In Recent Years, Red Children'S Children'S Clothing Company'S MIG International Online And Offline Distribution Channels Have Been Affected.

MIG International Holdings Co., Ltd.

It has a famous brand of children's clothing.

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The company's products are located in mid-range, priced close or slightly lower.

Children's clothing is lower than Mini Peace of Pacific bird and JNBY by JNBY of Jiangnan cloth.

Data show: MIG international listed in Hongkong in 2014, the first three quarters of 2016, MIG international holding market value of 240 million 780 thousand, ranked 122 in clothing enterprises; "red child" in 2017 with 0.3% of the market share of the children's clothing market ranked 18.

According to the world clothing and shoe net, the 2018 group semi annual report shows that as of June 30th, the company's revenue decreased by 11.72% to RMB 103 million yuan (the same below), and the gross profit decreased by 18.42% to 20 million 448 thousand yuan compared with that of the previous year. The share loss of shareholders in the company narrowed to 1.60% yuan to 65 million 918 thousand yuan compared with that of the previous year.

According to the analysis, in the first half of 2018, the continuous deterioration of China's retail environment led to a decrease in sales volume, a net closure of the outlets, and a slowdown in orders received from distributors and self owned stores. The group's revenue in the first half of the year fell by about 11.7%.

MIG has adjusted its main business since 2015, and its performance has been affected.

Group adjustment is mainly focused on the layout of the channel, focusing on the two or three line cities, and still focuses on the distribution mode.

From the point of view of distribution, the company adopts the distribution mode in the early stage of development and online. In 2010~2014, during the rapid growth of the company's performance, online and offline distribution revenue maintained rapid growth, and the compound growth rate of revenue was 278.70% and 19.32% respectively. In recent years, the main business adjustment of the company has been affected by online and offline distribution channels, and revenue has continued to decline.

Channel mode -- offline distribution

The company's revenue is dominated by offline distribution channels.

In 2017, the revenues from offline channels (self distribution and distribution) and online channels were 93.04% and 6.96% respectively.

The distribution mode is mainly under the company's line. By the end of 2017, there were 378 shops under the cable, including 281 outlets and 97 self operated businesses, accounting for 74.34% and 25.66% respectively.

In the same period, the sales volume of the offline outlets is 87.04%, while the proprietary stores are only 12.96%.

In 2013, the company expanded its own channel, and the company's self operated channel was in a continuous growth trend, accounting for a continuous increase. In 2017, the scale of self operated channel revenue was 40 million yuan, accounting for 11.95%.

Channel layout -- three or four line city

From the perspective of the regional distribution of the channels, the company's retail outlets are mainly distributed in the three or four line cities.

Under the 17 year line, 74.60% stores are located in three or four line cities.

In the 16 year, the retail outlet of the company was completely withdrawn from the first tier cities. From the perspective of channel form, the company was mainly shopping malls, street stores, and at the end of 2017, there were 187 and 191 respectively, accounting for 49.47% and 50.53% respectively.

The expansion of the extension channels shows that the company's performance has been developing rapidly before 2014. The company's channels grew rapidly in the four line cities, from 230 in 2010 to 401 in 2014, and the compound growth rate was 14.9%. From the perspective of the form, the number of stores and shopping malls and department stores in the company expanded rapidly, and the annual compound growth rate reached 6.54% and 7.78%.

Adjustment of main business, focusing on two or three line cities

Before the adjustment of the main industry, the company's channels are mainly concentrated in the two or three line cities.

Since 2015, the company's main business has been adjusted. The company has focused on two or three line cities and stores, and has continued to expand. At the same time, it has reduced the number of channels in the first tier and four tier cities. In 2016, the company's channels have been withdrawn from the first tier cities. The annual growth rate of the two or three and four line cities in the 2014~2017 year is 10.06%, 32.91% and -33.11% respectively.

The gross profit margin of the company remained stable in 2010~2015, fluctuated between 36.27%~39.32%, and dropped sharply to 3.16% in 2016, mainly due to the weak terminal demand and the downward sale of prices in the second half of 2016, resulting in the extrusion of gross margins.

In 2017, the gross profit margin of the company was 19.89%, which was 16.72PCT higher than that in 2016, but still at a low level.

During the period of 2010~2014, the cost rate of the company remained stable and fluctuated between 12.54%~14.39%, and the sales cost and management fee rate increased significantly in 2015.

Frequent changes in high-level personnel

In the evening of July 17, 2017, MIG International Holdings announced that miss Lu Yongxin had resigned as an independent non-executive director, chairman of the audit committee and members of the nomination committee. At the same time, Ms. Huang Xinqi has been appointed as an independent non-executive director of the company, chairman of the company's audit committee and a member of the nomination committee.

In July 2018, MIG International Holdings announced that Huang Xinqi had resigned as the independent non-executive director of the company, chairman of the audit committee and members of the nomination committee.

Wu Shiming has been appointed as the independent non-executive director of the company, chairman of the company's audit committee and member of the nomination committee.

In recent years, the gross profit margin of the company has been reduced by a lot of business adjustments, and the 2017 year old has rebounded.

In the increasingly fierce competition in the children's wear market, the main business of MIG international has been constantly adjusted. If we can adjust the position in a short time and get on the right track, it is expected to maintain good growth in the future.

But through the above analysis, we can see some disadvantages in the development of MIG's main industry:

The distribution channel under the company line is not well adjusted, the distribution ratio is large, and the self-employed proportion is small.

Although the scale of self operation has been constantly adjusted since 2013, it has not increased significantly, and still occupies a very small proportion of the channel layout.

Self occupation ratio is small, for enterprises, it is easy to be passive in sales and less control over the line.

Electricity supplier channel competition intensified, online distribution growth is weak.

MIG international has not stepped up the layout of e-commerce channels according to the development of the times, but has been following the line closely.

Although offline retail has been the trend, online growth is still necessary. Online and offline integration can lead to "healthy development". Online severe "malnutrition" mode leads to weak growth and will inevitably lose some consumers.

More interesting reports, please pay attention to the world clothing shoes and hats net.