Annel: a leading brand of independent children's wear industry with unlimited vitality

Shenzhen Annaier Co., Ltd. is a self-owned brand clothing enterprise specializing in high-end children's wear business. It is engaged in core business links such as independent R&D design, supply chain management, brand operation promotion and direct sales and franchise sales in the value chain of children's wear products. . After more than ten years of development, the company's brand "Annil Annai" has become China's well-known high-end children's wear brand.

Well-known brands of high-end children's wear with outstanding gross profit margin

With the brand concept of “different comfort”, the company pursues high-quality fabrics and comfortable experience, and is committed to providing comfortable, safe and exquisite children's wear products for the majority of infant and child consumers. In 2002, the company held the first Anna Family Sports Games and began brand promotion in the form of membership activities and interactive exchanges. The company strictly controls the quality of fabrics and products. In 2002, it passed the "ISO9001 Quality Management System Certification". In 2004, it passed the "ISO14024 Environmental Labeling International Standard Type I Environmental Labeling Certification". The company's design and development team has rich industry experience. In 2012, the company participated in the formulation of the industry standard for "Knitted Children's Clothing" as the main drafting unit; in 2013, it participated in the national standard of "Knitted T-shirt" and the "Knitted Skirt" industry standard. In 2014, he participated in the national standard of "Outdoor Sportswear Jackets" and the development of industry standards for "Knitting Down Garment" and "Washing and Finishing Knitwear". In 2015, he participated in the formulation of the industry standard for "Knitting Craftswear".

The company implements a sales model combining online and offline complementarity, direct operation and franchise, and adopts a diversified sales channel combining shopping malls, brand stores and e-commerce platforms. As of the end of 2016, the company has established 1,458 offline stores in 31 provinces, autonomous regions and municipalities across the country, including 970 directly operated stores and 488 franchised stores. At the same time, the company is in Taobao, Tmall, Vipshop, Jingdong, etc. A number of well-known domestic e-commerce platforms have established online sales channels. In the “Double 11” event of Tmall Mall in 2014-2016, the company “Annai Flagship Store” ranked sixth, seventh and fifth respectively in the sales ranking of children's clothing/family clothing category stores. In 2016, the proportion of business income of e-commerce channels has reached 24.32%. During the reporting period, the gross profit margin of the company's main business was 60.31% for three years, the average return on net assets was 31.15%, and the average net profit margin was 9.00%. Among them, the annual gross profit margin of Anna's in 2016 was 59.10%, which was 7.02% higher than the average of similar brands; it was 8.77% higher in 2015 and 5.16% higher in 2014.

According to statistics from authoritative organizations, Annai ranks second in the domestic independent children's wear brand. In the 2015 national sales ranking of large-scale retail enterprises, the comprehensive market share of “Annil Ann's” brand children's wear ranked fourth in the industry. Name, and ranked second in the industry in terms of domestic brands, non-sports brands and large children's clothing categories. In March 2016, the “Annel” brand was awarded the title of “The Top Ten Children's Wear Brands in China” by the China Garment Association.

Raising investment projects to further improve long-term profitability

With the peak of marriage and childbearing after the 80s and 90s, China began its fourth baby boom in 2012, accompanied by the “Separate Second Child” in 2013 and the “Comprehensive Two-Child” policy in 2016. The consumer group continues to expand. In particular, after 80/90 parents have higher brand attention and lower price sensitivity, which will promote children's clothing consumption to become more brand-oriented, quality and higher product added value. In terms of market prospects, the size of China's children's wear market in 2013 was about 116.4 billion yuan. It is expected that the size of the children's wear market will reach 194.1 billion yuan by 2018. In 2013, the per capita consumption of children's wear in China was only 13.8 US dollars, far lower than the market consumption of Japan (66.3 US dollars), the United States (90.7 US dollars) and the United Kingdom (137.2 US dollars). There is still room for growth in China's children's wear market.

During the reporting period, Annai achieved good operating results due to its high competitive edge in product quality, R&D design and brand building. In 2016, 2015 and 2014, the company achieved revenue of 920 million yuan, 840 million yuan and 793 million yuan. In 2016, it increased revenue by 10% compared with 2015; realized non-net profit of 74 million yuan, 0.7 billion yuan and 78 million yuan. In 2016, it increased by 6% compared with 2015. The company achieved a revenue of 250 million yuan from January to March 2017, an increase of 4.13% over the previous year, and achieved a non-net profit of 33 million yuan, an increase of 6.34% over the same period of the previous year. The company's revenue level and non-net profit were sustained and stable. increase.

With the investment center of 334 million yuan, the design and development center of 0.85 billion yuan and the information construction project of 0.38 billion yuan, and the construction investment of 100 million yuan of working capital related to the main business, the company is in channel control and stores. Resources, market share and market penetration of first- and second-tier cities will continue to strengthen in designing R&D systems and responding to market capabilities. The information construction project will further enhance the company's scientific decision-making level and supply chain management capabilities, and further enhance the company's core competitiveness, providing a reliable guarantee for the company's sustainable development and strategic goals.

[Editor: lvxianwei]