It Is Very Important To Strengthen The Management Of Brand Shoes And Clothing Enterprises.

Kappa, the main clothing retailer, has released its first half performance report today.

Data showed that the company's revenue in the first half of the year was 832 million yuan, down 29.4% from 1 billion 179 million yuan in the same period last year, and its net profit was 97 million yuan, a 56.9% decrease from 225 million yuan a year earlier.

Its operating profit is only 53 million yuan, up 80.9% from 277 million yuan a year ago.

Despite the sharp decline in performance, the company said the financial situation is still relatively stable. In June 30, 2012, the company held cash and bank financial products totaling 4 billion 800 million yuan, and there was no bank loan.

Sports brands since the second half of last year

The high inventory has become a major ailment. Enterprises are cleaning up their inventory on the one hand and reducing the storefront on the one hand.

China's semi annual report shows that in the first half of the year, the total number of Kappa brand stores decreased from 3119 at the end of the year to 2550 now, a decrease of 569, a drop of 18.2%.

On the other hand, the company also changed the previous sales model, increased the spot sales ratio, and reduced the order targets of distributors, so as to reduce the inventory pressure of distributors and optimize the inventory structure.

The main business in China is concentrated in China and Japan. The results show that the business in China has been on the decline, while business in the Japanese region has maintained growth.

According to the financial analysis, the overall downturn in China's business is due to the downturn in the market and the reduction of the dealer's order targets, resulting in a reduction in the number of sales. On the other hand, it is due to the reduction of sales discounts for the over season products and the adjustment of the dealer's supply policy to speed up the clearance of inventory.

The main business of China's branch is concentrated on Kappa brand. In the first half of this year, its revenue was 600 million yuan, down 38.7% from 979 million yuan in the same period last year.

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Business income was 394 million yuan, down 43.1% from 693 million yuan in the same period last year. The average selling price was 112 yuan, down 17% from the same period last year, and the number of sales was 3 million 673 thousand, a 43.3% decrease compared with the same period last year.

The income was 185 million yuan, down 25.1% from 247 million yuan in the same period last year, with an average income of 166 yuan, 8.3% lower than the same period last year, 1 million 184 thousand pairs of sales, a 31.9% decline compared with the same period last year, and 21 million yuan of spare parts, a decrease of 46.2% over the same period.

The main business of the Japanese division is divided into two brands, Kappa brand and Phenix brand. The first half of the two businesses completed a total of 218 million yuan, up 15.3% from 189 million yuan a year ago.

In the first half of this year, Kappa business revenue was 117 million yuan, an increase of 6.4% over the same period last year, and Phenix brand business revenue was 101 million yuan, a significant increase of 27.8% over the same period last year.

Although the company increased inventory clearance in the first half of the year, as of June 30, 2012, the company's inventory remained 359 million yuan, a slight decrease of 11% from 404 million yuan at the end of last year.

China's trend is that it will continue to optimize the distribution of sales channels in the second half of the year, and focus its efforts on promoting the business model of "brand + retail". Second, it will also plan to make a new attempt to start the "trend shop", which specializes in selling multiple brands including Kappa, Robe Di Kappa, Phenix, X-nix and inhabitant products, and combining different styles through brand differentiation.

We should strengthen the visibility of the brands of the group and cultivate new business in China with low investment and risk.

In addition, the company will continue to promote Kappa children's wear and Kappa glasses business in the first half of the year through franchising.