Yu Yuan group is the world's largest major international brands of sports shoes and casual shoes manufacturers. Its cooperation with the world's top five sports shoes brand manufacturers: Nike (including Converse), Adidas (including Reebok), VF group (including Timberland), Asics, NewBalance, and in China, Vietnam, Indonesia, the United States, Mexico and other areas with factories.

This generation factory also has its own brand distribution channels, and the functional components of shoes and shoes are complete. It is the market value of 57 billion 700 million yuan for the Yu Yuan group and the downstream distribution is the subsidiary of Baosheng international.

The organization chart of Yue Yuen Industrial Company Baocheng

Baosheng international retail network covering the Greater China region, in addition to the international big brand cooperation, including Kappa, PUMA, Nanjing, Converse, Hush Puppies, Nautica, Wolverine and Umbro. Among them, in China Baosheng international holding Converse, Asics, Coleman and HushPuppies four brand exclusive franchise.

This also means that with independent pricing, design, supply chain management and marketing aspects of Baosheng international.

According to Yu Yuan Group interim earnings report, the company in the first half of 2017 revenue of $4 billion 448 million, an increase of 3.91%; net profit of $259 million, an increase of 3.95%. Among them, foundry business occupies the total turnover of 3/4.

Yu Yuan Group's category revenue comparison in the middle of 2017

The consolidated financial statements, Yue Yuen inclusion Baosheng international retail business performance. During the reporting period, Baosheng Group operating income of $1 billion 405 million (about 9 billion 500 million yuan), an increase of 14.5%; net profit of $44 million (about 300 million yuan), down 19.6%. Baosheng explained that this is because the retail network and artificial high rental costs, squeezing profits caused by.

But Baosheng international in August sales growth was the fastest since January this year, sales increased by 20.5% to 1 billion 475 million yuan. Hongkong Yuan Securities believes that or this should be Nike new products, such as AirMax97Ultra and other products to promote, in July subdued weak demand has also been released in August. But because of the Mid Autumn Festival this year, the National Day holiday, so Baosheng international sales in September will be affected.

For the main retail network POU artificial and site cost is always constitute a greater pressure on profits. Since the end of 2013, the international shoe business to throw Baosheng Yu Yuan group, specializing in C terminal sales, its distribution costs have so prominent, the current increased by 17%, accounting for the current turnover of more than 30%. But on the other hand, it is timely to Guosheng international to pull back from the end of the year 200 million loss.

As of June 30, 2017, Baosheng international in the domestic total of 5464 stores and 3036 stores. Among them, the operation of multiple sports brand chain YYSPORTS wins the Road Sports City, about 100.

While the Yu Yuan Group in the upstream of the industry chain does not need to be trapped in the cost of the store, but also around the shackles of Kaiyuan material, brand bargaining limit, Yu Yuan group must control the cost of production line, improve efficiency, in order to remain competitive.

Fortunately, in the past two years, the industry has picked up, and the development of the big brands to the Chinese market has entered a new round of expansion stage, which is very good for OEM enterprises.

In the semi annual report, Yu Yuan group mentioned in particular that despite the slowdown in China's economic growth, the operating environment of sportswear retail business continued to be positive. Encouraged by mid term performance, Yu Yuan Group interim dividend of about 6 billion 400 million Hong Kong dollars.

Although the China market has been the primary engine of growth of Nike, Adidas and other big names, but the domestic labor price upward, prompting manufacturing companies have to migrate plants to Southeast Asia, where labor is cheap, government tax concessions, but the foundry enterprises don't have material transfer scale.

According to HSBC research pointed out that with the rapid growth of its customers Nike and Adidas page performance, Yu Yuan performance will be further increased, in addition, the Yu Yuan group contribution of new stores continue to maintain the stability of the situation can be seen, to obtain a stable market share China sportswear market international brands are never growing in.

Responsible for the line of retail industry in Baosheng international share dividend, but also gradually emerged new trends in retail. BOC International Securities analyst Liu Zhicheng had said, "as consumers increasingly fond of fashion and function of the product, the next 2-3 years, Baosheng international management will focus on the rapid growth of second tier brands."

The source network is composed of sports shoes vamp vamp custom fabric finishing release Kaitesi fly