“Children’s wear first share” Annil Co.Ltd(002875) once again suffered losses. Is it difficult to do children’s wear business? On April 18, Annil Co.Ltd(002875) released the financial report for the first quarter of 2022, with a loss of 280421 million yuan. The performance loss is not unfamiliar to Annil Co.Ltd(002875) . According to the financial data, Annil Co.Ltd(002875) 2021 lost 3.0295 million yuan and 2020 lost 46.82 million yuan.
Interestingly, while Annil Co.Ltd(002875) keeps losing money, children’s wear business is becoming the second growth point of Zhejiang Semir Garment Co.Ltd(002563) , Ningbo Peacebird Fashion Co.Ltd(603877) and other enterprises. In the view of insiders, the epidemic has a certain impact on offline channels, and Annil Co.Ltd(002875) this direct + franchise development model is bound to be affected, resulting in poor performance. In addition, with the intensification of competition in the field of children’s wear business, Annil Co.Ltd(002875) also faces many challenges.
performance loss
Annil Co.Ltd(002875) once again hand over the loss report card. According to the financial report of the first quarter of 2022, Annil Co.Ltd(002875) achieved an operating revenue of about 280 million yuan, a year-on-year decrease of 18.97% and a loss of 280421 million yuan. For the reasons for the loss, Annil Co.Ltd(002875) was not disclosed in the financial statements.
It is worth mentioning that in the financial report of Annil Co.Ltd(002875) 2021, the performance is also not optimistic. In 2021, Annil Co.Ltd(002875) achieved an operating revenue of about RMB 1.186 billion, a year-on-year decrease of 5.67% and a loss of RMB 3.0295 million. In addition, in 2020, Annil Co.Ltd(002875) achieved a revenue of 1.257 billion yuan, a year-on-year decrease of 5.26% and a loss of 46.82 million yuan.
For the losses in the past two years, Annil Co.Ltd(002875) attributed it to the epidemic affecting channel sales Annil Co.Ltd(002875) mentioned in the financial report: “the company’s offline channels have been repeatedly affected by the epidemic, and the development of online channels has slowed down due to the impact of emerging live broadcasting channels, which makes the company face great challenges in 2021. At the same time, the consumption environment of the company’s key offline sales areas has been affected, affecting the company’s overall expected selling out rate.”
The epidemic affected the sales to a certain extent, and the unsold inventory became the key factor affecting Annil Co.Ltd(002875) performance data. According to the data, by the end of 2021, Annil Co.Ltd(002875) inventory balance was 357 million yuan, an increase of 542404 million yuan over the same period of last year, accounting for 22.04% of total assets, and the provision for inventory falling price was 769222 million yuan.
It is understood that Annil Co.Ltd(002875) sales channels are mainly offline channels of direct marketing + franchise. By the end of 2021, there are 893 Annil Co.Ltd(002875) Direct stores and 332 franchise stores.
However, judging from the performance of Annil Co.Ltd(002875) in previous years, the decline of performance has long been prominent. Since 2015, Annil Co.Ltd(002875) ‘s net profit has fluctuated and declined. In 2015, the net profit was 70.91 million yuan, a year-on-year decrease of 10.21%; The net profit in 2016 was 79.12 million yuan, a year-on-year increase of 11.58%; In 2017, the net profit was 68.87 million yuan, a year-on-year decrease of 12.95%; in 2018, the net profit was 83.39 million yuan, a year-on-year increase of 21.08%; The net profit in 2019 was 42.12 million yuan, a year-on-year decrease of 49.49%.
According to Xu Xiongjun, a strategic positioning expert and founder of Shanghai Jiude positioning consulting company, in addition to the impact of the epidemic, Annil Co.Ltd(002875) its low awareness, unclear and strong substitutability of brand positioning at the consumer level are another important reason for its poor performance.
The reporter of Beijing business daily interviewed Annil Co.Ltd(002875) about the performance loss. As of the time of publication, no reply has been received.
children’s clothes difficult to make money
While Annil Co.Ltd(002875) deep in the mire of loss, some enterprises “shine” because of the layout of children’s wear business.
According to the financial report data, in 2021 Zhejiang Semir Garment Co.Ltd(002563) achieved a revenue of 15.42 billion yuan, a year-on-year increase of 1.41%, and a net profit of 1.486 billion yuan, a year-on-year increase of 84.50%. Among them. The revenue of children’s clothing business was 10.272 billion yuan, a year-on-year increase of 1.38%, accounting for 66.62% of the total revenue. According to public information, in 2021, the balabalabala children’s clothing brand under Zhejiang Semir Garment Co.Ltd(002563) banner accounted for 7.1% of the children’s clothing market, ranking first in children’s clothing.
At the same time, children’s wear business is also becoming a new growth business for many garment enterprises. For example, Ningbo Peacebird Fashion Co.Ltd(603877) , in 2021, Ningbo Peacebird Fashion Co.Ltd(603877) children’s Mini peace became the fastest growing brand under Ningbo Peacebird Fashion Co.Ltd(603877) and its revenue increased by 29.5% year-on-year to 1.27 billion yuan. Since Jiangnan cloth clothes launched its children’s wear business in 2011, the business has also become one of the businesses with rapid growth. In fiscal year 2021, the revenue of Jiangnan children’s clothing brand JNBY JNBY was about 660 million yuan, a year-on-year increase of 47.8%, accounting for 15.9% of the group’s revenue.
Anta has also covered the children’s clothing market aged 0-14 through the layout of Anta kids, FILA kids and the acquisition of children’s clothing brand King cow. The number of children’s stores has increased at a compound annual growth rate of 13.4% in the past five years.
In the opinion of Wu Daiqi, CEO of Shenzhen siqisheng company, the extension of well-known clothing brands to the field of children’s clothing business will affect the pattern of the whole children’s clothing market to a certain extent, aggravate the industry competition, and further affect the development of Annil Co.Ltd(002875) .
Compared with brands like Zhejiang Semir Garment Co.Ltd(002563) whether in terms of performance or market share, we are facing no small challenges. ” Xu Xiongjun said.
transformation and self rescue
Faced with the intensification of industry competition and poor self-development, Annil Co.Ltd(002875) is also seeking self-help.
Annil Co.Ltd(002875) tiktok said in its 2021 earnings report that Annil Co.Ltd(002875) has been increasing the input of many social media platform resources such as micro-blog, Kwai hung, jitter, quick hand and beep, to cultivate brand reputation and reputation, and promote brand promotion through cooperation with KOL and media dissemination. At the same time, Annil Co.Ltd(002875) carried out joint cooperation with Hong Kong trendplay ip-qee in early 2022 and launched corresponding theme joint stores to promote consumers’ purchase experience.
In addition, Annil Co.Ltd(002875) is also successively laying out the online live broadcasting and delivery business. In September 2020, Annil Co.Ltd(002875) disclosed the fixed increase plan and proposed to raise no more than 407572400 yuan. The rest of the net funds raised after deducting the issuance expenses will be used for the construction of marketing network digital upgrading projects, e-commerce operation center construction projects and other projects. During 2021, Annil Co.Ltd(002875) cooperated with head anchors such as Li Jiaqi and lie’erbao to carry out live broadcasting and delivery.
At the beginning of 2022, Annil Co.Ltd(002875) announced that its wholly-owned subsidiary, Shenzhen Annil Co.Ltd(002875) R & D and Design Co., Ltd., intended to acquire 20% of the equity of short video platform IP and brand agent operator Shenzhen Hongdong Vision Culture Communication Co., Ltd. held by Changsha Kangzhuo garment partnership (limited partnership) with cash of 80 million yuan, and lay out the field of online live broadcasting and goods delivery.
Cheng Weixiong, an independent analyst in the footwear and clothing industry, said that at present, the live broadcast goods are still in the air. Under the repeated impact of the current epidemic, the physical stores have a great impact, while the online business is advancing by leaps and bounds. This layout of the online popular live broadcast field is undoubtedly good for Annil Co.Ltd(002875) .
” Annil Co.Ltd(002875) layout of live broadcast delivery field will change its online channel profit to a certain extent. Live broadcast has become an important marketing method for clothing, so it may be helpful to Annil Co.Ltd(002875) performance and profit.” Wu Daiqi added.
