The Net Profit Of Men'S Wear Brands Is Growing. Is The Development Of Men'S Wear Market Ushering In A New Opportunity?

In February and March, garment enterprises continued to disclose their annual performance in 2018. From the current annual performance of some brands, both operating income and net profit have performed well. In 2018, the operating revenue of Seven Wolves increased by 14.15%, and the net profit increased by 9.79%; Baoxibird's operating revenue increased by 19.76%, and its net profit increased by 102.3%; The net profit of Kabin earned 210.2 million yuan, an increase of 3.5%

As the most mature segment market in the domestic clothing industry, both production, management, brand and marketing are gradually becoming more reasonable and perfect. In addition, the new generation of male consumers pay more attention to personal image and dress, and the sense of fashion is becoming more and more strong, which has played an important role in promoting the growth of the industry. In addition, unisexual clothing is gradually becoming popular, and female consumers are also inclined to buy some more fashionable clothes, which also gives the impetus to market growth.

In such an upward trend of the market, it is understandable that enterprises are facing a situation of performance improvement. Let's look at the annual performance data disclosed by some brands:

According to the 2018 performance express released by Seven Wolves, the annual operating revenue reached 3.521 billion yuan, up 14.15% year on year, and the net profit reached 348 million yuan, up 9.79% year on year;

In 2018, the business income of Kabin Clothing reached 1.274 billion yuan, up 16.9% year on year, and the net profit reached 210 million yuan, up 3.5% year on year;

The performance express of Baoxibird in 2018 showed that the operating revenue was 3.12 billion yuan, up 19.76% year on year, and the net profit was 52 million yuan, up 102.3% year on year;

In 2018, Xinur's operating revenue reached 1.72 billion yuan, up 122% year on year, and its net profit reached 125 million yuan, up 114% year on year;

According to the performance report of Georgebay in 2018, the annual operating revenue in 2018 was 1.005 billion yuan, up 27.7% year on year, and the net profit attributable to shareholders of listed companies was 112 million yuan, up 48.45% year on year.

According to the data disclosed by the brand at present, both operating revenue and net profit are growing, and the largest growth figure is Shinul, which has doubled. For the explosive growth of net profit, Shinur said that it was mainly due to the dividend period of cultural and tourism business. The net profit of Baoxibird was 52 million yuan, ranking last among the five brands, but it also doubled, which is a great progress for Baoxibird.

Some brands also issued performance forecasts, such as Youngor and Burson. Youngor's forecast shows that in 2018, its operating revenue was about 9.296 billion yuan, down 5.52% year on year, and its net profit was about 3.664 billion yuan, up 1134.72% year on year; According to the performance modification forecast disclosed by Burson on January 15, the net profit was a loss of 185 million yuan to 198 million yuan; It is estimated that the net profit attributable to shareholders of the listed company in 2018 will be 200 million yuan - 219 million yuan, a year-on-year decrease of 63.97% - 67.1%.

From the data, we can see that except for the decline of net profits of Burson and Red Bean, the net profits and operating revenues of other brands are growing, and we also see signs of recovery in the domestic industry. Septwolves, Baoxiniao, Youngor, Georgespie, Kabin, and Shinur all achieved more growth in net profit, and to a certain extent, they turned losses into profits.

In the second half of 2018, affected by external factors such as the weak Sino US trade and consumption environment, the growth rate of some textile and clothing enterprises slowed down significantly, but the market share continued to rise. According to the data, the Chinese market will maintain a stable growth rate of 13.1% from 2016 to 2020, and the retail scale of the market is expected to reach 979.3 billion yuan by 2020.

At such a growth rate, the market is also increasingly valued by garment enterprises, and constantly layout this market segment. On February 20, Fosun International announced that it increased its shareholding of the German brand Tom Tailor from 28.89% to 35.35%. Fosun International said that because of its huge economic potential for Tom Tailor in the fashion field, it attracted investment from the group.

In addition, Chinese male consumers are increasingly aware of fashion, and their consumption demand is also gradually tending towards internationalization and fashion trends, which urges garment enterprises to step into diversification and dig deeply into China's fashion field. At the end of February, Jiangnan Clothes announced that it will launch a new designer clothing brand "A PERSONAL NOTE 73", which is positioned at personalized high street fashion. It is an important strategy for Jiangnan Clothes to implement multi brand business operation strategy and expand horizontally to a more segmented market. As a high-end brand of H&M, COS attaches great importance to the development potential of the Chinese market, opening the world's first store in Sanlitun, Beijing, showing that international brands attach great importance to the Chinese market.

The rise of a new generation of consumers has triggered new personalized consumption, and also ushered in new opportunities for the development of traditional brands. Although the industry's recovery speed in the clothing market is growing slowly, traditional enterprises are constantly looking for new ways to improve market share, such as cross-border operations, personalized design, release of co branded funds, etc, It uses a new model to make the traditional industry become more popular, bringing good results for the transformation and upgrading of the industry. Author: Qin Jinmei