Sweet Temptation, Deep Crisis &Nbsp; Service Enterprises Need To Be Vigilant On Going Astray.

Nowadays, many garment enterprises hope to bring themselves to the broad road of capital market with the help of the listed Dongfeng, and become a leader in the industry.

There are the first participants in these enterprises, and there are also sprint men who have fought repeatedly.

In fact, listing success is not necessarily a step in step.

After the listing, there are both warm and joyful spring blossoms in the capital market.

Different circumstances are determined by many factors, but the strength and management of enterprises is one of the main reasons.

So companies who want to go public should first practice and practice outside, and do their homework well.

In the future, whether it is a feast or a whirlpool, it will stand the test.

The sweet temptation of listing

Looking at the reason why clothing companies have such a great enthusiasm for listing, the demonstration effect of wealth can not be underestimated.

Because most of the listed clothing enterprises not only gain fame and wealth, but also rank among Forbes's global rich list.

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Jiangsu Lian FA textile Limited by Share Ltd went public in June 2010, making a net profit of 126 million yuan in the first three quarters after the listing.

The head of the joint securities and Securities Department said that listing not only regulates corporate governance, but also more importantly, financing accelerates the construction of brand marketing network system, helps companies pform their own brand enterprises, and gain new profit points and opportunities for rapid development.

Besides financing, after becoming a listed company, it will get preferential policies and attach importance to the policy, enhance the capital for foreign negotiations, and increase the opportunity to introduce strategic investors.

Another temptation for enterprises to go public is that private enterprises can get rid of the bondage of bank loans in terms of financing, IPO (initial public offering), issuance and rights issue, and ensure a continuous supply of funds.

And the shareholders, securities firms, institutions and so on can become the free platform to spread the brand influence. It lays the foundation for the enterprise to develop "large-scale, multi brand" model, and can also arouse the attention of international capital.

Besides, listing can also enhance brand influence on enterprises.

After its listing in Hongkong, the company launched the sub brand L2 with the experience of brand operation and the opportunity of listing, opened new stores, opened up multi line battlefields, and launched "event marketing" around the listing and listing 1st anniversary to enhance brand awareness.

Nie Wen, brand director of the company, said that future channel expansion and brand communication are the center of gravity.

Liu Lei, a PWC capital market service group member, said, "in the process of listing, we need to take all the problems in the history of enterprises, including the existing problems, to take a fresh look at them to see whether they meet the requirements of listing.

Therefore, listing is also a process of re evaluating enterprises.

In a word, listing will play an important role in brand promotion, image enhancement and business promotion.

It can be concluded from the enthusiasm of the listed enterprises of clothing enterprises that so far, the profits brought by the majority of garment enterprises are far more than the risk factors. Therefore, the enterprises that attach importance to the long-term development want to get the double benefits of financing and standardized operation through the power of listing.

Listing is not the only criterion.

Although the listing has many positive effects on garment enterprises, Yang Dayun, President of UTA Fashion Management Group, thinks that listing is not the only criterion to evaluate the advantages and disadvantages of garment enterprises. It is not particularly important for personalization and high-end brands, such as exceptions, Mass Phil or women's brand with original character.

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The advanced women's clothing brands with original meaning are mainly made up of a preference and cognition among consumers, and then make brand extensions. For example, Valentino follows the path of development so as to extend the brand to perfume and cosmetics.

But for popular brands, especially those that need mass production and scale, the impact of listing is more obvious.

The advantage is that through financing, such enterprises can occupy a larger market share in the terminal. The disadvantage is that the listing of enterprises is not a one-off financing, but in the process of growing financing continuously, so in this process, they will continue to dilute their rights and interests.

The more shareholders come in, the less the share held by the original controlling shareholder, the weaker the founder's control over the brand will be.

For example, Chanel did not own the largest share of Chanel; Giordano also needs to respect investors' opinions in decision-making.

Moreover, when doing the fashion business, when the brand reaches a certain age, it will also be as old as people and lose physical strength. At this time, the image needs to be reshaped so that the brand can continue to go on. This also means that it takes time to carry out the 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 someone puts forward a plan for immediate growth, and another voice suggests that it will increase again after two years of loss, most investment banks will choose the former, which will make the brand possible from excellent to the brand abandoned by consumers.

Do not enter the wrong way to go public.

The profit driven nature of capital also makes many enterprises forget the bottom line of law and morality while following it crazily.

In order to go public, some garment enterprises even take it.

In July 2, 2010, three executives of Jiangsu Sanyou company, a garment manufacturing enterprise, were publicly apology to the public on the Internet platform provided by Shenzhen securities information limited.

The reason for this appearance is that it deliberately concealed the fact of the actual controller's change on the eve of the company's listing in 2005.

However, in order to meet the IPO conditions that the actual controllers could not change in the first 3 years of the listing, in order to achieve the purpose of listing, Jiangsu friends and other parties deliberately concealed the facts to evade market supervision until March 27, 2010.

Another case that can be used as negative material is ITAT.

ITAT, a clothing retailer, once described by the media as a growth miracle in the business field, failed in the face of its ambitions and planned to go public, and the company suffered a fatal blow because of the disastrous listing.

ITAT's fatal mistake in the process of listing is to be eager for success.

Before the listing hearing, the company made perfect packaging by deception.

According to relevant media reports, in order to make themselves "noble", ITAT has always claimed that "international fashion brand clothing" is widely known. But in fact, most of its brands are fake foreign brands, which can be seen from its trademark which is made up of Pinyin instead of English. In addition, in order to make its reported false "brilliant" performance more credible, ITAT organizations make false appearances of people in every store to meet the inspection of investment banks.

Such a gambler's practice eventually dragged ITAT into the abyss, and IPO finally failed.

Since then, the rapid expansion of stores and the recruitment of large numbers of employees have become the heavy burden of ITAT. When they have to abolish stores and employees, it has created a more vicious cycle. Finally, ITAT has fallen into a besieged situation.

It can be said that ITAT has become a classic case for the teaching significance of the listed clothing enterprises.

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Looking at these listed farce, a very important reason is that the head of the enterprise has to melt money as the sole goal of listing.

Admittedly, in the era of fast fish eating slow fish, the benefits that enterprises can get through listing is obvious, and can be quickly melted into capital, realizing the rapid and large-scale development of enterprises, leaving their rivals far behind.

Moreover, for the thirst for money, enterprises that are in rapid growth and need to arrange seats at the forefront of clothing are even more prominent. Because of this urgent psychology, many business decision-makers have lost the bottom line of business ethics.

When the realization of brand value is closely related to capital strength, capital makes the magic of "sparrows changing Phoenix" make many garment enterprises envious of their hearts.

However, listing is not a panacea for all kinds of diseases. It is only a phased goal of some enterprises in the long term development.

The long-term development of enterprises still depends on whether the brand itself can maintain its vigorous vitality all the time.

Otherwise, even if it is successfully listed, it is difficult to guarantee that enterprises can ride out a crisis when they are in a crisis.

When the tide of listing is again blowing up, those who are eager to try must be advised to have a clear understanding of whether their enterprises have the conditions for listing, and to have a clear understanding of the target of listing. Do not go astray and become a gluttonous feast for others.