Multi Brand Strategy Works: Hai Lan's Home Breaks Through Billions In The First Half Of The Year.

With the rise of consumer groups after 90 and 00, and the continuous upgrading of domestic consumption, personalization, differentiation and youth have become the mainstream trend of the transformation and upgrading of the garment industry. Hai Lan's home is also accelerating to diversify the clothing group.

According to the fashion business bulletin, Hai Lan House disclosed last week's first half year report in 2019. During the reporting period, the company's operating income exceeded 10 billion, recording 10 billion 700 million yuan, an increase of 7.07% over the same period, and net profit rose 2.87% to 2 billion 130 million yuan. Revenue from direct stores rose 132.9% to 593 million yuan, and franchisees and other revenue grew 3.45% to 8 billion 889 million yuan.

Hai Lan's home said in its earnings report that with the increasing competition and various risk factors, the overall growth rate of the garment industry slowed down, and the sub sectors showed different development characteristics. The group's diversified brand matrix was the key to the steady rise of the performance.

At present, there are 8 brands of Hai Lan's family: Hai Lan home, San keno, AI Ju rabbit, black whale, OVV, AEX, Hai Lan optimization living hall, and boys and girls. Among them, black whale, OVV and AEX were founded in 2017, respectively, for sports brand, women's wear brand and men's wear brand. Boys and girls were Hai Lan's home in 2018.

During the period, the core brand Hai Lan family's business income rose 5.05% to 8 billion 628 million, which has accelerated growth for 4 consecutive quarters. The revenue of the popular women's clothing has fallen 9.79% to 547 million yuan, and the professional clothing brand San Keno has risen 12.88% to 936 million, covering other brands such as Hai Lan optimization, OVV women's wear, AEX men's clothing and men's and women's children's wear, which rose 993.07% to 308 million yuan.

Up to the end of the reporting period, the total number of stores in Hai Lan's home group was 7740, of which 5449 were Hai Lan's brand, 1241 were AI Ju rabbit brand, and 1050 were other brands. In May this year, Hai Lan's home opened its first store in Tokyo, the symbol of the brand's first entry into the Japanese market. It is reported that Hai Lan's home will open 3 new stores in Japan this year.

In April of this year, the brand of HLA, OVV and black whale HLAJEANS of Hai Lan home also entered the Thailand market. It is reported that in order to better carry out international expansion, Hai Lan's home has set up a special overseas team to expand its own stores overseas, recruit and manage overseas employees and carry out localization operations.

In addition to the absolute advantages of online channels, the layout of Hai Lan home group online has also continued to lead the industry. Apart from opening flagship stores in mainstream e-commerce platforms such as Tmall and Jingdong, the group has also actively expanded the social business platform, increased the brand traffic entry, and effectively transformed social traffic into fans and customers of the company to enhance customer experience and stickiness. In the first half of the year, the business revenue of Hai Lan home group has reached 582 million yuan from the line. Up to now, the number of micro-blog fans of the core brand Hai Lan home is about 560 thousand.

However, with the acceleration of domestic consumer demand and the rapid growth of homogeneous brands, Hai Lan's home can not relax its vigilance. If the group wants to further consolidate its leading position, it needs to find new growth points through channels and product integration. Benefiting from the full implementation of the national two child policy, China's children's wear market will enter a new stage of sustainable development. The Group expects its children's clothing business to maintain a relatively high growth rate.

In order to establish an emotional connection with the younger generation of consumers, the family of the inland sea launched a variety of brand publicity activities around the positioning, connotation and value difference of various brands, including the "China made" tour show in London Fashion Week, a multi brand super conference in Thailand CentralWorld, and the new release conference of "the noisy heaven Palace" at the Shanghai art film studio, which aims to build a three-dimensional communication coverage network, transfer brand sound and enhance brand strength.

Hai Lan's home also adheres to the needs of consumers. Through the analysis of sales data, it broadens the product style, innovating product styles, and constantly improves the product's richness and depth, so as to cover different market segments. During the reporting period, Hai Lan's home launched a Oxford spinning shirt with a crisp texture and comfortable texture, a young, inexpensive flying fabric sports shoes, and "sports quick drying series" and "noctilucent series" and other products. Following the "havoc of heaven Palace" series, haily Lan's home has also adapted to the trend of the trend of electric power competition, and has launched a series of costumes featuring World of Warcraft, StarCraft and other games with Blizzard Entertainment.

At the same time, Hai Lan's home also attaches great importance to innovation and services in marketing, actively exploring new retail outlets, making full use of WeChat, micro-blog and other self media channels to transmit product information, marketing activities and brand culture to consumers, and deepening emotional exchanges with consumers. And closely follow the short video trend, the use of "trembling" and "fast hand" and other short APP video match, complementary distribution, by pushing text, video and other ways to strengthen content channel communication.

In terms of product quality control, Hai Lan's home is upgrading products with high cost performance as its core, upgrading from fabric, edition, practicality, workmanship details and production cycle, speeding up product iteration, and promoting the steady growth of brand sales performance.

In the face of the industry's doubts about the high inventory of Hai Lan's home, Zhou Jianping, chairman of the board of directors, said at the beginning of this year's annual shareholders' meeting that the scale of revenue did not exceed that of Hai Lan, which was not worth questioning.

According to the 2018 China Men's wear market report released by Ou Rui International, the brand of Hai Lan home is ranked first in the market share of 4.6%, and its market share is the first in 5 consecutive years. In the 2018 annual report released by A share listed companies, Hai Lan's home ranked 3 billion 455 million in net profit ranking of Listed Companies in the textile and garment industry (Shenyin and Wanguo industries) A shares in 2018, with net profit of RMB $3 billion 455 million.

In May 6th, Hai Lan's home was selected as the "BrandZ2019 most valuable Chinese brand top 100" with a brand value of 950 million US dollars. In July 22nd, fortune China Network released the Fortune 500 list of China in 2018. Hai Lan's home has been on the list for 5 consecutive years.

For the second half of this year, Hai Lan's family expects sales growth to continue to increase. Net profit in 2019 and 2020 will grow by 6.87% and 7.55% to 3 billion 690 million and 3 billion 970 million yuan respectively.

As of today, the price of Hai Lan home has dropped slightly from 0.72% to 8.32 yuan, which has fallen by more than 20% since 2018, and its market value is about 36 billion 700 million yuan at present.