Hand In Hand With Capital

Traditional clothing is also favored by capital.

The clothing e-commerce enterprises that are thrived are especially popular with capital.

Traditionally, the clothing industry has never been paid much attention to by capital, but in recent years, capital strength has frequently been hand in hand with garment enterprises.

In May 12th, Giordano issued a notice confirming the news of Zheng Yutong's acquiring company stake in Hongkong.

The announcement shows that Zheng Yutong bought a total of 218 million shares of Giordano in OTC pactions through its fully controlled Zhou Dafu company, which is equivalent to 14.58% of the issued share capital of the stock, with an average paction price of HK $4.81 per share, which involves HK $1 billion 50 million.

Zheng Yutong has thus become the largest single shareholder of Giordano, and this is Zheng Yutong's first stake in Hongkong's local garment enterprises.

According to the insiders, the department stores are facing great competition pressure. Choosing the real industry is the trend of their future development, and the terminal advantage of the leisure clothing industry has become the "bear's paw" to attract the Department Store giants.

The department store's clothing brand can not only gain brand advantage, but also make the investment value preserved.

Zheng Yutong, chairman of new world development, is always active in investment circles.

Market personage revealed that Zheng Yutong shares the Giordano this time, mainly is to look at its mainland marketing network.

Giordano chairman Liu Guoquan said recently that he plans to add 300 new stores in the mainland this year, 70% of which are concentrated in two or three line cities.

Giordano realized net profit of 537 million yuan in 2010, the highest in 20 years.

According to introduction, Giordano was founded by Hongkong businessman Li Zhiying in 1981 and listed in Hongkong in June 1991.

After Li's withdrawal, the company's stock ownership has been in a relatively decentralized state, with only 3 investors holding more than 5%.

Insiders pointed out that with the rapid development of casual clothing industry, the power of capital is gradually emerging.

With the power of capital, China's garment industry can create new advantages and stand on a higher platform.

It is also an effective way for Chinese garment enterprises and brands to develop to a certain stage with the help of capital strength.

As early as in 2009, the Carlyle Asia Growth Fund was injected into Shenzhen Ellassay Apparel Industrial Co with RMB 150 million yuan, and has about 10% of the shares of singer, which has attracted great attention in the industry.

Xia Guoxin, chairman of the company, said at the time: "it was originally thought that there was no shortage of money, but then the idea slowly changed, so the so-called" no shortage of money "depends on how much you want to do.

The pattern of competition in the clothing market will change in the future, depending on technology and capital in the future.

Capital is a very important force that can introduce knowledge and talents, so the competition of capital will become more and more important.

When speaking about the reasons for choosing the Chinese fashion industry and choosing the investment of the group, the general manager of the Carlyle Asia Growth Fund explained that it was out of consideration of the Asian strategy.

Carlyle always has confidence in the investment of China's huge economic and consumer related industries. For many years, it has been adhering to the value investment concept that explores the development potential of China's small and medium sized enterprises and promotes the growth of enterprises with resource advantages. Through the establishment of a comprehensive strategic partnership, it has brought all-round resources support to its investment enterprises.

In recent years, clothing e-commerce enterprises that are thrived are especially popular with capital.

By the end of 2010, Wu Fangfang, President of Shanghai green box Network Technology Co., Ltd. announced that the company has just acquired DCM, a world-renowned venture capitalist, with a venture capital of about 100 million yuan.

Previously, the company received the first round of financing of about 20 million yuan in September 2010.

"Green box" was founded in March 2006, is a design, development, production and sales of children's clothing company, is currently the first volume of Taobao online sales children's clothing brand.

Wu Fangfang said that with sufficient capital, the company will march toward branding, and in the near future, "green box" will become a valuable brand for Chinese consumers.

In fact, behind all fans, Mcglaughlin, Martha Marceau and so on, there is a figure of capital strength.

Investors have pointed out that capital also needs to find new breakthroughs. They focus not only on high technology but also on fashion industry, especially on the clothing industry.

A survey shows that, because many traditional industries do not cause enough capital attention, the cost of intervention is very low and the risk is relatively low. Once the capital is involved, the investment will be much higher than that of the high-tech industry.

In the same period, the average return rate of traditional industries is about 40 times, while that of high-tech enterprises is only 5~20 times.

The industry believes that the domestic garment industry has developed rapidly, especially the development of brand clothing has made amazing achievements, and the concern of capital is inevitable.

But at the same time, he stressed that although the clothing industry has great investment potential, there are also some risks. Capital investment should be cautious. In those days, PPG and ITAT were very good cases.

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The international consortium has frequently caught up with the clothing industry.

A large number of major businesses and large companies in the field of non clothing industry have been actively expanding into the garment industry through the form of chain corporation and branch offices, extending their tentacles to the field of clothing.

Let the fashion industry drive the new growth of the company

Recently, Korea's famous retail enterprises, new world group and Lotte Group, as well as the third largest multinational enterprises in Korea, the SK group, which is the two pillar industry of energy and chemical industry and information and communications, and LS group, which specializes in wire and cable business, began formally announcing the entry into the garment industry through mergers and acquisitions of garment enterprises and the establishment of new brands in the clothing industry.

In the first half of this year, the famous clothing brand TOMBOY of Korea was waiting for the highest price. SHINSEGAE INTERNATIONAL (New World International, a subsidiary of the new world group, was responsible for the overseas business of the New World Department. It was independent in 1996. Now it is mainly engaged in the Korean domestic business of overseas high-end brands). It has become the most attractive event for the public. Recently, dust has finally fallen to the ground. SHINSEGAE INTERNATIONAL has been selected as the top priority negotiated by TOMBOY, and has begun to move further in the second half of this year.

In 2010, its sales volume was about 580 billion won (about 3 billion 479 million RMB) and SHINSEGAE INTERNATIONAL ranked seventh in the same industry. If successful merger and acquisition of TOMBOY, it will become the fifth industry in the industry after the love affair, the first wool weaving, LG fashion and KOLON.

Lotte Group's goal is that by 2018, the group's clothing business, including E-Commerce, will reach 5 trillion won (about 30 billion yuan). Under this goal, a series of new businesses will be launched.

Last year, Lotte Group first acquired the famous NCF company named NICE CLAUP, the women's clothing brand, and then bought the COMPTOIR DES CONONNIERS, the brand of the Japanese fast selling group's brand.

Recently, Lotte Group has signed the exclusive exclusive contract with Korea with Japan's largest handbag brand Samantha Thavasa.

Lotte's clothing business and e-commerce is not only a new topic in the department store industry, but also a new driving force for the company's growth.

At the end of last year, the Minister of commodity headquarters of the Department of commodities, Le Yuan Department, expressed his intention to expand the company's business in the field of clothing.

Not only are Lotte, new world, LS group, SK group and other big business conglomerates recently active in the field of clothing, but also because they are optimistic about the clothing industry and regard it as the main driving force for the company's future growth.

Moreover, compared with other industries such as IT, the entry into the garment industry can achieve higher returns with lower R & D input.

At the same time, the Korean consortium believes that the garment industry can create high value-added industries, which is undoubtedly of great help to enhance the corporate image.

In addition, industry experts analyze that the clothing industry is the core element of retail and mass culture, and can be associated with many industries and create satisfactory returns. This is another reason why big companies and big consortia will reach the garment industry.

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International Consortium

In 2010, OpenGate Capital, the US private capital operating company, acquired its fashion brand Nichol Fay (Nicole Farhi) for 5 million from Connection, France.

OpenGate Capital is a global private equity company.

Nicole Farhi brand is a designer brand, the product type is advanced garments and garments. The designer Nicole Farhi was born in France. The brand was founded in England in 1983 and opened the first authorized store. In 1984, it opened independent brand boutiques in London and New York, and is now mainly sold in Europe and the United States.

According to the agreement between the two sides, Nichol Fay's design studio will remain in London, and the office and product gallery will remain in Milan.

Andrew Nikou, founder and chief executive of OpenGate Capital, was appointed chairman of Nichol Fay.

"Nichol Fay is a landmark designer, from the beginning of this brand, elegant and exquisite fashion sense is its unique mark."

Andrew Nikou said: "we look forward to working with Nichol and her team to develop the company's retail network in Paris, Hongkong, Tokyo, New York and other cities, and constantly build large-scale international sales network."

As part of the agreement, OpenGate will get all the inventory products, retail outlets and intellectual property rights under the Nichol Fay brand.

As the founder and designer of the brand, Nichol Fay will continue to be the creative director.

"This is an excellent opportunity for Nichol Fay brand."

"Connection has been playing an important role in the success of this brand in the long run. Now, I look forward to the new partner OpenGate Capital bringing the brand to an exciting new direction," said Fay.

The acquisition, for OpenGate Capital, is even more tempting to get a well-known fashion brand.

"OpenGate Capital will focus on improving the business base of Nichol Fay brand so that it can achieve sustained profitability in the first year of acquisition."

"We also plan to further develop online trading channels and look for opportunities to develop broader design and creative resources," said Robert Lezec, partner of OpenGate Capital.

In November 2009, the world's largest Steel Corp ArcelorMittal family group successfully bought the Escada AG, a luxury fashion company headquartered in Munich and famous for women's wear and accessories, to take the famous women's brand Escada under its banner.

Transactions include the company's operations, including employees, brand ownership in the world, production departments and distribution networks.

Before the Indian Iron and Steel Company bought Ai Oscar Da, Ai Oscar Da had 182 Direct stores and 225 franchise stores in more than 60 countries and regions, with about 2300 employees.

Founded in 2010 with a registered capital of 500 million US dollars, Saban Brands, which mainly engaged in licensing of entertainment assets and consumer brands, was brought back to France in the first year of its creation.

Saban Brands, headed by Losangeles billionaire HaimSaban, will also be responsible for the future business strategy of Paul Frank (the brand of "big mouth monkey").

ElieDekel, chairman of Saban Brands, will serve as chief executive officer of Paul Frank.

The creative design of Paul Frank is still at the headquarters of Orange County, and brand founder John Oswald continues to be the creative director.

Elie Dekel chairman admitted that they will allow Paul Frank brand to enter IPhone applications, interactive games, communications technology, television and film fields.

They will give priority to Paul Frank's economic growth.

The goal of Saban Brands is to continue to develop the brand of Paul Frank and increase the brand customer base.

Service enterprises appear on the market

The rapid entry of capital into traditional industries will change the way of thinking and operation of traditional enterprises with unprecedented efforts, and explode business potential energy, thus changing and affecting the development path of China's garment industry.

Listing is a double-edged sword for garment enterprises. It needs to suit the local conditions and consider carefully.

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Reappearing the tide of listing

Since 2010, more than 10 garment companies such as Kaiser, Hinur, news bird and so on have been listed. The domestic garment industry once again welcomed the climax of embracing the capital market.

This year, there are many garment enterprises seeking to go public. Although several enterprises failed to fulfill their expectations for various reasons, Semir and nine Mu Wang were listed successfully.

In fact, as early as in November 2009, the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of Finance and other 7 departments jointly issued the "guiding opinions on accelerating the construction of the independent brand of clothing home textiles", pointing out that it will encourage qualified brand clothing, home textile enterprises to list and issue bonds, make direct use of capital market financing, and encourage enterprises to carry out mergers and acquisitions with their own brands as the link.

According to Li Kailuo, an expert in fashion industry economics, capital tentacles have already extended to the clothing industry. After ten years of development, the trend of band type development has emerged in the continuous integration of garment enterprises and capital, and in every band, there are representative garment enterprises.

For example, the first band before 2007, such as Shanshan, YOUNGOR and other listed companies, 2007-2008 years of clothing industry ushered in second bands, representing enterprises such as BELLE, Anta, good bird, Bo Shi Deng, Mei bang and so on. After the financial crisis, the clothing industry has been temporarily silent for a period of time. From 2009, the clothing industry mainly dominated by the Fujian plate has been listed on the market, and has been subdivided into home textiles, children's clothing and other sub sectors. By 2010, it has entered fourth bands, Kaiser shares are listed, the A market has been listed, and the market has been listed on the small and medium sized boards.

With the gradual emergence of capital as the value of competitiveness, Li Kailuo believes that the capital operation of Chinese garment enterprises will soon enter the fifth band.

The rapid entry of capital into traditional industries will change the way of thinking and operation of traditional enterprises with unprecedented efforts, and explode business potential energy, thus changing and affecting the development path of China's garment industry.

He pointed out that in these four waves, four stimulus points have accelerated the process of listing Chinese clothing enterprises.

In the capital market, BELLE listed nearly HK $9 billion, which launched a series of big takeover actions in the same year, bringing many former competitors back to fame. At the same time, BELLE group's business scale increased rapidly after listing, and quickly widened its gap with its competitors.

In August 2008, the US state clothing entered the Shenzhen Stock Exchange, and its holdings instantly reached about 16000000000 yuan.

The publicity effect is equivalent to 50 million yuan of advertising investment. Zhou Chengjian, chairman of the US bond company, ranks 307 in the latest Forbes global list of rich people, and has greatly encouraged a large number of enterprises to go forward.

Eighth listed companies in Dongguan were listed on the SME board in Shenzhen Stock Exchange in November. The first day, the stock price rose 14%, and its market value was close to 7 billion yuan.

The prospectus shows that the search was established in 2005, and its sales revenue before the listing was only three or four billion, and its net assets were only 157 million yuan.

However, the listing has brought nearly 1 billion 500 million yuan to raise funds, and the company's net asset size has increased by ten times. The company's competitive strength and position in the industry have been rapidly improved.

In March 11th this year, Semir apparel successfully landed on the A share market, becoming the first Chinese breakage of the first day of the apparel sector.

The listing of special clothing and Semir clothing has had a disruptive impact on the entire apparel industry, especially in the search for special listing.

No one expected this five or six year old rising star to be so popular in the capital market.

Li Kailuo said that the newly listed clothing companies are quite different from the former ones, such as Shan Shan, YOUNGOR, and Da Yang creation. (such as old fashioned clothing enterprises such as Shanshan, YOUNGOR, Kai Kai, etc.) belong to the products of the industrial age, and their main advantages are in the field of processing and production.

Such clothing enterprises are very strong in terms of hardware conditions. They have modern factory buildings, comparable to the most advanced production lines in Europe and the United States such as Italy, improved production and processing capacity, strong innovation ability in fabric research and development, and so on.

YOUNGOR even extends the industrial chain of clothing industry to the cotton field in the upper reaches, and has a high quality cotton planting base in Xinjiang, which has opened up all links from raw material planting, textile, printing and dyeing, clothing production, sales and so on.

But such companies can only be attributed to manufacturing companies, and it is difficult to show rapid growth.

The reason is that the profitability of this heavy asset company is mainly reflected in the process of production and production. The number of machinery and equipment determines the company's profitability. The growth of performance is mainly driven by a larger investment in machinery and equipment.

At the same time, the OEM mode determines that they can only get the lowest profit of the industrial chain, and their growth is not strong, and their performance is easily subject to the fluctuation of orders.

Once orders decline, the company's performance will also decline.

Therefore, the capital market is unlikely to give high valuation.

In contrast, there are no production links in light industries such as American Apparel, search special, Semir clothing and so on. The assets and management capabilities of the company are mainly concentrated in the field of product design and marketing.

So these companies look more like a ditch companies or a commercial company. Their performance can grow as the number of stores increases, the channels and scale continue to expand.

Therefore, once there is real performance support, such a development mode will be very attractive and imaginative to the capital market, and the capital market will naturally give high valuation.

Listing is a double-edged sword.

Insiders pointed out that the advantages that enterprises can get through listing are obvious, and they can be integrated into funds to achieve rapid and large-scale development. This is especially effective for those homogeneous products enterprises, such as sporting goods industry and casual wear industry.

In addition, the domestic demand for listed companies is relatively strict, which is not only conducive to the standardized operation of enterprises, but also has a greater influence in the public and has a huge advertising effect.

Take the wedding bird, Wu Zhize, chairman of the news bird group, has said that the popularity of the brand has increased rapidly since the listing. At present, there are hundreds of millions of investors in China. After the listing of the stock, a large number of shareholders are concerned about the company's stock every day, and the publicity effect is even better than that in CCTV.

It is understood that after the listing of the birds, agents from all over the place have reported that the consumers will be linked to the listed companies and their popularity will be improved rapidly.

And after the listing, the company also feels the obvious convenience in the foreign trade.

Such as buying, choosing stores, purchasing raw materials and so on, are more advantages.

The participants and partners feel that the credibility of listed companies is even higher.

Although listing has many advantages, Yang Dayun, President of UTA Fashion Management Group, thinks that listing is a double-edged sword, not a sole criterion for evaluating clothing enterprises.

For example, for personalized brands, the significance of listing is not large, such as exceptions, Mass Phil or women's clothing brand with original character.

The advanced women's clothing brand with original meaning can not be done well by listing capital or obtaining support. They are more likely to make brand extensions through forming a preference and cognition among consumers, such as extending to perfume and cosmetics.

Valentino, who we know, is following this path of development.

Therefore, the impact of listing on personalization and high-end brands is not particularly large.

But for popular brands, especially those that need mass production and scale, the impact is enormous.

Through financing, such enterprises can occupy a larger market share at the terminal.

This is good, but there are also disadvantages. The listing of enterprises is not a one-time financing, it will continue to raise money in the process of growth, in this process will dilute their rights and interests.

That is to say, the more shareholders come in, the less the share held by the original controlling shareholder.

The Ford Motor Co family does not own the largest share of shares in Ford Motor Co; nor does Chanel own the largest share of Chanel. In the process of constant dilution, its founder's control over the brand is becoming weaker and weaker, and investors need to respect the opinions of investors. However, investors themselves are not concerned about the clothing industry, they only focus on interest repayment.

What is return?

That is, quarterly and even annual profits should be the highest.

To fashion this line, when the brand reaches a certain age, it will become as old as human beings and lose physical strength. At this point, surgery is needed, repair is needed, and image needs to be reconstructed so that the brand can go on.

This also means two to three months or two to three quarters, or even one or two years for 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 a person puts forward a plan for immediate growth, and if a person raises a plan to lose money after two years, the investor will definitely choose to choose the former, and the brand will eventually become an abandoned brand from a good brand.

In addition, more than 90% of the garment enterprises in China are private enterprises, most of which are based on family management, which is not compatible with the rules of the stock market used in the capital market. If they want to go public, they must carry out the shareholding system reform.

Therefore, listing is a double-edged sword for garment enterprises. It needs to suit the local conditions and consider carefully.