Urban beauty aimed at the children's market to seek new profit growth point

On the evening of May 12, the urban beauty (China) Holding Co., Ltd. (hereinafter referred to as "Metro Beauty", stock code: 2298) issued a public announcement that it has reached a strategic cooperation agreement with KIMURATAN and Qiaodou and will act as the sole agent of China. Marketing and distribution of KIMURATAN's love of design and BIQUETTE (Bekaert) two brand products.

都市丽人

This marks the main urban beauty of underwear officially entered the field of children's clothing in China. It said that through this cooperation, it aims to develop the baby and children's clothing market in mainland China.

It is learned that KIMURATAN is a Japanese baby and children's clothing business, mainly engaged in the design, production and sale of baby and children's clothing. Its brands include Love Design, BIQUETTE, Youpi and Mother Goose. Was first listed on the Tokyo Stock Exchange (TYO: 8107) and currently has more than 250 sales outlets in 40 cities in Japan.

都市丽人瞄准孩童市场 寻求新的利润增长点

Underwear market competition intensified urban beauty sales decline

As can be seen from the recently announced 2016 performance of the City Beauty, its revenue declined for the first time in recent years, with a margin of about 8.9%. The profit attributable to equity holders dropped more than half as much as 55.2% A year-on-year decrease of 5.3 percentage points.

In addition to the urban beauty, Embry has been stable in the net profit in 2016 also suffered a downturn 51.8% dilemma, Manifing 2016 interim results down 10%.

Which led to the garment industry as the last piece of the Red Sea lingerie performance downturn reasons, on the one hand with the consumer upgrade, consumer demand for underwear is not limited to functionality, its design is also becoming more and more consumers One of the conditions of purchase. Underwear must change the quality of a single pursuit of the past, focusing on its comfort, health functions, which deduced to pay attention to popular style, pay attention to underwear color, style.

都市丽人瞄准孩童市场 寻求新的利润增长点

On the other hand, the massive invasion of competitors is also an important reason for the sluggish performance of traditional domestic underwear brands . In 2016, international underwear veterans such as American Vatican, Good People in Korea, PuLin in France, ZimmerLi in Switzerland and LittleWomen in the United Kingdom went to China one after another. Coupled with domestic appliances, clothing, the Internet and other companies and individuals have also set foot in underwear, Gree's smart underwear, Nike sports underwear, Han clothing all the "Duke of Korea," Semir's "Aspect", Liu Xuan's "Balance" , Rosamund Kwan's "MOISELLE", etc., have accelerated the share of the domestic market share of underwear.

都市丽人瞄准孩童市场 寻求新的利润增长点

Aiming at the children's market seeks new growth points

Under the backdrop of the sluggish demand in the retail environment, especially the slowdown in the growth of the adult clothing market and the intensified competition in the underwear market, the City Beauty Group announced its intention to enter the children's market with obvious intention to expand its industrial chain and seek new profit growth points.

"This strategic cooperation with KIMURATAN and Dadu Qingdao and the distribution of KIMURATAN products diversify their business and expand the Group's revenue streams and complement the Group's key business in underwear products," said Beauty of the City.

都市丽人瞄准孩童市场 寻求新的利润增长点

According to China Industry Information Network released "2016 China's children's wear market development status quo and trend forecast" shows that in recent years, China's children's clothing consumption continues to expand, and maintain a high growth rate. In 2015, the size of China's children's wear market reached 137.2 billion, an increase of 8%. As the second child opens up and the consumption is upgraded, it is estimated that the market size will exceed 150 billion by 2017.

Coupled with the continuous growth of national per capita income, they are willing to come up with more money in children. According to a survey conducted by the China Children's Industry Research Center, 80% of families spend 30% -50% of their family expenses, and the consumption of babies has become one of the biggest expenditures for household consumption.

都市丽人瞄准孩童市场 寻求新的利润增长点

At the same time, the market concentration of domestic children's clothing is still relatively low. In 2015, the top ten children's clothing brands accounted for only 10.6% of China's market share, well below the developed countries such as France, the United Kingdom, the United States, Japan, and South Korea, even less than half of neighboring countries of Japan and South Korea. In addition, except for the top-ranked brand, Barra Barra, which has a 4% market share, other brands are under 1% and the market is highly fragmented, which also brings opportunities for children's wear brands.

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