XTEP Children'S Clothing Closes Low Efficiency Shop Remedial Exercise Children'S Wear

In October 8th, XTEP announced that in the three quarter of 2018,

Compared with the same period in 2017, the average sales performance of the same shop was compared with that of the same period in 2017

。

But Beijing Business Daily reporter noted that

It's still warm.

10 9, the Beijing Commercial Daily reporter visited, found that Yonghui Millennium XTEP children's shop has been closed.

XTEP responsible person responded that the closure is only inefficient stores, and this year the customs shop performance appraisal standards will be increased from 50 thousand yuan monthly turnover in 2017 to 60 thousand yuan.

Insiders said that XTEP's successive adjustment of children's inefficient stores also indicates that XTEP is continuing to optimize the market layout of children's clothing, aiming to catch up with Anta, Lining and 361 degrees, and narrow the gap with them in the children's wear market.

But Anta, Lining, and 361 degrees, which are more developed than children's wear business,

Children's clothing business has many ways to go in the future.

Close down inefficient children's shop

During the interview, the reporter found that XTEP children's shop, located at Yonghui millennium, has been closed.

The head of the shopping mall told the Beijing daily news that the XTEP children's Yonghui Millennium shop was closed as early as June this year.

Subsequently, the Beijing Commercial Daily reporter also received further verification from the responsible person of XTEP.

The official said XTEP decided to continue to shut down inefficient shops and close down inefficient businesses such as Yonghui millennium's turnover of 10 thousand -2 yuan.

The company has also voicing that the Group monitors the operational efficiency of XTEP retail stores every week and closes retail outlets that are not performing well.

The above XTEP official also said that XTEP children only closed down the low efficiency shops, but also adjusted the performance appraisal standards this year.

In 2017, XTEP children closed down the inefficient shops whose monthly turnover did not reach 50 thousand yuan.

This year XTEP children will close stores whose monthly turnover is not up to 60 thousand yuan.

In fact, in 2016, XTEP has closed nearly half of the children's sales outlets, which also reflects XTEP's low performance and poor development in the children's market from one level.

At the same time, in 2017, XTEP began to put forward in the earnings report that XTEP's children's department made little contribution to the overall performance and would cautiously expand the children's department.

Subsequently, Beijing Commercial Daily reporters visited Xidan shopping center, Xidan Joy City, Jun Tai Department store and Xueyuan Road's San Xi eight shopping center, found that in addition to Xidan shopping malls, and San Xi eight XTEP children's shop, did not see other XTEP children's shop.

But Anta and Lining, which are local brands, have obvious advantages in store layout.

XTEP is a large sports and sporting goods company. It was officially listed on the HKEx in June 3, 2008, and together with Anta, Lining and 361 degrees, it formed the first tier of local sports brands.

In 2011, XTEP formally launched children's clothing; in 2012, Xiamen XTEP children's Articles Co., Ltd. was established.

According to the annual report released by XTEP, in 2013, XTEP sold XTEP children products in about 300 retail outlets.

benefit from

During the good development of the business, XTEP's revenue from other products increased by 114.9% in those days. In 2014, the sales of XTEP children increased to 500; in 2015, the sales of children's wear in XTEP expanded rapidly, and the total number of stores reached 600.

But it didn't last long. In 2016, XTEP's children's Department encountered Waterloo, demolished the sales point, closed 350 sales outlets, and maintained 250 sales outlets in 2017.

In this regard, the industry said: "XTEP think that we need to carefully develop children's clothing is aware of the necessity of developing children's clothing, but the current situation is also seen in their own children's clothing category no special advantage under the helpless mentality."

Store coverage is weak.

In fact, with the opening of the "two child" policy and the upgrading of consumption, the children's wear market in China has entered a period of rapid growth.

Facing the draught, force

Not only the XTEP family, but also the domestic sports brand giants began to layout children's market.

As the leader of local sports brand, in 2008, Anta began to layout children's clothing market, and its children's brand "Anta children" was founded.

In 2008, Anta acquired BELLE's sports brand FILA and launched the FILA KIDS brand in 2015.

According to Anta's earnings report, Anta retail sales of children's products increased by more than 30% in the first quarter of 2017.

As of June 2017, there were about 2100 independent children's clothing stores in Anta, compared with 228 in 2009, an increase of nearly 10 times.

After seeing the bright future of children's clothing market, 361 degrees also launched the children's wear market in 2010 and operated by the independent business department.

Of course, children's clothing business has also brought positive feedback to 361 degrees in the overall performance improvement.

In 2018, for example, 361 degree said in the first half of this year's earnings report, sales of children's clothing at 361 degrees increased by 9.2%, and the proportion of total sales increased to 13.8%. Children's wear has become a major advantage of 361 degrees in the development of sports apparel industry.

In 2016, Lining brand redesigned the original children's clothing "Lining KIDS", set up an independent children's wear department, and launched a brand new "Lining YOUNG".

It was officially launched in January 1, 2018.

According to Lining's first half report in 2018, the sales point of Lining increased by 168 at the end of the last quarter. In the first half of the year, the net sales of Lining YOUNG increased by 458, while Lining's net sales increased by 458.

In contrast to Anta, Lining and 361 - three giants, XTEP children showed a cautious attitude when they landed on the children's clothing market in succession.

By the end of 2017, XTEP children's sales outlets had only been maintained at 250, and by the end of June 2018, XTEP's children's retail outlets increased by 50 to 300.

Compared with the growth rate of Anta children's 2100 stores, the number of Anta children's sales increased by 458 compared with the sales point growth rate of half a year, XTEP children still had a big gap.

"First of all, the popular children's wear market is not the blue ocean stage. With the influx of numerous brands, the public price children's clothing market has entered the stage of fierce competition in the Red Sea. When XTEP enters the children's clothing market, compared with other brands, it is relatively aware that when the other brands have been laid on the market for a long time, it is normal for them to surpass other brands in the coverage rate of stores.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., told reporters of Beijing Commercial Daily.

To get rid of difficulties needs differentiation.

According to the information released by China industrial information, in the past 2013-2017 years, the market scale of children's wear industry in China has reached a compound growth rate of 9.68%, which exceeds men's wear and women's clothing industry.

According to the prediction, the children's clothing industry will remain at around 14% in the next three years in the context of the growth stage of the clothing industry's life cycle.

Roland Begg, a global information consultancy, released data showing that by 2020, the size of the domestic children's clothing market will exceed 280 billion yuan.

Standing on the rapid growth of children's wear market, but XTEP children's business in the overall profitability of XTEP's overall help is not obvious.

In a statement, XTEP said that the children's department had little revenue from XTEP's overall contribution.

It is understood that in 2016 and 2017, XTEP carried out a major reorganization of the children's Department, integrating the resources of XTEP children and XTEP adult departments, including operation management, brand promotion, new product development, material procurement and production, retail management system and retail network, in order to find new profit growth points.

However, in the 2017 annual report and the first half of 2018, XTEP children were still labeled with little contribution to overall performance.

"XTEP's popular children's clothing has entered the market and has entered the market before Lining and Anta compared to the brand marketing, product category, store operation and so on, there is no more colourful place. On the basis of homogenization, XTEP's brand awareness and reputation have not laid a solid foundation, and price competition has become inevitable, and poor performance has become the norm."

An insider who asked not to be named said.

In addition, due to quality problems frequently boarded the unqualified list, yes.

The negative effects of children's sales and brand image are hard to fade away, which is another incentive for XTEP children's poor performance.

Cheng Weixiong said: "rush out the category of children's clothing, the supply chain of the upper reaches of XTEP's adult supply chain has not yet been converted into the children's clothing that can be used. In the process of developing children's stores, the poor purchasing system of children's clothing is also the source of frequent quality problems. If we can't radically eradicate the quality problems of the finished products, the negative image will be hard to cure, and it will also affect the prudent strategic development of XTEP children."

XTEP is also working hard to find a good icebreaker for its own downturn in children's clothing business.

XTEP children try to expand and expand the value of brand based on IP, which is different from traditional mode.

At the same time, focus on the running market, XTEP children join hands in running a number of cities to establish their own brand image.

In the light of

Cheng Weixiong also expressed his view on how to get rid of the difficult situation of children: "in the current situation of the local children's clothing market with the wolf before the tiger", XTEP children hope to come back to the top and have to learn from it. In the brand, products, stores, prices, promotion, business models and other aspects, we must make the difference and dislocation so that we can have the opportunity to stand out.