According To The Analysis, The New Clothing Brands In Jiangnan Need Stronger Market Education In The Cold

Emerging brands are still difficult to become the mainstay of Jiangnan cloth clothing.

On the evening of March 21, Jiangnan Buyi released its interim performance report for the 2019/20 fiscal year. The financial report shows that Jiangnan Buyi achieved a total revenue of 2.136 billion yuan during the period, up 5.3% year on year. It is worth noting that its mature brand JNBY accounts for 57% of the total revenue, while the emerging brand NOTE 73 is the lowest, accounting for only 0.1%.

Jiangnan Buyi Group said that the increase in revenue was mainly due to the upgrading of its retail network and the continuous increase in online channel revenue.

Specifically, compared with the first half of 2019, sales through online channels continued to increase in the first half of 2020. At the same time, thanks to the increase of new products released in cooperation with e-commerce platforms and fashion sensitive consumer groups, the retail sales of new products sold in online channels exceeded 20% of the total retail sales, driving the growth of the group's overall revenue.

However, the financial report also pointed out that the performance of most brands was poor due to the overall climate factors, so the total number of independent entity retail stores operated globally by Jiangnan Cloth Group decreased from 2018 to 1993. In terms of brand, the revenue of the mature brand JNBY in the first tier increased by 5.4% to 1.218 billion yuan in the first half of the fiscal year, accounting for 57.1% of the total revenue.

The growth brand portfolio of the second echelon, including CROQUIS (sketch), jnby by JNBY and less brand products launched in succession during 2005-2011, continued to generate revenue growth, accounting for 40.6% of the total revenue.

The third tier of emerging brand portfolio, including six brands such as POMME DE TERRE and JNBYHOME, has a total revenue of 49.3 million yuan, accounting for 2.3% of the total revenue. Among them, the brand with the lowest sales during the period was NOTE 73, accounting for only 0.1%.

According to the public data, NOTE 73 is the abbreviation of "A PERSONAL NOTE 73". It is a clothing brand for men's designers launched by Jiangnan Cloth Group in 2019. The purpose of launching this brand is to cooperate with the Group's multi brand expansion strategy and expand its business horizontally through diversified brand and category combinations. At present, the brand has not met the ideal expectations.

Some analysts believe that the current situation of NOTE 73 may be caused by the group's reliance on a single brand operation for many years. In addition, the positioning of emerging brands is not clear enough, and the competition among peer brands is too fierce. "The Chinese men's wear market is still in the initial stage of development, and the group demands more practical clothing. Personalized designer brands are far less popular than the foreign men's wear market, which needs more market education," said a clothing retailer.

In this regard, Jiangnan Cloth Group also said that it would optimize the diversified brand portfolio and improve the operation management in the later period, for example, by further improving the design innovation and R&D ability, adjusting the designer brand portfolio, and constantly cultivating new Jiangnan Cloth enthusiasts. At the same time, it will further strengthen the retail network at home and abroad with Internet thinking and technology, and increase the strategic investment in the development of store visual image. At the terminal retail level, the Group will also take fan economy as the core, encourage retail operation innovation, and continue to create and provide value-added service scenes and touch point construction for fans to improve their experience.