Semir Costumes: Fast Growing Multi Brand Apparel Enterprises

As the leading brand clothing company in the country,

(hereinafter referred to as Semir costumes; Code: 002563) will soon enter the capital market.

The company owns Semir casual wear and

Two well-known brands, 2007-2010 years, the two major brands of product sales revenue average annual compound growth rate of 46% and 67%, respectively, showing a rapid growth trend.

The company intends to issue 70 million shares, raising funds to enhance brand image and market competitiveness.

Its Semir brand casual wear is mainly designed for 16-25 year old young fashion groups.

And so on.

According to Euromonitor, the world's top information service provider, Semir brand has become the second largest casual wear brand in China.

And its products have been honored as "famous trademarks", "China's famous brand products" and "national inspection free products".

To enhance its popularity, Semir brand has hired celebrities such as Nicholas Tse, TWINS, SJ-M, Show Luo and other young people as the image spokesperson, and has condensed the target consumer groups through various marketing means such as network, TV and so on.

According to TNS data from third party research institutions, young people in China

The Semir brand is in the leading position in China in terms of popularity, purchase rate, loyalty and preference.

From the perspective of future market capacity, Euromonitor predicts that by 2013, the 16-25 year old casual wear market in China will still maintain an average annual compound growth rate of 11.15%, and the market scale will reach 227 billion yuan by 2013.

Regardless of the growth rate or the market size, the 16-25 year old casual wear market has broad room for development.

The target group is a 3-12 year old child. The product line covers many categories such as children, children, children's shoes and accessories.

As one of the first batch of "China's top ten children's wear brands", Barbara is also the first batch of children's clothing brands that won the honor of "China's famous brand products".

Euromonitor data show that the Barbara brand has become China's largest children's clothing brand.

The market potential of children's clothing in China is huge. The coming of the new round of baby boom and the demand for children's multi clothes will increase the total consumption of children's clothing.

Euromonitor predicts that the average annual compound growth rate of children's clothing will reach 10.06% in 2009-2013 years. By 2013, the scale of children's clothing market in China will reach 108 billion 500 million yuan.

With the improvement of people's living standard, the consumption of children's clothing is showing an upward trend, and the children's clothing market has a good development prospect.

The light assets operation mode is used to outsource the production business with low added value and large amount of fixed assets investment. The company focuses on the design, development, brand operation and sales of high value-added and high technology content.

This makes the enterprise the most excellent multi brand apparel operator in China. In 2010, the company's net profit was 1 billion yuan, and the compound profit growth rate of 2007-2010 years net profit reached 88.2%, maintaining a high profit level.

In terms of business mode,

Take the brand management as the core and independently operate Semir brand and balbala brand in the form of a division system, effectively integrate the resources of the upstream and downstream industries, and grasp the core value chain.

The company has also formed a huge sales network through the channel development mode of "chain joining, joining and direct operation".

As of the end of 2010, Semir brand and Barbara brand sales outlets reached 4007 and 2676 respectively, covering the sales outlets of all provinces in the mainland, becoming an important means for Semir to win the market.

The huge sales outlets put forward high requirements for distribution capabilities. Semir apparel has established good cooperative relations with 7 national logistics companies and major logistics companies in various provinces.

By the end of 2010, the company had 100 million annual distribution capabilities, and the order daily clearing rate was over 95%.

With the completion of the two major logistics centers in Shanghai and Wenzhou, the distribution capacity and efficiency will be further improved.

Semir apparel intends to raise funds into marketing network construction projects and information construction projects, expand marketing network while improving fast reaction capability.

Zheng Hongwei, the company's deputy director general, said that the company will invest 63 stores nationwide to expand the number of flagship stores and image stores of the two major brands in the core business circle of key cities, and to cover the distribution of outlets with potential development areas, so as to enhance the market image and share.

Haitong Securities believes that taking into account the high value-added brand of Semir clothing, accelerating the expansion of future channels, increasing the proportion of direct sales, leading to the increase of gross margin and other factors, it can give the company a certain premium.