Hai Lan's Home "Metamorphosis" Meets The Bottleneck Performance Loss, Odds Ratio Geometry?

Core reading guide:

1, why did Hai Lan optimize the two years?

2, what kind of transformation has been done by Hai Lan's home?

3. How does Hai Lan's home get on the new retail car?

In the 80-90 years of the twentieth Century, a group of men's clothing brands, known as the national well-known brands, were born. Strong drivers, JACK&JONES, seven wolves, good news birds and so on occupy not only the streets and lanes of the city commercial centers, but also successfully occupy the consumers' minds that just opened up through the overwhelming advertising marketing.

Among them, especially the home of Hai Lan. With the positioning of "men's Wardrobe", with the magic advertisement and fast opening speed, Hai Lan's home grew rapidly, and successfully landed on A shares in 2014.

After the backdoor listing, Hai Lan's home has been shocked by the performance in the capital market. In 2016, the market value of Hai Lan home exceeded 80 billion yuan. By the end of 2016, the number of brand stores in Hai Lan's home has reached 4237.

In the financial analysis agency Standard & Poor's announced the "global market value of the highest clothing accessories luxury goods company 25 list", Hai Lan's home pressure Coach, Prada and other international big names, ranked fourteenth.

This can be said to be the high light moment of Hai Lan's home. In the next few years, the price of Hai Lan's home has plunged, and its market value has been cut down. The transformation of the new business is deeply controversial, and it is no longer the glory of the past.

01

The "Muji" car has traded for nearly ten million losses.

In July 29th, Hai Lan home's "Hai Lan preferred life Pavilion" was closed at the intersection of Heping Road and Binjiang Road in Tianjin. Public information shows that the store opened in December 9, 2017, and is also the only one in Tianjin. A year and a half, in exchange for losses.

Hai Lan optimization, originally launched by the Hai Lan home in 2017, is a one-stop home product collection store brand, which includes nearly 4000 categories of clothing, groceries and fashion homes in three categories. According to official website, Hai Lan preferred to rely on the supply chain advantage and retail management experience of Hai Lan home, and the main idea is to "optimize the price".

But in the market cognitive level, after 2017, NetEase strictly selected the "towel storm", and the items of "Muji" and "the middle class's yearning for a better life" emerge in an endless stream. Taobao's heart election, millet products, and even famous brand products have joined the battle. In October 2017, Hai Lan optimization is regarded as another product of this trend.

With "Muji" as a big selling point, Hai Lan, with a strong brand mark, is taking an important step in the transformation of Hai Lan's home. A more "middle class" product style, which includes clothing but heavier home products, seems to be claiming that Hai Lan's home is quite different from what it used to be.

However, this attempt to transform to the actual number of financial reports is not really good. According to the 2018 annual report released by Hai Lan's home, Hai Lan's preferred loss amount is 9 million 979 thousand and 200 yuan.

This is behind the new retail channel under the operating capacity of the gap, more importantly, in this wave of cost-effective quality life wave, no matter what aspects of the sea LAN home, it is not the best choice.

Taking Hai Lan as an example, the shop in Beijing's long Ying Tian street is taken as an example. Compared with the N ME ME house separated by a wall, how can it be described as "cold and cheerless"?

02

Hai Lan's home "Metamorphosis"

Not only is Hai Lan optimization, but actually, the "deformation" of Hai Lan's home has been carried out in all directions. Like most of the clothing brands in the past, Hai Lan's home also suffered from development bottlenecks.

Similar to Semir and Metersbonwe, these clothing brands all over the country are accompanied by 80 and 90's youth with consumer cognition but no consumption ability. However, when these users reached the stage of consumption, these brands were turned into the abandonment of the times because of their immutable positioning and the impact of fast fashion.

In contrast, the location of business casual men's clothing, the target age of the big Hai Lan's family's dilemma is beyond the limit.

"Two times a year, Hai Lan's home" and "men's Wardrobe", with the early consumer awareness and sudden rise, the moat of Hai Lan's home has become a cage after its growth and development. The brand image of being ridiculed as "local" is becoming the most familiar and unwanted choice among consumers.

The core of the business is too focused and the opposite is the single structure. It is hard to say that Hai Lan's home does not have a clear understanding of its status quo. As early as 1990s, Hai Lan's home launched a brand name "San Keno" for the professional clothing group. In 2010, Hai Lan's family launched the women's clothing brand love rabbit. In 2012, Hai Lan's home launched a high cost performance men's suit "Hai family" for the middle and low income groups, and the three brands failed to reach the national status of Hai Lan's home again.

The trial of Hai Lan's home brand has not stopped there. Since 2017, Hai Lan's home has launched five brands including light luxury Ladies / men's wear, sports tide cards, children's wear and home furnishing, among which we mentioned Hai Lan optimization mentioned above.

At the same time, Haolan's main brand also completely subverted the past brand image, not only invited Lin renewal as the new spokesperson, but also changed the past "rainbow POLO shirt" form, in the fabric of more cotton, linen and wool, clothing color is also close to the current "cold" style.

Although the determination and dynamics of transformation are quite large, the brand of Hai Lan's home is not smooth. First of all, the "black whale", which is the main sport brand, was accused of plagiarism. The women's clothing brand AI lived in the embarrassing period after many years of operation, and the sales volume of single store continued to decline.

According to the 2018 annual report, Harean house's gross profit margin is still -24.82%, except for the love of rabbit and San keno. The main brand revenue accounts for nearly 80% of the total revenue.

In addition, Hai Lan's home has not been able to avoid the inventory problem that the entire garment industry can hardly cope with. As of the end of 2018, the company's inventory exceeded 9 billion 400 million, up 11.55% over the same period last year, and the stock turnover period was 286 days. The earnings report is due to the increase in the number of brands such as sub brand OVV, Hai Lan optimization living hall, AEX, boys and girls. Despite the purchase mode of "mainly returnable and non returnable", the stock of the company still has up to 41.01% of its inventory.

The 2019Q1 performance report released in May 1st showed that net profit rose 6% to 1 billion 207 million over the same period, and revenue rose 5.2% to 6 billion 88 million compared with the same period last year, a marked slowdown compared with the 12% increase in the same period last year. Up to now, Hai Lan's home market is worth 39 billion 29 million yuan.

03

Is there any chance to build a new retail channel and make a big effort?

Nevertheless, after the transformation of brand and positioning, Hai Lan's home has not abandoned the construction of new retail channels.

In July 2018, Hai Lan's family announced that it was officially taking part in the takeover of the US regiment to achieve an hour's maximum speed. A year later, in July 30, 2019, Hai Lan home announced the launch of the "HLA speed up" small program mall. Within 3 kilometers, the store can achieve an hour service through the cooperation with the US group takeaway, and users can return the goods through the online shopping mall.

In this regard, Hai Lan's home said that aiming at the "critical" scene, such as eating dirty clothes, sports ripping damaged clothing, but still caused no doubt. Such a scenario, regardless of frequency. Even if there is, what is the urgent need to spend money on changing clothes?

For those who own 4922 stores and strong lines, the construction of the new retail channel seems to be a bit "strong". In 2018, the report shows that online sales accounted for only 6.14% of the total revenue.

However, after accepting Tencent's 2 billion 500 million yuan stake, the introduction of a small program mall appears to be a boat ride. If it does not deliberately emphasize the speed of 1 hours,

For such a billion dollar clothing giant, the transformation is imminent. The real concern for us is the increase in R & D expenses and the increase in the number of Direct stores. These moves seem more desirable than the "new trend" which is not clear enough.