Bra Underwear Suddenly Failed To Sell. The Performance Of The Listed Company Is Very Large.

　　 Bra and Underwear All of a sudden, the sales of several major bra and lingerie listed companies have recently passed the sad report card, and sales performance has almost declined this year.

In fact, it is not only bra and underwear, but also women. Luxury goods The performance began to decline as early as two years ago. Although the concept of "her economy" has been fry, data from brassiere to luxury show that urban women, who are the main consumers, are holding their purse strings tightly, while the consumption power of the rural market is hard to sustain the expected growth.

Bra underwear suddenly failed to sell. The performance of the listed company is very large.

The sales of bra and underwear brands listed on the Hong Kong stock market issued an early warning. The overall sales in April 2016 to June dropped by about 18% compared with the same period last year, while the same store sales fell by more than ten percentage points a year. Urban beauty expects profits to drop by nearly 40% in the first half of this year. The performance of A share companies is also not ideal. Last year, the share price of Sinai's shares fell by more than 10% in the first quarter of this year, and the general manager of the company resigned in the near future.

Ann Li Fang is the largest bra and lingerie manufacturer in China. It includes design, manufacture and distribution. Its products include bust, underwear, tights, bathing suits, pajamas and so on. There are seven brands, including Fang Li Fang and Feng Di Shi, which cover all age levels and have more than 2000 retail outlets.

The decline in the performance of ANN Li has long been a sign. In 2014, the company's profits declined, and last year, although there was a resumption of growth, the company closed more than 100 sales outlets.

Before 2013, the company's revenue and profits continued to grow. From 2008 to 2013, revenue increased 1.29 times in six years, and net profit increased by 1.75 times.

Declining performance has led to the continued closure of the store. At the end of June 2016, there were 2186 retail outlets, compared with 30 at the end of 2015.

The decline in women's consumption will not be enough.

Sales of bra and underwear are only a microcosm of consumption weakness in recent years. Before that, luxury goods targeted mainly at female consumers had long been weak.

L'OCCITANE, a cosmetics brand from France, has grown much more dependent on the Chinese market in recent years. In order to expand its impact on Asia, especially in China, Hongkong chose the main board in 2010 as a market place. However, in the 2015 fiscal year, Sultan's net profit attributable to parent companies decreased by 9.8%.

Similarly, Prada's revenue in 2015 as a growth point dropped, and net profit plunged by 26.59%. Prada said in its earnings report that the economic environment of the international luxury market in 2015 was difficult. The hard times in the Asian market had a significant impact on the sales performance of the whole region, especially the decrease in the number of tourists from mainland China, which led to a more severe blow to sales in Hongkong and Macao than elsewhere.

A series of shoe related brands, jewelry, cosmetics and even fast fashion brands related to women's consumption are also under pressure. The typical women's shoes distributors, including BELLE international, jewelry brand Zhou Dafu, domestic cosmetics giant Shanghai Jahwa and even UNIQLO, have suffered a downward pressure on the recent year's sales and profits.

Europe and the United States and domestic brands at the same time encountered pressure, revenue and profits in all fields, and can not simply be attributed to a brand's own strategic misconduct, the overall decline in consumption is a bigger background.

In the 2015 earnings report, an Li Fang said, "consumers are taking a cautious attitude towards consumption under the uncertain economic environment. China's underwear retailing industry is facing the challenges of slowing economic growth and increasing competition, and consumers' willingness to consume will drop and affect the growth of the whole industry."

Consumer channel change or consumers really do not have money?

Changes in sales channels and changes in consumer preferences are indeed the main causes of pressure on many brands. Urban beauty even regards micro business impact as one of the main reasons for the decline in performance. But the decline in overall consumption will be a serious threat.

Many Internet brands that rise on e-commerce platforms are even more sad than traditional brands. For example, the famous Internet clothing brand Han Du clothing shed its gross profit margin and net profit margin even lower than most A share clothing listed companies.

Statistics show that in the first half of 2016, the total retail sales of consumer goods in China totaled 15 trillion and 610 billion yuan, up 10.28% over the same period last year, and the growth rate reached a new low. In 2008, the total retail sales of consumer goods in China increased by 22.72%, even by 15% in 2013. In just three years, the growth rate of total retail sales of consumer goods in China has dropped by nearly 1/3.

When the consumption of second tier cities is becoming more and more saturated, many consumer goods focus on developing 345 tier cities and rural markets. But from the financial performance of these brands in recent two years, the rural market is likely to be much worse than expected.

According to the National Bureau of statistics, the per capita consumption expenditure of rural residents in China was 9223 yuan in 2015, and the per capita consumption expenditure of urban residents was as high as 21392 yuan, 2.32 times that of rural residents. Over the past more than 10 years, the gap between urban and rural residents' consumption expenditure has not been narrowed, but is expanding.

In 2005, the per capita consumption expenditure of urban residents in China was 5387.48 yuan more than that of rural residents, but by 2015 this figure had reached 12169 yuan - the difference has doubled.

The weak consumption in rural market is rooted in low income and no money in hand, but not really without demand. Migrant workers' income is one of the main sources of income in rural areas. According to the National Bureau of statistics, the average monthly income of rural workers in 2014 and 2015 was 2864 yuan and 3072 yuan respectively. After deducting the necessary rigid expenditure, the consumption promotion space was very limited.

Previously, reporters wrote an article about the milk industry. There are many voices from the three or four line cities and rural areas in the readers' messages. These messages may reflect the reasons for the sudden pressure of many consumer goods in recent two years than statistical data.

"What capacity is surplus, obviously is unable to consume, a large number of people are unemployed and laid off", "is unable to consume, want to drink milk more people to go", "100 yuan to buy a box of milk is almost the same, can not afford to buy", "a lot of factories, shopping malls, shops, stores have closed a lot, no money to earn no money to buy things."