What Happened To The Underwear Market?

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The parent company reported that in the 2015 fiscal year (as of January 31, 2016) sales amounted to US $7 billion 670 million (more than 50 billion yuan).

And as early as 2012, Vitoria's secret sales exceeded $6 billion, operating profit of $1 billion.

Vitoria's secret business data are so beautiful that they often appear in China.

In the PPT of brand entrepreneurs, entrepreneurs are employed to recruit or persuade VC.

From the beginning of 2000 to around 2014, the reporter observed that the underwear business entrepreneurs continued to follow the lead, and Dong Lu, the founder of lamb underwear, did what he said in 5 years ago. The Chinese underwear industry has 100 billion to 300 billion of the market, and the biggest underwear business in China is only 2 billion. The former ten add up to less than 10% of the market share. There are thousands of underwear in one area of Shantou alone.

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This market is growing at a rate of 40% per year. This is a typical immature market, and there has not yet been a situation of separatism. It is very exciting for a businessman to see such a market.

Sun Chang, director of the underwear brand brand cat business operator, told reporters that the underwear industry has been rapidly integrating in recent two years, and the scene is no longer what it looked like 5 years ago.

Correspondingly, this year, the cat's business strategy has undergone a historic turn. The past model was self produced and sold. Now, in some underwear subdivision categories, the cat owner has authorized the production and marketing to the partners, and is responsible for product design, R & D, quality control, brand operation and store operation guidance.

Moreover, similar to the secret of Vitoria's underwear development, such as make-up, skin care products, accessories, clothing and so on, the cat has positioned itself as a "sexy dress" rather than a "underwear" brand. It has added new categories such as men's wear, women's wear, feather clothing, socks, home textiles, children's clothing and so on.

According to the cat people, the online sales of Cat brand will reach 500 million yuan during the year. In the next three years, the sales of 40 partners will exceed 50 million yuan.

In the past five years, what has happened on the underwear market? How are these changes driving the brand electric business? Sun Chang, general manager of the cat business, talked with reporters about the following points.

The era of price war and the death of a group of people slowly ended.

In the past few years, the brand of thermal underwear that can be maintained is not easy.

First, the large-scale price war in the industry.

"Before and after 2011, the price war of warm underwear between Antarctic and north polar fabrics was launched. A 19.9 piece of warm underwear on the Internet has been sold everywhere, and it can be sold to 39.9 yuan for the middle price."

Sun Chang, who has worked in cats for more than ten years, told reporters that the whole underwear price war was the most intense category in the category of thermal underwear.

Businessmen who take the lead in price war usually have two cards: first, sacrifice the brand is only temporary, take advantage of low price to occupy the dominant market share, and then increase profits.

The two is to dump part of the low cost to the supplier, first sell the goods and then pay the supplier.

However, this has caused two sequelae to the industry.

First, in recent years, some underwear factories have been crushed by the rogue logic of branded merchants.

"The seller first made the factory do 1 million 500 thousand sets, and then the factory made 1 million 500 thousand sets, only 150 thousand of the products were sold, and the factory only got the 150 thousand sets of money.

Later, the factory was afraid. If you learn wisely, you need goods, but you can give me a deposit first. "

Sun Chang said that the shortage of some brands this year is due directly to bad reputation in the past.

Second, online price is normal, and the price increase will not sell.

"Online 49.9 yuan a set of Underwear 3 days sold 10 thousand pieces, if fourth days to raise the price to 59 yuan or 69 yuan, sales volume is still barely enough, but once the price is 99 yuan, absolutely no one buys, to make explosive money must be low."

Sun Chang told reporters that it was not until 2014 that the industry began to think rationally about the consequences of a low price.

For new brands, the price war is difficult to compete with the traditional brand. If you want to go on a business trip and get out of the low price model, you must spend a lot of money on the brand building, and the supply chain must establish a quick response mechanism.

The threshold of these two points is too high, so that the new generation of Internet underwear brands such as bazaar and LAN Mei, which were chased by capital in 2010, will be weak. In 2014, the underwear sellers such as the mobile business operators, such as the sea scouring platform and new oxygen, are not yet clear.

The international brand has not yet formed a climate online.

The cat has also tried to sell products that are cost-effective and priced at two hundred or three hundred yuan on the Internet, but it is hard to sell at low prices.

"The product is really good, the price performance has nothing to say, we advertise, give the user the directional push, but the quantity does not rise."

In the end, Sun Chang said that the pricing of the cat in the electricity supplier channel is a rule that can not be wrong: others sell 39 yuan products, the cat can sell 69 yuan, and at the same time, the quality of products is a little bit more, it is a "pit" in the mid-range.

However, the product structure and pricing are different under the cat's line. When the line is visible, the service is in place, five hundred or six hundred of the products can be sold. The cheapest thermal underwear is priced at around 199 yuan.

Sun Chang told reporters that because of the online ecological environment, the international underwear brand has no status on the Internet. Similar to Vitoria's secret, CK and other international best seller brands in Tmall's sales are negligible.

Reporters found that 2016 Tmall 11 double underwear special home page recommended 16 selected brands, only two international underwear brands.

In the 2015 Tmall double 11 underwear sales list, the international brand is only UNIQLO and Playboy, but the two are not pure underwear brands.

This information also seems to confirm Sun Chang's view.

Compared with underwear, international clothing and cosmetics brands are gaining momentum in Tmall. Tmall's 2016 double 11 global trend has a total of 80 major brands. 50 of them are international first-line brands. The 50 international first-line brands are basically cosmetics and footwear.

Huang Tao, the biggest seller of cosmetics online cosmetics, told reporters that cosmetics in recent years regarded Tmall as the first choice for China to enter the world. With the international brand of the Internet, they have sunk to the three or four tier cities. Beauty beauty has become the largest distributor of international brands in China.

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In this regard, Sun Chang said that underwear is different from the outgoing clothing and cosmetics can show off to people, and the general consumption consciousness of the Chinese people has not yet come up.

"Even in the market of the first tier cities, hundreds of dollars and a pair of underwear are not easy to sell. In the past, the high-end underwear brands in the world did not see the Chinese market at all, and see whether there will be any changes in the next few years."

Cat M-BBC strategy in market integration

After the international brands did not enter large scale and the domestic brand TOP merchants slaughters at a low price, compared with 5 years ago, the market share of underwear TOP brand has increased a lot.

Take the example of the Antarctic, according to the annual report of the Antarctic company in 2015, the turnover of Antarctic electricity supplier reached about 5000000000 yuan in 2015, and realized operating income of 389 million yuan, and the net profit attributable to parent company was 171 million yuan, up 42.3% and 158.4%, respectively.

According to Taobao cube data, the sales of the southern brand in Ali platform in 2012 amounted to only 611 million yuan.

In the past five years, we have seen that scattered markets are gathering on a few brands.

The Antarctic is not a case. Originally a factory born underwear brand, the urban beauty pformed in 2013. It was listed in Hongkong in 2014. It broke through retail sales of 10 billion yuan at the end of 2015. In 2015, it bought Ordifen at a price of 92 million yuan, and announced that it had entered the field of high-end underwear.

For those cat owners who are deeply involved in thermal underwear, though they have won the Tmall double 11 championship in the subcategory of warm underwear for 2014~2015 years, other TOP level businesses continue to expand their scale and category. This market is still in the early integration era. If the cat people miss this round, they may have to reduce the order of magnitude in the next round of battle.

In the words of Sun Chang, it is not to advance or retreat.

Against this background, in June 2016, the cat announced the M-BBC strategy. The core of the strategy is: in a subcategory of underwear, the cat person authorizes the brand to the selected high-quality cooperative supplier, which is responsible for the production of the product, and is authorized to operate the online shop of the category. The cat owner self flagship store and the distributor supply the goods from the authorized supplier (mainly the two modes of credit sale and deposit).

Compared with the past, the biggest change of M-BBC strategy is that the first is to bind the interests of the factory and the brand, and the final sales performance is directly linked to the factory. The two is that the cat person is equivalent to a brand authorized role, no production and inventory, or even self sales is not the most important.

The key is to operate the brand well, do well in product design and quality control, and give online sellers guidance.

The cat people rely on receiving the brand management fees collected by the suppliers, the suppliers get the brand authorization of the cat people, and the guidance of the electricity supplier operation experience, and he can make money from every factory.

In fact, the cat's M-BBC is not the first to create, for example, the nameplate usage fees and brand service fees obtained by the Antarctic from the authorized mode are increasing year by year. According to the company's financial reports, in 2015, the utilization fee of the sign was 101 million yuan, which accounted for 30% of the annual income, and the brand service fee reached 173 million yuan, accounting for 44% of the annual income.

Compared with the authorized mode of the south pole, Sun Chang told reporters that cat owners are more strict in controlling suppliers, so that the problem of runaway quality of the Antarctic people in the early stage of authorization can be avoided.

"The threshold for our suppliers to enter is higher, and there are at least 5 cooperative suppliers for each subdivision."

The factory has been pformed by the electricity supplier.

According to the cat people, the future management system and operation system will become lighter and more resources and energy will focus on brand building and product development.

The implementation of M-BBC strategy is not only the operation of the cat team, but also the operation of its own shops, and more importantly, training suppliers to manage shops. They will give them training on platform resource coordination, shop visual training, commodity pricing and planning.

Sun Chang reveals that the supplier chosen by the cat must have the awareness of electricity supplier, and can understand the front-end sales in all aspects from the production, shipment and pricing of the back-end.

"No electricity supplier, you told him more, not as fast as they are doing business.

For example, the delivery time problem, I told the traditional supplier that 30 days must be shipped, they will say so fast you nerve, but a supplier of electricity supplier operation will understand very well what I am talking about.

Sun Chang told reporters that the bigger the factory now, the more urgent it is to pform. They just stepped out of the price war and are eager to add value to the brand.

In recent years, the factory's thinking has changed too. Small suppliers want to do it, but they are a bit afraid of risks.

Big suppliers, we talked about it, and some even thought about it. "

Reporters in Hangzhou before joining the net red and factory docking salon, found that Guangdong and Zhejiang area has been the first line brand processing factory, also began to receive Taobao net red shop orders.

"Especially in the past few years, factories are having a hard time and big orders, so it is not only troublesome but also not profitable to make small orders requiring quick delivery."

A factory salesman told reporters that the rapid response mechanism of the electricity supplier put forward new requirements for the factory. Now they can even match the net red Taobao store to create a bomb, saying that delivery will be delivered within 15 days in 15 days, and after replenishment, replenishment will be replenished.

Sun Chang believes that many factories have already been baptized by the electricity supplier. Now, the cats want to tune out the high quality processing plants with the electricity supplier's thinking, which is much easier than the expansion of the Arctic people. As of now, there are 18 partners. One of the underpants enterprises has reached a sales volume of about 30 million a year.

How big can the fashion industry of cats be?

Sun Chang told reporters that the proportion of sales of cat people now accounts for 50%, 30% and 20% respectively.

At present, the cats do not learn to do real estate, logistics and other businesses, concentrate on underwear every year, the overall business can maintain a 30% growth.

In the future, cat owners will plan for faster growth. The breakthrough point is to promote M-BBC strategy online.

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Ying Lin, chairman of the cat group group, said that in the next 3 years, the business goal of the cat business has exceeded 2 billion yuan, and the listing plan has been launched.

Reporters learned that in 2015, the annual sales of cat people's electricity supplier was about 350 million yuan. If the sales of electricity providers sold according to Sun Chang accounted for 700 million of the total sales of the cat people in 2015, it would be about $700 million.

Three years, from 700 million to 2 billion.

Sun Chang said that the pressure is not small. After three years, the cat people eventually want to find 40 factory cooperation, including annual sales over 50 million, 30 million, 10 million, and how many of them have an account.

Today, online traffic is getting harder and harder, and brand competition is becoming more and more intense. How hard is it to win consumers in subdivision? According to Sun Chang, the online environment is actually conducive to promoting M-BBC strategy for cat owners.

First, Tmall is aware of the need to create room for personalized brands.

"If it's not a brand name, it's not a personalized brand.

After 90, the brand is not valued too much.

Taobao, Tmall and Juhuasuan are also aware of this change, including thousands of thousands of people pushing, and also hope to train new businesses with strength in subdivision.

Two, Tmall is trying to change the low cost of killing this ecosystem.

"Now Taobao's largest traffic entry is in hand. You will find that you have opened up the search for your hands, and the front page has automatically blocked more than a dozen yuan products, indicating that the platform does not support the old set of rules, which is conducive to the middle distance line of cat people."

Therefore, this year's double 11, Sun Chang said that the cat's goal is very pragmatic, the core is to let all sub categories of cooperative business performance growth, and not only the growth of cat shop.

"In the sub category of thermal underwear, the cat store has been the first to win the double 11 for three consecutive years. This year, we have to score more in subdivision.

The chairman gave me a full year target of 6 hundred million this year, and the cat man platform also contributed part of it.

Reporters learned that the cat brand was founded for 18 years, has won three consecutive years of CCTV 200 million kings, has 3000 offline experience terminal stores.

Celebrities such as Hsu Chi, S. S., Carina Lau, Rain, Ekin Cheng and Michele Lee have endorsed their products. The products are fashionable and sexy. In recent years, they have vigorously promoted entertainment marketing, full channel sales and M-BBC strategy.