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Why can't the discounted HLA against the trend?
2015/08/12

"As far as I know, this is the only one in the local brand that does not have a discount." Cheng Weixiong, general manager of Shanghai Liangqi Brand Management Co., Ltd. and marketing expert in the apparel industry said.

The brand that Cheng Weixiong said isHLA (600398.SH). The clothing company that started Jiangyin and the main men's clothing has a good record in the latest first-half report.

The data shows that the company's operating income in the first half of 2015 exceeded 7.9 billion yuan, an increase of nearly 40% over the same period in 2014, and net profit was 1.67 billion yuan, an increase of 35.68% over the same period in 2014. As of the end of the year, the number of stores owned by the company's most famous brand,HLA, was 3,382, an increase of 6.89% year-on-year. At the same time, the company strengthened its cooperation with shopping centers and continued to implement the big store strategy, which increased the effective business area of the store by 18.11%.

This performance is unimaginable in many industry figures. Because the demand for domestic clothing is still in a downturn in the first half of 2015, the overall retail environment has not shown a significant warming trend.

Most consumers in first-tier cities may only see advertisements forHLA on some outdoor billboards. They once swear in the advertisements to say “the wardrobe of Chinese men”, but those in big cities are obviously not The brand's main target customers.

"First Financial Daily" reporter learned that the main store market ofHLAis mainly in the third- and fourth-tier cities and some townships below, but don't underestimate the consumption power of small cities. They are the home ofHLA. The main consumer groups. "As far as I know, shops in some places are extremely effective. Single stores can reach a sales scale of 50,000 to 60,000 per square meter per year, and directly pursue foreign brands such as Uniqlo." Cheng Weixiong said: "Domestic brands are generally effective in 2 ~30,000 徘徊, low efficiency is only 1~20,000."

It is reported thatHLA's home is mainly for low-end men's wear, and the current domestic men's clothing companies are taking the route of 'high on the top', and there is almost no brand that can compete with low-priced men's wear. Because the price is affordable, and you don't have to worry about price cuts after a few days of buying, this is one of the important criteria for the choice of clothing products when consumers are becoming more rational.

It is worth noting that in addition to high cost performance, the company's business model is not the same as other domestic apparel companies.

Wang Liping, a researcher at ShenwanHEILAN Co., Ltd., said that it can continue to contradict the high growth during the adjustment period of the whole industry. The reason is that the company's innovative business model has strong “entry” barriers.

Compared with other domestic apparel brands,HLA Home's channel business model is quite unique. The franchisees are responsible for investing and not participating in the operation. They only play the role of financial investors, and only bear the wages of opening stores and staff, and are not responsible for store management. The store is operated by the company in a unified manner, and the goods are distributed by the company headquarters. The sales revenue is divided into proportions of theHLAand franchisees. This model seeks to strike a balance between store management and store expansion.