Canoudi Road, Guangzhou: China Daily reported that its pre-increase of over 50% outperformed the industry

In July and August, listed companies issued a concentrated period of interim earnings forecasts. For the performance of the company in the first half of the year, the release of the “test” transcript must be a few happy worries. Canoudi Road Garments Co., Ltd. of Guangzhou recently released a news report that it plans to release the company's interim results forecast on August 20. As the first listed high-end menswear company in the country, will it be able to do its best in the environment in which the industry as a whole will not be booming in the first half of 2012? From the expectations given by many agencies, the answer is yes.

“From a year-round perspective, the growth rate of domestic apparel consumption in 2012 may be slightly lower than last year, and we expect the retail sales growth rate of the industry to be approximately 10% to 15%.” Liu Yi, an analyst at China Merchants Securities, for the overall industry this year The situation made such a prediction.

Although the overall growth rate of the industry is not high, there are still a few companies expected to look forward to the report, Kanudi Road is one of them. “We expect Pathfinder, Kanudi Road, with an average growth rate of over 50%.” Galaxy Securities analyst Mary reminded investors to focus on stocks above industry growth. Liu Yi, an analyst at China Merchants Securities, is also optimistic about Canudi Road. He believes that the development of the company can be divided into three phases: the rapid expansion phase, the stable expansion phase, and the endogenous growth phase. This year, fast-expanding companies are expected to be able to iron out the risk of slowing industry growth. Kanudi Road, one of the high-growth companies, is the first listed high-end menswear brand. “In the past two years, due to the company’s outreach, it has maintained a rapid expansion rate. With the continuous improvement and refinement of its brand image and competitive strategy, The continuous improvement of management level is expected to achieve the company's mid-term growth target of 50% to 60%."

The reason why Kanudi Road is favored by the organization is closely related to the continuous improvement of its single store profitability. As of the end of 2011, the company had 318 chain stores, including 175 directly-operated stores and 143 franchised stores. The company has added more than 30 stores as of the end of May this year, and is expected to speed up shop opening in the second half of the year. At the end of the year, it will open 80 to 90 new stores and 30 to 40 franchise stores. By the end of the year, the total number of stores will reach 440~450. Family. “In February 2012, the company raised more than 6 billion yuan from issuing stocks. Before the IPO, there were more than 200 million yuan in cash on the books and the funds were sufficient to fully support the development of the company's new channels.” Chen Ying of CITIC Construction argued.

CITIC Construction Chen Ying also pointed out that the company's brand has a higher profile, the existing store sales performance is better, and the company has improved the right to enter the store by acting as an agent of Armani, Bali, and New Oriental and other international brands. Therefore, the company channel Expanding patency, the high growth brought about by extensional expansion is expected.

In particular, the mall channels are mature, and the image of terminal stores is constantly improving. The company’s current sales channels mainly rely on shopping malls. Currently, it has formed strategic cooperation with many high-end shopping malls, such as Zhuo Zhan, Bealead, Wangfujing, and friendship. "The cooperation of the shopping malls has Matthew's efficiency. Before the sales revenue of famous shopping malls is high, it is the negotiating bargaining chips and stepping stones for entering new shopping malls." Xu Wen, an analyst at Xiangcai Securities, said that the company has begun to take shape and its sales ranks in many shopping malls. Before, and the company is an international brand franchisee, will participate in the training and guidance of international brands in the listing of the shop, decoration, it is also conducive to the company's learning to improve the terminal shop display level and service level.

Judging from the brand positioning of Canudi Road, its consumer groups are relatively niche and are positioned as income-rich people. “The current age of the company’s consumers is generally over 35 years of age. Professionals mainly include business people such as officials and private business owners.” Take the example of the 500,000 garments sold by the company last year. The company's coverage of the customer base is also about 20 to 300,000 people.

Based on such a customer base, the company also tries its best to target the channel. For example, the time cost for high-end customer groups is relatively high. They are used to fast and convenient shopping. They are used to the characteristics of terminal experience and high-quality services. In addition to shopping malls, the company’s stores have also increased two types of airport and hotel channels. .

Ping Xu Securities analyst Yu Xuhui also saw that the company’s refined management was very effective and protected its orderly expansion. “We believe that the management capability of Kanudi Road is reflected in three aspects: First, inventory management. Kanudi Road has stricter restrictions on the sale rate and discount rate, and there are certain ways and channels for inventory products. Therefore, from the current point of view, the company's inventory structure is better.Second, there are strict assessment standards for stores and non-compliance within the time limit is closed. This is the reason why the company's closing rate is relatively high. Third, the supply chain Management. The company takes the form of advance orders and is conscious to reduce costs, which is expected to increase gross margins."