Interview with Guo Wuwen, chairman of Hongxing Co., Ltd.: Home clothes are young clothing market segments to strengthen research and development on technology fabrics

Every reporter: Wang Fan Editor every editor: Zhang Haini

Guo Wuwen, chairman of Hongxing Co., Ltd.. Photo Source: Corporate Photo Conferring

Today (July 23), Hongxing Co., Ltd. (001209, SZ) knocked on the bell to go public, becoming the first listed company in the field of home service in the clothing industry. The issuance price of Hongxing shares was 29.88 yuan/share. This morning, the trading was suspended due to the trading of the transaction. As of the afternoon closing, it was reported at 43.03 yuan/share, up 44.01%.

Hongxing Co., Ltd. has been engaged in the research and development, design, production and sales of home clothing since its establishment in 2004. Its main brand Fenteng is currently ranked among the top in the industry. In 2020, Hongxing shares achieved operating income of 1.131 billion yuan (more than 82%from home clothing), with a net profit of 134 million yuan.

Under the trend of consumption upgrades and classification, consumers’ unity of home life and dressing are no longer limited to pajamas, and their needs for comfort, fashion and social attributes have gradually emerged, and the home service industry has developed rapidly. At the same time, compared to the entire large clothing industry, due to the short development time, the market has not been fully developed and scattered. How to seize the future opportunities of the industry to become an important proposition for enterprises.

On the occasion of the company’s listing, the reporter of “Daily Economic News” (hereinafter referred to as NBD) interviewed Guo Wuwen, chairman of Hongxing Co., Ltd., who believed that the home service is a younger market market in the clothing industry, “the competition in the industry in the future Among them, the cultivation of brand mentality, the continuous innovation of fabric style, and the construction of the internal talent echelon of the enterprise are the core competitiveness. “

Talking about the industry: Home clothes are young clothing market segments

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The Chinese clothing market is huge. According to the data of Euro Rui, the size of the Chinese clothing market in 2019 has exceeded 2 trillion yuan. As the field of vertical segmentation of clothing, the home service industry is in the ascendant, and the market concentration is not high. How to view the current market structure? Where is the future trend and opportunity?

Guo Wuwen:

As a subdivided industry in the large clothing industry, the home service is about 30 years from being born to the present, and it belongs to the younger market market. From the perspective of industry associations and third -party data, the current home service market is about 200 billion yuan in market capacity. The overall enterprise scale and market capacity can match the development time of the industry.

At the same time, after many years of operation and promotion of the industry, domestic consumers are increasingly recognizing the importance of home service in home life. With the further refinement of social division of labor, more and more home office occupations have appeared. Staying at home, this also brings further consumption needs.

专访洪兴股份董事长郭梧文:家居服是年轻的服装细分市场 要在科技面料上加强研发

In the future, the industry does not need so many enterprises to capture consumers’ needs and meet the changes in young people’s consumption concepts. Only companies with brand awareness can continue.

Among the enlisted in the home service track, there are underwear companies such as Metropolitan Liren, Ai Meifang, Anlfang Holdings, as well as Uniqlo and other comprehensive clothing retailers. The service market has an impact on a single home service enterprise. How to view industry competition? What core competitiveness should enterprises maintain?

There are indeed many companies and brands in home service products, but consumers have a certain distinction between each brand’s cognition. Some brands do bras in the eyes of consumers, and some brands are casual clothes in the eyes of consumers, which represents the brand’s DNA. Therefore, no matter how wide the brand’s product line is, consumers will only remember the core part, which is the gene representing the genetic category of the brand.

In the future competition in the industry, the cultivation of brand mentality, the continuous innovation of fabric style, and the construction of the internal talent echelon of the enterprise are the core competitiveness.

Talking about innovation: The research and development of functional technology fabrics is the key

Nowadays, consumer demand is gradually diversified, and the trend of consumption upgrades and grades has prompted enterprises to continue to maintain a keen sense of smell and insight. What are the characteristics of consumption demand in the home service industry?

Home clothing pays attention to comfortable and environmentally friendly, so most of them use cotton fabrics. At the same time, according to seasonal changes, different changes are made from the product version, pattern, and color.

In terms of region, consumers in the north are more inclined to knitted fabric products, and the south is more inclined to woven fabric products. This is due to the different consumption preferences caused by the geographical environment; on the sales channels Novel and younger, offline is more elegant, stable, and stronger in quality. This is the difference between age group and consumption scenarios.

How should the future home service industry innovate to adapt to the changeable consumer market?

The research and development of technology fabrics and color flower type innovation are the most important factor in adapting to the market. In the field of home service, an excellent brand must have core patented fabrics, and it is a fabric with a certain functional characteristics.

For example, if the travel person is on a business trip, if you wear a pajamas with quick -drying fabrics, it becomes very convenient to clean and carry; in some scenes, the fabric can have some sleep aid functions. There is a certain degree of denseness; in addition, it can develop fabrics with mites suppression functions. At present, we have some preliminary explorations about these ideas, but it needs to be improved technically.

As a soft and comfortable product, home service has its own keen sense of business to discover the needs of consumers, and to innovate and develop these functions.

Talking channels: It will gradually promote the layout of the shopping mall

Online is an important channel for Hongxing’s shares. In 2020, the company achieved online sales of 781 million yuan, accounting for about 70 % of the total revenue. Its Fenteng is a brand that grew up in time to catch e -commerce dividends. At this stage, the layout of the industry’s main household service brands has been basically completed, the cost of customer acquisition of traditional e -commerce has gradually increased, and emerging e -commerce has also begun to rise. Hongxing Co., Ltd. is the integration and development of online and offline channels and the layout of emerging e -commerce?

Consumer goods are always king by channels. As long as the channels are appropriate, the company will actively explore and try. Online and offline are important sales channels for the company, and the two promote each other.

E -commerce is also constantly subdivided, including platform e -commerce, social e -commerce, and live e -commerce. The company’s sales in the past three years have increased significantly every year. Since last year, the company has also increased its investment in live e -commerce and social e -commerce. So far, sales growth is very considerable.

From the perspective of the distribution of offline stores of the Fenteng brand, it is the main sinking market. What is the company’s positioning of this main brand? What are the new layouts of offline channels?

The positioning of the brand of Fenteng was originally the parental route of the national brand, and its price positioning is mid -to -high -end. Our purpose is to allow more Chinese people to wear comfortable and environmentally friendly home costumes, so our offline channels have always been mainly street shops in second- and third -tier cities. In the future, the channel layout of shopping malls and mall counters will be gradually promoted.

There are currently a single brand dependencies in Hongxing. Fenteng brand sales account for about 80 %. Other brands of Malenass, Thousand Line Arts, Fenteng Kean and the main brands have a large gap. How to improve the brand matrix in the future and resist the risk of brand dependence?

In the company’s existing brands, we will further plan the product category and positioning of each brand. Fenteng will take home clothing as the core and develop multi -category; Marrorren will adhere to only home service, and then differentiate from style, style, and channels; Fenteng Kean will mainly make underwear, underwear, warmth, warmth, warmth, warmth, warmth, warmth, warmth, warmth, warmth, warmth, warmth, warmth, and warmth. Socks; the focus of thousands of line art is placed in children’s underwear. In the future, we will further distinguish the brand matrix, so that every brand will have their own broad tracks.

Daily Economic News

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