Have you ever been to the "Men's Wardrobe" of Haishu House to buy clothes? how do you feel? In fact, Haicang House, as a company, has four clothing brands. What is the current effect?
"Haicang Home - Men's Wardrobe", behind this deeply rooted brand image, Haishu House (600398, SH) is not only the leader in the men's wear industry, but a home with a sea otter and a rabbit. Haihai and Sankeno have four major clothing brands. The business covers the operation of branded clothing and the production and sales of high-end suits and professional clothing. The operation of branded clothing includes large-scale clothing enterprises such as brand management, supply chain management and marketing network management.
Recently, in an interview with reporters, Xu Qinghua, director of the Haishu House, director of the board of directors and deputy general manager, said that for the management, it is the duty to manage the company well. "The business is good, our sales and profits will be Increasingly, we can bring high returns to investors, and at the same time contribute to the market and the country."
Form a community of interests with suppliers and franchisees
In recent years, the competition in the apparel industry has become increasingly fierce. Domestic apparel enterprises are facing greater operational pressures. However, Haishu’s home has formed a “brand management†with unique characteristics and competitive advantages based on the “brand + platform†business model. The operation and management mode of production outsourcing-total logistics-chain sales has shown a posture of “competing the trendâ€. In the first half of this year, Haishu Home achieved a main business income of 9.098 billion yuan, a year-on-year increase of 6.38%; the net profit attributable to shareholders of listed companies was 1.875 billion yuan, a year-on-year increase of 5.77%, and continued to develop under the overall downturn of the industry.
Reporter: How does Haishu's home step by step to achieve industry leading?
Xu Qinghua: The chairman of the company started his business in 1988. At the beginning of his business, he was a woolen mill (worsted). The scale was small. At that time, he was a seller's market and did a good job. When the wool textile industry was relatively hot, the chairman felt that worsted (suit) was the development trend of the market, so he made the first transformation and took the lead in others. It was very successful. At that time, the fabric of the worsted industry, we achieved the top three in the national industry, many clothing brands are customers of our fabrics.
In order to be unconstrained by retailers, we still want to make clothing, and we have our own fabrics, so we have taken a different career to make a business suit (Sancino). We also accumulated a lot of experience in doing professional wear. Subsequently, the establishment of the Haishu House, the company slowly explored, and finally form the current light asset model.
Reporter: How does the Haishu House operate on the procurement side and the business side?
Xu Qinghua: On the procurement side, the clothing enterprises in the traditional sense do their own product development, and the supplier processing earns processing fees. The inventory risk is borne by the brand owners themselves. Enterprises can supply goods to the dealers by ordering, and then they can confirm the income, and how to sell in the channel is irrelevant to the company.
Haishu's home is different. First, we design and develop products jointly with suppliers. Secondly, at the time of production, the main products are produced by suppliers. We don't pay for it. After the production is finished, the supplier will enter the goods according to the requirements. In the warehouse, after the products were sold on the shelves, we only made monthly payments.
After the products are sold in two seasons, the finished goods that have not been sold out can be returned to the supplier according to the agreement, and the other party bears the risk.
In addition, the sales will not be mastered, the terminal will be very passive, so the Haishu home must master the store, but the company lacks funds when it is started, the size of the enterprise is not large, and the opening of the store requires a lot of money and the channel cost is high, so the company helps to join The business management store has slowly become the current direct-operated model.
The franchisee invests, selects the site, distributes the goods, manages the staff, etc., the company is responsible for; the goods sold, the company has a certain proportion of the turnover, the company has to share with the supplier, then the company . The product is finally sold through the retail side, everyone earns money together, and if the product is unsalable, the three parties have losses.
Reporter: Why is the supplier of Haishu Home will be willing to take risks and cooperate with the company?
Xu Qinghua: On the procurement side, the sales rate index is very critical. The supplier's sales rate reaches 60%, which can basically protect the capital. The Haishu home has been doing so for many years. The average sales rate in the two seasons is 70% or 80%. Businesses can make 70% to 80% of the sales rate, and the tail goods can be sold a little more, which will make more money than ordinary OEM production (OEM), which is why they are willing to cooperate with us.
Multi-brand layout, dealing with consumption upgrades
Reporter: This year, Haishu Home has implemented several acquisitions of other brands, including partial equity acquisitions of domestic fashion brands UR, and 660 million yuan in shares of Ying's infants. What is the purpose of the company's acquisition of these brands?
Xu Qinghua: The single brand of Haishu Home can make men's clothing to such a large scale. In fact, it cannot be copied. In the current economic situation, it is difficult to achieve high growth. The current task is to stabilize growth, maintain income scale, profit scale and cash flow scale, and make it a “cash cowâ€. Through “cash cowsâ€, more brands can be made, and brand extension and expansion are not only their own cultivation. Incubation of brands, including the acquisition of some retail brands outside. Of course, we mainly focus on clothing.
In addition to the main brand of Haishu, we also have rabbits for women's wear and women's wear, and Sankeno is a professional wearer. This is our existing brand. This year, we have also expanded the men's wear brand of the tide, Haishu home. It is also launching a luxury brand.
Reporter: How does the company view consumption upgrades? What impact does the consumption upgrade have on the company's layout?
Xu Qinghua: With the advancement of information technology, consumption in third-tier cities is slowly approaching that of second-tier cities, and the environment is changing. The consumption demand of middle-income groups is very obvious, pointing to products with better personalization and better quality. This actually brings opportunities to our brand.
The layout of Haicang House also takes into account the consumption upgrade. The company's products are younger. As our stores increase in third-tier cities, the number of first- and second-tier cities will gradually increase. Of course, different cities have different configurations, which requires the management of big data. The Haishu home is adjusted according to the data analysis, which is of great significance. Next, in this regard, the company will do a lot of work.
Reporter: How does the company view new retail?
Xu Qinghua: For Haishu's home, the so-called new retail reality is to compete for O2O, the integration of online and offline channels, is the direction pursued by Haishu Home.
In June of this year, there are 1,000 stores in Haishu’s home that can do O2O. By the end of the year, it will reach 2,000 stores and will expand further next year. This is to give consumers a better experience. On the other hand, after the implementation of O2O, the cost of courier and storage of goods will also decrease.
Pay attention to investors and shareholders' rights
Reporter: Haishu's home attaches great importance to investor management. How does the company communicate with investors? What results have been achieved?
Xu Qinghua: In order to let investors know more about the real sea otters, I have been actively communicating with the market since I took office as the director of the Haishu House, including analysis meetings with brokers, reverse roadshows, and institutional conference calls.
In addition, the company's information disclosure has also been rated A by the exchange, becoming the benchmark for capital market information disclosure.
Reporter: What are the returns of the company's investors in recent years?
Xu Qinghua: In recent years, the valuation given to us by the market is actually not high. However, since the company was reorganized, the annual dividend ratio has not fallen below 50%. In two years, we have reached more than 70%. From the time of listing to the present, the whole The dividend reached 6.4 billion yuan. In the process, we did not raise funds from the market, no loans, and backed the market.
Because of the light asset model of Haishu House, the company does not have a large capital expenditure. At present, the biggest expense of Haishu's home is the company's warehousing, so we always hope to make Haishu's home into Vanke in the clothing industry, and hope to become a responsible big company, governance, information disclosure, timely, investors and supervision The layers are all satisfactory.
Reporter: What other jobs are there in Haishu's House to better serve shareholders?
Xu Qinghua: The best job is to manage the business well. This is the biggest contribution to investors, markets and the country. Sea Orchid House development up to now, has created many jobs and contribute considerable taxes. The staff of Haicang House can also experience happiness in the company, have a good platform to play their talents, and truly make Haishu a home.
As a clothing brand enterprise, Haishu Home is also a management platform. We are good at management and integration. Our goal is to be a multi-brand management platform to build our own fashion industry around apparel-based consumer goods retail.
For the Jewish kippa,kippah,kippot ,we made as OEM & ODM ,support as different design according to your special requirements.
Kippa kippah kippot
Yantai Belief Cap Co.,Ltd. , https://www.beliefcaps.com