Dr. Frog Successfully Listed &Nbsp In Hongkong, Will Become China'S "Disney"?

In September 29th, Shanghai based children's consumer goods enterprises

According to survey data from Sullivan, a consultancy, the Chinese consumer goods market has increased sharply in recent years, from 74 billion in 2005 to 165 billion 300 million in 2009, with a compound growth rate of 22.3%.

But children's consumer goods are still a very fragmented market so far, no brand can become a leading brand.

Now, can Dr. frog rely on the strength of capital market to achieve the growth of market share and break the situation? Will it have a sample significance for Chinese children's clothing enterprises?

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It is reported that in 2009, the market share of the middle and top grade children's products was 4%. Currently, the company owns eleven children's clothing, shoes and accessories brands, including three own brands and eight authorized brands.

As of June 30th this year, the doctor frog owns 1062 department store brand counters, 24 street shops, 33 doctor frog 365 living centers and seven main stores nationwide.

According to the doctor's frog prospectus, the PhD frog international IPO has raised about 2 billion 500 million yuan of funds, and has a better capital development platform than other domestic consumer goods companies, which will further expand the domestic market.

The same is true.

At the end of October, the company opened its first main store in Beijing, marking the official entry into the northern market of PhD. Similar doctoral frog main shops have landed in Shanghai, Qingdao, Xi'an and Shenyang.

Dr. frog raised sufficient funds through the listing, which became an accelerator for its strategic expansion.

"The proportion of Future Ltd's proprietary stores and third party businesses will remain at 4:6, and we hope to support the upgrading of the whole industry by integrating the advantages of ourselves and the three party."

In the media interview, the chairman and CEO of Dr. said that at present, the domestic consumer goods market has reached the market scale of about 200 billion yuan, and nearly 20 million new babies are added each year. However, the number of children's clothing enterprises in China is less than 10% of the total number of clothing enterprises in the country. The output of children's clothing accounts for only about 6% of the total clothing output of the country, and the market is very scattered, and the enterprises with sales exceeding 500 million yuan are rare.

Thus, in the 5 years from 2010 to 2014, Dr. frog plans to invest about HK $836 million (40% of net proceeds) to open new retail outlets to further expand the group's retail network.

For the company's future strategy, Zhong Zheng uses the global resources, the Chinese market, "the United States has a Disney, China has a doctor frog."

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A single family?

It is no doubt that for the domestic children's products, there is a lot of expansion of the doctor frog's first listing and capital raising.

For the current situation of the children's products industry in China, Chen Zhongshi, chairman of the European and American dragon group, believes that at present, there are many brands in the children's products industry, but there is no real leading brand yet. The market prospect is huge and the consumption level is very diverse.

"Although there are more than 200 children's products enterprises in Quanzhou, none of them has a market share of 10%."

Chen Zhongshi said this is a stage of separation from a large industry but a small market share of each brand.

Chen Shuqing, Secretary General of the China children's products research center, also believes that the development of the children's products industry is not very mature at present, but we can vaguely see that there are similar steps with the adult shoe and clothing industry. The commodity market is pforming into the brand market, and the brand operation needs sufficient capital support, so capital has become the biggest factor to curb the development of the brand.

Now, the frog is relying on the listing to raise a weapon to support the operation and development of the brand. Is capital going to stand out?

A number of Quanzhou children's products enterprises have said that although capital markets can raise more funds for market expansion and brand promotion, they are not worried that the doctor frog will be "single family".

"Children's products industry is not in the era of" capital is king ", and there is still room for subdivision.

According to the insiders, the listing of doctor frog will indeed become a focus topic in the children's products industry, but it can not change the planning of children's enterprises.

"Dr. Lining is not the adult shoe in the shoes, Anta, will never be listed as the first to become the target of everyone to follow the pace of their forward."

Because the homogenization of children's products industry is serious, only by integrating the channels suitable for their enterprises and taking the road of their own brands can they have their own field in the future capital market.

Another insider also said that the brand and the market can not be smashed with capital. The strong capital of the enterprise may make it have more choice space, but every enterprise has its own consumer groups, and the children's products market is also trying to segment the market.

Therefore, competition between enterprises is not just capital, but also a train of thought.

"We plan to develop more than 200 terminal outlets next year, and we will create a brand terminal for Tutu children's products in the way of Tutu children's products life hall, and achieve the goal of one-stop shopping for children's products at the same time."

Ceng Zhixi, deputy general manager of the European and American dragon group, said that in fact, the terminal mode of one-stop children's products living hall had been drawn up two years ago by the European and American dragons.

After buying the Tutu cartoon image and launching the nationwide marketing strategy, the Tutu brand has already had nearly 1300 retail terminals.

Chen Zhongshi said that in order to achieve this goal, the company plans to represent some of the international high-end children's products brands, including toys, stationery, sporting goods and so on.

Follow suit?

Gao Hang, the manager of Investment Banking Department of Fujian branch of China Construction Bank, believes that the proportion of children's products in the whole industry is very small, and the phenomenon of brand loss is more serious. Building a strong brand has become a top priority for China's children's products industry.

"Listing may become one of the means of integrating resources."

Gao Hang analysis said that although children's products enterprises are relatively small for adults, the imagination in the capital market is huge.

"For the existing market structure, once there are any good brand predators who are good at operation, it is possible that the whole market will encounter strong shocks."

However, when asked whether it would accelerate the pace of its own listing because of the listing of PhD, several children's products companies gave negative answers.

An enterprise manager said that listing is a necessary process for enterprises, but they should not blindly follow suit. There are many problems to consider, such as how to allocate shares after the listing, what items to raise funds to invest, whether to invest in a children's products brand, and whether the funds raised will be used up.

Another manager also agreed that she thought that listing was only a step in the process of enterprise development, when to go public and why it was listed, and that the direction of different brands and different enterprises was different, and that "listing should also be differentiated."

She said that for the current situation of China's children's products industry, children's products enterprises should first make sure of the standardization of the company, including governance mechanism, talent mechanism, and so on.

In Chen Shuqing's view, there are two obvious characteristics of children's footwear enterprises listed on the market compared with adult clothing enterprises.

"At present, the comprehensive strength of children's products enterprises in the whole country is relatively weak."

Chen Shuqing said that due to the relatively large profits and the relatively early market of adult shoes and clothing industry, most of the powerful enterprises chose the adult shoes and clothing industry, while the left behind children's products market was dominated by the later or weaker enterprises.

After years of renovation and renovation, adult shoes and clothing still have a clear advantage in terms of the overall strength of the industry.

"Compared to adult shoes and clothing industry, children's products industry brand started relatively late."

Chen Shuqing said, because the strength of children's products enterprises is insufficient, it is difficult to deeply explore the market, and consumers do not recognize the brand very well.

Although the cartoon endorsement became popular in the early days, consumers in essence did not identify the brand and chose only the cartoon character on the product.

In other words, any brand can only make cartoon images that make consumers happy, so the result is no different.

The rise of the children's products industry brand can only start from the beginning of the birth of the self brand in the past five years, compared with the adults born after the 1998 financial crisis.

However, many enterprises have realized the significance of brand. In recent years, they have been working hard in brand building and trying to pull apart from other brands.

But in fact, apart from the obvious gap between the general and low-grade products, the gap between these leaders and many senior and senior brands is not large.

Chen Shuqing believes that children's products enterprises should refine the brand differentiation highlights.

For more and more listed companies, differentiation is a bright spot for listed companies to attract investors.

During the development of children's products enterprises, we must build around the characteristics of the brand. We must not blindly imitate the trend. Independent innovation and technological innovation are a major foundation for brand development.