The Net Profit Of Men's Wear Brands Is Growing. The Development Of Men's Wear Market Is Welcoming New Opportunities

- Mar 15, 2019-

Entering February and March, apparel companies will continue to disclose their annual results for 2018. Judging from the annual results announced by some men's wear brands, both the operating income and the net profit have performed well. In 2018, the operating income of seven wolves increased by 14.15%, net profit increased by 9.79%; the income of Baoxin Bird increased by 19.76%, the net profit increased by 102.3%; the net profit of Cabin earned RMB 210.2 million, an increase of 3.5%. .


As the most mature market segment in the domestic apparel industry, men's wear has gradually become more reasonable and perfect in production, management, brand and marketing. In addition, a new generation of male consumers pay more attention to personal image and dress, and the fashion sense is more and more intense. It has played an important role in promoting the growth of the menswear industry. In addition, non-sexual wear gradually became popular, and female consumers also tended to buy some more fashionable men's wear, which also gave the growth of the men's wear market.


In such an upward trend in the menswear market, it is understandable that men’s wear companies are ushered in a performance improvement. Let's look at some men's wear brand disclosure annual performance data:


The 718 annual performance report released by the seven wolves shows that the annual operating income reached 3.521 billion yuan, an increase of 14.15% over the previous year, and the net profit reached 348 million yuan, an increase of 9.79% over the previous year;


In 2018, the sales revenue of Carbin Apparel reached 1.274 billion yuan, a year-on-year increase of 16.9%, and the net profit reached 210 million yuan, a year-on-year increase of 3.5%;


According to the 2018 performance report of Baoxin Bird, the operating income reached 3.12 billion yuan, an increase of 19.76% year-on-year, and the net profit reached 52 million yuan, a year-on-year increase of 102.3%;


In 2018, Sinor’s operating income reached 1.72 billion yuan, a year-on-year increase of 122%, and net profit reached 125 million yuan, a year-on-year increase of 114%;


According to George White's 2018 performance report, the annual operating income for the year 2018 was 1.05 billion yuan, a year-on-year increase of 27.7%. The net profit attributable to shareholders of listed companies was 112 million yuan, a year-on-year increase of 48.45%.


From the data disclosed by the current menswear brand, both operating income and net profit are growing, and the largest growth figure is Sinor, which has doubled. For the explosive growth of net profit, Hinur said that it mainly benefited from the dividend period of the business travel business. The net profit of Baoxin Bird is RMB 52 million, ranking the last among the five brands, but it has also doubled, which is a great improvement for the news.


There are also some men's wear brands released performance forecasts, Youngor, Busen shares. Youngor showed in the notice that the operating income in 2018 was about 9.296 billion yuan, down 5.52% from the previous year, and the net profit was about 3.664 billion yuan, up 1134.72% year-on-year. The company announced on January 15 that the performance revision notice was released. The net profit was a loss of 185 million yuan to 198 million yuan; the net profit of Hongdou shares expected to belong to listed company shareholders in 2018 was 200 million yuan - 219 million yuan, down 63.97% - 67.1% compared with the same period of last year.


From the data, in addition to the decline in the net profit of Busen and Red Bean, the net profit and operating income of other men's wear brands are growing, and the domestic men's wear industry is showing signs of recovery. Seven wolves, Annunciation, Youngor, George White, Carbine, and Sinor all achieved more growth in terms of net profit, and to some extent realized a turnaround.


In the second half of 2018, due to external factors such as the weak trade and consumer environment in China and the United States, the growth rate of some textile and apparel enterprises has slowed down markedly, but the market share of the men's wear market is still on the rise. According to the data, from 2016 to 2020, the Chinese men's wear market will maintain a compound annual growth rate of 13.1%, and the retail sales of the men's wear market is expected to reach 979.3 billion yuan by 2020.


At this rate of growth, the men's wear market is increasingly valued by apparel companies, and the market segment of men's wear is constantly being laid out. On February 20, Fosun International announced that it had increased its holding of German menswear brand Tom Tailor, and its shareholding increased from 28.89% to 35.35%. Fosun International said it attracted the Group's investment in Tom Tailor's huge economic potential in the fashion sector.


In addition, the fashion awareness of Chinese male consumers continues to increase, and consumer demand is gradually becoming more oriented towards internationalization and fashion trends, prompting apparel companies to diversify into diversification and deepen the field of Chinese menswear fashion. At the end of February, Jiangnan Cloth announced that it will launch a new men's designer clothing brand “A PERSONAL NOTE 73”, which is positioned as a personalized high street fashion. It is an important strategy for Jiangnan Cloth to implement multi-brand business operation strategy and horizontal expansion to a more segmented menswear market. As a high-end brand of H&M, COS values the development potential of the Chinese menswear market and opens the world's first men's store in Sanlitun, Beijing, demonstrating that international brands value the Chinese menswear market.


The rise of a new generation of consumers has triggered new personalized consumption, and has also ushered in a new opportunity for the development of traditional menswear brands. Although the recovery rate of the menswear industry in the apparel market is slowly increasing, traditional menswear companies are constantly looking for new opportunities. Ways to improve market share, such as cross-border operations, personalized design, release of joint-name models, etc., with a novel model to make the traditional menswear industry also become a wave, for the transformation and upgrading of the menswear industry to bring a good effect.

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