Chao Brand Superdry Four Brand Remodeling Efforts To Force The Domestic Market

In December 12th, the British Chao SuperDry (extremely dry) updated the key financial data for the first half of fiscal year 2019/2020. As of the first 26 weeks of October 26th, net sales fell by 11% to 369 million 100 thousand. The previous figure was 367 million 800 thousand pounds, an increase of 1 million 300 thousand, mainly because of the adoption of the international financial guidelines IFRS15.
In addition, although the "full price strategy" driven gross profit margin increased by 2.3 percentage points year-on-year, but by foreign exchange and inventory changes, the gross profit margin of SuperDry eventually dropped by 0.1 percentage points to 56.3%.
On this occasion, the brand co founder, Julian Dunkerton, who returned to SuperDry in April this year, summed up a series of brand reinventing measures after he returned from four dimensions, including product and design, online and offline sales channels, market expansion and marketing.
In terms of product and design, the first card that Superdry will play will be the "2020 autumn and winter series". After changing the style of the previous 2019 autumn and winter series, Superdry will adopt a completely new design concept this season. Superdry will also introduce more clothing products to bring more choices to customers.
On line, the Superdry will regain the "two quarter of one year" mode, that is, the new core series every six months. At the same time, the "full price marketing" mode will continue to strengthen and reduce promotional activities.
At the same time, SuperDry also plans to add more boutique stores, reduce the proportion of wholesale channel sales. In addition, SuperDry's "rent negotiation" plan has made initial progress, and the rental amount of the first stores decreased by 30% compared with the same period last year.
On the online business channel, SuperDry has updated its own official website, doubling the volume of its products and increasing its size analysis assistant. In addition, SuperDry has also strengthened cooperation with third party e-commerce, such as Zalando, Next, Shop Direct and so on.
On the market side, SuperDry will mainly contribute to the US and China market. For the US market, SuperDry's plan is to increase product categories and optimize wholesale channels. SuperDry has already examined the wholesale channel contracts in the US market and lifted some contracts with poor performance. In view of the Chinese market, SuperDry adopted a more appropriate fashion design for Chinese consumers' preferences, stature and weight. At the same time, the brand also examined China's store network and shut down some poor performing stores. (in September 2015, hkei international group and Supergroup set up a joint venture to expand the Chinese market. Both sides invested 18 million pounds, holding 50% of each, and the joint venture period was at least ten years).
In terms of brand marketing, SuperDry is also actively cooperating with the opinion leaders of the social platform. The brand's 2019 autumn and winter SDRY activities have already had 2 million 500 thousand followers on Instagram.
The key financial data for SuperDry as at 26 weeks before October 26th are as follows:
Net sales fell 11% to 369 million 100 thousand pounds compared to the same period last year.
Gross profit margin fell 0.1 percentage points to 56.3%
Operating profit is 1 million 300 thousand pounds (after removing 46 million 300 thousand pounds from restructuring and strategic cost).
The pre tax loss is 4 million 200 thousand pounds.
Net loss is 6 million 500 thousand pounds.
By channel:
Retail: net sales of 215 million 100 thousand pounds, operating profit of 5 million 500 thousand pounds.
Wholesale: net sales amounted to 154 million pounds, operating profit of 42 million pounds.