, the domestic clothing consumption market has recovered. According to the data released by the national bureau of statistics, in the first half of 2018, the per capita clothing consumption expenditure of the country's residents increased by 6.3 percent year-on-year to 710 yuan, and the overall trend of clothing industry consumption returning to temperature is more obvious！
According to the category division, in this wave of "warm current" in the children's clothing market unusually hot, can be called drive recovery "bellwether"; Thanks to global "street fashion", sportswear is doing well. In addition, the women's clothing market closely related to "new retail" has also made some breakthroughs, which can be regarded as "steadily forward".
By contrast, only the men's wear market is more complex. Firstly, the development prospect of menswear is continuously optimistic by the market and capital. Recent trends such as senma's planned acquisition of the parent company of JASON WU and LVMH's holding of domestic menswear GXG's IPO in Hong Kong will give people such a sense of "visibility". Industry researchers are also relatively optimistic about the prospects of the men's wear market. In the forecast period from 2016 to 2020, China's men's clothing market will maintain a compound annual growth rate of 13.1%, with the retail volume of men's clothing market reaching 676.1 billion yuan in 2017, and the retail volume of men's clothing market is expected to reach 979.3 billion yuan by 2020, according to the calculation and analysis by zhiyan consulting.
However, from the data of the listed apparel companies in the last two months, the recovery of the leading apparel companies does not seem to be in the same pace.
In the first half of 2018, heilan home, located at the top of the "pyramid", achieved its first operating revenue of over 10 billion yuan, up by 8.23% year-on-year. Net profit attributable to shareholders of listed companies was 2.1 billion yuan, up 10.2 percent year-on-year. In addition to helan house, cinephile men's wear and leang men's wear also performed well. Cinephile achieved an operating revenue increase of 23.08% year-on-year in the first half of 2018, and the net profit attributable to shareholders of listed companies increased by 228.72% year-on-year. Lilang men's clothing sales in the first half of 2018 were about 1.3 billion yuan, up 26.5 percent year-on-year, while net profit was about 340 million yuan, up 25.9 percent year-on-year.
Companies that have fared less well have seen their overall operating profits decline despite an increase in sales. For example, in the first half of 2018, qipiao men's clothing achieved operating revenue of 1.459 billion yuan, up 13.83% year on year. The net profit attributable to shareholders of listed companies was 135 million yuan, up 10.49% year on year, but the deducted non-net profit decreased by 6.15% year on year. Worse, youngor menswear achieved revenue of 3.59 billion yuan in the first half, down 33.59 percent year on year. The net profit attributable to shareholders of listed companies was 1.49 billion yuan, down 27.28 percent year on year.
Under the tide of the industry recovery, the performance of men's clothing enterprises showed a range of performance, and a few years ago these brands are quite extensive diversified layout, there is a certain correlation. Some of the companies that saw their semi-annual results slip were not the poor sales of branded apparel, but were weighed down by the previously diversified sectors. Youngor is a prominent representative of this kind of situation. In the first half of the year, the operating income of its textile and garment sector increased by 13.03% from the same period of last year, and the net profit increased by 35.73% from the same period of last year. But the other two sectors of its group business, real estate and investment, have both fallen sharply, with net profit attributable to shareholders of listed companies falling 71.44 percent and 34.26 percent, respectively, from a year earlier.
In addition, the competition in the men's clothing market is increasingly complex. Compared with more than a decade ago, domestic men's clothing brands now have to face not only each other, but also international brands and designer brands, which have obvious advantages in the context of this round of consumption upgrade. International brands have a high innate reputation, and designer brands are able to meet consumers' individual demands, which is more in line with the purchasing preference of "millennial" consumers. CBNData's recent men's wear survey also confirmed the trend. According to the data analysis of changes in shopping basket, with the changes in dressing and matching style of men's clothing consumers, their preferences and needs are developing towards internationalization and popular logo. Therefore, the agency suggests that the brand should have an insight into trend in the development of new products and integrate fashion elements into new products.
A comprehensive analysis of the market situation faced by the listed apparel enterprises of men's clothing, as the industry leader and representative, shows that although the trend of the men's clothing market is generally good, the "bonus era" in which the market trend is dominated by the seller and the output equals the sales volume in the early years has gradually gone away. In the tide of consumption upgrade, consumers have high expectations for the trend products to "bring forth the old", the demand gap has never been actually met, and the market opportunity is huge.
In such a trend background, seeking foreign aid is not as good as "returning to main business and increasing innovation". Traditional men's wear brand diversification of its stride, and look forward to in the clothing sector such as finance, real estate to boost profits, as further detailed sinking, layout is mainly from the new requirements, new preferences of consumers, from the creation of new products, brand innovation to find new growth engine, across his familiar and comfortable area, make more products with high quality and novel design word-of-mouth, break the consumers on the domestic traditional men's clothing "soil" and "tide" stereotype, has it been possible to fundamentally change the competitive landscape, occupy the tide heights.