New market spawns industry “potential stocks”

“Three children policy” heavy hit, for the children’s clothing industry is undoubtedly a good news. Since the implementation of the “one-child two-child policy” in 2013 and the implementation of the “comprehensive two-child policy” in 2016, many families have increased their spending on children’s consumption, and China’s children’s clothing industry has ushered in an explosive growth. Concerned investigation shows, as the main object of consumption of “after 90″, “95 after” parents, in children’s clothing consumption spending has accounted for 20% of total household spending, together with a new generation of parental influence consumption idea to upgrade, the future as the arrival of the “two children, three children”, for children’s clothing consumer spending increased trend will drive the rapid development of childen’s garments market.

“Three children policy” landing, children’s clothing industry practitioners have said the prospect can be expected. Lin Haoliang, President of Jinfa Labi Materia & Baby Articles Co., Ltd., said that at present, continuously upgrading the quality of products and services and improving consumption experience are the key to face the market competition, as well as the key to the long-term sustainable operation of Maternity brand manufacturers. In the first quarter of this year, the Blonde Rabbi realized a total revenue of 62.824 million yuan, up 19.8% year on year; The net profit returned to the mother was 6.839 million yuan, up 812.7% year on year.

Shenzhen Ann chanel co., LTD., said an official with the related companies will increase the research and design of children’s wear brand “chanel Annil Ann”, at the same time, the expansion and optimization of the product line will be properly and timely expansion of the brand, well-known brands cooperate actively with the market opportunity, in order to realize the brand joint and collaborative development. As a leading enterprise in the upstream, Arnell has always been at the forefront of high-end maternal and child consumer products industry, and has been constantly innovating in the product end, actively leading the high-quality development of the industry. In the first quarter of this year, Anneil achieved a total revenue of 62.824,300 yuan, a year-on-year growth of 19.80%; Realize the net profit of 6,839,400 yuan to the mother. The company is expected to realize the net profit attributable to the shareholders of the listed company from January to June 2021 of 18 million to 27 million yuan, a year-on-year increase of 71.77% to 157.66%.

Under the high growth of the children’s wear track itself, the industry is generally optimistic about the opportunities of the whole industry chain of the children’s wear track. According to the data released by Euromonitor Consulting, the scale of China’s children’s wear market in 2020 is about 229.2 billion yuan, which is expected to maintain rapid growth in the next five years, and the scale of the domestic children’s wear market is expected to reach 473.8 billion yuan in 2025. The comprehensive opening of the “three-child policy” will further stimulate the consumer demand of children’s clothing.

In the face of this big cake, in fact, Anta, Li Ning, 361 degrees, Xtep and other major domestic sports brands have already started to involve in children’s wear business. Among them, Anta has the highest proportion of sales from children’s clothing, with main brand Anta accounting for about 27 percent, and another major brand Fila accounting for about 10 percent. In addition, Anta also acquired the children’s wear brand Xiao Xiao Niu in 2017, starting a multi-brand strategy in the children’s wear market. The 361 that develops slowly in last few years, also place high hopes to children’s clothing business. Figures show that in 2020, the children’s wear business contributed 18.4 percent of 361 Degrees’ revenue. Ding Wu, president of 361 degrees, said that children’s clothing will have a very big opportunity and should maintain long-term double-digit growth. It is also a plate that will help the group to grow stronger and bigger.