Any enterprise’s business development that wants to cross the growth limit of the S-shaped curve must achieve multiple growth in the form of a second curve. After decades of brutal growth, transformation and upgrading has been collectively adopted as a strategic goal by clothing enterprises above designated size, hoping to open up new growth channels.
In the past, the biggest dilemma for Chinese clothing companies was “high inventory.” Later, the flexible supply chain that integrated data and intelligentization helped it gradually get out of the predicament to a certain extent. Nowadays, the macroeconomic growth rate is declining, and repeated epidemics or extreme weather have caused weak terminal consumption, which affects consumer demand for clothing products; industry competition has intensified, and leading foreign brands are engaging in price wars, which has adversely affected domestic benchmark brands; labor costs and energy costs The continued rise affects the profits of textile manufacturing companies; the prices of raw materials such as cotton or the RMB exchange rate fluctuate sharply; domestic products are homogenized and the technical content needs to be improved; in addition, the Internet platform traffic growth dividend has peaked, squeezing brand profit margins… a series of The current situation makes transformation and upgrading permeate the entire clothing industry.
The good news is that under the multiple tests of customer base, funds, inventory, strategies, etc., Fujian men’s clothing companies have got rid of the bottleneck of the traditional model and extensive management, and the entire industry is evolving. From offline to online, from domestic to foreign, from brand creation to acquisition, men’s clothing companies are actively trying to transform. Nowadays, they generally choose to optimize channels, return to brand, and focus on products. Ine-commerce Looking for new growth poles on the commercial platform, the men’s clothing 2021 financial reports recently disclosed have many outstanding performances.
01Leading revenue resumes and profitability increases
The impact of the epidemic on the clothing industry is self-evident. Against the backdrop of a weak recovery in national consumption, local men’s clothing companies are not afraid of resistance and will carry out reforms to the end. Under the shock of the reform, Septwolves achieved both revenue and profit growth. Jiumuwang’s revenue exceeded the 3 billion yuan mark. Lilang secured the top spot in Fujian men’s clothing profits. Cabin’s revenue still increased slightly. Hudu, which has been losing money for consecutive years, will also Losses narrowed. The revenue and profits of leading companies have recovered, and the profitability of high-quality companies has increased. Each listed company has used powerful performance data to prove that the transformation and upgrading of Fujian men’s clothing is the general trend.
The first to release its 2021 results is Carbeen. Data show that Cabin achieved operating income of 1.373 billion yuan during the period, a year-on-year increase of 6.54%; profit during the year was 164 million yuan, a year-on-year decrease of 13.5%; profit attributable to the company’s equity shareholders was 164 million yuan, a year-on-year decrease of 15.5%. Basic earnings per share were 0.25 yuan.
Cabbeen pointed out that the recovery momentum of fashion business has been strong since 2021, with retail revenue increasing by nearly 20%. However, occasional local epidemics have also brought a certain degree of negative impact, slowing down business growth. Taking into account the implementation of anti-epidemic measures, Cabin began to slow down the pace of opening physical stores in the second half of 2021 and reduced product purchase orders in the first half of 2022.
Immediately, without fear of reform, Lilang issued a retail performance announcement that exceeded expectations. Lilang Group’s revenue in 2021 increased by 26.1% to RMB 3.379 billion, with net profit of RMB 470 million and gross profit margin of 41.9%. Maintain financial stability and sufficient cash flow, with operating cash flow of 599 million yuan. Lilang’s board of directors recommended the payment of a final dividend of HK11 cents per share and a special final dividend of HK5 cents per share. Together with the interim dividend paid, the total dividend per share for the year was HK34 cents, maintaining a stable dividend payout ratio.
This 35-year-old leading Chinese men’s clothing company is undergoing all-round innovation in products, channels and brands, as well as the transformation of its sales model. “Although the business environment is full of challenges, China Lilang actively adopts flexible marketing strategies and makes good use of its extensive sales management and inventory management capabilities to make appropriate arrangements for extreme weather during the year and minimize the impact; and through the improvement of sales models Reforms, successful implementation of channel optimization, product rejuvenation and Internet plus strategies, sales performance is satisfactory.” Wang Dongxing, chairman and executive director of China Lilang, said that despite the shock of the changes, Lilang Retail still exceeded expectations.
The Seven Wolves will start the first year of a new journey to achieve their goals in the next thirty years in 2021. It continues to explore and innovate around new brand strategic positioning, cater to changes in consumer demand, make efforts, change and innovate in products, channels and supply chains, and optimize corporate operations in an all-round way. In the face of the adverse external environment brought about by the epidemic, Under such circumstances, it achieved good operating results, achieving total revenue of 3.514 billion yuan, an increase of 5.5% over the same period last year; net profit attributable to the parent company was 231 million yuan, an increase of 10.7% over the same period last year.
It is worth mentioning that Karl Lagerfeld, a brand of Septwolves Group, turned a profit in 2021, with sales revenue reaching 279 million yuan, a year-on-year increase of 107.32%, and a net profit of 11.2036 million yuan. This is also the brand’s first profit since 2014.
Promoting the gradual implementation of the strategic reform of “Men’s Pants Expert”, Jiumu King’s sales growth is gratifying. During the period, Jiumuwang brand achieved operating income of 3.050 billion yuan, a year-on-year increase of 14.15%; net profit attributable to shareholders of listed companies was 195 million yuan, a year-on-year decrease of 47.25%; net profit attributable to shareholders of listed companies after excluding non-recurring gains and losses was 172 million yuan, a year-on-year increase of 61.54%.In addition, dozens of cooperative series of products have been developed with artist Su Xinping, which will be sold simultaneously at the Shenzhen Contemporary Art and Urban Planning Museum exhibition; and the diversified cooperation with “Three-Body” has enriched the connotation. In December 2021 In September, the “Three-Body” art exhibition hosted by Li Lang was held at the Wukesong Huaxi LIVE Times Art Museum in Beijing.
Jiumu Wang is moving towards strengthening the brand’s advantageous single products and strengthening consumers’ brand awareness. In the understanding of Lin Congying, Chairman of Jiumuwang, for the fiercely competitive brand clothing industry, the market environment is changing, channels are changing, brand recognition is changing, customer needs are changing, and product categories are changing. Who can survive the changes? Whoever grasps the key to victory can seize the opportunity of competition! Many times, when a brand is abandoned by customers and the times, it doesn’t even say hello. Therefore, when running a business, you cannot rest on your laurels and must constantly break through yourself. As a leader, we must accept more stringent scrutiny from consumers with higher productquality.
Looking back at the genes of brand growth, Jiumuwang has explored and created its own traditional advantageous single product – little black pants. By constantly focusing on product innovation and upgrading of single products, focusing on single product image shaping in brand promotion, and strengthening exclusive category features, it strives to achieve ” The customer impression of “brand = category” deepens customers’ “category” awareness of the brand and builds a brand “moat”.
Increase the proportion of casual trousers, light outdoor style and other products to promote younger product styles while enriching the product structure; continue to improve the style, expand the trousers style, newly launch and improve the fitted version and youthful tapered version, Meets consumer groups with different body shapes and clothing needs. Partnered with Italian designer Guido Tahra to launch the joint series “Jubilee”; partnered with former Ermenegildo Zegna designer Louis-Gabriel Nouchi to release the 2021 autumn and winter series inspired by the “Great Wall of China” and centered on trousers; partnered with former GUCCI designer Davide Marello to create “Winter Flowers” Co-branded little black pants… Jiumuwang brand continues to focus on men’s pants and strengthen its headwear items.
On the road to becoming younger and breaking the trend, Septwolves focuses on the core category of jackets to express fashion attitudes. Continuously conduct in-depth research and development around brand culture and market demand, introduce new products from the old, and provide excellent products with consistent quality. Among them, the Septwolves 2021 spring and summer series uses the theme of “Guardian and Symbiosis” to give the brand concept of “more than one side of a man” a new era of vitality, highlighting the different personalities and backgrounds of young men today; the “Chinese Attitude” series of products, The attitude and spiritual core of the Chinese people are expressed through fashion jackets as a carrier and presented to consumers; the “Be His Guardian” animal welfare charity theme series jackets use the images of endangered animals wolves, tigers, leopards and pandas as theme elements. The concept of public welfare is integrated into artistic creation and has been widely recognized.
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