Semir Will Set Up A Joint Venture To Upgrade The Children's Clothing Market.

At the beginning of the new year, as a leading enterprise in the children's wear market, Semir clothing has taken the lead in making efforts to layout its children's clothing business.

In January 9th, Zhejiang Semir clothing Limited by Share Ltd announced that it would invest 21 million yuan in cash to establish a joint venture happy chestnut (Shanghai) Co., Ltd., which also raised the market share of the children's clothing market again.

All along, Semir clothing's children's clothing business performance is good, its children's wear brand Barbara market share is the first place in the field of children's wear for a long time.

In the beginning of 2019, Semir clothing continued to strengthen the layout of children's clothing is also reasonable.

The announcement shows that Semir apparel is ready to sign a joint venture contract with KIDILIZ GROUP and jointly set up a joint venture, happy chestnut (Shanghai) Co., Ltd., and jointly promote the brand of KIDILIZ GROUP and sell its products and develop related businesses.

The company invested 21 million yuan in cash and accounted for 70% of the registered capital of the joint venture company.

It is worth mentioning that Semir clothing has announced the acquisition of KIDILIZ GROUP's sole shareholder SofizaSAS100% equity and debt in May 2018, and completed the equity settlement in October 8, 2018, acquiring 110 million GROUP (about 844 million yuan) to acquire all assets of KIDILIZ GROUP.

KIDILIZ GROUP, the largest children's wear group in Europe, was founded in France in 1962. It is a leader in the high-end children's clothing industry in Europe and has a certain influence in the French market.

The group has Absorba, Catimini, DIM, and Esprit Kids, Kenzo Kids, Paul Smith Junior and other brands, age covering newborn to young people, the market is diversified.

Semir apparel said that KIDILIZGROUP owns 10 children's clothing brands with a long history and distinctive characteristics and 5 authorized business brands that reflect the current fashion trend. It provides products selection from middle end to high-end positioning, from newborns to teenagers and multi age groups. This cooperation will promote the development of its business in the domestic market and ultimately achieve good economic results.

In recent two years, children's clothing business has become an important source of revenue for Semir clothing.

According to the financial report, in the first half of 2018, Semir children's clothing business income was 2 billion 870 million yuan, an increase of 27.7% over the same period, accounting for 51.86% of Semir's total clothing business revenue.

It can be seen that children's clothing business plays an important role in Semir's clothing. This is also an important reason why Semir fashion can't wait to overweight children's clothing market so as to promote the implementation of the strategy of "children's wear, multi brand and internationalization."

The advantage of Semir clothing's children's clothing business lies in the fact that with the help of Semir's casual wear brand operation experience, by building an independent brand into the children's wear field, on the one hand, the brand competition is relatively relaxed in the children's clothing industry, and the brand image of the professional children's clothing is established. On the other hand, it avoids the problem of the difference between the early brand positioning and the lack of brand power.

Nowadays, a lot of enterprises are turning to children's clothing from adult clothes.

As the adult clothing sub sector has entered the mature stage, the growth rate of the industry has been slowing down.

Therefore, more and more clothing brands join in the scramble for children's clothing market share, trying to seize the new growth point of children's wear market.

According to the data released by China investment consultants, in 2017, the size of children's clothing market in China was 159 billion 700 million yuan, and the average annual compound growth rate in 5 years (2017~2021) was about 8.05%. In 2021, the market scale of China's children's clothing will reach 217 billion 700 million yuan.

With the promotion of market purchasing power and consumption desire, the children's clothing market is in the stage of rapid growth.

However, the concentration of Chinese children's clothing market is far less than that of other developed countries, such as Britain and the United States, and there is still room for growth.

From the 2017 China children's wear brand market share announced by the China Industrial and Commercial Research Institute, the market share of Semir's children's clothing brand balbala reached 4.98%, ranking the first place. The second market share of the brand was only 2.98%, followed by MINI PEACE at around 1.98%.

For children's clothing market that has not yet formed "industry oligarchs", it is a good time for the brand to expand its market share.

It is not only a rising star of Semir clothing, but also a single category enterprise that deeply ploughs children's clothing industry.

Last year, at the end of last year, the children's clothing brand "water boy", which was founded by agents, started its impact on the capital market after nearly 30 years of establishment.

According to the insiders, Ben Jia man's clothing impacted IPO, while seeking funds for enterprises' blood pfusion, he also hoped to further exert his own brand of water boy, enhance the company's ability to resist risks and get rid of the constraints of the agency business mode.

It is understood that more than 70% of the profits of Carmen clothing come from the international brand agency business, and its children's clothing brand children's profit contribution rate is less than 30%.

According to Carman prospectus, the instability of the international brand agency business has become one of the risks that the company is facing. It has already begun to restrict the development of Carmen's clothing. Therefore, the only way to get rid of the risk of agency business is to spend money on its own brand.

But in the second market of the children's clothing market, whether the water boy can win in the fierce market competition has become a difficult problem to be solved.

At present, the water boy is in the middle reaches of the domestic children's clothing market.

Although the brand is mainly located in two or three or four tier cities, the main channel is Beijing, with more than 100 shops in Beijing, of which about 50 are direct stores.

In some two or three or four tier cities, there are only a few franchises or direct stores in Carmen fashion, so it is not easy to catch up with the first camp brand in the short run.

The impact of IPO, or permission to borrow capital to solve the urgent problem, but the follow-up development of the brand is still a long way to go.

If we look at the overall competition of children's wear market, in the future, no matter what kind of children's clothing enterprises will be faced with, how will the children's wear brands and brand brands develop together, how to match the allocation of resources and the layout of the channels?

Private brands are fiercely competitive in the mass market, and brand positioning and product styles need to be misplaced, which tests the ability of children's clothing enterprises to control multiple brands.

At the same time, with the deep subdivision of children's clothing market in China, the multi brand, collectivization and development mode are the trend of the times.

Product segmentation, brand positioning, marketing mode, market channel and format will be gradually broken down, which will enable children's clothing industry to develop from flat to three-dimensional. Brand and enterprises must realize effective integration and effective control of children's clothing upstream and downstream resources nationwide and even globally, so as to win greater market share in the constantly segmenting market.