Overweight casual Youngor accelerates return to the main business of clothing

Hot spot funds flow to thousands of stocks to evaluate stocks to diagnose the latest rating simulation transaction

Client

"Yunfeng has a fish cup" Hong Kong stocks simulation contest is hot, and the registration transaction is likely to win 600,000 prizes! [Click here to register]

Source: Beijing Business Daily

Youngor began to accelerate his return to his main business. Recently, Youngor Group Co., Ltd. (hereinafter referred to as "Youngor") announced that it will increase its investment in the Hartmark brand, which is mainly engaged in American leisure. This is regarded by the industry as a major move after Youngor returned to the main business after proposing "recreating a Youngor in five years" at the end of last year. In recent years, Youngor has become an investment company with a large-scale clothing business. However, the industry believes that returning to the main business of clothing has become a top priority for Youngor in the context of reduced investment and real estate income.

Power leisure

On October 18th, Youngor announced that he will increase investment in the Hartmark brand in the next few years. He hopes that Hartmark will maintain an annual growth rate of more than 20% within five years and achieve sales of 1 billion in five years. yuan.

It is understood that the Hartmark brand was born in Chicago in 1887 and has a history of 130 years. This time, Youngor reorganized Hartmark, and the Hartmark products sold in China will be dominated by American leisure style.

According to the data, as early as 2007, Youngor became the independent brand licensor authorized by Hartmax, and the only licensor of Hartmax in mainland China and Hong Kong, China and Macau. But early Youngor did not make much brand promotion for Hartmark, but only opened a sales area for the brand in some of its stores. In 2014, Youngor officially acquired Hartmark's brand management rights in Mainland China, Hong Kong, China and Macau. As of June this year, Hartmark has 447 sales outlets in China.

Youngor sets the target age of Hartmark's target consumers between 30-50 years old. In order to better adapt to the Chinese market, Youngor has transformed the products on the basis of the brand's existing style to make the Chinese market sell. Hartmark clothing is more in line with the needs of Chinese consumers.

Return to the main business

Although Youngor has been trying to find a higher-yielding business segment and gradually focus on developing real estate, financial investment and other businesses, cross-border business does not guarantee stable performance.

In the first half of 2017, Youngor achieved revenue of 5.399 billion yuan, down 37.7% year-on-year; net profit was 2.047 billion yuan, down 33.33% year-on-year. From the first half of the financial report, Youngor's revenue and net profit have fallen sharply, mainly due to the decline in real estate business and investment business. Youngor Real Estate achieved revenue of 2.903 billion yuan in the first half of this year and net profit of 456 million yuan, down 54.24% and 60.97% respectively over the same period of last year. The investment business achieved a net profit of 1.145 billion yuan, down 17.68% from the same period of the previous year.

Previously, due to the decline in the performance of the main apparel industry, Youngor was involved in two major business segments of real estate and investment, seeking diversified development. In 2009-2011, the financial investment business became the biggest source of profit for Youngor. Data show that in 2009-2011, Youngor's financial investment business achieved net profit of approximately 1.625 billion yuan, 1.245 billion yuan and 487 million yuan respectively, and contributed more than 30% to Youngor's annual net profit. In recent years, Youngor’s investment in wealth management and other investment businesses cannot be underestimated. According to incomplete statistics, Youngor has used more than 8 billion yuan to purchase wealth management products.

However, in the face of sluggish performance in real estate and financial investment, Youngor is looking forward to returning to the apparel industry. At the end of last year, Li Rucheng, Chairman of Youngor Group, issued a declaration of “Recreating a Youngor in five years” and launched a technology and innovation strategy, investing 10 billion yuan to innovate new materials, new fabrics, new processes, new brands and new services. Among them, 8 billion yuan is the "platform strategy" service, 2 billion yuan to implement the "member strategy", "multi-brand strategy" and "supply chain strategy" and information system construction.

Compressed in the future

Currently, Youngor includes the main brand Youngor and the four sub-brands MAYOR, Hart Max, GY, HANP. Among them, MAYOR is the upgrade of the main brand of Youngor, mainly taking the high-end route, the brand contains two concepts of customization and ready-to-wear. Hartmarks and GY specialize in American casual and fashion.

In the first half of this year, Youngor's apparel business segment achieved operating income of 2.49 billion yuan, a year-on-year increase of 10.67%; net profit of 440 million yuan, an increase of 12.96%. Among them, Youngor achieved operating income of 2.04 billion yuan, an increase of 8.85% over the same period of the previous year. However, the total revenue of MAYOR and Hartmark is only 350 million yuan.

In addition to the vigorous creation of the Hartmark and MAYOR brands, Youngor also promoted the channel strategy of “opening big stores, expanding halls, closing small stores, and excellent structures”. In the first half of this year, Youngor's marketing outlets totaled 2,469, a decrease of 85 from the beginning of the year, but the business area increased by 8,690 square meters from the beginning of the year.

Retail consulting expert Shuguang Ya said that due to the market recovery, Youngor's return to the main business is the right choice, but in the context of other domestic competition for men's clothing brands, Youngor relies on the clothing business to reverse the overall performance of the group takes a certain period of time.

A few days ago, in response to relevant questions, the Beijing Business Daily reporter sent an interview outline to Youngor, but as of press time, he did not receive an official reply.

Beijing Business Daily reporter Qian Yu Lin Shan / Wen Bai Yang / watchmaking

Enter [Sina Finance and Economics Unit] Discussion