Sen Ma Apparel Performance Micro-increase agency agreement target is difficult to achieve

March 17, Sen Ma Costumes Released 2013 annual report, the annual report shows that 2013 revenue and net profit growth. But the company's adult leisure apparel revenue decline has not changed, the middle-end strategic transition dilemma remains. Its acquisition of high-end casual men's brand Gxg plan, and the German high-end casual apparel brand Marc O ' polo signed the agency agreement target is also more difficult to achieve. At present, the children's wear performance of Sen Ma Costumes Bright Eye, children's wear business will become the future strategic focus of horse clothing. Adult casual wear clothing sales in 2013 to achieve business income 7.29 billion yuan, an increase of 3.3%. Among them, adult leisure apparel income of 4.68 billion yuan, down 4%, accounting for 65%. As a leader in domestic leisure apparel, Sen ma costumes in March 2011, the first market value of 44.9 billion yuan, one more than the United States and the U.S. apparel and Youngor, won the market capitalisation of the domestic apparel industry. But after the listing, the performance of Sen Ma costumes and share prices are showing a downward trend. Before the listing three years (2008 ~2010 years), the business income of Sen ma clothing is 3.32 billion yuan, 4.25 billion yuan and 6.29 billion yuan respectively, the year-on-year growth 82.3%, 27.9% and 47.9% The revenue and net profit of the current year were 7.76 billion yuan and 1.22 billion yuan respectively, and the growth rate was 23.4% and 22.3% respectively. Subsequently, the performance of Sen horse Apparel has been wandering in the trough, 2012 ~2013 annual revenue of only 7.06 billion yuan and 7.29 billion yuan, of which adult leisure apparel revenue only 4.88 billion yuan and 4.68 billion yuan, respectively, the year-on-year decline of 12.6% and 4%. Casual clothing sales continued to be poor, Sen horse costumes began large-scale closure of inefficient shops. 2011 Sen Horse Clothing stores a net increase of more than 1400, and to 2012 years, Sen Horse apparel in the country's stores (leisure apparel) has reached 4,420, 2013, this number into 4,029. In other words, in 2013, Sen horse clothing close 400 stores. Sen Horse Clothing Leisure apparel products sales decline in addition to the impact of online shopping, from the impact of foreign brands is also huge. In recent years, foreign fast fashion brand Uniqlo, Zara, h&m successively into the domestic development, these brands in addition to the design, brand and other soft power far beyond the domestic brand, supply chain system's hard strength also far beyond the domestic counterparts. Domestic Sen ma Clothing and the U.S. state apparel supply chain systems are in a more advanced position, its leading time (product from the design came to sales time span) is about 2 months ~3 months, and Zara and h&m lead time only 2 weeks. Bumpy middle and high-end war in the face of the continuous decline of adult leisure apparel, Sen Ma Costumes in 2013 frequently, agents, joint ventures, acquisitions and other models to try to extend to the high-end market, and accelerate the layout of multi-brand strategy. June 2013, Senma announced the signing of the framework agreement with the Ningbo-China philosophy, to be 1.98 billion yuan ~22.6 billion yuan acquisitionThe latter's high-end casual men's brand gxg71% equity; September 2013, the horse costumes announced with South Korea 锬 Fashion set up a joint venture, operating as 锬 fashion under the "it Michaa" brand, and to introduce other Korean brands; November 28, 2013, and the German high-end casual apparel brand Marc O ' Polo signed the general Agent agreement. However, in the first trading day after the Spring festival in 2014, the company issued a notice of "the framework Agreement for the purchase of shares", and the acquisition of the 71% equity transaction of Ningbo Sino-Chul Holdings Limited (GXG parent company) officially terminated. The failure of the acquisition of Zhe-MU has brought investors ' eyes to the general Agency agreement signed with Marc O ' polo. The agreement shows that the first cooperation time between the two parties in 15, Marc O ' Polo selected horse costumes as China (excluding Hong Kong, Macao and Taiwan) agent, operating the brand leisure apparel products, authorized Sen Horse costumes in the region exclusive use of the brand intellectual property rights and trademarks, the introduction of its franchise system. In addition to the Convention, the Agreement on the number of stores also made a refinement, the agreement stipulates that the first year opened 2 Marc O ' polo franchise shop, the second year opened 10, to the fifth year open shop number of 43. Among them, all the franchise shops opened before the end of the third year should be the company's direct shop. In addition, the agreement on the first 5 contracts in the year minimum purchase amount also made detailed provisions: the first year 3.2 million Yuan, the second year 16 million Yuan, the third year 40 million Yuan, the fourth year 80 million Yuan, the five year is 136 million yuan. This means that by the fifth year, on average, the minimum purchase amount of each shop will exceed 3 million yuan, at present the gross profit margin of the horse clothing nearly 40%, the average annual sales of more than 5 million yuan per shop, and according to 2013 annual report calculation, Sen Horse Apparel adult casual apparel sales of single shop just over 1 million yuan, Sen-Ma Costumes to achieve the objectives stipulated in the Agreement, it is difficult to imagine. In addition to the extension of expansion, Sen Ma also tried to improve their own design capabilities to enhance brand influence. At present, however, its measures have not brought significant results. Children's clothing becomes the strategic key Sen Ma Apparel 2013 earnings show, children's wear business income ratio has been a certain increase, income scale reached 2.54 billion yuan, an increase of 19.9%. In addition to its own brand Balabala, Sen Ma Costumes also through the deputy Italian high-end children's wear brand SA Raba NDA and Minibanda into a more segmented high-end children's wear market areas. At present, the children's clothing brand Balabala has become the largest child apparel brand. For domestic children's wear market, the industry generally optimistic that the capital market to give a higher valuation than the general adult brand, which is currently the market capitalisation of horse clothing more than twice times the U.S. clothing one of the reasons. At present, the horse clothing also gradually investment focus to children's market, hope that by virtue of children's clothing into children's products market. In addition to children's wear, Sen ma Costumes of the parent company Sen MA Group has launched the "Dream More" children's business brand, the future of children's clothing by the listed company Sen Horse Apparel main responsibility, clothing outside the children's products business by the dream more main. The good anticipation of children's costumes also attracts more and more heavyweight players. Zara, H&m, excellent Uniqlo and many other clothing brands have set up a child or children's shop. and luxury brand Gucci, Dior, etc. also in the brand flagship store set up children's clothing area. With the heavyweight players have intervened, the future of children's wear market competition will intensify, but for the current stage of the horse clothing, children's wear has a very important strategic significance, the success of children's wear strategy will directly affect the capital market on its valuation.