Wen Shang Qiu Guang And Semir And Barbara'S Wealth Legend

Wenzhou businessman Qiu Guang he

Textile and garment enterprises are listed on the market as they are from the Shanghai to Shenzhen, Hong Kong and Taiwan to the NYSE and Nasdaq, and business models are from traditional manufacturing to brand operation and e-commerce.

According to the data, in 2010, there were 17 enterprises in the sector, IPO, with the largest number of years. 9 of them landed in overseas markets, and 8 landed in A shares. Among them, there were Kaiser clothing, Xi u, search and other garment enterprises, and enterprises from sub sectors such as home textiles and shoemaking.

Semir clothing, which has been born out of the world, has brought the garment enterprises to a small climax.

In March 11, 2011, on the same day of the Japanese earthquake, Semir costumes landed on A shares at a price earnings ratio of 45 times, making the myth of making rich again.

On the first day of closing price, its market value reached 41 billion 600 million yuan, surpassing the US state dress and leading the A and H-share clothing enterprises with absolute superiority.

Qiu Guang, chairman of Semir fashion, and the family shareholding ratio of 84.13% of the total, had a market capitalization of 35 billion yuan and jumped to the top of the domestic garment industry.

Dual market leader

In 1981, Qiu Guang and founded a household electrical appliance company, reached more than 80 sales outlets in its heyday, completed the initial accumulation of entrepreneurial stage.

At the end of 1996, Qiu Guang, who broke through the real estate industry and founded Wenzhou Semir, formally joined the clothing market.

After investigation, he took a look at the casual clothes of the 16-25 year old crowd, which is similar to Zhou Chengjian's hero in the same city.

At that time, the leisure trend swept the whole country, and there were many brands in the domestic youth casual wear market, such as Smith Barney, Baleno, Giordano, etc., and concentrated on the low and medium price. There was a big coincidence in product design, target customers, pricing and so on. Qiu Guang described Semir as "survive in the cracks".

In 2002, Xiao Liang's children's clothing market, which exposed the sharp corners, attracted Qiu Guang's attention. When Semir launched its first brand extension, the brand of the Barbara brand, the main children's clothing, came out. The target customer group was a well-to-do and middle class family that focused on fashion and quality. The product line covered 3-12 years old children, children's clothing and children's shoes.

Semir has thus become one of the few garment enterprises that have established multi brand operation platforms in China.

Taking into account the difference between casual wear and children's wear, Qiu Guang and Semir are operating in the two major businesses.

Semir walking on two legs is growing fast.

By the end of 2008, Semir had become the second largest casual wear brand in the country after the sale of terminal sales. It was next only to the United States. In the small and beautiful children's clothing market, Barbara became the first brand of children's clothing in China with a market share of 1.1%, while the other brands had less than 1% of the market share, and its leading edge was obvious.

The two major market segmentation operations can effectively disperse Semir's investment risks and share the rapid growth of the two markets at the same time.

In recent years, the outbreak of e-commerce and the accession of international brands such as H&M and ZARA have intensified the competition of the casual wear market in the first tier cities.

At the same time, the acceleration of the urbanization process and the increase of income have brought about the huge demand of the two or three line cities for the clothing of parity. The low-end clothing brand with high performance price ratio and fast turnover rate has been developing rapidly in the two or three line cities.

With the change of consumption concept and the improvement of consumption ability, the children's clothing market is showing more powerful growth power.

Prospectus shows that in 2008-2010 years, Semir brand sales Compound annual growth rate of 31%, balbala brand annual compound growth rate as high as 64%; by 2010, Semir and Barbara business income respectively amounted to 4 billion 700 million yuan and 1 billion 500 million yuan, sales of children's clothing accounted for about 1/4 of total revenue.

In the future, the high growth trend of the two major market segments is expected to continue.

Guotai Junan's research shows that, in terms of terminal sales revenue, it is estimated that in the 2009-2013 years, the 16-25 year old casual wear market will maintain an average annual compound growth rate of 11.15%. By 2013, the market scale is expected to reach 227 billion yuan, which will increase the proportion of adult leisure wear sales to 30.38%. In the field of children's wear, the children's wear market at the age of 3-12 will maintain a compound annual growth rate of 9.57%. By 2013, the market size will exceed 100 billion yuan, accounting for 72% of the total sales of children's clothing.

Huge market capacity and high expected growth provide broad space for Semir's development.

Light asset mode and two level franchise system run-up

In March 21, 1997, the first Semir store opened in Xuzhou, Jiangsu.

At that time, Wenzhou had grown up a number of garment enterprises. Under the leadership of Zhou Chengjian, the dumbbell structure of the dumbbell structure has been developed into a vivid mode: the third party processing enterprises with lower cost and the sale to the franchisees across the country.

"If we want to occupy a place in the Wenzhou market quickly, Semir needs to come up with a more advanced business model."

Qiu Guang and his team learned from the United States from the very beginning and embarked on the road of "two out of the way" light assets operation in outsourcing production and distribution channels.

Prospectus shows that from the product design to the final retail terminal, Semir apparel outsourcing two brands of surface accessories and garment production to processing enterprises. The channel is mainly based on affiliations, and is supplemented by direct businesses. It focuses on high value-added product design, brand operation, recruitment business, channel management and other links, and even some children's shoes and accessories and other products adopt the ODM mode, and the design is also outsourced.

By the end of 2010, Semir and Barbara brands had established cooperative relations with 248 and 157 suppliers respectively.

In terms of sales terminals, by the end of 2010, Semir had 6683 stores in the country, of which only 270 outlets were directly owned, while 6413 franchisees accounted for 96%, contributing 92% of sales.

In line with this "two out of the way" business model, Semir's assets constitute a low investment in fixed assets.

At the end of 2010, the end of 2009 and the end of 2008, the proportion of fixed assets in total assets was only 24%, 29% and 24%, and became the "light company".

As a result, upstream suppliers such as excipient manufacturers, garment manufacturers and other suppliers have been able to join the numerous channels to join the business. With a small amount of capital investment, the whole industry chain has been integrated. Semir is taking off lightly.

At present, the expansion of China's garment enterprises is still in the stage of horse race enclosure. The speed of channel expansion determines the growth rate of enterprises to a certain extent.

The channel policy of Semir joining the main business and supplemented by direct operation can certainly achieve the low cost expansion of terminal stores, but on the other side of the coin, the effective management of franchisees is even higher.

CITIC Securities research shows that Semir's affiliate system is different from the "provincial agent system" of the seven wolves, the American state dress and the wedding bird's "flat joining system". The two level franchise system is adopted, that is, in a certain sales area, the powerful franchisees are allowed to further develop the two tier franchisees. At the same time, we uphold the concept of "win the river with water and full river" and encourage the franchisees to become bigger and stronger.

Semir is directly managed by the Sales Department of the two major brands, the first level franchisees are directly managed by the two level franchisees, and Semir is indirectly managed by the two level franchisees in terms of store access, quality control and window guidance.

To a certain extent, it avoids the disadvantages of the high management cost of the "flat join" system and the failure of the "provincial agent system".

Under the two tier franchise system, the total number of Semir brand stores increased from 335 in 2003 to 4007 in 2010, with an average annual compound growth rate of 42.55%. The total number of Barbara stores increased from 110 to 2676 during the same period, with an average annual compound growth rate of 57.77%.

Apart from the growth of the number of extension channels, the quality of Semir franchisees is also good.

In the 2007-2010 years, the average annual compound growth rate of Semir and Barbara franchisees was 15% and 6.7% respectively, and more than 96% of the franchisees made profits, and 80% of the franchisees worked together for more than 5 years.

Semir, a lightweight carrier, enjoys the high growth miracle brought about by the light asset model.

At present, it has formed Wenzhou headquarters as the management center and distribution base, Shanghai as R & D, logistics base, Guangdong and Pinghu as the production base business layout, and marketing network all over the country.

By the end of 2010, Semir's revenue reached 6 billion 200 million yuan, and its net profit reached 1 billion yuan, while the sales volume of 7 billion 500 million yuan in the same period was only the same net profit.

In the 2008-2010 year, the annual compound income growth rate reached 37%, the net profit compound growth rate reached 50%, the weighted average return on assets reached 68.78%, 84.87% and 66.57% respectively, while the weighted assets return rate of the same period was only 42%, 21%, 24%.

Even in the 2006-2007 years before the listing, Smith Barney's weighted return on net assets was 32% and 75% respectively, and its performance was obviously not as good as Semir's.

The rapid expansion effect and high capital return rate brought by the light asset model are once again elevated to a new level by Semir.

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Evolution from "light" to "heavy"

In recent years, new industries, represented by the Internet and e-commerce, have launched a series of innovative innovations.

From the perspective of business mode, although the overall innovation of traditional industries is not as rich as that of emerging industries, this does not mean that traditional industries are not disturbed.

Since 2008, the tide of listing represented by US bond, Pathfinder, search special, Mcglaughlin and Semir has proved the success of light asset mode and channel innovation, so that people can see the immense space of innovation in traditional industries.

From the first generation of light asset model outsourced by the US and the production and distribution channels, and after the attempt of PPG and ITAT to carry out more "light" capital outsourced, the light asset model has undergone continuous evolution.

In 2008, the United States was listed on the Shenzhen Stock Exchange. The Zhou Chengjian family, with its assets of 17 billion yuan, became the richest person in the clothing industry in the "new wealth and 500 rich list", marking the light assets strategy in the domestic garment industry.

However, in the same year, PPG and ITAT became a classic case of the failure of the clothing industry, triggering doubts about the light asset model.

Although Zhou Chengjian said on different occasions that the United States "insisted on the light assets line", but after its listing a series of moves, the United States is constantly sinking.

When it was launched in 2008, the United States announced the launch of the new brand "ME& CITY". At that time, it accounted for 87% of the number of affiliate channels.

After that, the "ME& CITY" channel was built in the form of self operated stores. By the year 2010, the proportion of affiliate channels in the US and the US has dropped to 80%.

Shen Yin Wan garment industry analyst Wang Liping believes that with the focus of the city's core business district shops become the object of competition for many retail enterprises, because of the need to stabilize the channel terminal and control rent costs, clothing enterprises must increase the control of the terminal after experiencing the initial growth stage, and will inevitably pform to the heavy asset growth mode.

The pformation from "light" to "heavy" begins not only with the pressure of channel competition, but also from the internal driving force of improving profitability.

Semir's operation experience has once again verified the disadvantage of light asset mode: the extension expansion of the franchisee, to a certain extent, has affected the profitability of the enterprise.

Due to the difference between supply price and management cost, Direct stores and franchisees have significant differences in Semir's profit contribution.

Semir prospectus shows that in 2008-2010 years, whether casual wear or children's clothing, the gross profit margin of the store is on average 20 percentage points higher than that of the franchisee. In 2010, for example, the gross profit margin of the direct store is about 55%, while the gross profit margin of the franchisee is only 35%.

Therefore, up to 96% of the affiliate channels accounted for, which means Semir's profit performance has room for further improvement.

Wind data show that in 2010, the gross margin of Semir sales was 5 percentage points lower than that of Smith Barney clothing, which was 1 percentage points higher than that of the United States. However, among the three, Semir had the highest net interest rate and showed strong cost control capability.

According to the analysis of the industry, compared with Semir and Smith Barney, the market positioning and product prices of search market are even lower, so the gross profit margin is lower than that of Semir and Smith Barney.

The US margin is significantly higher than Semir, and its close to 20% of the proportion of Direct stores, Semir proportion of the same direct shop only 4%.

This pointed out the direction of efforts for the listed Semir.

The plan to raise funds raised in Semir prospectus shows the subtle evolution of its business model in the future.

Of the $2 billion 100 million fund raising plan put forward by Semir, 1 billion 800 million yuan will be used to strengthen the strength of direct outlets in key cities, and strengthen control over important terminals and potential areas.

Semir, which has gone through more than ten years' development process, from the previous horse racing enclosure to the intensive cultivation in the future, the connotative growth will surely be put on the agenda. How much light asset mode is more appropriate? The trade-off between "light" and "heavy" is to a certain extent the trade-off between the external growth and the connotative growth of enterprises, which will further test Qiu Guang he's management wisdom.

Benefit from the era of low-end consumption

Back in the past two years, the change in the A textile and garment sector is not only an increase in the number of companies, but also an in-depth exploration and innovation in segmenting the market and terminal channels.

At the end of 2009, Pathfinder landed on the gem to fill the gap of A shares outdoor sporting goods business. In November 2010, the listed company searched for "Rural line". It was called the "Rural line". Its brand "tidal front" ploughed the three or four line market, taking "fashion to the countryside" as its mission and firmly controlling the township market.

In 2010, there were also several overseas fashion models that were representative and innovative, locating in the market segments, such as the Duke frog and the good children who dig deep into the children's products market, becoming Mcglaughlin, the first B2C of Chinese clothing.

The assembly number has already blown up. In the next two years, more garment enterprises will rush to the capital market, and more market segments and updated channel carriers will fundamentally change the competition pattern and development mode of the catalytic industry.

From the mid 90s of last century, the OEM enterprises were listed on the market. By the end of 90s, YOUNGOR was listed as the largest company in the market. In 2008, the United States became the biggest market maker by replacing YOUNGOR with YOUNGOR. In 2011, Qiu Guang and Semir became the richest in the domestic apparel industry.

The US dollar market value surpasses YOUNGOR, which means that the light asset model has established the status as a quack. Now the strong rise of Semir and searet marks the opening of the era of low-end consumption.

In 2010, 27 of the 31 provinces and municipalities in China raised the minimum wage standard, an average increase of 22%, and many inland provinces increased their wages by more than 30%.

With the increase of per capita income in the inland three or four line cities, the low-end consumer market has become a new blue ocean.

This will rewrite the competition pattern of the domestic garment industry, and the demand for the high price performance ratio, fast turnover rate and the popular clothing brand will be further released, but its cost pfer capability is weak. Under the pressure of artificial and raw material prices rising, the gross profit level will be weakened, and the future will gain rapid growth with the "volume".

The high-end brands such as Kaiser, Hinur, seven wolves, YOUNGOR and so on will be difficult to sink, and will still be concentrated in the second tier cities. The audiences are relatively narrow and slow in turnover, and the demand growth space is relatively limited, but the cost pfer capability is strong, and the growth of future profits may depend more on the promotion of unit price.

In the future, a second tier city will become the main battleground of new e-commerce, foreign brands, and domestic high-end brands. Semir and search for low-end clothing brands will occupy the three or four tier cities and dominate the barbarians.

In addition to Semir and search, the other beneficiary of low end consumption is the upstart of e-commerce.

Online shopping has become the mainstream consumer channel in China's first tier cities and second tier developed areas. Customers, Taobao, Jingdong and Dangdang people have brought cheap and door-to-door shopping experience through the Internet. However, online and offline integration has brought new challenges to all traditional clothing enterprises.

On the occasion of the traditional clothing enterprises' view of e-commerce, people founded in October 2007, sales in 2010 exceeded 2 billion yuan, and completed the course of Semir and Mei bang in 1/3 time.

The long distance network has thrown a large number of traditional garment enterprises far behind the industrial manufacturing era.

The sudden rise of all customers means that e-commerce not only opens up a new retail channel for the existing enterprises, but also provides a strong fulcrum for the rise of the new clothing brands. Countless potential customers are vertically and vertically divided and subdivided in the process of growth. Every seemingly fractionable market can generate 100 billion yuan of sales and produce a new "customer".

E-commerce also provides a platform for traditional clothing enterprises to borrow.

Compared with the customers, the e-commerce tour of traditional clothing enterprises is to integrate the "heavy" links of the traditional retail business, such as supply chain, logistics system and offline channel, and make use of the advantages of its own brand, customer resources and retail experience to realize the stereoscopic marketing under the online and offline businesses.

Compared with the self built brands, product supply channels, logistics warehousing facilities and after-sale service system, the cost is less and the pace should be lighter.

In the future, as domestic logistics and distribution facilities and service systems are maturing and mature, all customers are carrying on the integration from online to offline under the influence of the mouse power. Semir will break through the original cement strength, extend from the offline to the online, and continue to blend in with each other, brewing new business models and entrepreneurial stars in the future clothing industry.