PUMA High-Profile March Into Children'S Clothing Can Be Reversed?

France luxury group Kering

After the acquisition, the performance of Puma Puma, a German sporting goods manufacturer, was unsatisfactory. Fashion pformation failed, and revenues and profits continued to shrink.

Last year, there were rumors in the industry that Kai Yun group wanted to sell Puma.

However, in recent years, Puma launched a big move, not only to appoint the popular star Rihanna as the creative director of women's clothing and the global ambassador, but also announced the cooperation with United Legwear and Apparel Co. to enter children's wear.

When clothing enterprises encounter performance bottlenecks, many enterprises will seize the subdivision of children's clothing. Semir is a successful example.

But will Puma be so lucky as Semir?

At present, it is still unknown.

Revenue increased in the three quarter, and profits declined.

The rumour that Puma will be sold has long been heard in the industry, and many versions have been released by the acquirer.

Indeed, after the acquisition of the open cloud group, Puma's fashion pformation was not successful, and then plunged into a business dilemma, and revenues and profits continued to shrink.

In order to reverse the decline, Kai Yun group hired a former CEO Bjorn Gulden, who successfully brought the Danish jeweller Pandora Pandora back to life in early 2013, led Puma to carry out the recovery plan.

Bjorn Gulden said in its two quarter 2014 earnings report that all the key strategic plans of the group have made progress and that 2014 will be the beginning of the recovery of Puma Puma.

From August to 2016, Puma will carry out the largest Forever Faster campaign in the group history, focusing on the core value of sports after the failure of fashion pformation.

However, the results showed that the Puma net profit in the two quarter showed a 76.2% decline, down from 17 million 500 thousand euros last year to 4 million 200 thousand euros, and total sales decreased 5.8% to 652 million 200 thousand euros compared with the same period last year.

Re focusing on the strategic pformation of sports has brought some changes to Puma's performance.

In the latest three quarter earnings report up to the end of September 30, 2014, Puma group's revenue rose 3.7%, from 813 million 100 thousand euros in the same period last year to 843 million 400 thousand euros, of which clothing sales increased 8.9%; footwear products fell 1.2% from 378 million 100 thousand euros a year earlier, while the fixed exchange rate increased by 2%; the fixed exchange rate of fixed parts increased by 7.5%, from 138 million 200 thousand euros in the same period last year to 146 million 700 thousand euros, with a real growth rate.

In addition, its net profit was 28 million 900 thousand euros, down 45.2%, or less than the two quarter.

For sale rumors, Bjorn Gulden told the outside world that it did not see the big shareholder ownership change signal.

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To cooperate with many enterprises to enter children's wear market.

In addition to refocusing on sports, a wide range of promotional activities "Forever Faster" (always faster), Puma has made further changes recently.

A month after the appointment of Rihanna, the creative director and the global ambassador for women's wear, there was news from the industry that Puma was working with United Legwear and Apparel Co. to cooperate in children's wear.

The direction of North American retailers for headquarters will include

The production, sale, marketing and distribution of children's clothing, clothing size from 20 yards to boys and 16 yards from girls.

It is revealed that the first batch of products will enter the shop in spring.

The clothing will reflect Puma's core adult series, neon coloring with black, white and grey, made of fine comfortable fabrics.

The price range from 18 dollars a T-shirt to 48 dollar Hoodie sweater.

"Puma clothing is a sports lifestyle brand, and now provides high quality fabrics and competitive prices for children," said United Legwear founder and CEO Isaac E.Ash. "It will compete with other top sports brands."

Regarding the layout of children's clothing market and the question of when to enter the Chinese market, Puma public relations personage in China said in an interview with reporters, "we haven't had any formal documents and plans to enter the children's wear market at present."

However, some media pointed out that President Bjorn Gulden revealed at the press conference last month that "I have always said that 2014 will lay the foundation for a turnaround, and that 2015 will really see a turning point, and I feel comfortable and moving forward.

Rihanna is part of updating the brand strategy, which provides a story for the global market.

For 2016, our product range should be located where it should be. "

Children's clothing market is the last blue ocean.

There are traces of Puma's exploration and layout for children's wear market.

For this reason, some analysts believe that for Puma, this coincides with the company's new brand positioning, "Forever Faster", and improving its children's clothing products may contribute to the financial turnover of the company affiliated to Kai Yun group.

In addition, after three years of net profit decline, Puma's third quarter sales saw improvement in 2014.

This means that Kai Yun group will help Puma get back to life through a series of changes and adjustments.

For the Puma to enter the field of child market practices, there are also optimistic about the industry.

According to the analysis, the traditional sportswear market of traditional adult clothing is almost saturated, and needs to be pformed urgently. Under the stimulation of the "two child alone" policy, the demand and potential space of baby clothing market is increasing. The children's clothing market is becoming the last blue ocean of the clothing industry.

According to statistics, the number of children aged 0-14 years is almost 300 million in China. The huge population size first brings the quantity demand to the children's children's clothing market.

According to the report of Sullivan, a US consulting firm, the scale of China's infant clothing market has reached 34 billion 800 million yuan in 2010. It is estimated that by 2015, the market volume of Chinese infant clothing and cotton products (clothing, clothing, household cotton, etc.) and daily necessities (bedding, feeding, bathroom, toiletries, etc.) will reach 227 billion 980 million yuan.

In addition, many domestic clothing enterprises focus on children's clothing market, and have achieved good results.

The semi annual report of Semir clothing, which owns Bala barrack and other children's clothing brands, shows that business income in the first half of this year was 2 billion 932 million yuan, an increase of 7.59% over the same period last year, with a net profit of 333 million yuan.

Among them, children's clothing business is dazzling, sales revenue of 1 billion 172 million yuan, an increase of 30.90% over the same period, contributed significantly to the growth of income.

At present, Semir clothing has been leading the children's clothing industry to pform into a comprehensive service provider for children's industry.

The bright future of China's children's wear market and the successful experience of the same industry make it happy to catch up in the field of children's wear.

It is reported that the United States and apparel enterprises already have two brands of MI Xi Di and Moomoo children's clothing, although late development, limited scale, but the growth rate is quite fast, then the winter orders will be recorded at least double growth under the low base.

In addition to continuing to do well in these two children's wear brands, the United States is also testing the new brand of children's clothing Mini Moomoo online.

It is reported that the brand is aimed at 1-4 year old baby, focusing on the development of knitted products.

Liu Yiwai, vice president of Mei Bang apparel, said that the development of children's wear brands has become a key strategy of the company. At present, hundreds of billions of children's clothing market in China is extremely fragmented. The company has obviously increased the market of children's wear this year.

From the experience of the same industry,

Indeed, it is a good area of subdivision, but there have been a number of companies that have been presnated in the first place.

Will Puma be so lucky as Semir?

Let's wait and see.

Puma