China'S Clothing Industry: Combining Strategy With Capital To Change Energy

Capital flows into the clothing industry

Mao District Jianli, President of Asia investment, light asset company has always been the object of her investment. Recently, however, she appeared at the 2010 China Textile Innovation annual meeting.

"Because I have seen opportunities, I hope that under the recommendation of the association, we will seek opportunities to cooperate with future star enterprises."

Mao District Jianli told reporters.

In fact, the aggressive financial crisis swept the globe, making the previously active investment institutions cautious.

Away from high risk areas and long term return, this has become the choice of many investment institutions at this stage.

As a result, clothing industry, which has been regarded as a traditional industry, has begun to enter investors' horizons.

In recent years, a large number of enterprises such as "Song Li Si", "Wiseman", "Babu bean", "ten month mommy", "red child" and "fan guest" have been intervened by venture capital. Even the ITAT group facing bankruptcy has recently received strategic investment of 50 million dollars in Lanshan capital of China.

With the extension of the financial crisis, the general manager of Carlyle investment group, Mr.

The increasingly integration of clothing industry and capital market is changing rapidly.

With all kinds of external investment, clothing enterprises have repeatedly thrown olive branches, corresponding to the clothing industry.

At present, the reshuffle of the garment industry has intensified, and the Matthew effect brought about by capitalization operation has been concentrated.

Introduction is only a matter of time.

"After many clothing enterprises and brands have certain strength, talents and channels, the ability to compete is the capital of enterprises."

Xia Guoxin, chairman of the company, said.

He pointed out that "the current competition is like this, even though it is only slightly different, but the outcome may be totally different.

If a brand has invested tens of millions of yuan, and another brand has no money to invest, the result of competition can be imagined.

In fact, for China's clothing brand, the strength and role of capital have gradually emerged, and in the next 35 years, this role will continue to enlarge.

"There is no shortage of money, but the standard of lack of money is how much you want to invest.

ZARA's investment in a warehouse is 1 billion euros.

If you have higher requirements, compete with international brands.

I will ask you in reverse: what do you compete for? What do you rely on to attract talent?

In Xia Guoxin's view, the power of capital is emerging in the fierce competition.

If you choose to be small enough to be safe, just walk slowly with your own strength, you will inevitably be overtaken by others in the market.

In the same way as Shenzhen brand, with the help of capital power, the "Euro bran" obviously moves faster.

As early as 2006, "Europe" was invested by US funds.

"I hope to win a win-win situation with the help of a professional platform.

Like the 80s of the last century, American designers Donna Karen and Calvin Klein were all invested by investors. Through a good mechanism and mode, they gradually become stronger and bigger and become international brands.

Luo Zheng, director of design, said that if there is a professional team to cooperate, it will inevitably require financial support.

Zhou Shaoxiong, chairman of the "seven wolves", also said that capital must be a driving force for enterprises to become stronger and bigger.

Of course, not all enterprises want to have capital intervention.

There have been fund organizations looking for Zhou Sheng, general manager of Yi Hui, but he did not accept it because he paid more attention to industrial capital rather than financial capital.

"In fact, there is an early and late problem of venture capital," he said. "Because the person you marry is at the moment of marriage with you, and he has already thought about how to divorce you.

To this end, the choice of marriage to promote divorce is more cautious.

In his view, in fact, capital is a very pparent thing. Capital needs ideals, investment concepts are needed, and professional capital combined with professional industries is a better choice.

"It's not about who wants the money, nor is it anybody's money."

It seems that clothing companies should join hands in capital expansion and both sides need reason and caution.

Change is the way of thinking.

In fact, the two key words of capital and mode are not completely separated but closely related. On the one hand, the strong involvement of external capital makes new business models and market segments rapidly ripened. On the other hand, the success of the new model attracts more capital and fashion alliance.

As a well performing clothing company, 470 million yuan of bank deposits and 1 billion 300 million yuan of liquidity are enough to prove that Smith Barney shares are not on the road of listing because of lack of money. Its listing and financing are mainly to meet the expansion needs.

After the listing, the United States shares 1 billion 400 million yuan in financing, of which 85% is mainly used to build 68 flagship stores and image shops with an average area of 1400 square meters.

These shops have been greatly improved both in their own image and fashion, or in regional radiation and influence.

In 2007, seven wolves will also raise funds of 800 million yuan for the upgrade of the sales network.

In fact, in addition to capital guarantee and leap forward development, capital intervention will bring more content to clothing enterprises.

Zhou Shaoxiong, chairman of the seven wolves shares, said that after the listing of enterprises, the enterprises have speeded up the pace of construction in the standardized operation, and the management concept has also changed, and the development vision has been mentioned to a new height.

"Capital makes us dare to think about things we did not dare to think in the past, and help us do bigger things."

Zhou Shaoxiong said.

In fact, the changes in capital brought to the development of Chinese clothing enterprises and brands may be secondary investment, and more importantly, advanced ideas, modern management concepts and management methods and production capabilities are a systematic impetus to brand development.

It is reported that Carlyle and singer have realized the sharing and mutual help of advantageous resources in the integration of brand culture, human resources, and enterprise management, and realized the qualitative leap that singer only made by himself.

Strategy is more important than capital.

With the understanding of the Chinese clothing industry and the maturity of its experience in the capital market, capital will become a new energy to promote the development of enterprises.

However, what is more realistic is our research and judgement of enterprise strategy. Only with scientific strategy can capital become energy.

For the majority of garment enterprises, taking the road of listing and financing can spread risks and enhance the visibility and influence of enterprises and brands, which is conducive to the establishment of modern enterprise system and attracting talents.

"The power of blind worship of capital is very dangerous."

Professor Wu Hong, vice president of the school of art and design of Shenzhen University, cautioned that it is not to say that when capital arrives, all problems can be solved.

For this phenomenon, a company used weightlifting to analogy: weightlifters carry a slight increase in weight, and if too much weight is added at once, there will be problems.

"I also make an analogy. If you are just making a clothing brand, now give you 100 million yuan, can you open 100 stores at a time and succeed?" Wu Hong said that the development of an enterprise and a brand must have a process.

In fact, after the listing of some clothing enterprises, the funds actually used for clothing industry are few, but they are invested in real estate and logistics.

"I am not opposed to capital operation. The key is how you use capital correctly. In other words, the development strategy of enterprises is more important than financing.

Water can carry a boat, and it can also overturn. "

Wu Hong said.

Zhou Shaoxiong believes that the docking of garment industry and capital market needs a popularization process.

On the whole, the capital operation of China's garment industry starts slowly, and it is not advanced and standard.

A brand expert attributed this to "three fears": first, fear shares secrets.

Second, fear sharing management.

Because in the past, decisions were really made by one person, and now there is a fear of discussing and making decisions with people.

Third, fear can share success and pros and cons.

There is no doubt that with the deepening of the understanding of capital and the maturity of capital market experience, Chinese capital will become a new energy to promote the development of enterprises.

However, what is more realistic is our research and judgement of enterprise strategy. Only with scientific strategy can capital become energy.

Otherwise, it may become a catalyst for blind expansion, and the results can be imagined.