Local Service Enterprises Such As Sima And La Chapelle Have Crossed The 10 Billion Mark

In 2016, there were two more garment enterprises whose revenue scale exceeded 10 billion yuan.

　　 Sima According to the performance express released on February 27, the company achieved revenue of 10.703 billion yuan in 2016, up 13.21% year on year; The net profit was 1.403 billion yuan, up 4.51% year on year; Basic earnings per share was 0.53 yuan, up 6% year on year.

On the evening of March 16, La Chapelle announced its annual performance announcement as of December 31, 2016. In 2016, the company's revenue increased by 12.5% year-on-year to RMB 10.233 billion; Gross profit increased by 9.9% year on year to 6.813 billion yuan; Profit attributable to shareholders decreased by 13.5% year-on-year to 532 million yuan; Earnings per share are 1.08 yuan, and the proposed final dividend is 0.3 yuan per share.

Sima Clothing and La Chapelle It is two garment enterprises that have entered the scale of 10 billion revenue, plus Anta Sports, Hailan Home, Youngor, Belle International and other enterprises, as well as several quasi 10 billion enterprises. In the next few years, it can be expected that there will be about 10 garment listed enterprises entering the "10 billion club".

At present, most of the local garment enterprises are small and medium-sized enterprises, and there is no truly influential international brand. The basic factor of brand influence is the size of the enterprise, so the extensional expansion is still the main line of the development of Chinese clothing enterprises. It is very meaningful to observe the development status and characteristics of these garment enterprises with revenue exceeding 10 billion yuan.

　　 Growth scale: "new era of thousands of stores"

Due to the difference in the disclosure time of the annual report, we focus on the comparison of Anta Sports, Hailan Home, Sima Apparel and La Chapelle, the four clothing enterprises, especially the two 10 billion new "members" of Sima Apparel and La Chapelle.

In the 2016 performance report, Sima Clothing said that the continuous development of online e-commerce business and children's business promoted the company's performance growth. The specific growth situation will not be known until the official release of the annual report of Sima Clothing 2016.

La Chapelle said that the increase in revenue in 2016 was mainly due to the growth of revenue from exclusive channels and online platforms. The number of retail outlets of the Group increased from 7893 on December 31, 2015 to 8907 on December 31, 2016. Among them, the number of exclusive retail outlets increased from 2272 at the end of 2015 to 3175 at the end of 2016, driving the monopoly revenue from 2.51 billion yuan in 2015 to 3.216 billion yuan in 2016, a year-on-year increase of 28.0%. In addition, the revenue of the online platform in 2016 continued to maintain a rapid growth trend, realizing a revenue of 1.003 billion yuan, up 70.4%.

Details of revenue of various channels of La Chapelle

Source: La Chapelle 2016 Performance Report

It can be seen from this that the number of La Chapelle's head office stores has approached 10000, of which the number of franchise stores increased by nearly 1000 in 2016, driving the rapid growth of franchise revenue. E-commerce business increased by 70%, with revenue reaching 1 billion yuan. The expansion of offline stores+the growth of online e-commerce has driven La Chapelle's revenue to continue to grow, breaking the 10 billion mark.

According to the 2016 annual report of Hailan Home, the company opened 1500 new stores in 2016. Hailan Home, Aiju Rabbit and Haiyi are all expanding their stores, among which, the speed of expansion of Aiju Rabbit is particularly remarkable. The total business area of the store has almost doubled compared with 2015, making the revenue of Aiju Rabbit increase by 67.17% over the previous year. Aiju Rabbit is located in fashionable and leisure style urban women's clothing. It can be said that women's clothing business has driven the growth rate of Hailan Home to 7.39% in 2016.

The physical stores of Hailan Home in 2016

Source: Hailan Home 2016 Annual Report

According to the 2016 financial report of Anta Sports, as of December 31, 2016, there were 8860 Anta stores (including independent stores for children) (8489 at the end of 2015). FILA store (including FILA There are 802 KIDS independent stores (more than 640 at the end of 2015), while there are 6 DESCENTE stores. The total number of stores is 9668, approaching 10000. Anta plans to reach 10000 to 10160 stores by the end of 2017.

Looking at the above clothing enterprises with revenue of more than 10 billion yuan, they all maintained the pace of expanding stores in 2016. The number of stores ranged from 5000 to 10000, and they are moving towards 10000 stores. When e-commerce rose a few years ago, some people believed that e-commerce would seriously impact offline physical stores, and even blame e-commerce for its declining performance. However, the reality is that physical stores are still the main force in the scale expansion of garment enterprises. At the same time, e-commerce business, as an emerging business, can also develop rapidly in parallel. Therefore, most of these garment enterprises mentioned the O2O and omni channel development model of combining online and offline in the future. This expansion model may promote garment enterprises to enter an upgraded "new era of stores".

　　 Growth mode: Fali multi brand and second and third tier markets

Most garment enterprises with revenue of more than 10 billion yuan show the growth mode of "main brands supporting the foundation, and multi brands as the growth force". In addition, the main channel layout of these enterprises is located in the second and third tier markets, benefiting from the huge and escalating consumption power of the second and third tier markets.

As mentioned above, Sima Apparel said in its 2016 performance report that the continuous development of online e-commerce business and children's business promoted the company's performance growth. However, the largest part of Sima's clothing revenue is still leisure clothing. According to the 2015 annual report of Sima, the business revenue of leisure clothing is 5.406 billion, accounting for 57.18% of the total revenue, and that of children's clothing is 3.952 billion, accounting for 41.81%.

According to the 2016 performance report of La Chapelle, the main brand La Chapelle's revenue still occupies the largest position, but its growth rate has lagged behind. According to the performance report, the revenue growth of women's 7m and LaBabit é brands exceeded 20%, and that of men's brands Vougeek/Pote and MARCECK ō The total revenue increased by more than 30%, and the revenue of online brand OTHERMIX/OTHERCRAZY increased by more than 50%. In addition, the UlifeStyle brand launched by the Group in the second half of 2015 achieved revenue of 474 million yuan, accounting for 4.6% of the revenue contribution from 0.7% in 2015. However, due to the decline of the same store sales and the relatively small number of net retail outlets, La The revenue of Chapelle and Candie's women's wear brands decreased by 6.4% and 1.6% respectively year on year.

Revenues of various brands of La Chapelle

Source: La Chapelle 2016 Performance Report

At the same time, La Chapelle also mentioned that the income growth in 2016 was mainly from second and third tier cities. According to the quick report of performance, the Group's revenue in all tier cities increased in 2016, especially in tier two and tier three cities, which were significantly higher than other categories, mainly due to the large number of tier two and tier three cities, large development space, and relatively small competition faced by the Company in these cities.

As mentioned above, the sales of Aiju Rabbit, an urban women's clothing brand store, increased significantly in 2016, and the main brand of Hailan Home also saw a certain increase in revenue, while the sales of the other two brands, Haiyi Home and San Cano, were actually declining, but the three sub brands accounted for a relatively small proportion of revenue.

Profitability of various brands of Hailan Home in 2016

Source: Hailan Home 2016 Annual Report

By the end of 2016, Hailan Family had 5243 stores in total, including 4237 stores of "Hailan Family", 630 stores of "Aiju Rabbit", and 376 stores of "Hailan Family", which covered more than 80% of counties and cities, which also showed that most of the stores of Hailan Family were in second tier and third tier cities. Home of Hailan also mentioned that foreign fast fashion brands have risen rapidly in the Chinese market, and have sunk from first tier cities to second tier and third tier cities. A large number of stores have opened to occupy the market, which has an impact on domestic clothing brands and will face more fierce competition in the future.

At present, Anta Sports mainly operates four brands, namely Anta, the main brand targeting the mass market, and FILA and DESCENTE targeting the high-end market. Anta and FILA have children's series, and another NBA brand targeting basketball enthusiasts. The main brand Anta emphasizes the positioning of "high cost performance". Anta Sports said in the financial report that Anta has "established a nationwide distribution network and created competitive advantages in second and third tier cities". Anta children are targeted at children aged 3 to 14 in the mass market, and Anta children's stores are also mainly in second and third tier cities. Anta and Anta children's stores reached nearly 9000 by the end of 2016, while FILA and FILA are located at the high-end There are more than 800 KIDS stores and only 6 DESCENTE stores. It can be seen that the main market of Anta Sports is still the second and third tier market.

　　 Growth prospects: local Zara of the second and third tier and local LVMH of the first and second tier

Whether from Hailan Home, Anta Sports or those whose revenue has just exceeded 10 billion yuan Sima Clothing, La Chapelle, the main brands of these enterprises are public clothing brands positioned in the second and third tier. It can be seen that at this stage, the mass consumer market is still Clothing enterprises As a large-scale major market, the second and third tier markets have huge consumption capacity, which is being further upgraded and released, and physical stores will also glow with new vitality under this upgrading of consumption capacity and demand changes.

At the same time, we also see that these "10 billion club" enterprises have increased their size in the first and second tier cities by acquiring middle and high-end brands, or by adding large stores, flagship stores and shopping malls in the first and second tier cities. Therefore, for domestic clothing brands positioned at the middle and high end, the first and second tier cities are also full of charm and potential. These clothing enterprises will break through the bottle neck of scale through more mergers and acquisitions, brand matrix formation, and category clusters while building their main brands. If the second and third tier markets can give birth to the future domestic "Zara", the first and second tier markets can also give birth to the local "LVHM" group. The development models of the two may be different, but the story of the rise will be equally wonderful.

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