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Referring to the classification of the National Bureau of Statistics, drawing on international experience and the actual situation of the market, the China Chain Management Association divides fashion retail enterprises into clothing, clothing, footwear, home textiles, gold, silver, jewelry, and skin care and beauty cosmetics for summary analysis. It statistically studies the financial reports of listed groups and the data submitted by enterprises, and ranks the top 100 fashion retail enterprises in China in 2018 according to the 2018 operating income statistics of each enterprise. The statistical analysis work ended a few days ago, and the 2018 China Fashion Retail Top 100 List (hereinafter referred to as "2018 Fashion Retail Top 100") was released on October 11, 2019.

The high-quality development pattern of garment industry is forming

The top 100 fashion retail enterprises in 2018 include 74 clothing, clothing, shoes, and home textiles, 15 gold, silver, jewelry and jewelry enterprises, and 11 skin care and beauty cosmetics enterprises. The total revenue of 2018's top 100 fashion retail enterprises is 651.567 billion yuan. Among them, the total revenue of the top 100 enterprises in clothing, clothing, shoes, and home textiles is 372.827 billion yuan, accounting for 27% of the total retail sales of enterprises above the national quota in 2018. The total revenue of the top 100 gold, silver and jewelry enterprises is 197.429 billion yuan, accounting for 72% of the total retail sales of enterprises above the national gold, silver and jewelry quota. The total revenue of the top 100 skin care and cosmetics enterprises is 81.311 billion yuan, accounting for 31% of the total retail sales of cosmetics enterprises above the country.

In the list, there are only 20 enterprises with revenue of more than 10 billion yuan in 2018, including 11 clothing, clothing, shoes and home textile enterprises, 6 gold, silver and jewelry enterprises, and 3 skin care and beauty enterprises. Compared with the international, the scale and market concentration of China's three major types of fashion retail brands have a large room for improvement.

Comprehensive analysis found that among the top 100 fashion retail categories, the pattern of leading gold, silver and jewelry jewelry companies is relatively stable, but the market concentration still has a lot of room for improvement; the other two categories of industry concentration is not high, and the scale of enterprises needs to be improved.

The chain development speed and maturity of fashion retail enterprises are relatively high. In the top 100 list, five enterprises with a chain size of more than 9000 stores in 2018 are shanghai jahwa (about 13000 cosmetics stores), Anta (12188), Belle (11120 shoes and clothing), Senma (9905) and La Chapelle (9269).

The survey found that the high-quality development pattern of the clothing industry is taking shape, the differentiation of footwear enterprises is seriously uneven, the number of closed stores is expanding, the decline in sales in the jewelry industry and new opportunities coexist, and the growth rate of consumption of skin care and beauty products is "one ride out of the dust", outperforming the growth rate of total retail sales of consumer goods in the whole society.

Multi-brand strategy is a common choice, but the challenge is huge

The analysis of the 2018 fashion retail top 100 list shows that 70% of the fashion top 100 enterprises have multi-brand matrix. Among the 20 fashion retail enterprises with operating income of more than 10 billion yuan in 2018, only three enterprises are single brands; the five fashion retail enterprises with more than 9000 stores all have multiple sub brands.

According to statistics, the top 100 fashion retail enterprises have an average of 4 brands, of which clothing, footwear and home textile enterprises have an average of 5 brands, gold, silver and jewelry enterprises have an average of 2 brands, and skin care and beauty enterprises have an average of 4 brands. The average sales size of individual brand fashion retailers in 2018 was higher than that of companies with 2-5 brands; the sales size of fashion retailers with 6 or more brands was significantly higher than that of individual brand companies.

The leading enterprise represented by BELI International not only owns a number of shoe brands, but also increases its market share through mergers and acquisitions involving multiple clothing brands and multi-category development. To Anta, Senma clothing as the representative, through the acquisition of international brands to enrich the brand matrix, the layout of multi-brand, multi-category strategic development. At the same time, in order to cooperate with the strategy of multi-brand expansion, Jiangnan Cloth Group has also announced the launch of "LASUMINSOLA", a designer brand collection store, covering clothing, shoe bags, accessories, daily necessities and other categories.

Six listed groups with operating income of more than 10 billion and more than 5 sub-brands in the top 100 list were selected. Through financial report analysis, it was found that the average contribution rate of the company's major brands to total revenue and number of stores exceeded 80%. Although Anta Group did not disclose the sales of each brand in its 2018 financial report, the total number of Anta and FILA stores accounted for 96% of all brand stores in the Group, and it was disclosed in Anta Group's interim report for fiscal year 2019 that Anta's main brand revenue accounted for 51.2 of the total revenue. FILA brand revenue contribution rate was 44.1. Therefore, we infer that the distribution law of operating income of the top 100 enterprises in the multi-brand matrix has 28 laws, that is, 80% of the income of enterprises comes from a single or a few major brands.

Direct franchise model in parallel, deep cultivation of three or four lines and other markets.

2018 the top 100 fashion retail enterprises, all categories of enterprises are making efforts in the third and fourth tier markets.

Chow Tai Fook, which ranks first on the list, will expand market penetration as one of its strategic priorities in the next three to five years, especially using the franchise model to develop third-and fourth-tier cities and county-level urban markets.

Meibang Garment adopts the parallel development strategy of "Hundred Cities and Thousand Stores" shopping centers to develop local and county markets. La Chapelle Company speeds up channel transformation and adjustment to improve the profit output of single store and form a channel structure layout with equal emphasis on direct operation, joint operation and alliance. Home textile enterprises Luolai Life and Fuana both adopt the business model of direct operation and alliance. While consolidating the advantages of first-and second-tier markets, they expand the number of high-quality franchisees in 3. fourth-tier cities.

Fashion retail enterprises to accelerate the layout of offline omni-channel development

Senma Group will take the shopping center as the core point of channel layout in the next 3 to 5 years, will surpass the proportion of traditional street stores, as the group's main channel, while shrinking the department store channel, only strengthen the layout benchmark, key department stores. Senma also focuses on the low stock of outlets, the characteristics of fast growth and strong power. It is also proposed to turn the original street shops into flagship stores, concept stores and experience stores. Create an offline omni-channel development model through shopping malls, benchmark quality department stores, Ole and street stores.

Taiping Bird Group's former "four-wheel drive" mode of street stores, department stores, shopping centers and e-commerce has been upgraded to a "new four-wheel three-dimensional drive" channel layout: optimizing street stores, strengthening shopping centers, upgrading department store counters and attaching importance to the development of outlets. In 2018, the retail scale of the company's outlets exceeded 0.3 billion yuan, up 70% year on year.

Hailan House adheres to the principle of "golden location, diamond store". In terms of channel expansion, it continues to increase the entry of shopping centers and seize the high-quality store resources of core shopping centers and shopping centers, especially the benchmark shopping center stores. Adjust and optimize the marketing network layout of street stores to maintain the store coverage rate in second, third and fourth tier cities.

In 2018, the proportion of online retail sales of clothing, shoes and hats reached 25.9 percent, and the growth rate of online retail sales of wear goods was 22.0 percent, with a rising growth rate. In the jewelry industry market, the proportion of online sales of jewelry has remained between 4% and 5% over the past decade. Jewelry industry experts predict that online jewelry sales will reach 10% in 2019, but will not exceed this figure. Compared with other categories, high prices and special emotional expressions (such as weddings, anniversaries, birthdays, etc.) make consumers more inclined to wear in physical stores. The particularity of jewelry categories determines the importance of their physical store experience. In 2018, China's cosmetics e-commerce channel sales accounted for 27.4 percent, and the compound growth rate in the past five years reached 56.3 percent, which is developing rapidly.

(Source: First Financial)