Mu Shi International Last Year Lost Nearly 20 Million Of The Market Value Of The Smallest Clothing Group.

Young consumers are becoming more and more fond of the old. The 20 year old clothing retailer Mu Shi international is facing a difficult challenge.

According to the fashion business bulletin, Mu Shi international listed yesterday announced its year-round results as of the end of March this year, with a year-on-year turnover of 13.6% to 251 million yuan, a net loss of 19 million 717 thousand yuan, a net profit of 2 million 7 thousand yuan in the same period last year, and a loss of 52 million in 2016.

As of 27 days, the international stock price fell 6.35% to HK $0.59, with a market value of HK $170 million.

The announcement shows that the gross profit margin of Mu Shi international is about 81.8%, compared with 76.3% in the same period last year. The gross profit margin of the group was still at the normal level of gross profit for many years, and its income decreased during the year. As the mainland China market became worse, its revenue dropped by 28.3% to 34 million 795 thousand. The Hongkong market in China also showed a sluggish performance and the revenue fell 10.3%.

The group pointed out that with the emergence of e-commerce and the emergence of fast fashion apparel, the consumption patterns and consumer preferences have been radically changed. The demand and pursuit of fashion apparel for consumers, especially the younger generation, are changing rapidly. Young consumers aged between 20 and 30 are more dependent on information from the Internet, especially from social media. They prefer to follow the fashion trends usually shared by social media through accompanying groups, and tend to buy fast fashion at lower prices, discounts or coupons.

Mu Shi International Group Co., Ltd. was founded in 1997. The group mainly includes MOISELLE, m.d.m.s., GERMAIN and Rosamund MOISELLE. It also acts as an agent of LANCASTER and other international brand products. The group went on the market in Hongkong in 2002 and then expanded to mainland China. In 2016, it expanded to Paris, Japan and Korea. It is noteworthy that, in order to stimulate growth in performance, in March 2017, Mu Shi international and Hongkong star Rosamund Kwan established a joint venture to jointly develop the fashion market.

The fashion industry is undergoing structural changes, and consumers' shopping habits have also changed greatly. Mu Shi international is not the only Hong Kong funded clothing brand that has encountered difficulties.

Joyce, a clothing buyer in Hongkong, also announced last year's annual performance. In the fiscal year ending March 31st, Joyce revenue fell 2.1% to HK $842 million 400 thousand, with a net loss of HK $22 million 292 thousand, although it narrowed over the 57 million 400 thousand HK dollar deficit in the previous financial year, but it has been damaged for 4 consecutive years, losing nearly HK $200 million.

In the 9 months ended March 31, 2019, the Esprit parent's global income group was HK $9 billion 922 million, which fell by 13.5% in local currency terms. In the 6 months ended December 31, 2018, its sales plunged 15.84% to HK $6 billion 766 million, and net loss increased 85.85% to HK $1 billion 773 million over the same period last year. The group admits that brand image and product attractiveness are urgently needed to improve.

It is noteworthy that the market value of Mu Shi has shrunk by 70% over the peak of 2014 due to declining performance. It has become the smallest clothing group in the market. At present, the largest apparel retail group in China is Anta, which has a market value of HK $143 billion 500 million. In the past two years, the highest IPO apparel retail group was DAZZLE fashion company, the market value of which was about 9 billion 200 million yuan.