361 Degree The Order Value Of The Third Quarter 2018 Children'S Clothing Order Meeting Achieved Low Double-Digit Growth

The announcement said that 361D children's wear is an independent business unit within the group, which mainly provides sports shoes, clothing and accessories for children aged 3 to 12. At the 2018 autumn order meeting, the orders for shoes, clothing and accessories accounted for 42.5%, 55.2% and 2.3% respectively. The average sales price of shoes and shoes increased by a low number of units. Apparel has achieved an increase of nearly 25% in the order volume and a high single digit growth in the average price.

The growth rate of children's clothing has been higher than that of the main brand business, and this section will also become a new growth highlight of 361D in the future. The implementation of the two child policy has also become a driving factor for the sustainable development of China's children's clothing market. In addition, social factors such as late birth and late childbearing of parents, stable financial situation and increasing birth rate will help promote the rapid growth of the market of children's clothing industry.

In addition, as children's clothing is a rigid demand, the growth potential of children's clothing market is unlimited. The Group will continue to rely on its leading position in the industry to vigorously develop and promote the high growth of children's wear sector.

At present, 361DU has 361DU main brand, children's wear brand and OneWay brand, which are targeted at different consumer groups. Among them, the children's wear brand grew rapidly. In the second quarter of 2018, the order amount of the children's wear order meeting recorded an increase of about 25%. In the first half of 2017, the children's wear business contributed 11.0% of the total revenue, and the number of sales outlets reached 1791. The 361 degree children's clothing brand has become a major competitive advantage of the company in the industry.

The industry believes that the liberalization of the two child policy and the improvement of residents' income level will create a very large market space for the children's clothing market. It is expected that the 361 degree children's clothing business in the next two years can maintain double-digit growth.

Hong Xueyu, an analyst with Guotai Jun'an, said that from the recent order meeting performance and retail sales growth of 361D, the company is growing at a relatively strong and steady pace, and the growth of 361D children's clothing brand and e-commerce business is particularly strong. Although several major shareholders of 361D allocated 7.25% of the company's total share capital to unrelated third-party investors on September 27, 2017, In the short term, this rights issue has seriously hit investor confidence, but has no impact on the company's financial fundamentals. Overall, it is expected that the 361 degree multi brand and multi-channel strategy can support its long-term rapid growth.

The reporter from First Textile Network noticed that, in terms of channels, 361 times vigorously developed e-commerce business, and acquired the previous e-commerce distributors in August 2016, turning e-commerce business into proprietary business. In the first half of 2017, e-commerce platforms contributed 4.1% of total revenue. At the same time, the company is also vigorously developing international business. As of June 30, 2017, 361 times had 848, 1116, 135 and 23 sales outlets in the United States, Brazil, Europe and Taiwan, respectively. In the first half of 2017, the international business revenue increased by 44.2% year on year, accounting for 2.3% of the total revenue. The company will adopt a more aggressive development strategy in 2018, and plans to increase the proportion to 5% to 10% in the next three to five years. In addition, the products developed overseas have been nominated by many internationally renowned magazines, and the company will gradually introduce the R&D achievements of overseas businesses to the domestic market in the future to form synergy.

Marketers emphasized that children's clothing consumption will continue to grow, benefiting from policy dividends, demographic dividends and consumption upgrading. On the one hand, consumption upgrading aims to promote children's clothing brand consumption; On the other hand, as the post-80s and post-90s parents gradually become the mainstream consumer groups in the children's wear industry, they have stronger children's wear purchase intention and brand selection tendency.

Xue Yuan, a researcher of CITIC Securities, believes that compared with the mature children's wear market abroad, China's children's wear industry started late, and the trend of industrialization and branding has just risen, so there is still much room to improve the market share of the leading brands. However, we also need to see that at present, there are still many participants actively entering the children's clothing market. In the next few years, the industry competition will be more intense. Therefore, in the short term, the growth rate of the leading market share may be relatively slow.

Xue Yuan stressed that from the current point of view, children's wear brands should practice their internal skills, use excellent products and efficient operations to precipitate brands, and strive to maintain a steady increase in market share, so that they can enjoy not only short-term industry growth dividends, but also long-term industry concentration increase dividends.