The number of directly operated stores increased by 79 compared to the end of last year, but franchise stores decreased by 78, which resulted in the actual increase of seven new wolves (002029, SZ) in the first half of the year.
On August 18th, the seven wolves reported that the company’s operating income from January to June was 970 million yuan, an increase of 10.7% year-on-year, operating profit rose by 40.7%, and total profit increased by 36.2%. The report also showed that in mid-2010, the company had 3,250 specialty stores (hall counters), of which 299 directly-operated stores, direct-operated stores increased by 79 compared to the end of 2009; franchise stores 2951, franchise stores than the end of 2009 Net reduction of 78.
Correspondingly, seven wolves reported in the 2009 mid-year report that the number of franchised stores (office halls) was 2,957, an increase of 188 from the end of 2008.
In this regard, analysts believe that, in the context of the global economic crisis, especially whether the Chinese economy will face a double bottom and the rising cost of the apparel industry, the Seven Wolves, like other apparel and textile companies, are facing greater competitive pressures. The continuous rise in store rentals has undoubtedly increased the burden on the stores. Therefore, the seven wolves can only slow down the pace of “staking races†and focus on the profitability of single stores.
After the winter of 2009, although China's garment and textile industry has passed through "life and death", the outlook is still not optimistic.
According to public statistics, from January to July this year, China’s total textile and apparel exports reached 109.6 billion U.S. dollars, an increase of nearly 23% year-on-year. Among them, textiles have accumulated exports of 42.839 billion U.S. dollars, and garments have accumulated exports of 66.827 billion U.S. dollars, with growth rates of 32.75% and 17.45% respectively. However, this growth is based on a kind of restorative growth in the case of a low base last year.
At the same time, the analysis generally held that the growth rate of textile exports will slow down in the second half of the year. According to the data released by the General Administration of Customs, the value of textile and apparel exports rose by 11.4% month-on-month in July, but compared with 19% in 2008 and 17% in 2009, the growth rate has declined in the second half of the year.
According to an industry analyst, judging from the low overall performance of the international market, some domestic clothing brands have been export-to-domestic. The foreign brands that were suffering from the financial crisis also began to seize the Chinese market. This means that domestic brands like the Seven Wolves face the double attack of foreign brands and export to domestic brands. Zhou Shaoxiong, chairman of Septwolves, also stated that some foreign brands are formulating strategies for entering China. In 2010, the “two-way attack†phenomenon in the national apparel industry is increasingly reflected, and a new pattern of clothing is coming.
In this complex competitive environment, seven wolves slowed down the pace of expansion.
“The stores in Guanguan and Kaiping are basically the same, the rent for the store and the labor cost are all rising. At present, the company focuses on building a solid foundation and focuses on improving the profitability of the stores.†Zhou Shaoxiong told the “Daily Economic News†reporter.
In fact, seven wolves also mentioned in the mid-year report that the high commercial property prices have squeezed the profit of the terminal and also put pressure on the expansion of the company's channels. To this end, seven wolves said they would encourage the channel to enter the market and properly sink to the third-tier market to reduce the upfront costs and reduce the risk of the channel.
However, the above-mentioned industry believes that seven wolves continue to invest in brand building, management and innovation are also constantly improving, not to pursue the expansion of the number of stores, but emphasis on the development of the connotation of the brand and benefits, in the clothing and textile industry is facing a crossroads of transformation and development, The practice of seven wolves is suitable for their own development.
On August 18th, the seven wolves reported that the company’s operating income from January to June was 970 million yuan, an increase of 10.7% year-on-year, operating profit rose by 40.7%, and total profit increased by 36.2%. The report also showed that in mid-2010, the company had 3,250 specialty stores (hall counters), of which 299 directly-operated stores, direct-operated stores increased by 79 compared to the end of 2009; franchise stores 2951, franchise stores than the end of 2009 Net reduction of 78.
Correspondingly, seven wolves reported in the 2009 mid-year report that the number of franchised stores (office halls) was 2,957, an increase of 188 from the end of 2008.
In this regard, analysts believe that, in the context of the global economic crisis, especially whether the Chinese economy will face a double bottom and the rising cost of the apparel industry, the Seven Wolves, like other apparel and textile companies, are facing greater competitive pressures. The continuous rise in store rentals has undoubtedly increased the burden on the stores. Therefore, the seven wolves can only slow down the pace of “staking races†and focus on the profitability of single stores.
After the winter of 2009, although China's garment and textile industry has passed through "life and death", the outlook is still not optimistic.
According to public statistics, from January to July this year, China’s total textile and apparel exports reached 109.6 billion U.S. dollars, an increase of nearly 23% year-on-year. Among them, textiles have accumulated exports of 42.839 billion U.S. dollars, and garments have accumulated exports of 66.827 billion U.S. dollars, with growth rates of 32.75% and 17.45% respectively. However, this growth is based on a kind of restorative growth in the case of a low base last year.
At the same time, the analysis generally held that the growth rate of textile exports will slow down in the second half of the year. According to the data released by the General Administration of Customs, the value of textile and apparel exports rose by 11.4% month-on-month in July, but compared with 19% in 2008 and 17% in 2009, the growth rate has declined in the second half of the year.
According to an industry analyst, judging from the low overall performance of the international market, some domestic clothing brands have been export-to-domestic. The foreign brands that were suffering from the financial crisis also began to seize the Chinese market. This means that domestic brands like the Seven Wolves face the double attack of foreign brands and export to domestic brands. Zhou Shaoxiong, chairman of Septwolves, also stated that some foreign brands are formulating strategies for entering China. In 2010, the “two-way attack†phenomenon in the national apparel industry is increasingly reflected, and a new pattern of clothing is coming.
In this complex competitive environment, seven wolves slowed down the pace of expansion.
“The stores in Guanguan and Kaiping are basically the same, the rent for the store and the labor cost are all rising. At present, the company focuses on building a solid foundation and focuses on improving the profitability of the stores.†Zhou Shaoxiong told the “Daily Economic News†reporter.
In fact, seven wolves also mentioned in the mid-year report that the high commercial property prices have squeezed the profit of the terminal and also put pressure on the expansion of the company's channels. To this end, seven wolves said they would encourage the channel to enter the market and properly sink to the third-tier market to reduce the upfront costs and reduce the risk of the channel.
However, the above-mentioned industry believes that seven wolves continue to invest in brand building, management and innovation are also constantly improving, not to pursue the expansion of the number of stores, but emphasis on the development of the connotation of the brand and benefits, in the clothing and textile industry is facing a crossroads of transformation and development, The practice of seven wolves is suitable for their own development.
Safety Boots,Safety Shoes With Ce,S1P Safety Shoes
CE Safety Shoes Co., Ltd. , http://www.nssafety-shoes.com