“Men’s Wardrobe” has increased performance in women’s clothing. What’s wrong with Hailan House?


Recently, Hailan House Co., Ltd. released the 2016 annual performance report. Although the operating income and net profit have increased year -on -year, the growth rate has only reached a single digit increase, which is also declining year -on -year compared to the past.

In the past year, Hailan House achieved operating income of 17 billion yuan, an increase of 7.39%over the same period last year. The net profit attributable to shareholders of listed companies was 3.123 billion yuan, an increase of 5.74%over the same period last year.


However, the company’s operating income and the net profit growth rate belonged to the shareholders of listed companies was as high as 72.56%and 75.83%, respectively. In 2015, the two numbers fell to 28.3%and 24.35%. From this point of view, the number of digits of 2016 means long.

“Men’s Wardrobe” Hailan House was once called “National Men’s Wear” for its excellent market performance. When the traditional clothing industry falls into the cold winter, its performance is dazzling compared to men’s clothing brands such as newsbirds and seven wolves. However, the sharp decline in revenue and net profit also reflects some problems and hidden concerns.


“Men’s Wardrobe” profitable by women’s clothing?


Hailan House Co., Ltd. has four major clothing brands: Hailan’s House, Aiju Rabbit, Haijia, and San Keno, which are positioned as: business, fashion, and leisurely mass affordable high -quality men’s clothing; fashion and casual cities Women’s; high -cost -effective men’s clothing for low -income people; tailor -made business professional clothing.

Last year’s annual report showed that among the four major brands, the increasing increase in women’s clothing Rabbit’s revenue is much higher than that of the other three men’s clothing brands, as high as 67.17%. In 2015, the brand’s year -on -year revenue growth rate was only 0.69%. The company’s main brand Hailan House revenue increased by 8.98%. You must know that the number in the 2015 annual report was 27.16%.

The other two brands of revenue declined. Last year, the company’s profitability of men and women’s clothing brands and the comparison of 2015 showed that men’s clothing was not strong this year, but women’s performance was beautiful. It is worth mentioning that “Baiyi Baishun Clothing Co., Ltd.” was renamed “Jiangyinhai Clothing Co., Ltd.” in 2016.


The profitability of each brand during the 2016 annual report period

The profitability of each brand during the 2015 annual report period

In addition to the increasing increase in revenue, the revenue of men’s clothing brands has also declined significantly, which is not downturn. Regarding the decline in the average single -store revenue in Hai, Hailan House stated that it was mainly due to the area of ​​the Hai family who reduced the area of ​​a single store.

In terms of single -store revenue, Aiju Rabbit was 1.306 million yuan, an increase of 23.76%year -on -year, and it was far ahead in various brands in China. The decline in the operating income of single stores may affect the willingness of franchisees in the future.


Hailan House, known as the “men’s wardrobe”, is not as good as women’s clothing, which is undoubtedly a bad development momentum.

Offline -based sales model

2016 is hailed as the “first year of the China Network”. In recent years, the rise of online celebrities and online personalized customization have a greater impact on young consumer groups.

At present, many clothing brands have begun to use the Internet platform. With the help of the net red economy year, the penetration rate of clothing online shopping in my country has further expanded. In 2016, the penetration rate of clothing online shopping will reach 36.9%, an increase of 10%year -on -year.

Mo Yanqing, an analyst at the China Electronic Commerce Research Center, pointed out that compared with other products, clothing is more advantageous in the realization of online celebrity e -commerce.

In the new era of the Internet celebrity economy, through the in -depth integration of e -commerce with live broadcast and Internet celebrities, e -commerce can not only attract fan users who are high -loyal, but also spread through social live broadcasting. Essence

In fact, Hailan House also launched a tailor -made sales channel. Online sales are responsible for the company’s wholly -owned subsidiaries. In addition to some mainstream e -commerce platforms, the sales channels also have the company’s official website and mobile app wireless platform.

However, the 2016 financial report shows that the sales channels of Hailan House are divided into online sales and offline sales. Among them, the operating income of online sales was 854 million yuan, accounting for 5.17%, and offline revenue accounted for 94.83%of 94.83%. Essence

It is not difficult to see that online sales accounted for a large proportion, and the model of offline sales is the main model of Hailan House clothing sales.

It is not difficult to find out the financial report of the seven wolves in the past three years. The decline in continuous performance has become its norm. Early warnings have been issued since the beginning of 2013. The net profit in 2013 was 379 million yuan, a year -on -year decrease of 32.44%. This is the first time since its listing.

It is understood that the seven wolves announced the adjustment of the development strategy in 2015. At present, the Seven Wolf not only actively uses various public e -commerce platforms such as Tmall and JD, but also built its own brand official mall to provide consumers with a comprehensive online consumption experience. “

The 2015 annual report shows that the seven wolf e -commerce business achieved a profit of 700 million yuan, an increase of more than 60%over 2014. It can be described as an explosive growth, which is a good result.

High inventory brought by rapid expansion

One of the reasons why Hailan House can maintain growth in the trend is because of its unique business model: upstream 赊 sales goods system+downstream financial franchise system.

Picture source: snowball

Specifically, in the face of its upstream supply chain, Hailan House will not pay the payment in full when purchasing the goods. If the products produced by suppliers cannot be sold at Hailan House specialty stores, Hailan House has the right to return the goods. In this way, Hailan House does not bear too much inventory risk.


In its downstream sales chain, franchisees are used for rent, decoration and personnel wages. Hailan House is responsible for store image, operation management, and delivery of goods. The final sales income is divided in proportion.

This model allows franchisees and brands to bear their own risks, but also allow them to show their best parts to avoid the risks that the operating capabilities are uneven and bad.

Based on this model, Hailan House can quickly expand the store when the industry is sluggish. The financial report shows that there are 5,243 stores in Hailan House Group in 2016, and the number of new stores in 2016 reached as much as 1,500. It really occupied a certain market share in the Chinese men’s clothing market.

Such a rapid expansion situation brings performance growth to Hailan House and also causes the risk of inventory. New stores need goods. If you ca n’t sell it, you will have a backlog. To a certain extent, suppliers will not allow continues to return. In addition, the Hailan House does not discount, and the clothing will not be sold after the season.

In fact, inventory risk has appeared. According to the 2016 financial report of Hailan House, at the end of the reporting period, Hailan House inventory reached 8.632 billion yuan.

Some people in the clothing industry said that once Hailan will not be able to maintain such a development speed in the future, the profitability of franchisees and suppliers will become precarious.


By opening the store to reduce inventory, opening the store has further increased the inventory. This vicious cycle is fatal for clothing companies.

Cost and sponsorship cost investment

In order to increase the exposure among young consumers, Hailan House did not hesitate to spend a lot of money to accurately put advertisements and sponsorship into the popular variety shows that young people like to watch.

In addition to the exclusive costume sponsorship of “Running Brothers” and “The Strongest Brain” for three consecutive seasons, Hailan House has sponsored “Masked Singing” and “Mars Intelligence Agency” for several months. 》 Multiple online variety shows.

In addition, in 2016, the popular star Lin update was the spokesperson for Hailan House brand, inviting the goddess of Su Yan Wang Likun as the spokesperson for the Aiju Rabbit brand.

Hailan House’s 2016 annual report shows that the sales expenses including advertising costs were 1.423 billion yuan, an increase of 5.63%year -on -year, and the increase was 75.88 million yuan.

The 2015 annual report shows that the expenses expenditure expenditure were 1.347 billion yuan, an increase of 35%year -on -year from the previous year, and the increase was 75.88 million yuan.

It is worth mentioning that the net profit growth rate of Hailan Household Group’s belonging to shareholders of listed companies has declined significantly from 2015. The significant increase in advertising costs is likely to be one of the reasons.

So is there such a large intensity of advertising inputs bring considerable returns? The answer is probably no.

Whether it is a network of comprehensive or television variety shows, it has passed. The lesson of the front car is the APP of Meibang. In 2014, Meibang named the first season of “Qi Qi” for 50 million yuan, and then named the network comprehensive for two consecutive seasons at a high price. APP brings expected promotion results.

Some analysts pointed out that compared to innovation and derivatives, Chinese companies are better at following the trend, and the consequences of following the trend are large waves and sand, and a large number of victims appear. The same is true of variety shows. In the concept investment period, competition was messy, and eventually the enterprises with excessive burning money ended.

Will the “second -generation” successor bring surprises?

Public information shows that Zhou Lizhen was born in 1988. The son of the founder and chairman of the Hailan Group Zhou Jianping, who worked in Zhixin Capital after graduation.

Two years later, he returned to the headquarters of Hailan Group. In 2012, he served as the general manager of Hai Lan’s house in Hailan Group, and was recently announced as president of Hailan Group.

Zhou Lizhen took over the advertising department, commodity center and other departments during his tenure at Hailan House. During this period, he changed the strategy of advertising in Hailan House, named and sponsored popular video variety shows, and increased the brand’s attempts in the IP field.

Earlier, the label on Zhou Lizhen was the “young handsome” and vice president of Hailan Group. Now he has taken over the banner in his father’s hands, and Hailan is about to open the “Zhou Lizhen era”.


According to the company’s annual report, in 2017, it will actively penetrate and radiate in first- and second -tier cities on the basis of consolidating the coverage of third- and fourth -tier cities. At the same time, it will increase its expansion of shopping center stores. At the same time, 750 stores are planned.

I don’t know what the 29 -year -old successor will bring about the change of men’s clothing business that has slowed down.

(Finance Network Comprehensive from Shanghai Securities News, Investment Times, Beijing Commercial Daily, First Financial Daily, Xinhuanet, Changjiang Commercial Daily, Yicai.com, China Business Daily, Southern Network, China Commercial Daily)

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