Where Is The Low Net Profit Margin?

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The online brands of listed companies have been able to uncover the "mysterious veil" by online brands that have been hidden outside the capital market.

But these "seemingly beautiful" online clothing brands are not as good as they imagined.

Relying on Taobao, Jingdong and other online platforms, in less than ten years, Internet clothing brands have sprung up all over the world.

As the largest category of e-commerce channels, online clothing brands such as "Han Du Yi house", "split silk" and "Yin man" have gradually become climates.

In May 17th, the trend front-line parent company searched and announced that it invested in the core business of the Internet, which is the "women's clothing brand" "Mei Li Xiu".

According to the announcement data, in 2014, the trade income of Ling Mei was 80 million 383 thousand and 700 yuan, and its net profit was only 640 thousand and 200 yuan. In 2015 1~3, it also suffered losses, and its net profit was -138.17 million yuan.

Not only is the company's performance in Guangzhou, which has well-known online clothing brands such as "Yin man" and "Chu Yu", it is also mediocre.

In March 11th, Guangzhou Hui Mei was searched for $100 million in financing.

According to the Guangzhou special announcement, in 2012 ~2014, Hui Mei achieved operating income of 216 million yuan, 590 million yuan and 956 million yuan respectively, and recorded net profit of 20 million 17 thousand yuan, 34 million 125 thousand yuan and 38 million 908 thousand yuan. Net profit margins were 9.3%, 5% and 4.1% respectively, showing a declining trend year by year.

This net profit margin level is not higher than traditional online brands.

In 2014, the women's clothing listed company's shares reached 1 billion 235 million yuan, the net profit attributable to the shareholders of the listed company was 121 million yuan, and the net profit margin was 9.8%.

Last year, La Natsu Bell achieved a revenue of 7 billion 814 million yuan, a net profit of 511 million yuan and a net profit margin of 6.5%.

"Clothing enterprises in a very healthy situation, the net profit margin should be more than a dozen points, the level of 5%~10% is also normal, less than 5% is more dangerous."

Famous business commentator, blue beauty city technology CEO Jian Jiang told "First Financial Daily" reporter.

The lower net profit margin is quite different from the growth rate of Internet clothing brands.

In "double eleven" and other online promotions, online clothing brand sales and sales have surpassed the offline brands many times.

In 2014, during the "double eleven" period, the top five brands of Tmall women's clothing sales were Han Du Yi house, UNIQLO, Yin man, Artka and Chu language, all of which were Internet apparel brands besides UNIQLO.

In this regard, Internet women's shoes brand Comar Nick founder Lin Shuangde told our reporter: "the popularity of the Internet brand is generally inferior to the offline brand, so the cost of brand building in the early stage is relatively large.

But under the same sales situation, the investment of the offline brands will be several times higher, and the online brand's financial return rate is relatively high.

Traffic charges that cannot be opened

Where did the money go? Lin said to the first Financial Daily reporter that traffic is a crucial factor for online brands, so the main cost of online brands is the cost of online marketing.

Jian Jiang has counted out the newspaper reporters. For the traditional offline brands, taking women's clothing as an example, the rate of increase can be more than 6 times to achieve healthy profits.

That is to say, if one

The cost is 60 yuan, and the retail price will be increased to 360 yuan at least 6 times, which includes the cost of shops, operations and inventory.

Online brands usually increase their rates by about 2.5 times, and a large part of them is traffic charges (that is, "shop click").

A Taobao personal clothing store owner told the reporter that every month its store revenue was around 20 thousand yuan, which spent 4000 yuan to buy traffic promotion shop.

"Taobao station promotion is mainly divided into diamond booth and through train.

The diamond booth is the display advertisement in the biggest position of the home page, and the through train is linked by search related words.

The owner said, "through train, Baidu bidding is somewhat similar, according to the click charges; drilling exhibition is charged by the day, the cost is higher, the general small shops are using the through train promotion way."

Before 2009, Taobao and other e-commerce platforms were in the "traffic bonus period".

At that time, in order to enhance customer satisfaction, the platform intends to support the larger sellers with relatively high quality as brands, and will send many free traffic resources.

But after that, with the increasing volume of online pactions and the continuous influx of online sellers, the average purchase cost of online passenger traffic began to increase gradually.

"Online is not like department stores, shops and booths are unlimited. There is no limit to the growth rate of online sellers and commodity categories, but the demand of consumers is limited, so online sellers have to scramble for traffic.

And generally speaking, online brands have a small proportion of old customers, and they also need traffic resources to absorb new customers. "

Jian Jiang analyzed this reporter.

Post traffic dividend Era

With more and more traditional brands entering Tmall, Jingdong and other online platforms, the platform traffic which has already slowed down will become more and more intense.

For the less powerful online clothing brands, what should we do in the future?

"There are two ways of development.

The first is to start from "small and beautiful", to increase user preferences and premium.

The customer price is high, the consumer loyalty is high, and there is no need to invest too much in traffic.

Such as the Chinese style women's clothing brand "crack silk" and so on is the route.

The second way is to be a supply chain company, guided by a large-scale supply chain efficiency advantage and taking the way of branded apparel retailers, similar to the UNIQLO under the line.

Han Du Yi house is now approaching this aspect. "

Lin Shuangde disclosed to our reporter that the enterprises below the line also have their own advantages in the supply chain.

"Ke Manik is actually implementing the" high quality, multi category, quick turnover "mode of operation.

The online brand can meet the needs of the national consumer terminals.

The first volume accounts for 5%~10% of the total goods of the season. The warehouse only needs to maintain the demand for 7 days, then it can roll up and replenish the goods according to the demand.

So online brands only need to do research and development in the two months before the season, which can save 7~10 months compared with offline brands.

On the other hand, in order to further optimize the capital chain and expand the scale, online brands are also beginning to rush on the capital road.

As early as 2011, the Korean capital has already reached tens of millions of dollars in financing agreements with the well-known venture capital IDG. In the same year, it received investment of about $10 million from Sequoia Capital and Jingwei venture. In February last year, Yin man obtained investment of tens of millions of dollars in IDG capital and Alibaba. In September of the same year, the "StarVC" launched by Huang Xiaoming and other stars announced its investment in Korea's clothes house. This year, kemannic announced that it had won the A round investment of IDG.

Moreover, the listed clothing enterprises have begun to accelerate their investment in online brands.

In addition to searching for two investments in February, La Natsu Bell also announced that he would invest in the acquisition of 54.05% stake in Hangzhou's online brand such as "seven grid".

The capital market may be the ultimate destination of some online brands.