Semir's Performance Alert Has Chosen To Open Shop Continuously.

The winter has arrived. In order to survive in the brutal market competition, many clothing brands choose to "cut tail to survive".

For example, Metersbonwe, a former industry leader, lost 359.61% of its net profit in the first half of this year. In recent years, it has voluntarily closed more than 1300 stores. The young fashion brand Forever21, which was once very popular, has not only withdrawn from the lacklustre Chinese market, but also in the base camp, the US market has optimized the network structure through closing stores.

The clothing brand Semir, which is similar to its volume, is doing the opposite thing. It is still opening stores, and it is mainly a franchisee. On the other hand, it is a continuous performance alarm and founder cash.

What is the company doing?

To turn to

There is no doubt that foreign fast fashion brands such as ZARA, HM and UNIQLO have taken Semir's market. Compared with the decadence of domestic brands, UNIQLO has been doing business since 2014, with a compound growth rate of 23.7% and sales volume of over 3 billion US dollars.

The classic cross-border IP cooperation has led to the frequent emergence of "UT", and the joint T-shirts launched by many famous IP such as sesame street, sailing king, man Wei, graffiti artist Futura and so on all over the country are buying hot waves. A lot of yellow cattle rushed to buy it, and immediately changed hands. 99 yuan T-shirt could even sell 300 yuan each.

The industry attributed these players to "fast fashion". Compared with the previous young fashion brands, the biggest difference is that UNIQLO and HM are proficient in capturing young fashion elements, so that the average frequency of new product planning from 2 to 4 times in the industry has increased to more than six times, while matching strong supply chain management capabilities and marketing delivery capabilities. This forced domestic players to keep up with the pace, or new products may be out of date, but they do not have the perfect basic ability, so there is a leak everywhere.

Unlike other contemporary brands, Semir seems to be running away from the battlefield. In recent years, it has shifted its focus from fashion to children's wear. In terms of performance alone, Semir is a clothing brand with little growth.

In the first half of 2019, Semir clothing (002563.SZ) achieved operating income of 8 billion 219 million yuan, an increase of 48.57% over the same period, and a net profit of 722 million yuan, an increase of 8.2% over the same period last year. But the core power has become the brand of children's clothing -- Barbara and KIDILIZ.

During the reporting period, Barbara's children's clothing revenue was 3 billion 730 million yuan, an increase of 29.89% over the same period; KIDILIZ children's clothing revenue was 1 billion 483 million yuan. The sum of the two revenue accounts for 63.43% of Semir's revenue, far exceeding its main business casual wear business income of 2 billion 944 million yuan. Strictly speaking, Semir is no longer a fashion brand.

But we can not judge whether the transformation is successful or not because Semir has paid a considerable price. In October 2018, Semir purchased about 110 million euros (about 844 million yuan) in Semir fashion for all assets of Kidiliz group and jumped to become the second largest children's clothing Brand Company in the world. Coupled with the massive expansion in recent years, Barbara has become the largest brand of children's clothing in China.

The 2019 semi annual report showed that its assets decreased by 1 billion 761 million yuan to 14 billion 808 million yuan, and liabilities increased by 23.92% to 3 billion 819 million yuan. Most notably, Semir's cash flow dropped by 4923.37% to -4.18 billion yuan. The explanation given in this report is: the increase in the cost of this period and the merger of French KIDILIZ group.

Semir, however, is confident that the company has the ability to enter and operate in the main markets of Europe and Asia and other international markets, and has a global supply chain.

But what puzzles the outside world is that the situation is great, but the founder is constantly showing off from the stock market. From 2015, the founder and senior executives of Semir costume, including Qiu Guang and his son Qiu Jianqiang, daughter-in-law Dai Chio, daughter Chiu Yan Fang, son-in-law Zhou Pingfan, and so on. Began to reduce its holdings of Semir shares, the recent two years of reduction is closer to "crazy." Among them, Qiu Guang's son-in-law Zhou Pingfan is the representative. In the first three months of this year, he had a total of 450 million yuan in the two market.

In July 1, 2019, Qiu Yanfang transferred Semir's 5% stake to OPPLE lighting chairman Wang Yaohai at a price of 9.69 yuan / share, thereby making a cash of 1 billion 308 million yuan.

According to statistics, up to now, Qiu Guang and his family have set up about 2 billion yuan in cash.

Counter expansion

Semir, which has gradually shifted to the children's clothing market, has not completely abandoned the fashion market. At least when other stores are closing up, its strength is even weaker.

In 2017, Semir established the channel transformation and upgrading, and comprehensively expanded the strategic direction of shopping center stores. In 2018, Semir formulated the "five new plan", that is, starting from the terminal image of the store, continuously changing the product line, the new speed, marketing activities, channels and so on.

As of the first half of 2019, the number of stores under Semir has reached 9404, a net increase of 281 compared with the beginning of the year. However, the number of franchisees has accounted for 70% of the total.

The blue whale producer has consulted Semir's joining in this matter. In the communication with the service hotline, the other side is fully aware of the inefficiency of many Semir stores, but still encourages reporters to open shop.

The threshold is not high. Semir joined the hotline customer service. Today, Semir encourages franchisees to develop in all forms and channels at all levels and levels in three or four tier cities such as shopping centers, Oteri J, department stores and so on. As long as franchisees can rent a store in a relatively densely populated area such as the county seat, they can open a store with 300 thousand yuan of funds. And the minimum standard of joining funds is 200 thousand yuan less than that of Metersbonwe.

Unlike previous stores and image stores, Semir has developed more stores in recent years, so there are various stores, stores and other models. At the same time, it also tries to jointly sell with other brands to improve the efficiency. For example, in September 4th of this year, Semir and beauty makeup brand fans jointly launched the offline beauty store business.

But at least for now, little has been achieved. Practitioners in a garment industry who do not want to be named say that Semir's strategy in the fashion industry is not clear, or that the business can be transformed completely. Now they have dumped potential market risks to franchisees, which is not a good idea.

These people also said, "the three or four tier cities seem to be a blank area. We take it for granted that they are at the stage of brand upgrading, but in fact, no clothing brand really takes the lead. Semir obviously knows this, otherwise it will do its own business. If it is a mess, how can it end? "