What Causes The Amoy Brand To Have So Much Inventory?

Amoy brand

Mei Mei Group, a parent company, has applied to the SFC for public offering and listing on the gem.

This is another application submitted by the Amoy brand after the split up.

Previously, another Amoy brand.

New three board applications have been submitted.

Yi man and Han Du Yi house have always been the top names of Taobao women's clothing, also known as the Amoy brand.

The financial data of each side are also revealed as the rip, silk, Yin man and Han downer compete for capital operation.

1, the rash and silks, the Yin men and the Korean clothing homes all enjoyed the bonus of online shopping. However, with the establishment of e-commerce channels, UNIQLO and ZARA stores growing rapidly, such as the United States and Semir, the pressure on the brand is increasing.

2, in recent years, the pressure on inventory has been increasing.

As sales growth from Taobao platform stopped, or even decreased, vip.com's dependence on each sector increased significantly, showing signs of cleaning up inventories.

3, the profit margins of rye, Yin man and Han Du house were compressed, and the net profit in 2015 was lower than that in 2014, except for the Korean clothes house. Especially, the net profit of Yin man dropped from 31 million 900 thousand yuan in 2014 to 15 million 810 thousand yuan in 2015.

Han Du in 2015, the largest volume of rip and silk continues to shrink.

According to the data, in 2015, the revenue of Han Du Yi house was the largest, reaching 1 billion 259 million yuan, net profit of 33 million yuan, followed by Yin man, Yin man's revenue in 2015 was 1 billion 140 million yuan, net profit was 15 million yuan, net profit decreased by half compared with the same period last year.

The revenue in 2015 was 546 million yuan, and the net profit was 32 million yuan. The revenue of cracking and silking has been declining for two years. However, the net profit of the split has doubled compared with the 16 million yuan in 2014.

The company's sales revenue increased by 51.54% in 2015 compared to 2014, the main reason is:

1, users' recognition of brand and product quality of Han Du electric business has been stable and further improved. 2, the company has invested a lot in advertising and promotion, resulting in a certain market effect.

3, the single product whole operation system centered on the product group system, maximizing the initiative of the staff, so that employees can better invest in the company's product sales and brand promotion, and the effect is obvious.

Yemann pointed out that net profit fell by 50% compared with the same period last year, mainly due to the shareholding system reform during the reporting period, the increase of investors' capital stock and the landing of the company's multi brand strategy (such as the huge incubation of new brands and huge resources).

The decline in revenue is mainly due to the increasing competition in the online clothing sales market and the trend of fragmentation of online traffic. Meanwhile, the slowdown in China's macroeconomic growth in recent years also has a negative impact on the overall consumption intention and consumption ability of the society.

Amoy brand glory era in the past from Taobao sales atrophy

In March 2016, Alibaba announced in a high-profile manner that at 14:58 p.m. on March 21st, 37 seconds, Alibaba group's 2016 year fiscal year (GMV) officially broke through 3 trillion yuan, surpassing WAL-MART to become the largest retail platform in the world.

What is the concept? That is, the volume of Alibaba pactions continues to grow rapidly. Alibaba first broke through trillion pactions in 2012 (GMV), and realized 2 trillion of pactions in 2014, which took 2 years from 1 trillion to 2 trillion.

More than 3 trillion of the turnover was announced in March 2016, from 2 trillion to 3 trillion in just a year and a half.

Ma Yun, chairman of Alibaba group, said that by 2020, Alibaba group will achieve 6 trillion yuan GMV.

However, compared to the beautiful GMV of Alibaba group, there are many different arcs in the clothing houses of the people's Republic of Korea.

In fact, the rapid growth of Alibaba GMV in the past few years is precisely the bitter years of the Amoy brands such as rip, silk, Yin man, Korea and so on.

The data from different platforms (from the prospectus)

From the perspective of channel composition, the sales of Taobao and Tmall from 2013 to 2015 were 475 million yuan, 650 million yuan and 645 million yuan respectively, accounting for 80.65%, 68.77% and 56.59% respectively, and their proportion continued to decrease, and sales in 2015 also declined.

Sales of vip.com from 2013 to 2015 were 57 million 810 thousand yuan, 217 million yuan and 360 million yuan respectively, accounting for 9.81%, 22.99% and 32.03% respectively.

In 2013, Taobao accounted for 83.17% of revenue, 7.37% from vip.com and 4.1% from Jingdong.

By 2015, Taobao accounted for 58.49% of its income, accounting for 36.36% of its revenue from vip.com and 2.58% of its revenue from Jingdong.

The decline in income from Taobao and Jingdong platform is not caused by the sharp increase in income from splitting up. In fact, the income from Taobao in 2013 was 571 million, which dropped to 319 million yuan in 2015, and the decline was 44.1%.

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Data from different platforms (from the split share prospectus)

In 2013, the income from Jingdong was 28 million 150 thousand yuan, which was 14 million 80 thousand yuan in 2015, and the decline was 50%.

The only increase in income from platform income was vip.com, which rose from 50 million 680 thousand yuan in 2013 to 198 million yuan.

Han Du Yi house did not disclose the sales volume from Taobao and Tmall, but in 2015, the sales volume of Korea's clothing house from vip.com reached 345 million yuan, accounting for 27.37% of the total sales volume.

Pressure on inventories increased. Bank's book value exceeded 50%.

The sales volume of Taobao and Tmall declined, but sales from vip.com increased significantly.

In 2013, 2014 and the end of 2015, the book value of the company's stock was 115 million 753 thousand and 200 yuan, 11089.70 yuan and 90 million 986 thousand and 500 yuan respectively, accounting for 44.83%, 38.83% and 33.66% of the total assets in the current period, respectively.

If consumer preferences, trends and other factors change, it may lead to unsalable inventory, resulting in the occupation of working capital, reduced operational efficiency and increased risk of inventory depreciation, which will have a greater negative impact on the company's financial performance and operating performance.

In 2013, the yield of the Emmy group was 5 million 390 thousand, but its sales volume was 4 million 790 thousand. In 2014, the sinemex group produced 9 million 460 thousand pieces and 8 million 20 thousand sales. Obviously, the group produced a lot of stock in 2015.

At the end of the reporting period, the stock book value of the United States group was 173 million 945 thousand and 200 yuan, 279 million 987 thousand and 900 yuan and 371 million 63 thousand and 900 yuan, respectively, occupying 50.48%, 61.10% and 55.25% of the total assets of the same period.

The company's inventory growth stems from two factors:

First, the sales growth of the main brand ("Yin man" and "Chu Yu") has led to an increase in stocking. Two, the brand incubation strategy of the company has been launched in an all-round way, and the number of brands has expanded from the two brands of "Yin man" and "Chu Yu" in 2013 to the thirteen brands at the end of 2015.

Inventory will have adverse effects on the company: on the one hand, the increase in the company's provision for inventory depreciation will lead to a reduction in company profits; on the other hand, the growth of the inventory balance will occupy the company's working capital, affect the company's operating cash flow, and reduce the quality of the company's earnings.

The data of Han Du Yi house also revealed that in the end of 2014 and 2015, the book value of the company's stock was 156 million 43 thousand and 800 yuan and 173 million 992 thousand yuan respectively, and the proportion of total assets was 32.68% and 33.75% respectively.

What is the reason why Tao has so many stocks?

2014 years ago, the traditional offline apparel brands and UNIQLO and ZARA have been stationed in the major e-commerce platforms in China, and the sales of online channels have been increased. Meanwhile, the new brands of online clothing have increased significantly, and the traffic volume of women's clothing consumer has been diverted from the e-commerce platform.

According to Inman, the fierce competition on online brands, the decline in online shopping dividends and the slowing down of economic growth, and the weakening of consumer spending power pose a challenge to the company. The growth of sales of new or old brands is not as smooth as expected, which may lead to a slow change in inventory cycle or even backlog.

Han Du Yi House said, "small, fast and diversified" product management mode, inventory turnover rate is significantly higher than the same industry level, although the number of products of each type is not much, but under the influence of multi style and seasonality, the overall product inventory is still large.

An electric business person pointed out that this rip, silk, Yiman and Han Du clothing House sought to sprint the gem or new three boards, because the growth prospects were very limited, and the investors had the pressure of withdrawal.