Fujian Garment Enterprises' Performance Increased As Expected

As of the 23rd, the first quarterly report of the leading enterprises in Fujian clothing industry, Seven Wolves and Nine Muwang, had been disclosed. It is consistent with the market estimate, because last year's extension expansion accelerated, and there was a new increase in sales growth driven by new stores.

In the future, clothing enterprises will expand through multiple channels and brands, and the penetration of stores will be more in-depth. The industry expects that the clothing retail industry in Fujian will continue to grow steadily.

On the 23rd, Jiumuwang released the first quarter report, which showed that the operating revenue in the first quarter of 2012 was 669 million yuan, up 22.6% year on year, and the net profit attributable to shareholders of the listed company was 208 million yuan, up 28.4% year on year.

Compared with the annual report released on the same day, Jiumuwang's performance last year met expectations, and the first quarter of 2012 continued the growth of last year's performance.

Another leading men's wear enterprise in Fujian, Seven Wolves, has also achieved gratifying results. Looking through the first quarter report of Seven Wolves, the reporter found that its operating income hit a three-year high. To the first quarter, the net profit of Seven Wolves continued to rise for three consecutive quarters, and hit a three-year high. Yesterday, Seven Wolves announced the first quarter report of 2012, which showed that the operating revenue was 946 million yuan, up 26% year on year, and the net profit was 174 million yuan, up 38% year on year.

The performance of the two enterprises is in line with expectations and is directly related to channel expansion.

　　 Seven Wolf Both Jiumuwang and Jiumuwang announced that the performance of the first quarter was in line with expectations, mainly because the company increased its channel and brand building, which promoted the expansion of the company's sales scale and the corresponding growth of sales performance.

It is reported that both enterprises strengthened the construction of sales channels last year. With the help of the listing Dongfeng, Jiumuwang added 430 new sales terminals, bringing the total number of sales terminals to 3140 last year. Seven Wolves increased 451 terminal channels during the reporting period. As of December 31, 2011, the company has 3976 terminal channels in total. Among the newly opened stores, the stores in third tier and lower tier cities accounted for 49%.

In the first quarter of this year, affected by many factors, such as the economy, the advance of the Spring Festival and the climate, the business form is more complex. However, driven by the new store opening, Fujian clothing listed enterprises generally sell well. At the same time, the reporter found that the innovation and penetration of the brand is also a contributing factor.

Highlight brand contribution ability

Jiumuwang's brand contribution is particularly intuitive. Jiumuwang's core brand product men's trousers, because of its brand advantage, has ranked first in China in terms of comprehensive market share for 12 consecutive years. Last year, the revenue of this brand product accounted for 48.78% of the company's main business revenue.

Under the leadership of men's trousers, the sales revenue of Jiumuwang's series products has constantly made breakthroughs, including the sales revenue of shirts, which increased by 79.35% over the previous year; Jacket revenue increased by 64.70% over the previous year; T-shirt revenue increased by 1.95% over the previous year; Other categories of income increased by 32.75% over the previous year.

Jiumuwang, who has tasted the "sweetness" of the brand, has begun to layout a multi brand strategy in addition to the "Jiumuwang" main brand. It is reported that it also has three brands, FUN, Calliprimo and VIGANO. FUN As an American cowboy style leisure brand, Jiumuwang has opened its first franchise store in Xiamen, the headquarters of the company, in the first half of 2011; Calliprimo brand, an Italian men's online brand purchased by Jiumuwang, will also try to operate stores in the future; VIGANO is a high-end pants brand in Italy. In 2010, Jiumuwang acquired the right to use its permanent trademark in popular areas. This brand will cover the high-end men's wear market that is not currently covered by Jiumuwang's main brand, with high-end malls as the main retail terminal.

Seven Wolves, who also benefited from the brand advantage, increased the gross profit margin and sales of the company at the same time by enriching the main brand categories of men's clothing last year.

The reporter noticed that, with the increase of the overall clothing price last year, the requirements of men's clothing consumers on the cost performance ratio of clothing are constantly improving. In order to make the brand better serve the customer base, Seven Wolves launched the "black label" series on the basis of the original "red label" and "green label". Compared with the red and green label products, the black label products emphasize more on the "sense of wearing experience". Once the black label products are launched, they are recognized by the market, and the sales volume increases year on year, driving Gross profit margin It has been significantly improved. In the first quarter of last year, the gross profit rate of Seven Wolves increased by 3.12 percentage points year on year, reaching a historical high of 43.76%.