2013 years of Chinese clothing market prosperity retired, men’s trousers on the market leader Joeone spared, there has been listed operating income and net profit for the first time dual decline. More seriously, the most competitive men’s trousers income has also been affected.
In Hoogewerf released “2013 clothing rich list”, the founder Lin intelligent joeone family wealth change of -49%, ranking dropped to eighth.
October 19, joeone released three quarterly report, this year from January to September net profit, operating income both declined. And prompts the first half of the company’s traditional core products, trousers and jacket first decline in revenue in recent years.
The decline in performance, end-market sales can be seen. October 22 morning, Tianjin, a joeone sale terminals. Possible reasons for non-weekend, not many guests coming and going. In all our customers, the “most of them are old customers coming back.” Staff to new financial reporter said that from the end of last year sales began declining, some categories of promotions and discounts increased. “Maybe because of too much inventory so discounted it, in fact, before last year not many of our promotional activities.”
One Quanzhou Joeone staff also explained to the new financial reporters the case for nearly six months. The staff has long been engaged in joeone “Contact dealer put some” work, it simply is looking for franchisees.
According to him, joeone stronghold in Quanzhou, Fujian Province’s influence is still very large, “before we all know Joeone is meat and potatoes, looking for a slice, Tan joined easier.” But this year, take the initiative to ask people significantly less, “plus the company is now also attaches great importance to each terminal store efficiency, nor blindly join the ground,” so his work is somewhat difficult. “I hope this situation early child in the past.” This is his biggest wish.
“This situation,” heavily influenced by the overall macroeconomic impact. Apparel industry, according to the China National Commercial Information Center statistics, in 2013 the first half of one hundred key large-scale retail enterprises apparel retail sales up 6.9% growth rate over the same period last year decreased 2.9 percentage points; while clothing retail volume grew 4.3% growth rate over the same period last year by 3.3 percentage points, indicating increased promotional efforts.
Related decline in performance, joeone side pointed out, “by the domestic and international economic downturn and the end of the consumer market remains in the doldrums, and because the purchase and leasing of commercial shops prices remain high, in order to control operational risk, the company slowed down the speed shop and closed some poor efficiency of sales terminals, reducing the number of sales terminals, so the decline in operating results this year, the core product revenues declined for the first time. Moreover, due to the company ’2 +3′ tax incentives expire, 2013 the applicable corporate income tax rate was 12.5% to 25%, resulting in a sharp decline in net profit. ”
Investment Advisor in the light researcher Xiong Xiaokun also believes that this year, results continued to show joeone declining trend, which is the industry oversupply, the terminal environment related to insufficient demand. As of the third quarter, nearly 90 stores have closed, dealers lack of confidence, stores closed, weak sales performance continues to decline of its major causes.
“This year should be the worst year.” Joeone staff before Mr. Chen new financial reporters. According to his memories, after 2002, a group of men in Fujian brand rise gradually, and these include the joeone. “It also is a good ten years, even in 2008 when the financial crisis, companies although there is pressure, but there are slight growth.” This argument has been Lin Ping (a pseudonym) identity.
Lin Ping few years ago served as joeone Center for Strategy, in his opinion the financial crisis has affected more men export business enterprise, so joeone little impact, at least the situation is much better than this year. “This year, the decline in domestic demand poked really hurts.”
Joeone mentioned, the first thought must be its men’s trousers, men’s trousers after all this started doing business in 2000 had wing out of similar products in the market share of the first one, to achieve a “Chinese trousers King” target.
For the control of operational risks, in the terminal sales slump in the context of joeone adjust and optimize the channel network has begun to slow down the progress of the shop. 2013 first half, which closed 59 sales terminals, where the number of outlets rose from 42 to 736, and stores the beginning of the year decreased 101. Which with its 2012 Annual Report disclosed in 2013 annual plan target net terminal 60-100 far from home.
In the multi-category serialization aspects joeone side pointed out that “the future the company will continue to consolidate the dominant position on the basis of trousers, tops category continued to strengthen research and development, marketing and joint sales, increase the investment of resources in key categories, at each stage of the Key inputs 1-2 tops category, which tops in sales revenue continued to improve in the proportion. ”
In fact, in response to the crisis, there is a joeone prescient. As early as 2006, joeone hillside on the proposed reform of the so-called, is the best in the business in periods of rising profits for reform, to ensure there are sufficient funds and profits to try, otherwise risky.
That time, nine animal husbandry Neptunus strategic management departments to ensure the company’s resources are concentrated in a focus and began to actively seek partners in the international arena, while the product mix, brand strategy, human resource structure and management philosophy to adjust and change, making the original platform has been further reinforced expectations, “the external environment deteriorated when the platform will become a strong support.”
Frankly, when the reform is actually the future development of the company to make a contribution. “The external environment since the second half of 2012 mutations kinda broke Joeone layout.” Lin Ping said. In Xiong Xiaokun seems joeone once hillside reform has become a long-term development strategy, rather than the bigger and stronger. Although the current nine, animal husbandry, Wang experiencing a decline in performance, the channel network adjustment difficulties, but throughout the entire industry, the relative term joeone channel adjustment, store optimization is expected to continue to produce positive effects on subsequent.
Has sufficient funding for joeone speaking, do more brands may not be a problem, but Lin Ping reminder, “The best way to do it to acquire, own brand would involve too much effort.” According to him, in fact, done joeone tried Dragon and sub-specialty brands, but the results are not very good. “Might as well find a better team, channels, technology, management personnel come close together, it will be a lot easier.”
In addition, under the impact of the network, strengthen its position in the field of electronic business development, and the need to adapt gradually layout O2O market trends is also very important. In Lin Ping opinion, because all sales joeone terminal, relative to other apparel companies, and its direct proportion is still quite high, so it is suitable for O2O.
Although a crisis, but in Xiong Xiaokun opinion, the current nine animal husbandry Wang in channel transformation, store optimization stage, the existing brand positioning and development strategy is still worth the wait. Lin Ping also believes that if joeone time to adjust to weather the crisis, it will move towards a higher level.