Children'S Clothing Market Semir Apparel And KIDILIZGROUP Joint Venture Company

In China's clothing industry, professional children's wear is at a late start and slow development stage. Chinese children's clothing has appeared since the mid 1990s, and has only begun to grow slowly in recent years, and most of them are attached to the development of adult clothing brands.

With the opening of the second child policy in 2016, the children's wear industry has seen a trend of rapid growth. The Chinese children's wear market has gradually become more and more lively. More and more clothing brands have joined the competition in the market share of children's clothing, such as Hai Lan's home, Taiping bird, Anta, Lining, Semir, Metersbonwe, XTEP and so on. Adidas, Nike and other international brands have also launched children's clothing products in China, all want to have a share in the field of children's wear.

According to the data released by China investment advisor, the size of China's children's clothing market in 2017 was 159 billion 700 million yuan, and the average annual compound growth rate is expected to be 8.05% in five years (2017-2021), and the market size will reach 217 billion 700 million yuan in 2021.

Driven by the promotion of market purchasing power and consumption desire, the children's wear market is showing a period of rapid growth. Chinese local children's wear brands are also showing signs, occupying half of the children's wear market. Semir's children's clothing brands such as balbala, ANN, Anta children, Taiping bird children and other children's clothing brands have gained a certain voice in the middle and high-end fields for the Chinese children's wear industry market, boosting the upgrading and development of China's children's clothing industry.

As a leading enterprise in children's wear market, Semir children's wear business has been doing well. Other children's wear brand Barbara market share is the first place in the field of children's wear for a long time.

In the beginning of 2019, Semir apparel continued to strengthen the layout of children's wear industry.

In January 9th, Semir clothing (002563) announced that it was planning to sign a joint venture contract with KIDILIZGROUP and jointly invest in the establishment of joint-venture company, happy chestnut (Shanghai) Co., Ltd., and jointly promote KIDILIZGROUP's brand and sell its products and develop related businesses.

Among them, Semir costumes invested 21 million yuan in cash, accounting for 70% of the registered capital; KIDILIZGROUP invested 9 million yuan in cash, accounting for 30% of the registered capital.

It is understood that Semir apparel announced in May 2018 the acquisition of Kidiliz group's sole shareholder SofizaSAS100% equity and debt, and in October 8th completed the equity delivery, to 110 million euros (about 844 million yuan) to acquire all assets of the Kidiliz group.

Kidiliz group, as the leading enterprise in the middle and high end children's clothing industry in Europe, has a certain market influence in the French market. It has Absorba, Catimini, DIM, and Esprit Kids, Kenzo Kids, Paul Smith Junior and other brands. The age segment covers newborns to adolescents, and the market selection is diversified.

Semir apparel said it plans to invest in a joint venture with KIDILIZGROUP, and promote KIDILIZGROUP's brand and sell its products by joint venture to promote the development of its business in the domestic market and ultimately achieve good economic results.

In addition to the good returns of children's clothing business in China, Semir clothing gradually demonstrates the ambition of the international children's wear market.

In order to further expand children's clothing business, in 2018, Semir clothing and North American children's clothing giant THE CHILDREN 'S PLACE INTERNATIONAL, LLC carried out strategic cooperation, from product, design, supply chain, channel, retail and other links to carry out deep cooperation, and gradually layout the international children's wear market.

Semir children's clothing business has become the fastest growing revenue source of the group in the market of children's wear market.

According to the data, in the first half of 2018, the income of children's clothing in the first half of 2018 was 2 billion 870 million yuan, an increase of 27.7% over the same period last year, occupying 51.86% of the total business income of the clothing, and we can see the important position of children's clothing in Semir's dress, which has further strengthened the determination of Semir's clothing to continue to plough the field of children's clothing.

In addition to the layout of the international children's wear brand, we also see the importance of Semir clothing in the development of the international children's wear market. At the same time, it also promotes the implementation of the strategy of "children's wear, multi brand and internationalization", so as to promote the realization of the 80 billion goal.

Semir apparel released the 2018 annual earnings forecast. It is estimated that the net profit attributable to the parent company in 2018 will reach 1 billion 365 million yuan -17.06 billion yuan, an increase of 20%-50% over the same period last year.