SMCP Growth Slows Down Electricity Supplier Growth Means

According to the world clothing and shoe net, France has two luxury brands, Maje and Sandro. fashion Group SMCP SAS further slowed down in the second half of 2016. Its performance has shown that the annual revenue growth rate has dropped from 19.2% in the first half to 16.4%, far lower than 33% in 2015, but Daniel Lalonde, group president and CEO, thinks that its performance has been excellent last year.

Daniel Lalonde points out the group's flag brand Paris's fashion style is very popular in China, which is one of the reasons why SMCP SAS can continue to record high growth. Now the group has been controlled by the Chinese. In April 2016, Shandong Jining Ruyi wool textile Limited by Share Ltd (002193.SZ) bought the SMCP SAS 80% stake from the global private equity giant KKR&Co.LP (NYSE:KKR), continued the overseas acquisitions of Chinese capital, KKR&Co.LP reduced its shareholdings from 69.75% to 10%, and SMCP SAS founder and management maintained 10% of the shares. It said the deal was priced at 1 billion 300 million euros (including debt).

Maje, Sandro and Claudie Pierlot also continue to accelerate the layout of the domestic market. By the end of the year, the 3 brands have 67 stores in China, and Maje and Sandro have landed in Tmall in the first half of the year. Daniel Lalonde revealed the independence of Maje and Sandro this year. Electronic Commerce The website will also be launched in China, which is very important for brand image and customer experience. He also emphasizes that Tmall plays a significant role in promoting passenger flow, and will still be the main force of domestic online sales in the future.

SMCP SAS did not publish specific data in the Chinese market, while in the semi annual report, the group said it had an increase of 59% in the first half.

Asia's annual revenue rose by 45%, while Europe and the Americas recorded 20% and 13% respectively. The international market accounted for 54%. The French domestic market has also achieved a sizeable 9% growth, even though the number of passengers has declined because of a series of terrorist attacks in Europe and the overall shrinkage of French women's clothing.

Last year, French women's clothing sales fell 2.6% to 10 billion 400 million euros compared with the same period last year. Daniel Lalonde pointed out that they continued to increase their market share under unfavorable conditions. This partly depends on the upgrading of 30-40 key stores and the implementation of full channel services such as click and pick up.

French fashion group SMCP SAS's brand Sandro store

SMCP SAS 2016 rose from 675 million euros in 2015 to 787 million euros, and core profit EBITDA increased from 107 million euros to 130 million euros, an increase of 22%, but only half of 44% in the previous year. Same store sales growth also dropped to a single digit, narrowing from 11% in 2015 to 7.1%.

Daniel Lalonde said that such a performance even if compared with oneself is not bad, after all, in 2015, the performance was very strong, and last year's data has exceeded the goal of the 5 year plan. He still expects the fast fashion supply chain to support 150-250 euros of light luxury clothing business practices to drive the group to break through 1 billion euros before 2019.

Last year, SMCP SAS opened 105 new stores, with 80-100 original plans. By the end of the year, the group had 1223 sales outlets in 36 countries and regions. This year's global expansion will be more radical, with 100-125 new stores expected to be added to major cities. Daniel Lalonde points out that the growth potential of the group is great, but they are very cautious and selective about investment.

Although the deterioration of US retail environment led to a lot of layoffs and layoffs for retailers, Daniel Lalonde emphasized that the United States remains a strategic market. Greater China also maintains plans to add 30 stores a year.

E-commerce is also one of the growth measures promoted by the group. Last year, the channel contributed 10% of revenue, representing a significant increase of 6.2% compared to 2015. Daniel Lalonde expects the data to further increase to 15%.

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