News Bird's Main Brand Revenue Declined To Restructure Channels To Survive

When Stock Pressure has become a major problem in the apparel retailing industry, and has threatened sales channels. Taking measures to clean up inventory and adjust channels has become a barrier that enterprises can not bypass. The latest third quarter earnings report released by the news birds showed that in the third quarter of 2013, the company achieved operating income of 515 million yuan, down 35.51% compared with the same period last year. The net profit attributable to shareholders of listed companies was only 75 million yuan, down 65.31% compared to the same period in 2013. In the first three quarters, the total revenue was 1 billion 552 million yuan, a year-on-year decline of 9.43% and net profit of 157 million yuan, down 54.11% from the same period last year.

The report shows that net profit attributable to the owners of the parent company decreased by 54.11% compared with the same period last year, which was mainly affected by the economic downturn and the downturn in the industry market. The main brand income of the news birds declined, but the main input (cost) of the brand was relatively fixed, not falling down with the delivery volume. The company's multi brand development strategy was in the development and investment phase, but the sales increments could not make up for the huge pre investment expenses, and the corporate income tax rate of the parent company was adjusted to 25%.

Since last year, the market of Garment Retailing industry continued to be weak, and terminal consumption continued to slump. According to the announcement, the franchisees, despite their efforts to enhance the terminal management capabilities, improve the environment of terminal stores, and improve their service levels, still bear a lot of business pressure and have accumulated more clothing inventory. Individual franchisees show insufficient confidence.

"Whole industry At present, from the fast growing stage to the mature stage, the situation of each enterprise will be different, which is related to the maturity of the market and the growth cycle of the enterprise. If the market is mature, it will be faced with problems such as inventory accumulation first. Therefore, the fierce competition in the market and the low consumption terminal environment have triggered the inventory crisis, and the inventory crisis has led to a channel crisis. Garment industry analyst Ma Gang told reporters.

In order to support channel development and reorganize channel products, the news birds also released channel adjustment measures yesterday to help franchisees ease operational pressure.

The company decided to repurchase part of the goods from January 1, 2013 to September 30, 2013 at a price of no more than 300 million yuan (at the original factory price), which is scheduled to be completed by December 31, 2013. With a total cost of about 100 million yuan (at the original factory price), a portion of the goods issued from October 1, 2013 to December 31, 2013 will be returned from the buyout to a certain proportion, and the factory discount will be reasonably raised. 2014 the goods policy started in spring and summer. The Licensing companies management layer adjusts according to the actual market situation.

　　 Wedding bird It is estimated that the total expenditure of repurchase and buyout plus consignment sales is 400 million yuan, which is expected to reduce the total sales revenue of the company in the year 2013 to a maximum of 240 million yuan, accounting for 10.65% of the audited business income in 2012. It is estimated that the net profit will be reduced by about 120 million yuan, accounting for 25.12% of the audited net profit of the 2012 year, and the inventory of the company's stock is expected to increase by about 150 million yuan, accounting for 5.69% of the audited net assets of the company at the end of 2012 years and the total assets of the company.

"Although the export trade has increased in the first half of this year, thus reducing the pressure of domestic sales, the inventory and channel problems faced by enterprises must rely on the measures taken by the enterprises themselves." Ma Gang said. He believes that this is no way for enterprises to go around. For long-term development, measures must also be taken to solve inventory and channel problems.

The news bird also said that the company's reorganization of the channel goods, the purchase of some of the goods and the return of some goods from buyout to a certain proportion were replaced by an active marketing adjustment, which had some impact on the short-term performance of the company. However, the company has already formulated effective measures to deal with it, which is conducive to the overall healthy operation of the company's marketing network, enhancing the franchisee's continuous operation ability, enhancing the confidence of the franchisee, stabilizing the market network, and is conducive to the development of the new franchisee and enhancing the long-term competitiveness of the company's brand.

Semir apparel also released the three quarterly report in 2013. Semir achieved 4 billion 927 million yuan in the first three quarters of 2013, an increase of 6.85% over the same period last year. The net profit attributable to shareholders of listed companies was 552 million yuan, an increase of 16.48% over the same period last year.

"In the depression of the whole industry, Semir's performance in 2012 was not ideal, but it began to adjust in 2013, such as the market of high-end children's clothing, expanding sales types to cover more market segments, thus expanding consumer groups and adjusting channels. However, this does not mean that the industry has begun to improve, like the three quarterly performance of MP. Ma Gang said.