Focus On Brand Building And Optimize Channel Structure

Domestic knitting listed companies have recently released the third quarter performance report of 2021. From the overall performance situation, the third quarter report continued the half year report performance, and the reporter of China Textile News sorted out the performance of seven leading enterprises, of which three still maintained the rapid growth of revenue and profit in the first two quarters, and the growth rate of performance was stable and good.

Sales season drives double growth

According to the third quarter report of 2021, a number of well-known knitting enterprises achieved gratifying results, showing a significant increase, with the growth rate ranging from 44.5% to 4.54%.

Jiansheng group realized 610 million yuan of operating revenue, up 44.5% year on year; The net profit attributable to the parent company was 72.9526 million yuan, with a year-on-year increase of 2163.62%.

The leading joint-stock company realized an operating income of about 888 million yuan, with a year-on-year increase of 8.85%. The net profit attributable to the parent company was about 7.34 million yuan, with a year-on-year increase of 140.87%.

Langsha Co., Ltd. realized a business income of about 107 million yuan, a year-on-year increase of 25.73%. The net profit attributable to the parent company was about 7.44 million yuan, with a year-on-year increase of 40.5%.

The operating revenue of Bangjie Co., Ltd. was about 191 million yuan, with a year-on-year increase of 4.54%. The net profit attributable to the parent company was about 17.27 million yuan, down 20.44% year on year.

On the whole, the leading enterprises in the knitting industry have inherent competitive advantages in terms of global business layout, technology research and development, product quality, brand and customer resources, and their performance growth rate ranks at the forefront of the industry.

Specifically speaking, Jiansheng group, leading shares, Longsha shares and other knitting listed companies that saw a significant increase in both revenue and net profit in the third quarter of this year are mainly due to the main business entering the traditional sales peak season, with a substantial increase in orders and a sharp rise in order price. For example, the sales volume and price of cotton socks of Jiansheng group have doubled.

According to the semi annual report of 2021, the main business of leading shares is import and export business, textile and knitting industry, domestic trade, textile and clothing industry, and textile and home textile industry, accounting for 45.9%, 40.56%, 8.09%, 5.21% and 3.13% of revenue respectively.

Langsha's profit increased by more than 40.5% on a year-on-year basis, mainly due to the company's entering the sales peak season in the second half of the year, the stronger seasonal sales volume and the increase of customer orders led to the further increase of product sales.

The main business of Bangjie Co., Ltd. is the design, research and development, production and marketing of seamless clothing. It mainly provides customers with seamless clothing development and design and production and manufacturing services in the mode of ODM / OEM. The main reason for the decrease of net profit attributable to parent company is the change of profit structure. With the continuous increase of the production cost of seamless garment industry and the increasingly fierce market competition at home and abroad, the company's main business is facing a decline in market share, resulting in changes in net profit attributable to the parent company.

The epidemic has repeatedly led to a slowdown in growth

Under the background of domestic economic growth slowing down, the third quarter of this year's financial report has both good and bad, and the revenue of some knitting listed companies is not as good as expected, and the current revenue of the listed companies such as SEMAR clothing, amo shares, and anair decreased year-on-year. From the net profit point of view, the net profit of AMO shares, chanel and so on returned to the mother decreased by a large margin.

According to the financial report, in the first three quarters of this year, the operating revenue of SEMA clothing reached 10.21 billion yuan, a year-on-year increase of 6.04%; The net profit attributable to the parent company was 943 million yuan, with a year-on-year increase of 336.64%. In the third quarter of 2021, the company realized operating revenue of 3.504 billion yuan, a year-on-year decrease of 5.69%; Net profit attributable to parent company was 278 million yuan, up 42.85% year on year. On the whole, the growth rate of SEMA clothing business income slowed down quarter by quarter, and declined in the third quarter.

In the first three quarters of this year, Amoy's operating revenue was about 2.467 billion yuan, up 5.6% year on year; The net profit was 259 million yuan, down 15.47% year on year. In the third quarter of 2021, the company realized operating revenue of about 734 million yuan, a year-on-year decrease of 7.25%. The net profit attributable to the parent company was about 3.69 million yuan, down 97.46% year on year. To be specific, although amo shares has great advantages in market share, the development of the enterprise has encountered obstacles and the growth rate of profits is lower than expected.

In the first three quarters of this year, the operating revenue of anair was 814 million yuan, with a year-on-year increase of 11.76%; The net profit attributable to the parent company was 10.053 million yuan, with a year-on-year increase of 129.44%. According to the half yearly report in 2021, the children's clothing business accounts for 99.47% of the total revenue of the company. In the third quarter of 2021, the company realized 193 million yuan of operating revenue, a year-on-year decrease of 18.56%; The net profit loss of the parent company was 35.4083 million yuan; The year-on-year decrease was 79.92%. Judging from the performance of the first three quarters of this year, the double-digit growth of revenue and net profit of Chanel is commendable, but the growth rate of double-digit revenue slowed down significantly year on year.

As for the reasons for the slowdown in the growth rate, industry insiders believe that since the third quarter of this year, the growth rate of knitting consumer market has slowed down significantly, and the sales of knitting brands show a downward trend compared with the same period of last year. There are two main reasons: first, there is retaliatory consumption in the same period of last year, so the sales volume rebounds with a higher base; Second, in the third quarter of this year, there were repeated outbreaks and natural disasters in some areas of China, which had a negative impact on the terminal sales of the industry.

As for the slow recovery of performance, SEMAR apparel said: first, the growth of business income has stagnated; Second, the cost of sales continues to rise, diluting profits. But for the fourth quarter performance, SEMAR clothing is full of confidence, is actively preparing for the peak season, the third quarter report shows that the inventory has risen to 4.02 billion yuan, a year-on-year growth of 21.5%. Children's wear business has always been the engine driving the rapid growth of SEMAR's clothing performance. In the first half of this year, after excluding the loss caused by the acquisition of sofiza group, a famous French children's wear brand, the children's clothing business of SEMAR only achieved low double-digit growth, and the performance of SEMAR clothing was low due to the repeated epidemic situation and other factors.

In the third quarter of this year, the net profit of Amoy shares decreased by 97.46%. AMO shares believes that the main reason for the decline in performance is that in the third quarter, local areas were affected by the new crown pneumonia epidemic, extreme weather and other factors, resulting in a decline in terminal sales; The company's expenditure on brand building has increased compared with that of the previous year, sales have decreased compared with the same period, and profits have declined periodically; Second, the company implemented a refined operation strategy. During the reporting period, a number of terminals that did not meet the brand's sustainable development were withdrawn, and the performance declined periodically with the operation strategy.

Anel said that the main reason for the decline was the high temperature in the third quarter, which reduced the demand for autumn and winter clothes, and the influence of floods and epidemic situation in some areas, which led to the decline of offline sales of the company; The company increases the influence of receivables collection; During the period, prepay the supplier the deposit of raw materials and processing fee for autumn and winter products; The leasing liabilities of stores and warehouses are caused by lease liabilities.

Channel structure needs to be optimized and consolidated

Under the influence of many adverse factors, such as the rise of raw material prices and the repeated epidemic situation, it is normal for enterprises to survive the fittest in the peak season. However, under the predicament, there are always enterprises that can improve the product structure, enhance the competitiveness and strengthen the channels, so as to make the strong brands go against the current.

This year's "double 11", the children's wear brand Balabala of SEMA clothing once again won the top sales performance of children's clothing, showing the brand's strong toughness and stamina in the online market. Samma clothing was founded in 1996. After a category became popular, it expanded to many categories. In 2002, it set up barabala children's clothing brand to meet the multi-dimensional needs of mother and infant users. At present, the main way to keep the brand attractive to young consumers is to launch joint brand with popular IP. Balabala brand advocates "different childhood", expecting children to grow up "unrestrained". Focus on providing children with personalized, interesting, colorful goods and experience, which also lays the foundation for exploring new revenue path.

Consumers are willing to pay for quality and appearance. Anel said that in the first three quarters of this year, its R & D investment continued to increase, and product design and quality were significantly improved. In addition, the company's financial report also showed that the third quarter of the annals cost reduction and efficiency increase results are obvious. In terms of brand building, the company continuously improved the construction of online channels, actively developed e-commerce business, and upgraded the new retail operation centers of major online shopping platforms during the reporting period. At the same time, the company's official small program "annal +" pushes real-time brand promotion activities and joint brand new products to the market, so that consumers can understand the company's dynamics at the first time, and shorten the distance between the company and consumers.

At present, there are still many uncertain factors in the overall market environment. How to reverse the "slow down" situation needs to be considered by enterprises. Many enterprises believe that, in the long run, only by focusing on "stability", clear development line, focusing on brand construction, combing core products, optimizing channel structure, and understanding consumer demand, can a strong brand be built.

(source: China Textile News)