Semir Has To Break Through 100 Billion Market Capitalization. What Is The Counter Attack In Recent Years?

Semir is one of the best local brands in Wenzhou.

Qiu Guang, founder of Semir, and revisited the development plan of the next five years at the company's internal meeting, also restated Semir's "big goal".

It includes two aspects: on the one hand, the retail target will reach 80 billion, the market value will reach 100 billion, and the income will reach 50 billion by 2021. In addition, 10 creative companies can be built, 10 new creative brands will be created, and Semir's real strength in the garment industry will be greatly established. Two is the terminal and front-line business quality that Semir apparel pays more attention to, besides the financial indicators which are more concerned about the capital market.

There are also three core indicators: the number of shops in a single store is the first, the number of customers in the scale is the first, and the number of brands in retail sales is the first.

At present, the market value of Semir is 27 billion 600 million. To reach 100 billion market capitalization, Qiu Guang and further explain that it will keep abreast of four billion industries with clothing and apparel, a billion industry and electricity providers, children, clothing and investment.

In 2011, the number of Semir stores increased by more than 1400, but by 2012, the number of stores in the country has reached 4420. In 2013, the number of Semir stores has changed to 4029.

That is to say, in 2013, Semir closed nearly 400 stores.

Sales of casual wear continued to be poor, and Semir began to shut down inefficient shops on a large scale.

Semir has summed up the reasons for the decline in product sales: in addition to the impact of online shopping, the impact from foreign brands is also huge.

In recent years, foreign fast fashion brands UNIQLO, Zara and H&M have entered China's development one after another. These brands, apart from the soft power of design and brand, far exceed domestic brands, the hard power of the supply chain system is far beyond that of domestic counterparts.

Semir's supply chain system is in a leading position in China. Its lead time (from product design to sales time span) is about 2 months to 3 months, while the leading time of Zara and H&M is only 2 weeks.

Due to the impact of the fast fashion brands of foreign clothing and the segmentation of consumer market, together with the blind expansion of most Chinese garment enterprises, Semir has plunged into a crisis of stock quagmire and image decline.

From Semir's 2012 and 2013 annual reports, we can see that the main income of its casual wear has been declining for two consecutive years.

In 2012, its leisure wear realized its main revenue of 4 billion 880 million yuan, down 12.64% compared to the same period last year. In 2013, the main income of casual wear was 4 billion 683 million yuan, down 4.04% compared with the same period last year.

The turning point appears after pformation.

Semir electric business did not get involved until 2010.

In the Taobao double 11 activities in 2014, Semir took nearly 200 million yuan in business. For this reason, it launched the online exclusive brand "brother Lai AI". It has attracted a lot of customers who focus on consumption experience by means of "high quality parity" brand tone and "cost-effective" online strategy.

In the 2015 "double 11", Semir's e-commerce brand has nearly doubled its year-on-year growth in terms of 396 million sales.

On Tmall, regardless of traffic or sales volume, Semir is the top of the latecomers.

After Qiu Guang and tasted the sweetness, the investment of e-commerce channel continues.

After investing about 115 million yuan in Korea's cross-border e-commerce platform ISE, it added 770 million yuan to build the Zhejiang Semir e-commerce Industrial Park project and Semir Pinghu Jiaxing port warehousing and logistics base project, with a view to promoting the development of O2O online business integration mode.

At the "2016 new network business summit", Zheng Xiaomeng, director of Semir electricity supplier, said: "we hope to achieve internal integration and development through high efficiency.

Traditional clothing brands tend to rely on their traditional baggage. Though this burden may be heavy, it may be a regular function for them.

For example, the brand should rely on the shop, relying on the factory and relying on the designer.

The Semir electricity supplier is effectively integrated into the social resources that can be utilized, such as the development of products through the way of buying hands.

At the investor exchange meeting, Semir said that the children's clothing market is now in the stage of epitaxial expansion, with a market capacity exceeding 100 billion yuan.

Benefiting from the liberalization of the birth policy, the children's clothing market will have a good momentum of development in the future.

At the same time, with the improvement of consumption ability, consumption will change from low end to middle end, and consumers need safer, high-quality, cost-effective clothing for children.

Semir clothing also believes that although the self created brand Balabala has ranked first in the retail sales of children's clothing industry in China, retail sales have reached 5 billion yuan in 2013, but the market share is only 3%.

In foreign countries, the top ranked brands in children's wear industry account for about 20% - 30% of the market.

Therefore, regardless of extension or endogenous growth, children's clothing brand space is very large.

On the other hand, large shops, upstairs shops and boutiques are the trend of children's clothing development. Children's clothing brands may set up separate brand stores in shopping centers, and they also support collection shops.

In the future, Barbara and many dream shops will not be less than 80 to 100, with a standard area of 100-150 square meters and a low threshold franchise operation system.

As a family entertainment and entertainment center, shopping centers will become the main channel for Semir to open children's clothing stores.

Thanks to Barbara's contribution to Semir's clothing performance, Semir is now building a children's industrial chain to diversify.

Qiu Guang he means that children's industry is the only way out for Semir's pformation. Semir will integrate resources to create a comprehensive service provider for children's industries through investment in animation, film and television, children's education, Internet services and other related children's cultural and educational industries.

In 2014, Semir began setting up an early education training market to acquire 70% stake in Shanghai, a child education enterprise.

Set up benchmarking shops

For reference to UNIQLO, there are 60 shopping center stores in Shanghai, 10+ stores in Beijing, and 40 million stores.

Therefore, Semir believes that the fast fashion can be done well.

Besides, the logic of street shops is bottom-up, but the shopping center is top-down, so the shopping center shops will create a brand explosion as a result of shop marking.

At the mid 2015 investor conference, Semir said that the new store area of Semir brand should reach 82 thousand square meters, with 200-500 square meters of standardized stores.

"This standard has passed our sales, production, R & D and other data analysis, in line with Semir's product structure and production utility, which can bring us the advantage of integrating upstream and downstream resources to the maximum.

As a result, adult agents have closed and integrated smaller stores and less profitable stores, adding new standardized, better location and larger stores and improving profitability.

Zhou Pingfan, President of Semir, explained at the investor exchange conference.

It is not hard to see that Semir hopes to further enhance the market share of the brand through the strategy of store standardization planning and channel sinking.

In order to strictly control inventory risks, Semir has perfected the information system. It intends to strengthen the management of the two level agents, analyze the data according to the indicators such as agents' sales and inventory each week, and allocate the inventory each quarter to reduce the inventory risk of the agents.

For more information, please pay attention to the world clothing shoes and hats net report.