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” Duanmu took me to Metersbonwe and picked a lot of clothes and shoes. When I looked in the mirror, I didn’t know who the girl was.” Chu Shuang, who played Zheng Shuang.

When the United States appeared in the 2009 Meteor Shower together, it was the representative of the trend.

Now, ten years have passed, the meteor shower has become a memory, and the United States has also ushered in its bleak “Meteor down”.

The semi-annual report released by Smith Barney recently showed that operating income in the first half of this year was 2.699 billion, down 31.47% from the same period of the previous year. The net profit attributable to shareholders of listed companies was 138 million yuan, a year-on-year decrease of 359.61%.

Mexang explained that this was mainly due to the optimization of channel structure and the closure of inefficient direct-sale stores; and the factors affecting the launch of new products in the spring and summer of 2019 in the first half of the year affected the market demand.

In the same period, Senma, also from Wenzhou, achieved contrarian growth. In the first half of 2019, Senma’s operating income was approximately 8.219 billion yuan, an increase of 48.57% over the same period of the previous year; the net profit attributable to shareholders of listed companies was 722 million yuan, an increase of 8.20%.

The founder of the United States, Zhou Chengjian, once said: I did not really make a tailor with the spirit of artisans, so I was abandoned by the market.

Is that really the case?

Mexang’s main business has been losing money

If you draw a picture of the Smith Barney, you will find that the revenue and net profit of Smith Barney in recent years is like a roller coaster.

Data shows that from 2015 to 2019, the revenue of Smith Barney was: 6.295 billion, 6.519 billion, 6.472 billion, 7.677 billion, 2.699 billion, and the net profit was: -432 million, 36 million, -305 million, 0.4 billion, -138 million.

In fact, in 2016, Smith Barney turned losses, mainly through income subsidies from the sale of subsidiaries. By 2017, net profit fell by 942.95%. In 2018, it was difficult to turn losses again. The net profit was also related to the government subsidy of 3310.64 at that time. The main business was still weak.

It is worth noting that in the first half of 2019, there were still investment income of RMB 0.2 billion, accounting for 15.38% of revenue.

In 2018, although Smith Barney was slightly profitable, the net interest rate for the year was only 0.53%. The main apparel business was still losing money. For this reason, it was also questioned by the Shenzhen Stock Exchange for its continued profitability.

In 2016, Smith Barney experienced a major change. Chairman Zhou Chengjian resigned. The 30-year-old second-generation Hu Jiajia took office and shouted the slogan of “returning to the main business” and exerted strength in channels and retail. The results of the US-based online layout have achieved certain results, and the profitability of the main business has improved. In 2018, it has turned losses into wins. This is a good signal.

But in the first half of 2019, the performance of the United States was another dive. As a highly seasonal industry, the clothing industry is the peak season for sales in the first and fourth quarters and the off-season in the second and third quarters. Accordingly, it is a u-shaped figure in performance.

Million is not impossible to turn losses in 2019, but this puts higher demands on the operational management capabilities in the second half of the year. The loss in the first half of the year was related to the fact that the commodity delivery factor could not keep up with the new rhythm of the spring and summer new products. If the second half of the year can not be improved, then the profit will become even more unreachable.

Inventory crisis

The digestive transformation of stocks has become the key to the next US state.

In fact, inventory has become a sword of Damocles hanging over the heads of many local apparel companies. The sword of Smith Barney is even heavier.

Since 2014, the inventory amount of Smith Barney has increased rapidly. In 2018, the proportion of inventory to total assets is as high as 32.58%. It is located in the home of Haishu, Senma, La Chapelle, Peacebird, Seven Wolves, Baoji Bird, Wegner. The highest level in the wire, the inventory turnover days reached 208 days.

Mexang once launched the high-end brand ME&CITY against ZARA, and invested heavily in large-scale specialty stores in the core business district. The store opened up again and then refined, compared to the new rhythm of fast fashion 15 days, the United States is simply unable to parry. At this point, the hidden dangers of the virtual business model of outsourcing production are undoubtedly exposed, and the high inventory caused by the deviation of market forecasts continues to drag down the pace of transformation.

A new brand like ME&CITY is a move by Smith Barney to try to break the profit bottleneck. Regrettably, its series of children’s wear, footwear and other new products seem to have not stirred up any splashes. In contrast, Senma’s children’s wear has set off half the sky. In 2018, the children’s brand revenue reached 5.2 billion, accounting for 63.42% of the total revenue, and the growth rate reached 81.66%.

Effective Internet Transformation

In fact, if Smith Barney has not changed in the new consumer environment, then it really ruins it. The rise of e-commerce has caused a huge impact on the US-British channel, which is known for its offline channels. For this reason, Smith Barney has made great efforts in the field of e-commerce.

In 2009, Smith Barney learned to launch the “Bangzhou” e-commerce platform, and now it can still be downloaded in the application, but it has not stirred up any waves. The reporter found that most of the clothing on the platform was in a big discount, and it became a clear inventory channel, and many products were sold in single digits.

In 2015, Smith Barney was still debating the show “Qi Yu said”, and promoted the fashion aggregate e-commerce APP “with a fan” with more than 100 million advertising fees, but in the end it was “thunder thunder, rain is small”, two years later It’s off the shelf.

Compared to Smith Barney’s repeated encounters in the e-commerce field, Senma seems to be more like a duck. In the first half of 2019, Senma’s e-commerce business reached 2.167 billion, with a growth rate of 35%. Since entering Tmall in 2010, the scale of Senma e-commerce has grown. Last year’s double eleven, Senma e-commerce retail sales exceeded 1 billion.

Power online market, for local countries such as Smith Barney and SenmaFor traditional brands, not only can they be closer to younger consumers, but also through big data insights into young people’s preferences, they can also bring improvements in new product development and design.

Senma has become hot, but Meibang has gradually faded in the memory of 80s and 90s. Is there a US state location in your closet?