JEEP Profits Fall Sharply, Will Push OLE And Electricity Providers

Men's clothing brand has not yet found an effective way to save themselves in the Chinese market.

China apparel holdings, a proxy for JEEP, Rodin, SBPRC and other men's clothing brands, has recently released semi annual reports.

In the first half of this year, the group's total revenue and profit both declined in double figures, and the net profit fell by 44.3%.

The group said it will implement multi-channel strategy in the second half of the year, focusing on outlets and e-commerce channels.

Data show that the group's revenue fell from 12.7% yuan in the same period last year to 460 million yuan, while profits dropped 44.3% to 53 million 300 thousand yuan in 527 million.

Among them, the revenue from self retailing fell by 8% to 343 million 200 thousand yuan, accounting for 74.6% of the company's total revenue.

The company said that the decrease in revenue was mainly due to the continuous decrease in the number of customers in mainstream department stores in a second tier city where most retail outlets were located, resulting in a 13.2% drop in same store sales.

Continued weakness in the retail market

The strong impact has seriously affected the group's third party retailer business.

Data show that compared with the same period last year, the group's third party retailers fell by nearly 30% to 89 million 700 thousand yuan in the first half of this year.

The company believes that

The situation is weak. In the northern part of China and most of the third party retailers in the three or four tier cities, the third party retailers tend to be conservative, while e-commerce has more choices for consumers in China's three or four tier cities, which is attacking traditional clothing salesmen.

In addition, the reduction in the number of retail outlets also has an important impact on performance.

In the first half of the year, the number of outlets including self-employed and third party retailers decreased from 1174 to 1111, a total reduction of 63.

The reporter noted that only the first half of this year, only oter's discount stores and e-commerce has become a growing channel for sales.

Revenue from outlets has increased by 7.6%, and revenue from e-commerce business has gained 12.6% double-digit growth.

Compared with the same period last year, the proportion of electricity supplier's channel revenue to total revenue has also increased, from 4.5% to 5.9%.

The group said its brands will enhance interaction with consumers and enhance their popularity in the second half of this year.

For the first half of the year's good performance of OLE and e-commerce channels, the group will expand the number of shops in OLE, increase the brand collection shop, and regard the electricity supplier as the focus of sales.

However, Lai Yang, a special researcher of the Beijing Business Research Institute and Secretary General of the business economics society of the North Institute of Commerce, said that the attraction of OLE to consumers has been continuously enhanced. The practice of Chinese apparel holdings to improve the operation channels will improve sales in the short term, but the fundamental reason for the decline in performance has not been found yet.

"Consumption characteristics change, and the attractiveness of JEEP and other brands and products to consumers continues to weaken."

According to Lai Yang, the innovation of products such as JEEP and Lun Dun under Chinese apparel holdings is not enough.

"Consumers prefer fast fashion brands to follow suit.

The probability of wearing dresses is decreasing, and the repeat buying rate is falling.

JEEP's consumer groups are also shunted by other emerging leisure brands.

Lai told reporters that the brand is not enough for the change of the fashion trend of consumers. Strengthening the designer's design and reducing the product cycle is a priority for enterprises.