On the evening of April 27, Heilan House (600398 SH) released its 2020 financial report. During the reporting period, the company’s operating income was 17.959 billion yuan, and the net profit attributable to the parent company was 1.785 billion yuan.
Euromonitor International data shows that Heilan House accounted for 5% of the men’s clothing market share in 2020, ranking first for 7 consecutive years, and its main brand position is stable. In order to seek the second growth curve, the company actively explores new tracks, incubating women’s clothing brand OVV, lifestyle home brand Heilan Selection, and acquiring children’s clothing brands boys and girls and Yingshi to form a brand matrix.
Relevant people from Heilan House said that after the epidemic, the company relied on years of solid offline sales as a foundation, and actively explored new retail by digging deep into social traffic, opening up and integrating online and offline channels, and improving The terminal sales of products, with the strong development of the Internet, have seized the golden period of the new retail trend in the clothing industry.
1 The offline cornerstone is solid
The textile and apparel industry will be greatly affected by the epidemic in 2020. Data from the National Bureau of Statistics show that in 2020, the total retail sales of consumer goods was 39,198.1 billion yuan, a decrease of 3.9% from the previous year. Among them, in terms of textile and clothing retail sales, the total national textile and clothing retail sales in 2020 exceeded 1.2365 billion yuan, a year-on-year decrease of 6.6%.
Heilan Home has always focused on offline sales. In 2020, almost 6,000 stores across the country were closed. Relevant people from Heilan House said that clothing sales have their own rules. A physical store is a small private traffic pool. The cultivation of high sales requires a slow process. Closing a store is equivalent to giving up market share. Think about it. Regaining performance is very difficult. The company has steadily restored store performance through multiple measures such as “opening cloud stores, promoting membership, and stabilizing stores”. It is this kind of persistence that allowed Heilan House to control its own business in a short period of time, and in the fourth quarter it has returned to the same period last year.
2 Online sales increased significantly
While insisting on offline sales, Heilan House has actively expanded online channels after the epidemic. It has increased its live broadcast layout on Tmall, JD.com, Douyin, Kuaishou and other platforms. Driven by the two-wheel drive of “masters bringing goods + brand self-broadcasting”, sales performance has grown rapidly, and the brand’s reputation and influence have also been comprehensively improved. . In the past two years, Heilan Home has been building digital infrastructure to fully digitize consumers and reach users through all channels. The rise of the Hailan House live broadcast room did not happen overnight, but through the good foundation and social reputation accumulated in the early stage. Rely on private domain traffic to revitalize “old customers” and transport offline consumers to the live broadcast room.
The biggest advantage of live broadcast is that when consumers have difficulty making choices, the anchor can stimulate consumers’ desire to buy to a certain extent. When a new product is launched, anchors are the first group of people to capture it through keen observation. They interact with fans in the live broadcast room, enhance fan stickiness, capture new market demands, and provide timely feedback to the company’s supply chain. Product R&D and sales. Efficiently design products that meet market needs.
In terms of marketing, Heilan House has found traffic stars such as Buddhist girl Feng Timo, live broadcast sister Wei Ya, straight boyfriend Luo Yonghao, and national uncle Wang Yaoqing for the 2020 new product release. Heilan Home carries the goods.
Active online sales have also brought about good results. Relevant data shows that the company’s Tmall flagship store brand’s self-broadcast live broadcast room in both “618” and “Double Eleven” events. Won the first place in self-broadcasting of big-name men’s clothing. The continued recovery of sales performance fully demonstrates the company’s ability to resist risks in response to external uncertainties and highlights the brand’s resilience. In 2020, the proportion of Heilan House’s online main business revenue increased from 6.19% in 2019 to 11.75% in 2020. The main business income for the whole year was 2.05 billion yuan, a year-on-year increase of 55%, driving the overall development of Heilan House. Sales performance rose.
3 IP series caters to the concept of “national trend”
In While doing a good job in sales, Heilan House has also worked hard to build the brand.
During the reporting period, Heilanzhi created the “Black Cat Sheriff” series, “Bruce Lee” series, and “Three Kingdoms” series of IP clothing, catering to the hottest “national trend” concept at the moment. The traditional Chinese culture and traditional production techniques are presented in front of consumers in a modern and fashionable form. Once launched, they received a strong response from the market.
It is reported that this is not the first time that Heilan House has created a “national trend” hotspot through the combination of clothing and culture. As early as 2016, Heilan House cooperated with Chen Xiao to launch the “Huai Zhen Series” full of Chinese style, applying meticulous painting techniques to clothing. Since then, the designer collaboration models of “XANDER ZHOU + HLA” and the “Havoc in Heaven” series have been launched. In 2019, Heilan House, as the only invited men’s wear brand in China, was featured in the 2020 Spring and Summer London Fashion Week, and made a stunning debut with a show titled “Intelligent Made in China”. The Chinese “copper coin” element is cleverly integrated into the suit design to achieve the collision of new trends and classics. In terms of “national trend” culture, Heilan House can be regarded as an old player. At this time when domestic products are rising, the market share of local brandsThe sales rate has steadily increased year by year, confirming the accelerated rise of local brands.
4 Empowering technological innovation
While giving products cultural sentiments, Heilan House has also focused on technological innovation and functional fabrics since last year. Product research and development to create cost-effective functional products.
In 2020, the company launched a “multi-scenario practical black technology” jacket, which adopts newly equipped charging heating technology and has a built-in carbon nanotube film intelligent temperature control system. Use the USB interface in the pocket to connect to any power bank , you can turn on the heating technology with one click to warm your whole body.
In addition, this year, the environmentally friendly and safe “fruit dyeing” technology will be used in children’s clothing products. Its safety is deeply loved by young people, and the skin-friendly and soft high-quality Xinjiang long-staple cotton is selected as the fabric, which greatly Increased market favor.
Chairman Zhou Lichen said that in the new year’s development, Heilan House will “create a lifestyle and create the beauty of life. The purpose of economic development is to allow people to continuously improve their quality of life and enjoy it. We will Guide people to pursue a better lifestyle through clothing life, cultural tourism, shopping mall operations and other fields! Continue to shape brand value. Brands are an important carrier of exporting lifestyles. We will continue to build influential leading brands and incubate distinctive brands. New brands and the introduction of tasteful international brands to meet people’s personalized needs in different scenarios and tastes.”</p
