Hai Lan'S Home Is Backed By Tencent.

"

"The men's Wardrobe", I think, readers will be in the ears of this magic language.

But now Hai Lan's home not only sells women's clothing, but also marches in.

And home market.

According to the world clothing and shoe net, in March 20th, Hai Lan home announced that the company's issuance of convertible bonds was approved by the SFC.

This time, not more than 3 billion of the fundraising funds are mainly used for the upgrading of investment company's industrialization information chain, and the construction of "Ai Ju rabbit" R & D office building and logistics area.

Surprisingly, despite the support of this great good news, the price of Hai Lan's home fell by 2.71% on the same day.

Layout industry chain, molding

Image, Hai Lan's home seems to be a big trend. Why do institutional investors and retail investors not buy it?

High inventory burden dragged on, revenue performance plunged into "bottleneck"

The biggest problem facing Hai Lan's home is the cliff clipper decline in revenue growth.

In the past 3 years, under the background of the escalation of consumption, the growth rate of Hai Lan's home revenue dropped from 72.56% in 2014 to 7.06% in 2017, and the revenue growth rate of the main men's brand "Hai Lan home" dropped from 27.16% to 5.18%.

However, behind the cliff breaking slide in revenue growth is the rapid expansion of the number of stores in Hai Lan's home and the continuous increase in the number of stocks.

The "counter cyclical" rule seems to be the key to the strategy of Hai Lan's home in recent years.

The tide of online shopping is surging, and the living space of the entity store is becoming increasingly cramped. In the face of the poor environment under the line, Hai Lan's home has chosen to borrow the IPO fundraising window to counter the "horse race enclosure".

Since its listing, Hai Lan's shop has expanded rapidly, with 5792 stores in 2017, including 1054 new outlets, an increase of 22.25% over the same period.

"Cold storage in winter, hot summer storage of carbon", counter cyclical strategy left behind is king logic is correct, but the effect is often lagging, side effects are followed.

The biggest problem at present at Hai Lan's home is the most impossible "high inventory" problem.

In the 2014-2017 years, the inventory balance of Hai Lan's home was 6 billion 86 million yuan, 9 billion 580 million yuan, 8 billion 632 million yuan and 8 billion 493 million yuan, respectively, and remained at a high level.

Relying on crude and crazy "light assets" mode, Hai Lan's home quickly occupied the two or three line city market. However, when we look at it, it is precisely this pattern that brings the "sequela" of Hai Lan's high inventory.

Specifically, the "light asset" mode of Hai Lan's home is to sell goods on the market with upstream suppliers, and entrust the consignment model with downstream franchisees.

At the same time, according to the relevant provisions, Hai Lan's home requires suppliers to promise 100% return, and franchisees do not bear the risk of unsalable inventory.

In theory, under the above "light assets" mode, Hai Lan's home does not take inventory risks itself. Why is inventory still in a high state?

In fact, according to the prospectus, Hai Lan's home did exercise the right to return.

But judging from the proportion of the 10% of the inventory balance, it is obvious that it is unlikely that the family will take all the risks.

In addition, according to the annual report, Hai Lan's family subsidiary company Hai also participated in the handling of tail cargo and shared the risk of unsalable sales.

This also verifies the return terms from Hai Lan home and suppliers, which is very low in practice.

However, under such a "tempting" mode of joining, Hai Lan's home has naturally become the "fragrant pastry" in the eyes of franchisees.

Generally speaking, rapid expansion of stores can relieve inventory pressure.

However, judging from the current high storage of Hai Lan's home, it is obvious that its conservative fashion design and old brand image have not led to the full development of its shops, but have increased the inventory pressure of Hai Lan's home.

It is particularly evident that in 2017, the average single store business growth rate of Hai Lan's household had a downward trend. Among them, the average single store operating income of men's brand "Hai Lan Jia" and "women's clothing brand" love rabbit lived down by about 9% year-on-year.

In addition, because the franchisee's goods are in the form of Hai Lan's stock before the final settlement, they also indirectly lead to a higher inventory turnover than their peers.

In the three quarter of 2017, the inventory turnover rate of Hai Lan's household was 1.12, which was lower than that of the 1.52 and seven wolves in the same period.

It is worth noting that compared with the preparations for the fall in prices of seven wolves (49.4%), nine herdmen (10.3%), and Japanese fashion (19.7%) in the first half of 2017, Hai Lan's home preparation is particularly inadequate.

In the same period, Hai Lan's home made up the balance of inventory merchandise with a 4.2% price reduction ratio, and calculated the balance of the consignment sales at 1.6%.

Even if the proportion of the lowest proportion of 10.3% of the king of the United Kingdom is calculated, it will affect 10% of the net profit of the 2017 Hai Lan deduction.

It is conceivable that these inventories will bring much "bombs" to the future.

Backed by Tencent, "cool"?

High inventory is like the sword of Damour and Chris on the top of Hai Lan's home. No one can predict when it will fall. Since 2017, "young commander" Zhou Lichen has been responsible for the Internet pformation work. Hai Lan's home has begun to actively approach the electricity supplier channel to move closer to the younger generation to get rid of the high inventory dilemma.

In August 2017, Hai Lan home and Ali reached a new retail strategy cooperation, and upgraded the offline store. This is also called the new strategy of the new retail strategy in the field of clothing.

In the same year, double eleven, Hai Lan's home sales broke 400 million, ranking the top of Tmall men's wear.

But in 2018, the situation changed.

In September 2017, when Hai Lan's home was withdrawn from the Jingdong, Liu Qiangdong gave a strong endorsement to micro-blog's home at Hai Lan in January 2018.

However, 2 month Hai Lan's home turned to the embrace of Tencent.

Tencent bought 5.31% of the shares of Hai Lan's home and set up a clothing industry investment fund of 10 billion yuan.

In the Internet age of "relying on big trees to enjoy the cool", Ali and Jingdong are the best "springboard" for traditional clothing brands to develop online channels, while Hai Lan's home chooses to rely on Tencent, observing that Mr. Wang speculated that the 5 billion cash of the pferee's shares and the subsequent investment fund are even more favorable to the cash flow of the current threatened Hai Lan's home.

Since Zhou Lichen became president, in order to get rid of the "man's wardrobe image" to the "wardrobe of the whole family", Hai Lan's home not only shares fast fashion and Ying Shi baby products, but also develops life class home brands and overseas markets.

There is no doubt that the above pformation requires large capital investment.

In 2017, the net cash flow from Hai Lan's home investment activities was -22.1 billion yuan, up by -280.09% over the same period last year.

At the same time, the high storage also consumed the cash flow of Hai Lan's home. The proportion of the cash flow of the listed clothing companies accounted for the proportion of revenue. In the first three quarters of 2017, the proportion of Hai Lan's home was -1.0%, far below the proportion of seven wolves (16%), YOUNGOR (40%) and nine Mu Wang (16%).

In addition, the selection of Tencent by Hai Lan's home may not be a direct increase in online sales. More possibilities are to rely on Tencent's technology and traffic to improve the efficiency and service quality of offline stores, so as to alleviate the problem of high inventory.

From Hai Lan's home to adopt the O2O mode of the same line and the same price at the same time, its positioning for the electronic business platform is a supplement to the offline stores.

Therefore, its online sales share of operating income has not been high, and in 2017 it was only 5.91%.

However, in the era of AT, the electricity business of Hai Lan's home may be restricted by the non Tencent platform, and it will not achieve high growth while relieving inventory pressure as expected.

{page_break}

By way of "nine hundred million girls' dream", strength "circle powder"?

It needs to be hardened by itself, while the sea Lan's home is moving closer to the younger generation by way of electric business. It also actively starts from itself, not only towards women's clothing, but also makes great efforts in brand image, promoting the full development of shops and relieving inventory pressure.

With the performance of the men's brand "Hai Lan's home" entering the "bottleneck period", Hai Lan's family began to implement the brand differentiation strategy without stopping, and began to set foot in the women's clothing market in order to seek new profit growth point.

The women's clothing brand "Ai Ju rabbit", founded in 2010, has been repositioned as a fashion dress for the public. It has opened the Gao Kuozhang trend and provided a new impetus for the growth of Hai Lan's home.

In 2017, the revenue of "love rabbit" increased by 75.46% over the same period last year, much higher than that of "Hai Lan home" 5.18% and "San Keno" 15.5%.

In addition, Hai Lan's home recently promoted the women's clothing business to an unprecedented strategic height. Not only did it invest 1 billion 93 million yuan to build four warehouses for the "love rabbit", but also raised 469 million yuan for its research and development office building.

But the problem is that for a man based company like Hai Lan home, the "Ai Ju rabbit" without brand awareness wants to kill a tight encirclement from the "Jungle" clothing market.

From the current strategic layout of Hai Lan's home, it seems that the large number of expansion stores is still the main development direction.

In 2017, 419 new houses were added to the "love hare" store, and 243 were added to the "Hancan house" store.

It is still the main mode of Hai Lan's family to rely on franchised stores to stimulate performance growth. This means that women's clothing is likely to continue the "old routine" before the development of men's "Hai Lan's home".

From the slow down of men's clothing, we can see that under the same development mode, even though the present women's clothing business has brought new growth to the revenue of Hai Lan's home, the development of the "love rabbit" may be difficult for a long time in the whole women's clothing market approaching the ceiling, and it can also bring higher inventory pressure.

In addition, Hai Lan's home is also striving to get rid of its "ground gas" label, enter the fashion circle and pform into a younger one.

On the one hand, Hai Lan home and the famous men's wear designer Zhou Xiangyu jointly launched the "XANDER ZHOU +HLA" to create a "younger" home of "Hai Lan".

On the other hand, Hai Lan's home has created its brand image through widely publicized and then profit driven marketing mode.

In order to expand the influence of brand, Hai Lan's family has sponsored many popular variety shows such as running brothers, the strongest brain, masked singing and Mars intelligence.

It is in the choice of "nine hundred million girls' dream" Lin update and other spokesmen, brand image instantly improved.

However, the marketing method of Hai Lan home also brings high cost.

The proportion of advertising expenses of Hai Lan's home is far higher than that of its peers.

In 2016, the proportion of Hai Lan's home was 38.67%, compared with 8.05% and 4.3% in the same period.

It is worth noting that in 2017, the total R & D investment of Hai Lan home accounted for only 0.21% of the total revenue, far below the 3.4% of its advertising expenses.

Generally speaking, Hai Lan's family relies on business pformation and marketing strategy to stimulate growth in performance. It always feels a bit temporary.

At present, the era of domestic marketing being king is gone forever. For clothing brands, design and quality are lifeline.

Under the plight of high storage, Hai Lan's home relies on multiple initiatives such as the big business of electric providers, the layout of women's clothing, "love the bunny", and the "nine hundred million girls' dream". Can we break the situation?

More interesting reports, please pay attention to the world clothing shoes and hats net.