Another Women'S Clothing Giant Went Into A Loss: Backlog Of Stocks Reached 1 Billion 700 Million, And 1000 Stores Closed In 3 Months.

Some time ago, the domestic women's clothing giant La Natsu Bell released the company's 2018 annual performance report.

According to the financial report, last year, La Natsu Bell realized 10 billion 176 million yuan of business income, a decrease of 269 million yuan compared with the previous year's 10 billion 446 million yuan, down 2.58% from the same period last year.

Net profit attributable to shareholders of listed companies was 156 million yuan, down 654 million yuan from the same period last year, down 131.24% from the same period last year.

It is reported that this is the first time La Natsu Bell has seen a loss in operation.

Another women's clothing giant went into a loss: backlog of stocks reached 1 billion 700 million, and 1000 stores closed in 3 months.

Shortly after La Natsu Bell released his performance report, the Shanghai stock exchange sent an inquiry letter to him.

It is reported that the inquiry involves a total of more than 20 questions, focusing on the authenticity of La Natsu Bell's business, the operation of the industry, the rationality of the capital pfer, and so on, requiring La Natsu Bell to make further supplementary disclosures.

In addition, La Natsu Bell company has reduced 179 stores last year, and its prudence of switch shops has also attracted regulatory attention.

La Natsu Bell, founded in 1998 by Xing Jiaxing, is a fashion brand from Shanghai. It is a fast fashion fashion group, which is based on direct selling and multi brand development.

Its positioning is the public mid-range casual wear, mainly engaged in clothing design, brand promotion and sales.

La Natsu Bell was listed on the main board of the Hongkong stock exchange in 2014 and later on the main board of the Shanghai Stock Exchange in September 2017.

Actually.

Since its listing in Hongkong, La Natsu Bell's revenue has started to slide until it began losing money last year.

Another women's clothing giant is in a loss: a backlog of 1 billion 700 million stocks and 1000 stores in 3 months

In fact, there has been a decline in the operation of La Natsu Bell's brand. Daphne, once the "king of women's shoes", has been deeply involved in the business crisis and has closed thousands of stores.

Last year, Daphne's total revenue amounted to HK $4 billion 127 million, losing nearly HK $1 billion, which is Daphne's fourth consecutive loss.

Fashion brands like Daphne and La Natsu Bell were once popular among female consumers, but now they are all in the bottleneck of development. What is the reason?

Is it because consumer attitudes have changed and are no longer blindly consumed?

The answer is not.

If you pay more attention to net red, you will know that many net red "take goods" ability is comparable to the stars. They can promote products through simple network video, and a few simple words can drive many consumers to buy products.

Therefore, the consumption concept of female consumers has not yet reached the general rational state.

So why do fashion brands like La Natsu Bell and Daphne come up with losses in succession? In fact, a large part of the reason lies in the problem of business strategy.

The expansion of Daphne and La Natsu Bell shops is very fast, and the rapid expansion will lead to the increase of brand operating costs, which will bring great pressure to the company's funds.

Some companies even break the capital chain in the process of expansion, and finally go bankrupt.

Moreover, as we all know, there will be a lot of backlog in the clothing business, and La Natsu Bell's crazy expansion has also caused a large backlog of inventory, which is the root cause of the loss.

It is understood that only in 2015 and 2016, La Natsu Bell's inventory reached 1 billion 700 million.

In recent years, La Natsu Bell has been cleaning up inventory routes, but the effect is not very satisfactory.

Another women's clothing giant went into a loss: backlog of stocks reached 1 billion 700 million, and 1000 stores closed in 3 months.

The economic pressure caused by overstock and rapid expansion caused La Natsu Bell to lose money.

Another reason is the intensification of competition in the industry.

La Natsu Bell is mainly committed to the market development of the three or four line cities, and mainly based on the direct camp mode.

But in recent years, due to the rapid development of e-commerce, a large number of customers have been "robbed" by the electricity supplier, resulting in the decline of their retail businesses.

In addition, with the popularity of international fast selling brands such as H&M and ZARA, many market share has been snatched and the main passenger flow has been dispersed, which has led to the gradual decline of La Natsu Bell's performance.

Since the second half of last year, La Natsu Bell has made shrinkage adjustments to its stores, accelerating the closing of shops that lose money or inefficient operations, slowing down the pace of new shops, and closing the stores and accelerating amortization to about 90000000 net profit.

Another women's clothing giant went into a loss: backlog of stocks reached 1 billion 700 million, and 1000 stores closed in 3 months.

In addition, with the progress of the times, people's consumption habits are gradually changing.

If the enterprise persists in its previous business philosophy and marketing methods, it will lag behind the trend of the development of the industry, thereby losing customers.

Therefore, in terms of business strategy, if the brand can not be changed in time, it may become the next "BELLE".

However, it is understood that La Natsu Bell has begun to make adjustments.

Now, La Natsu Bell has begun to try smart stores, accumulating part of customer information through virtual fitting glasses and online stores, using Internet technology to analyze consumer behavior and giving reasonable suggestions.

At present, this method still has certain development prospects.

In addition, La Natsu Bell related stakeholders also said that La Natsu Bell's main goal this year is to reverse the loss situation.

To this end, the company plans to end this year, its direct outlets control around 7000, and reduce 2000 to 2500 stores.

By the first quarter of this year, La Natsu Bell has reduced about 1000 stores.

In this era of rapid development of the Internet economy, the rational use of the network can achieve good marketing results, so more and more enterprises are beginning to pform from the traditional mode of operation to the new mode of "Internet +" which is highly integrated online and offline.

Following the trend of the times, turning the trend into the advantages of self development has become an important topic for the survival and development of enterprises.

La Natsu Bell has been able to respond to this in a timely manner. If he can formulate a business strategy that is consistent with the development of the times, it is still possible to turn losses into profits and continue to grow upward.

In fact, whether La Natsu Bell or Daphne, these once popular brands are now in the bottleneck of development, are predictable and inevitable.

Because the development and progress of the times, if we can not keep pace with the times, we will naturally be eliminated.

Especially in the clothing and footwear market, new brands emerge in an endless stream, competition has been intensifying, and the industry "shuffle" frequency is very fast.

Therefore, if we want to remain invincible in the industry, we must be highly sensitive to the market and deal with all the changes in the market in a timely manner.