Listing Of Clothing Enterprises

In recent two or three years, many garment enterprises are keen on going public.

But in fact, listing is a double-edged sword, which has both advantages and disadvantages.

The advantages that enterprises can get through listing is obvious: they can be incorporated into funds to achieve rapid and large-scale development, which is especially effective for those homogeneous products enterprises, such as sporting goods industry and casual wear industry.

But for personalized brands, the significance of listing is not large, such as exceptions, Mass Phil or women's clothing brand with original character.

The advanced women's clothing brand with original meaning can not be done well by listing capital or obtaining support. They are more likely to make brand extensions through forming a preference and cognition among consumers, such as extending to perfume and cosmetics.

Valentino, who we know, is following this path of development.

Therefore, the impact and significance of listing on personalization and high-end brands is not particularly large.

However, the impact of listing on popular brands, especially those that need mass production and scale, is particularly huge.

Through financing, such enterprises can occupy a larger market share at the terminal.

This is good, but there are also disadvantages. The listing of enterprises is not a one-time financing, it will continue to raise money in the process of growth, in this process will dilute their rights and interests.

That is to say, the more shareholders come in, the less the share held by the original controlling shareholder.

The Ford Motor Co family is not the largest shareholder in Ford Motor Co, and Chanel itself does not own the largest share of Chanel; Giordano, for example, is constantly weakening, and its founder's control over the brand is becoming weaker and weaker. It needs to respect investors' opinions, but investors themselves are not concerned about the clothing industry, they only focus on interest repayment.

What is return? That is, quarterly, or even annual, profits are the highest.

We know that when we do fashion, when the brand reaches a certain age, it will be as old as people and lose physical strength. At this point, we need surgery, we need to mend, we need to rebuild our image, so that the brand can go on.

This also means two to three months or two to three quarters, or even one or two years for brand pformation.

But for a listed company, the board of directors and investors certainly do not want to see this result. They want to see that their performance will increase by a certain percentage every year.

If a person puts forward a plan for immediate growth, and if a person raises a plan to lose money after two years, the investor will definitely choose to choose the former, and the brand will eventually become an abandoned brand from a good brand.

Therefore, the listing of service enterprises is a double-edged sword. We need to take measures in line with local conditions and consider carefully.