For Metersbonwe, which has been suffering from an inventory crisis and declining performance, the children's wear will become the company's next development focus.
There are two children's wear brands under the brand name: Moomoo and Mishidi. The former is currently opening stores in the third and fourth tier cities. The latter's positioning is relatively higher, and the stores are mainly concentrated in the first and second tier cities. At present, these two children's wear brands add up to more than 400 stores, and the goal of Smith Barney is to open more than 1,000 in two years.
According to the plan, on-line Smith Barney will use the state purchasing network and O2O business model to actively expand the market including brand integrated stores, shopping malls, shopping malls and various types of franchise stores to promote the development of children's clothing business.
Smithland told Interfax News that its children's clothing business currently exceeds 300 million yuan. This figure is still very small in the overall sales of Smith Baron. In 2014, the company’s overall operating income was 6.621 billion yuan. According to the "China Children's Wear Market Report" issued by Euromonitor Consulting in 2015, in 2014, Smith Barney accounted for 0.3% of China's children's wear market share, ranking 15th.
However, what Midea regards is the development potential of the Chinese children's wear market. Last year, the scale of China's children's wear market has exceeded 140 billion yuan. The introduction of the "separate second child" policy will continue to promote the industry's rapid growth in the next few years.
“We saw that the children’s wear business last year was good. I believe it will grow at a high rate in the future. At present, orders for children’s wear at quarterly orders are increasing, with an average increase of about 60% per quarter,†said Smith Barney.
In the past, the children's clothing of Smith Barney was often sold in a store with its adult outfit. In the future, it will be mainly independent shops. According to the plan, the size of most stores will be 80-100 square meters, and the stores in the partial brand display category will be larger, up to 200 square meters. “If the store is bigger, then it is more difficult to make moneyâ€. In the future, it will actively explore the fourth and fifth-tier cities under the premise of maintaining the existing market share.
In the first half of this year, Smithsonian had its first loss in seven years since its listing. The net profit attributable to shareholders of the parent company was -94.76 million yuan, a year-on-year decrease of 152.9%.
In the face of UNIQLO, ZARA and other foreign fast fashion brands and e-commerce, the traditional domestic leisure apparel companies are generally affected. Adjustment of product structure is an important measure for many companies to cope with this change. Senma Garments resumed its growth by increasing the proportion of children's apparel business. In the first half of 2015, its net profit reached 423 million yuan, a year-on-year increase of 22.9%.
Smith Barney apparently wants to follow Senma’s approach, but whether it can also save its performance is still time-tested.
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