Net Red Brand And Personalized Brand Are Rising Gradually.

Demand differentiation and diversification development.

Brand and personalization

Gradually rising, the rapid response of the supply chain system needs support.

At present, the retail terminal continues to slump. With the 80 and 90's becoming the main consumer, the demand for goods is individualized, differentiated and diversified.

In this context, the rapid rise of net red brand and personalized brand has spawned a large number of small batch and lots of order demand, and urgently needed the support system of quick response supply chain. At the same time, the traditional supply chain lead time is too long, resulting in low cost performance, inventory backlog, capital occupation, and difficult to cope with the rapidly changing market changes. The development of information technology has created conditions for supply chain integration.

International leading supply chain management enterprises have important reference significance for domestic supply chain integration.

The links are set up on the principle of "convenient and effective information exchange and saving middle link time", and at this cost, the high cost is spent. This extreme pursuit enables ZARA to have 7-12 days' super short lead time, to realize "multi category, small batch and quick turn over", outsourcing the non core business, outsource the non core business, and have 15000 suppliers in the more than 40 countries of the world to obtain the best source of goods at the best price. The global starlight integrates upstream suppliers and downstream brands to realize the vertical integration of design, production and supply chain management; Ito Zhong takes the logistics trade system as a link to open up the whole industrial chain, mobilizes the global information, human and financial resources to serve the enterprises, and controls the most profitable links in the industrial chain. Supply chain

Many enterprises in the industry are gradually shifting their focus to supply chain integration, but overall, they are still in the initial stage of exploration.

Huafu color spinning implements chain strategy. Starting from cotton, it will gradually extend to the downstream of cloth, clothing and other industrial chains. The company will integrate designer and supplier resources through the global fashion sharing cloud platform. The Antarctic electricity supplier will serve tens of millions of small and micro suppliers and sellers of electric business as the object of service, and integrate and optimize the traditional O2O industry chain through big data and cloud computing. The B2B platform, such as search, buy, buy, search, and chain, integrate fabric information through information integration platform. Sinbad will serve the small and medium enterprises and workshops on the platform of socialization, and divide and modularized the supply chain through standardized cloud, network and terminal system, so as to realize flexible production.

Investment strategy: considering that there is no sign of upward recovery in the fundamentals of the industry, it is difficult for the industry to get out of the independent market in the second half of the year, and will continue to follow the big market fluctuations.

Therefore, under the background of weak market shocks, we insist on the value in the second half of the year. We recommend that the annual long line continue to hold the value chain of continuous improvement in value chain, good performance and valuation with a certain margin of safety. Short term and prudent participation in the theme game category, it is not recommended to catch up to participate in the theme game situation. We need to return to normal risk preference. After the establishment of the market rebound trend, we will release the selective configuration according to the demand of the fixed growth process / investment merger / acquisition project texture / employee stock ownership expiration / lifting and so on. Besides the Internet red fashion, the Internet fashion ecosystem and the small market value shell resources of the early market, we suggest that we can focus on the Q1's only absent medical theme and recent problems.

Risk warning: 1, demand recovery is lower than expected; 2, pformation is lower than expected; 3, short-term valuation is high.