The effect of the digital upgrade of the whole industry chain shows that Heilan Home achieved revenue of 13.6 billion yuan in the third quarter

Source: Financial Industry Information

  In the environment of repeated epidemics in some regions, increasing downward pressure on the economy, and general pressure on apparel companies, Heilan Home has demonstrated its strong anti-risk capabilities. On October 28, the national menswear brand Heilan Home Group Co., Ltd. (hereinafter referred to as “Heilan Home” or “Company”, 600398.SH) released the results announcement for the first three quarters of 2022, and the company achieved operating income in the first three quarters 13.675 billion yuan, the net profit attributable to the parent was 1.749 billion yuan, and the gross profit margin was 44.68%. Among them, the operating income in the third quarter was 4.159 billion yuan, a year-on-year increase of 3.43%, and the net profit attributable to the parent in the same period was 474 million yuan, a year-on-year increase of 19.19%.

  The competition barrier of Heilan Home comes from its strong R&D investment. On the one hand, the company focuses on the new demand for high-quality development of the apparel industry, increases investment in research and development to create high-quality products, and promotes sustainable digitalization of the entire industry chain. On the other hand, according to the macro environment and consumption trends, the company continued to optimize its industrial operations, and worked hard to optimize its channel structure and improve its service rate, so as to enhance its ability to resist risks and overcome the adverse effects of the epidemic to the greatest extent possible. .

  Increase investment in research and development to enhance the high added value of products

  According to the data of the Prospective Industry Research Institute, in 2021, Heilan House will continue to take the lead, ranking first in China’s men’s clothing industry for 8 consecutive years. It is worth mentioning that in the 2022 (19th) “China’s 500 Most Valuable Brands” released by the World Brand Lab, Heilan House ranks at the forefront of the industry.

  The financial report shows that Heilan Home continues to optimize the product structure, increase the proportion of casual clothing, and the proportion and amount of functional products account for over 50%. R&D investment increased by 93.75% year-on-year to 132 million yuan.

  In recent years, Heilan Home has continued to increase investment in research and development, focus on consumers, focus on core business, and increase technology research and development to provide high value-added products. During the reporting period, Heilan House adopted new technological fabrics such as far-infrared heating materials, technological antibacterial yarns, and double-layer graphene technological surfaces, and iteratively launched “cooling technology”, “six-dimensional elasticity” and “traceless technology shirts”. “, “three-proof series” and other innovative functional items, while meeting the basic needs of consumers, provide consumers with higher product added value. At the same time, the company continues to build brand power through IP co-branding and new business integration, focusing on national trends to combine China’s excellent culture with current trends, and launch clothing with unique oriental charm to demonstrate the freedom and brilliance of the people.

  During the reporting period, Heilan Home joined hands with Chinese New Year illustrator Ye Luying to blend traditional landscape elements with modern clothing, and launched a series of sweaters “Tao, Natural Landscape and Humanity”, which interprets the collision between Chinese aesthetics and intangible cultural heritage; and cooperated with independent trend artists to vigorously , collided traditional tie-dye and embroidery techniques with the tiger of the zodiac, and launched the New Year’s edition sweater limited to the Year of the Tiger; joined hands with three national creators, and launched a series of tigers and tigers with a unique fusion method, bringing the intangible heritage into a square inch on clothing. Heilan Home revealed that in the future, the company will further increase investment in research and development, increase the proportion of functional clothing, continue to explore the integration of clothing with excellent culture and national quintessence, create more national style products, and let Chinese culture bloom in Xinshida new brilliance.

  Digital empowerment of technological innovation and enhancement of core competitiveness

  The epidemic has spawned a digital economy and accelerated the digital transformation of enterprises. Offline, relying on stores to create private domain traffic and establish store CRM system, as of April 22, the total number of offline store members has exceeded 23 million, and the total number of omni-channel members has exceeded 62 million. Innovate to carry out the pilot of enterprise WeChat account, and implement refined operations for store members in the way of one store and one number, and improve the conversion rate of online and end-to-end traffic and customer acquisition. At the end of the reporting period, the offline revenue reached 10.920 billion yuan; the total number of stores nationwide reached 7,841, including 1,390 directly-operated stores, a net increase of 275, accounting for 17.73% of the total stores.

  On the online end, the model of “Talents bring goods + store self-broadcasting” is adopted. On the basis of mainstream e-commerce platforms such as Tmall,, Xiaohongshu, and WeChat mini-programs, new social e-commerce platforms such as Douyin and Kuaishou have been added. , improve the omni-channel layout, and reach users across the entire network. Through big data research and judgment of the characteristics of each platform, relying on the different characteristics of each brand and each category, using different methods such as live broadcast, short video, grass planting, etc., to carry out differentiated display, and achieve refined management of users. During the reporting period, the online revenue recorded 2.137 billion yuan, accounting for 16.37% of the total revenue.

  In addition, through the Internet of Things system, with more than 7,000 stores nationwide and the support of online platforms, it breaks the boundaries of sales channels and realizes online and offline communication. Consumers can place orders online. Through the information system, they can choose the optimal delivery route with consumers as the center, explore the “contactless economy”, greatly shorten the time for products to reach consumers, and create a high-quality shopping experience for consumers.

  At the same time, through digital analysis of consumer consumption frequency, consumer product attributes and other characteristics, an analysis model is established to predict and analyze sales gaps, and to gain insight into consumer preferences, so as to formulate a personalized “shopping cart” marketing plan to improve the overall sales level. Then create popular models, guide product development, realize the overall efficient linkage of research and development, production, logistics, and sales, improve consumer satisfaction and recognition, further improve product sales, reduce turnover, and improve turnover.

  It is worth mentioning that the company actively cultivates and introduces high-quality suppliers with “strong development, strong and quick response” capabilities, and continuously replenishes products through “fast replenishment of orders and rapid new updates”, quickly responds to market demand, and improves the sales rate of goods. , forming the core competitiveness of the supply chain.

  In addition, accelerate the preparation for the construction of the innovation and research center, carry out forward-looking, overall and comprehensive research on clothing strategy issues, and seek new consumption entry points and new consumption methods to provide effective, intelligent, innovative and macro-level decision-making and management. During the reporting period, the Group actively cooperated with well-known institutions of higher learning and scientific research institutions in the industry to build the Innovation and Research Center of Heilan Garment Industry City in Jiangyin City to jointly explore the research and development and application of new materials, new processes, intelligent manufacturing and other propositions, keeping up with the trend of the clothing market. Develop new trends, enhance the market competitiveness of the company’s products, and enhance the competitiveness of the industry.

  Deepen brand connotation and serve each citizen’s own brilliance

  Hailan House takes clothing as the carrier and culture as the core to create the soul of the brand. On March 11, Hailan Home officially signed Xu Weizhou as the brand’s latest spokesperson. Xu Weizhou’s triple attributes of “national attributes”, “sunshine positive energy” and “social responsibility” coincide with the value behind the brand.

  At festivals and solar terms, Hailan House builds a bridge of emotional expression for the implicit Chinese by planning matching marketing activities. It is worth mentioning that on the day of “Father’s Day”, the sales of Heilan Home’s offline stores increased by more than 30%, setting the best sales performance in history. In addition, Ding Zhenzhu, the new product experience officer of the Daofa Natural Landscape and Human Series, who signed the contract, his clear eyes and innocent smile perfectly match the spirit and attitude conveyed by the new product, achieving the communication effect of 1+1>2.

  From spokesperson to IP co-branding to festival marketing, Heilan House has been steadily and far-reaching on the road of brand value of national brands, national costumes, and the light of domestic products. During the reporting period, the Heilan Home series achieved an operating income of 10.35 billion yuan.

  Heilan House integrates Chinese culture into the brand gene, continuously carries out product iteration and service upgrade, enhances brand power, strengthens brand image, and deepens brand value. Analysts from Zhongtai Securities believe that the company continues to improve product power by improving product functionality, joining hands with popular IPs, and adjusting product structure. At the same time, we will deploy omni-channel marketing, improve supply chain efficiency, and optimize channels, laying a solid foundation for long-term stable development. In the long run, the company plays a platform role, promotes informatization and multi-category layout, continuously optimizes the channel structure, and improves the efficiency of the supply chain, so as to create a strong competitive barrier for the company’s long-term development.