Urban Beauty Aims At Children'S Market, Striving To Find New Growth Points.

In the evening of May 12th,

(China) Holdings Limited (hereinafter referred to as "urban beauty", stock code: 2298) announced that it has reached a strategic cooperation agreement with KIMURATAN and Qingdao, and will be the sole agent in China, marketing and distributing KIMURATAN's love design and BIQUETTE (two) brand products.

This indicates that the urban beauty of the main underwear has officially entered the field of Chinese children's clothing.

It indicated that through this cooperation, the purpose is to develop infants and children in the mainland of China.

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It is reported that KIMURATAN is a baby and children clothing company in Japan, mainly engaged in the design, production and sale of infant and children's clothing.

Its brand includes love design, BIQUETTE (Bekat), Youpi (Mother), Mother Goose and so on.

It is listed on the first stock exchange of Tokyo Stock Exchange (TYO:8107). Currently, there are more than 250 sales outlets in the 40 more cities in Japan.

Underwear market competition intensified, urban beauty sales decline

It can be seen from the recent performance of urban beauty 2016 that its revenue has declined for the first time in recent years, about 8.9%, while the profit attributable to equity holders should drop by more than half, to 55.2%. Gross profit also dropped 5.3 percentage points over the same period last year.

In addition to urban beauty, Manifen's net profit, which has always been stable, also suffered from a 51.8% plunge. In the mid 2016, Mr. Manifen lost 1.

The reason for the low performance of underwear, which is regarded as the last piece of Red Sea in the clothing industry, is that with the upgrading of consumption, the demand for underwear is not only limited to functionality, but also becoming one of the conditions for consumers to buy.

Underwear must change its past single pursuit of product quality, pay attention to its comfort, health care function, so as to deduce to pay attention to fashion style, pay attention to underwear color and style.

On the other hand, the large-scale invasion of competitors is also an important reason for the low performance of traditional underwear brands.

In 2016, the international underwear giants such as the US secret, South Korea Good People, France PuLin, Switzerland ZimmerLi and British LittleWomen came to China one after another.

In addition, domestic appliances, clothing, Internet and other companies and individuals are also involved in underwear. GREE's smart underwear, Nike's sports underwear, Han Dabie house's "Korean beauty", Semir's "initial spinning", Liu Xuan's "balance", Rosamund Kwan's "MOISELLE" and so on, have accelerated the share of the domestic underwear market share.

Targeting children's market and looking for new growth points

In the context of the depressed demand in the retail environment, especially in the growth of the adult clothing market and the increasing competition in the underwear market, the urban beauty announced that it was going to enter the children's market, and it was clearly intended to expand its industrial chain and seek new profit growth points.

"The strategic cooperation with KIMURATAN and Qingdao, as well as the distribution of KIMURATAN products, can diversify the business and expand the revenue source of the group, as well as complement the main business of our group in underwear products."

City beauty says.

According to the "2016 China children's wear market development status analysis and trend prediction" released by China industrial information network, the scale of children's clothing consumption in China has expanded continuously in recent years, and has maintained a relatively high growth rate.

In 2015, the size of children's clothing market in China reached 137 billion 200 million, and the growth rate reached 8%. With the opening of the second child and the upgrading of consumption, it is estimated that the market size will exceed 150 billion by 2017.

In addition, the per capita income of the nation is growing, and they are willing to spend more money on their children.

According to the China children's Industry Research Center, 80% of the family child expenditure accounts for 30%-50% of household expenditure, and infant consumption has become one of the largest expenditures of household consumption.

At the same time,

The market concentration is still relatively low.

In 2015, the share of the top ten children's clothing brands in China was only 10.6%, far below that of France, Britain, the United States, Japan, Korea and other developed countries.

In addition to the number one brand, Barbara accounted for 4%, other brands were below 1%, and the market was highly dispersed.

It brings opportunities.

For more information, please pay attention to the world clothing shoe and hat net information report.