After tasting the sweetness of live broadcasting with goods, Annil Co.Ltd(002875) is ready to enter the field of online popular live broadcasting. On January 13, Annil Co.Ltd(002875) opened the trading limit. The night before, Annil Co.Ltd(002875) disclosed that the wholly-owned subsidiary would spend 80 million yuan to acquire 20% equity of Shenzhen Hongdong Vision Culture Communication Co., Ltd. (hereinafter referred to as “Hongdong vision”).
“Brand positioning and product positioning are not misplaced. It is difficult to find new growth points under the optimistic performance.” This is the industry’s view on Annil Co.Ltd(002875) entering the field of online live broadcasting. Annil Co.Ltd(002875) the announcement also did not mention that this foreign investment is conducive to cultivating new profit growth points of the company. However, at a time when it has become an industry consensus that online live broadcasting can increase revenue without increasing profits, it is hard to say whether live broadcasting can enable Annil Co.Ltd(002875) to find performance growth channels.
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On January 13, Annil Co.Ltd(002875) opened at a limit of 10.77 yuan. As of press time, the current price was 10.77 yuan, an increase of 10.01%. Since the beginning of the year, Annil Co.Ltd(002875) share price has increased by 17%.
Just the night before, Annil Co.Ltd(002875) announced that Shenzhen Annil Co.Ltd(002875) R & D and Design Co., Ltd., a wholly-owned subsidiary of the company, intended to acquire 20% of the equity of short video platform IP and brand agent operator Shenzhen Hongdong Visual Culture Communication Co., Ltd. held by Changsha Kangzhuo garment partnership (limited partnership) for 80 million yuan in cash.
The reporter of Beijing business daily interviewed Annil Co.Ltd(002875) about the acquisition. As of press time, no reply has been received.
Tiktok is a company that focuses on the short video and brand live service providers in the vertical field of clothing. It mainly provides the service of voice and fast platform operation and content business services. The generation service business is the core business of the red mobile vision field, including the “IP generation operation” and “brand operation”. The service provider is a Kwai Fu vision company. It is a new service provider. The mobile service is a core business of the red mobile vision. It constitutes the main profit source of Hongdong vision.
It is understood that Hongdong vision currently serves Li Ning, camel, ur and Danskin. The service contents mainly include live delivery, traffic delivery, customer service, store operation, etc.
For the layout of the live broadcast delivery field, Annil Co.Ltd(002875) “has been planned for a long time”. In September 2020, Annil Co.Ltd(002875) disclosed a 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 project, e-commerce operation center construction project and other projects.
In addition, during 2021, Annil Co.Ltd(002875) cooperated with head anchors such as Li Jiaqi and lie baby to carry out live broadcasting and goods. It is understood that during a live broadcast between Annil Co.Ltd(002875) and Li Jiaqi in September 2021, the sales of two products exceeded 6 million yuan in three hours.
Cheng Weixiong, an expert in textile and garment management and general manager of Shanghai Liangqi Brand Management Co., Ltd., said that at present, the live broadcast goods are still in the air outlet. Under the repeated impact of the current epidemic, the physical stores have a great impact, and the online business is advancing by leaps and bounds. This layout of the online live broadcast field is undoubtedly good for Annil Co.Ltd(002875) .
find new growth points
Behind the bet on the live broadcast of online popularity is the dilemma of “dismal” performance of Annil Co.Ltd(002875) . According to the financial report data, in 2019, Annil Co.Ltd(002875) achieved a revenue of 1.327 billion yuan, a year-on-year increase of 9.41%, and a net profit of 42.12 million yuan, a year-on-year decrease of 49.49%. In 2020, Annil Co.Ltd(002875) achieved a revenue of 1.257 billion yuan, a year-on-year decrease of 5.26%, and a net loss of 46.82 million yuan, a year-on-year decrease of 211.16%. In the third quarter of 2021, Annil Co.Ltd(002875) achieved a revenue of 193 million yuan, a year-on-year decrease of 18.56%, and a net loss of 35.41 million yuan, a year-on-year decrease of 79.92%.
In response to the acquisition of Hongdong horizon equity by its subsidiary, Annil Co.Ltd(002875) disclosed in the announcement that in order to better comply with the development trend of emerging sales formats, the company needs to seek high-quality partners to help the company promote and operate in emerging channels, increase the exposure and attention of the company’s products and brands, and promote the sales of the company’s products.
“This Kwai Tong investment is not only conducive to fostering new profit growth points, but also conducive to the cooperation of the red movement vision, giving full play to the advantages of all parties, integrating all the advantages of the resources, and using the experience and resources of the red mobile horizon to help the company sell live sales on the platform such as the tiktok and fast hands, and enhance the profitability of the company.” Annil Co.Ltd(002875) indicates.
Cheng Weixiong said that Annil Co.Ltd(002875) as a traditional offline children’s brand, although it caught up with the good opportunity to be listed and capitalized, there is still no dislocation in brand positioning and product positioning. It is in a weak position in the competition with children’s head brands barabarabara and Anta children. The price game of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) is a great challenge to the Red Sea.
In the children’s wear industry, Annil Co.Ltd(002875) faces the competition of many brands. In the past two years, Zhejiang Semir Garment Co.Ltd(002563) has continuously reduced its leisure clothing business and expanded its children’s clothing business. In the first half of 2021, Zhejiang Semir Garment Co.Ltd(002563) children’s wear business accounted for 63.6%, which was due to the growth of children’s wear business, and the performance of Zhejiang Semir Garment Co.Ltd(002563) in the third quarter achieved great growth. According to the official disclosure of Zhejiang Semir Garment Co.Ltd(002563) on the investor interaction platform, in the children’s clothing market in 2020, the market share of balabalabala brand ranked first in China’s children’s clothing market.
In addition, brands including Anta, Tebu, Li Ning, Ningbo Peacebird Fashion Co.Ltd(603877) and overseas brands UNIQLO are interested in overweight children’s wear business. Among them, Anta has 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 kow. The number of its children’s stores has increased at a CAGR of 13.4% over the past five years. Tebu also proposed to open 1000 children’s clothing stores this year.
Cheng Weixiong said that with the favorable policy of “three children” and the continuous improvement of consumption level, there is indeed a certain development space for children’s clothing business. However, at present, due to the diversification of channels, the user circle is relatively scattered. Although many brands have layout, they do not have a standardized leading brand. With the entry of some leading enterprises, intensified competition is inevitable.
“It has become an industry consensus that live broadcasting with goods will increase revenue without increasing profit. For Annil Co.Ltd(002875) , betting on live broadcasting with goods is difficult to become a profit growth point for Annil Co.Ltd(002875) .” Cheng Weixiong said.
