How Does Foreign Clothing Brand Impact Domestic Brands?

"I usually tend to buy H&M and Forever21."

Wei Yaqin, who is currently in junior high school, said she was not very willing to buy domestic dress brands at all times, and "too earthy" was designed.

Such a view is now popular among young people.

Not in a few, even has affected the sales of domestic clothing companies, so that many of the first fashion companies in China have encountered a little embarrassment.

The competition of casual wear brands is becoming increasingly fierce. Clothing companies are also looking for other ways, such as YOUNGOR and other companies that are bold enough to launch cross-border operation. They also have two major leisure apparel brands, such as Semir and the United States. They still focus on the clothing industry, but because of the difference between the layout and marketing methods, the profits are quite different.

So, what are the other ways to break through the traditional clothing brands that are not good for the day?

Catch the young

According to the 2015 earnings report released by Smith Barney, its total operating income was 6 billion 294 million yuan, down 4.92% from the same period in 2014, while net profit fell 396% and 431 million yuan.

This is the first loss in the first seven years of the listing.

The explanation given by the US side is that because of the fierce competition in the casual wear industry, although the company has a strong market position in the domestic casual wear retailing industry, with the continuous segmentation of the market, the competitive pressure from the domestic and foreign competitive brands will continue or even increase, which may lead to a reduction in the price of the product or a decrease in sales volume, thus affecting the financial situation and business performance.

In fact, in recent years, Zhou Chengjian, founder of the US bond company, has led the company's team to improve and adjust in many ways, such as optimizing the supply chain of the company, adjusting the sales channels and adapting to the layout of the Internet, pushing the O2O and APP online.

Wei Yaqin and her roommate usually catch up with a network variety show called wonderful flower.

As Iqiyi's homemade program, at the beginning, the "wonderful flower" was sponsored by the United States, and the title of the second and third phase was changed to the name "APP".

It is no doubt that the aim of this online drama is to pull back its main sales people.

In the latest quarterly earnings report, the company said its core brand Meters/bonwe, the same name, would return to focus on 18~25, a young target consumer group.

Brands try to be fun, fashionable and cutting-edge.

The continuous launch has indeed increased the popularity of the United States and the government. Today's "wonderful flower" has become a phenomenal program and enjoys a high reputation.

In the second quarter, the total volume of "wonderful flower" is over 600 million. According to the AdMasterSEI evaluation system, the popularity index of fan APP is 288, and the recognition of "fan" has increased by six times.

"Everyone knows that."

However, Wei Yaqin is indeed remembered by program.

But she still feels that the costumes in the program are "strange and exaggerated".

The 20 year old girl said.

However, at present, these lively marketing methods have not yet brought any substantial gains to the enterprise for the time being.

Detonating subdivision field

Of course, freezing point is not only a problem of the American family.

According to incomplete statistics, there are 20 cities in Shanghai and Shenzhen two cities at present.

The financial data released in 2015 accounted for 12 of net profit, accounting for 60%.

It can be seen that the cold wave in the clothing industry is continuing.

In order to break through, many enterprises began to diversify and buy some cross industry projects.

But it is clear that the United States has not yet made this plan.

Zhou Chengjian once said that besides clothes, he was unwilling to invest in other industries.

From the company's performance, almost all of them are centered around men's and women's clothing.

Comparable with the state of the United States, it is another clothing company Semir clothing that started in Wenzhou.

The company's positioning is similar to that of the US state. Semir's products are mainly aimed at "16~30 year old young people who pursue fashion and fashion."

In terms of body size, the United States has more than 3700 stores in the country, while Semir stores in the country are around 3500.

The two companies are quite similar in volume and have always been seen as competitors in the industry, but Semir's performance in 2015 is superior to that in the United States.

The former achieved 9 billion 450 million yuan in 2015, an increase of 16.1% over the same period last year. The net profit of shareholders belonging to the listed company was 1 billion 350 million yuan, an increase of 23.5% over the same period last year.

Min Guangya, an expert in clothing retailing industry, shows that the level of Semir and Smith Barney is almost the same, but there is not much difference between them.

"Semir's adult wear has not increased much in recent years.

It is mainly Semir's children's clothing business that has brought substantial growth to Semir. "

Min Guangya said.

Looking at the annual reports of the two companies, it is found that more than 90% of the states are currently wearing men's and women's clothing business.

Although there are Moomoo and Mi Xi's two children's clothing brand businesses, they are classified as less than 5% of other products.

Semir is completely different. Its children's clothing brand balbala has become an important business. In the current Semir's revenue share, children's clothing business accounts for about 42% of the total, while balbala has 3864 stores in the country.

"Planting flowers willfully and deliberately, planting willow willows without any intention."

Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd. commented that "it was originally a competition in the main industry outside the competitive advantage of his way to try, did not expect to find a break point in the blue sea of children's clothing."

Semir's steady growth may be domestic.

Successful cases of clothing enterprises in the changing environment of consumption habits.

At present, the development strategies of the two companies are different.

Semir has found its new development space and performance growth point in the market segments, but it seems that the United States seems to be thinking about how to find its own way from "fashion and trend". It learns from those overseas brands trying to cooperate with IP in making explosive loans.

It is worth noting that in the quarterly report released on the same day in April 25th, Smith Barney's operating income was 1 billion 920 million, an increase of 9.56% over the same period last year, with a net profit of 51 million 373 thousand yuan, an increase of 32.38% over the same period last year.

It is still a matter of time for the United States and the United States to digest the loss and gain the profit. How to find another burst point in the field of clothing subdivision is also the most important thing for us to consider next.