Children's Clothing Orders Will Achieve Low Double-Digit Growth In The Third Quarter Of 2018.

According to the announcement, the 360 degree children's clothing is an independent business unit in the group. It mainly provides sports shoes, clothing and accessories for children aged 3 to 12 years old.

Orders for footwear, clothing and accessories accounted for 42.5%, 55.2% and 2.3% respectively in the autumn 2018.

Shoe sales have increased by a small number in terms of average selling price.

Clothing has achieved an increase of nearly 25% in terms of order volume, and has achieved a high single digit growth in average selling price.

The growth rate of children's wear is already higher than that of the main brand business. This forum will also become a new bright spot for growth in the future.

The implementation of the two child policy has also been a driving force for the sustainable development of China's children's wear market.

In addition, social factors such as late childbirth, stable financial status and increased birth rate will help to promote the rapid growth of children's wear industry.

In addition, because children's clothing is rigid demand, the growth potential of children's clothing market is unlimited.

The group will continue to rely on its leading industry position to vigorously develop and promote the high growth of children's wear.

31st degree now has 331 degree main brand, children's wear brand and OneWay brand, facing different consumer groups.

Among them, children's wear brands grew rapidly. In the 2 quarter of 2018, the order volume of children's clothing orders recorded an increase of about 25%. In the first half of 2017, children's clothing business contributed 11% of total revenue, and the number of sales outlets reached 1791.

The brand of children's clothing has become a 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 children's wear market. It is estimated that the children's clothing business in the next two years will maintain double-digit growth.

Hong Xueyu, an analyst at Guotai Junan, said that the company is growing at a relatively strong and steady pace from the 31st order performance and retail sales growth, and the growth of 31st degree children's clothing brand and e-commerce business is particularly strong. Although a number of major shareholders of the 31st degree group have allotted 7.25% of the total share capital of the company to third party investors in September 27, 2017, the rights issue has dealt a severe blow to investor confidence in the short term, but it has no impact on the company's financial fundamentals. Overall, the 360 degree multi brand and multi-channel strategy can support its long-term rapid growth.

First textile network reporter noted that in terms of channels, 31st degree has vigorously developed the business of electronic commerce, and in August 2016, it bought the former distributor of e-commerce, pforming the business of e-commerce to self operated business. In the first half of 2017, the electronic business platform contributed 4.1% of the total revenue.

The company is also vigorously developing international business. As of June 30, 2017, there were 848, 1116, 135 and 23 sales outlets in the US, Brazil, Europe and Taiwan respectively.

In the first half of 2017, international business revenue increased 44.2%, accounting for 2.3% of total revenue. The company will adopt a more radical development strategy in 2018 and plan to increase the share to 5% to 10% in the next 3 to 5 years.

In addition, overseas research and development products have been nominated by many well-known international magazines, and the company will gradually introduce overseas research and development achievements into the domestic market in order to form synergy effect.

Market participants stressed that benefiting policy dividends, demographic dividend and consumption escalation, children's clothing consumption will continue to grow. On the one hand, consumption promotion looks to promote the brand consumption of children's clothing; on the other hand, with the 80 and 90's parents gradually becoming mainstream consumer groups in children's wear industry, they have stronger children's clothing purchase intention and brand choice tendency.

Xue Yuan, a researcher at CITIC Securities, believes that compared to the mature children's clothing market abroad, the children's wear industry in China started late, and the trend of industrialization and branding has just emerged, and the market share of the leading market still has much room for improvement.

However, it is also necessary to see that many participants are 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 rate of leading market share may be relatively slow.

Xue Yuan stressed that from the current point of view, children's clothing brands should be good at internal strength, with excellent products and efficient operation to precipitate the brand, and strive to maintain a steady increase in the market share, so that we can not only enjoy the short-term industry growth dividends, but also enjoy the long-term industry concentration to enhance dividends.