Summa clothing nuggets baby industry

On June 4, the reporter was informed that CITIC Securities has released a research report on Semir apparel. The report shows that Semir has clearly defined the baby and baby industry as one of the strategic directions for the future and seeks to integrate the resources between children's wear, early childhood education and animation and games. .

The report believes that Summa has sufficient competitive advantages and resources to promote this strategic layout.

Strong landing docking and liquidity. The company currently has 4 children's clothing brands including Balabala (3% market share, No. 1) and more than 3,470 terminal stores. Brands and channels can be effective channels for other resources.

Abundant financial strength. In 2014Q1, the cash was 4.224 billion yuan, and the net cash flow from 2013N/2014Q1 operations was 13.92/158 million yuan respectively.

It is understood that the baby industry is a trillion market, and new models emerge one after another. In 2013, the scale of China's baby and children industry was 1,430.5 billion yuan, and it is expected to reach 2,580,300 million yuan in 2017, 3 years CAGR16%, and the prospective scale will reach 3 trillion yuan.

Factors driving the accelerated growth of the baby industry include: The number of baby infants in China will continue to grow to 261 million people in 2020, the average annual increase in infants will be 100 to 2 million, and the “4+2+1” family will be driven by “second child”. The structural funnel effect makes the baby become the core subject of consumption upgrade.

In this process, more and more companies have begun to try new models for cross-border cooperation. For example, the "IP+ derivative" model, which promotes the sales of baby products and enhances consumer stickiness through the creation of well-known IPs and through the well-received animation/games image, demonstrates the success of Disney/ Hasbro/Aofei Anime. Charm.

The casual wear market solidifies the internal strength and the children's wear multi-brand empire builds shape. The Semir brand is the second largest casual apparel brand in China. It has been hampered by the sluggish consumption and the impact of overseas competition brands in the past two years.

However, it has been focusing on the third and fourth-tier markets, continuously improving its brand image, optimizing its store form and increasing its cost performance. Although the future competition in the casual wear market will intensify, the Semir brand is expected to stabilize its market share and competitive advantage. The competitive pressure on the children's wear market was relatively eased, and the Balabala brand grew healthily. In 2013, the company’s multi-brand strategy for children's wear fell to the ground. At present, the infant brand Mini Balabala, the one-stop children's shoes and clothing brand Mongdodo, and the luxury children's wear brand Sarabanda have been established. They have achieved a wide range of age, category, and positioning. In the future, more flowers are expected to continue to increase their share.

From 2014 onwards, it is expected to enter the recovery of the upstream channel. The company's casual wear business revenue in 2012/2013 declined by 13%/4% respectively. After shutting down more than 700 inactive stores in 2013, thoroughly clearing inventory, optimizing the supply chain, and implementing direct-type management, the current casual wear business has clearly entered the recovery channel. The growth rate of orders for spring/summer/autumn/spring/winter 2014 is about 10%/20%. The children's clothing business is expected to increase its store area by nearly 20% in 2014, and the annual growth rate of orders will basically correspond to this.