Recently, some media reported that the Hailan House announced this year Data from the financial statements in the first half of the year showed that the total revenue in the first half of this year reached 8.102 billion yuan, a decrease of 24.43%compared to the same period last year, and the value of the company’s unsalable goods exceeded 8.2 billion yuan. In this regard, the official spokesperson of Hailan House said that the national clothing market was affected by the new crown pneumonia epidemic this year and the turbulent economic environment at home and abroad, and the company’s economic situation has dropped significantly. Even if the domestic epidemic situation has slowed down, the company’s marketing speed has recovered very slowly.
It is reported that there is a relationship between Hailan House and the supplier The two business cooperation models are that unsalable products can be cut and returned to the supplier and unsalable products cannot be returned. From the inventory report released by Hailan House last year, it can be known that nearly half of the inventory is non-returnable orders. If they are not sold at a discount, it will easily cause inventory backlog.
In the marketing strategy, discounting is a common method for businesses , When it comes to the season change, many businesses will choose a discount to reduce the backlog of inventory. But if customers are accustomed to this marketing method, they will be unwilling to spend a large price to buy goods at the original price, but more willing to wait until the discount. In fact, the accumulation of goods that has always existed is a problem for Hailan House that is known to be a drawback but cannot be solved.
Hailan House’s revenue did increase last year. But the net profit plummeted to 75.59%, only 295 million yuan. The company’s inventory has increased by nearly half in five years, and there is a problem of insufficient warehouses. The decision-makers of Hailan House had no choice but to use 65%of the funds raised from the original plan to issue convertible bonds for the construction of the warehouse.
If Hailan House wants the original seemingly innovative , But in fact the very unreasonable business model continues, and its inventory status will continue to expand, not far from breaking 10 billion. According to the current development strategy of Hailan House to expand its franchise stores, once inventory and franchise stores stop growing, Hailan House may fall into a financial crisis.
&34;Hailan House, Men’s Wardrobe&34;, in the era when TV is still the most important multimedia way of life, I believe many people are very familiar with this slogan. However, Hailan House has long lost its glory. As a benchmark enterprise in the apparel market, Hailan House has missed the Internet, ignored the customer service experience, ignored the true feelings of customers, and lacked the value of product innovation. The supply chain has not been integrated, so that there are now up to 9.5 billion inventory and 16.5 billion liabilities, but R&D expenses are less than 5,000 yuan. This set of data should be the reason why the Hailan House fell into the altar.
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