Channel Sinking Works, Uppin Apparel Brand Upgrade

"No ordinary way" after the adjustment of American state dress strategy began to turn losses into profits.

Recently, the 2018 performance Bulletin released by Smith Barney showed that revenue reached 7 billion 665 million yuan, an increase of 18.42% over the same period last year, and profits were turned into profits, achieving 42 million 908 thousand and 600 yuan, an increase of 114.08% over the same period last year.

It is worth noting that the net profit of Smith Barney's clothing is less than 6/1000 of its revenue, which is rare in the clothing industry.

In the announcement, the United States explains that it is continuously promoting brand upgrading, product upgrading, channel upgrading, and retail upgrading.

The industry believes that the United States has begun to turn losses into profits, indicating that the strategy of "100 cities and thousands of stores" has worked. But in the face of the embarrassing situation of not increasing profits, relying solely on the upgrading of Metersbonwe's brand, it still faces greater challenges.

Increasing income is hard to increase

On the evening of February 27th, the state of the United States released its performance in 2018, which reported that the operating income of the United States was 7 billion 665 million yuan, an increase of 18.42% over the same period last year, operating profit of 56 million 401 thousand and 900 yuan, an increase of 118.46% over the same period last year, and a net profit of 42 million 908 thousand and 600 yuan, an increase of 114.08% over the same period last year.

As of the end of the reporting period, the company's total assets amounted to 7 billion 219 million yuan, an increase of 9.12% compared with the beginning of the year, and the owner's equity of the shareholders belonging to the listed company was 2 billion 880 million 240 thousand yuan, an increase of 1.51% over the beginning of the year.

In 2017, Smith Barney wore a deficit.

Data show that in 2017, the United States apparel revenue reached 6 billion 472 million yuan, down 0.72% compared to the same period, net profit attributable to a sharp decline of 942.95% to 304 million 800 thousand yuan.

However, this is not the first loss of the American state dress.

In 2015, the United States has seen a 431 million 900 thousand yuan loss in clothing. At that time, the revenues of the United States were 6 billion 295 million yuan.

Facing the first huge loss in 2015, Smith Barney pointed out that in the 2015 annual earnings report, the company actively responded to the upgrading of terminal consumption and the market environment. On the one hand, it made deep adjustments to the mode, strategy and organization of the private brand business, and rebuilt the core competitiveness of the brand. On the other hand, it actively promoted the layout optimization of the Internet business and explored new direction of innovation.

However, the United States apparel executives also predict that the company's pformation is still facing many challenges.

For example, "consistency and integrity of brand positioning around brand positioning has not yet been effectively implemented in the terminal" and "in the rapid pformation of direct pformation, the performance of franchising channels is still lagging behind". "The value of the core competence of products, channels, retail experience and so on has not yet been fully reflected in the market side".

But by the year 2017, Smith Barney said that the net loss of non recurring gains and losses was a loss of 333 million yuan, and the lag of joining the channel management adjustment resulted in a certain decline in the wholesale income.

As for why there was a big difference between revenue and net profit in 2018, the Beijing Commercial Daily reporter interviewed American state clothes in the form of mail. As of press release, the other side did not reply.

Repeated defeats and repeated battles

In fact, it is already the memory of the "post-80" and "post-90s" students. It is not easy to promote brand upgrading, product upgrading, channel upgrading, retail upgrading, and double digit growth in 2018 revenue and profitability.

Especially after being quickly abandoned by loyal consumers, American Apparel began to adjust its strategy constantly.

First of all, from 2010 to the Internet pformation, and on-line "state shopping" business platform.

However, only one year of operation was stripped by poor sales.

Although the failure to cross the Internet, this did not stop the pace of the United States clothing adjustment strategy.

In 2013, the United States launched the "touch net upgrade" life experience shop, but once loyal consumers' loyalty to American Apparel declined.

The industry believes that "only a single experience shop can not help us state clothing win back to consumers".

Two years later, in 2015, the United States once again announced the launch of "App", but it still has little effect.

In 2017, the United States and costumes, which were repeatedly defeated, were re pformed and opened up the "brand upgrading" mode. The main brand was pformed from a single leisure style to a brand upgrading strategy of five styles. At the same time, various forms of collection shops and single style shops were launched, and shopping centers were the main channels of force.

In 2018, the United States once again made clear the development goals, ready to develop deep channels.

In July, the United States announced that it will promote the strategic plan of "100 cities and thousands of shops" in the 35 line cities, aiming at better promoting the development strategy of Metersbonwe brand at the prefecture level, county level and town level market.

Brand upgrade to be tested

The 2017 China shopping center development index report released by the Ministry of Commerce shows that 35 line cities have potential for development, and the overall shopping center market continues to warm up. International brands are sinking to the three tier cities.

Zhou Chengjian, founder of the US bond clothing company, concluded that after more than 100 markets nationwide, "the clothing market in the 35 tier cities is getting warmer and faster, and the market value-added space is bigger."

This is also an important reason for the shift of the United States dress to the 35 tier cities.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd. believes that China's retail market will continue to improve on the basis of overall economic stability and consumption upgrading in 2018.

From the point of view of demand, the intention of expanding domestic brands based on clothing and clothing is enhanced. The promotion of capital to online business integration and expansion of the online business has become a new trend in 2018.

Faced with the rapid change and development of the Chinese market, the United States is not the first to eat crab.

Giordano, Baleno, Semir, KAMA and YISHION are all trying to pform.

Among them, Semir has launched a strategic tour of children's wear. Its brand balbala has become the largest brand of children's clothing in China, and Baleno has begun to re expand its stores to seize the market.

In the view of Yang Dayun, President of the famous fashion industry and President of Yi Yi International, the way to choose the future of Smith Barney clothing should be a diversified development thought based on "multi brand, multi-channel, multi market and multi-level". Only relying on a brand of Metersbonwe can hardly promote group growth rapidly, and the formation of brand matrix is more conducive to play a synergistic effect.