Hundred Circle Trousers Industry IPO Successfully &Nbsp, Men'S Wear Plate Adds New Army.

After five or six years of preparation and efforts, Shanxi's 100 round pants industry chain operation Limited by Share Ltd (hereinafter referred to as "100 round pants industry") IPO successfully broke through.

According to the prospectus (declaration version) (hereinafter referred to as the "prospectus"), the hundred round trousers industry intends to issue 16 million 670 thousand shares, and the total share capital will be 66 million 670 thousand shares after the issue, and it will be listed on the Shenzhen Stock Exchange.

The fund raised 295 million yuan, mainly for marketing network construction and information system construction projects.

About 270 million yuan will open 220 outlets in 8 provincial capitals of Changsha, Nanjing, Taiyuan, Nanning, Zhengzhou, Hefei, Lanzhou and Guiyang.

In the face of the extremely weak stock market, the hundred round pants industry has a long way to go in the expansion strategy, timing of the listing, product development and design.

Success comes from brand promotion strategy.

Hundred round pants industry achieved net profit of 25 million 477 thousand and 400 yuan in the first half of this year, according to the whole year 50 million 954 thousand and 800 yuan, after the issue, the earnings per share is 0.76 yuan, according to the average price earnings ratio of the small and medium-sized board, 35 times, the stock price after the listing is expected to reach 26.6 yuan.

The latest positioning of the industry in the prospectus is described as: "the 25-55 year old middle income group in the 234 tier cities in China is the target customer group, and provides them with high-quality, mid-range prices and mainstream, comfortable pants products."

As a matter of fact, the hundred circle products launched by the 100 circle trousers industry were unified priced at 100 yuan per unit in the whole country. Since 2007, the company has launched a series of "sky silk hundred circle" series, which has improved the fabric, workmanship and technology on the basis of the original price, and the retail price is priced at 150 yuan / piece -300 yuan / piece respectively.

After this price increase, the gross profit margin and business income of the hundred round pants industry have been continuously raised since 2008, and the gross profit margin has increased from 29.96%, 31.11% and 34.07% to 37.77% in the first half of this year.

After raising the price, the hundred round trousers industry has been close to the "middle price" positioning.

In similar enterprises, nine Mu Wang led the men's trousers Market with 450-650 yuan / piece, followed by 200-400 yuan / piece of M·SUYA, and 200-350 yuan / piece of Bestn.

First of all, the hundred round pants industry will accelerate the upgrading of the product mix, increase the sales ratio of high priced products, and promote the overall gross margin level of the company.

According to the prospectus, the sales ratio of 100 yuan / piece of trousers products has dropped from 72.58% in 2008 to 12.34% in the first half of this year, and the rate of decline is particularly obvious. Meanwhile, the proportion of 150 yuan / piece and 180 yuan / two products sold from 25.06% in 2008 to 75.61% in the first half of 2011 has become the mainstream selling price at present.

Meanwhile, the sales of trousers with a price above 200 yuan (including 200 yuan / piece) increased from 2.18% in 2008 to 12.05%.

Secondly, in the environment of rising prices of raw materials in China, 100 yuan strengthened its cooperation with suppliers such as Shijiazhuang dream clothing and apparel Co., Ltd., controlling procurement costs by using the reduction of credit sales ratio in the procurement process, raising the prepayment ratio of goods and reducing the settlement cycle of purchase payments. In 2010, the unit sales price increased by 9.56% over the previous year, while the average unit cost increased by only 4.85%. In the first half of 2011, the unit sales price increased by 7.13% over the previous year, while the average unit cost increased by only 1.10%.

In addition, the number of direct outlets in the industry has increased rapidly, and the proportion of direct sales has increased from 0.17% in 2008 to 8.59% in the first half of 2011.

Over reliance on affiliate will gradually improve.

For such enterprises such as hundred round pants industry, the proportion of sales to franchising and direct sales has always been the focus of supervision departments. In fact, four chain clothing companies attacked IPO this year.

In April 20th of this year, Shandong's clothing will be left behind. Then, in April 22nd, Shanghai will be denied the dress. In May 5th, the SFC cancelled the application of IPO, which was originally scheduled for May 6th in Zhuhai, and the fashion of Vigna S will be denied again in July 18th.

Previously restricted by the capital of enterprises, the percentage of direct selling of 100 round pants industry was low, and the proportion of direct selling sales depressed the gross margin level of the industry.

According to the prospectus of 100 round pants industry, the proportion of franchising business is still larger.

By the end of 6 2011, the company has a total of 1597 stores, including 720 franchisees and 1517 franchisees, accounting for 94.99% of the number of all the stores.

In addition, during the reporting period (2008-2011 June), the proportion of franchising business in all sales terminals was 99.83%, 98.38%, 95.87% and 91.41% respectively.

But with the continuous expansion of the scale of business after the listing, the importance of channels is self-evident.

In fact, in recent years, under the concept of "channel is king", more and more clothing enterprises tend to win the initiative by controlling the terminal marketing network, such as H&M, seven wolves, wedding birds, and American Apparel.

From the current situation of 100 round pants industry, joining is certainly low cost, but the control of sales channels is weak.

In order to improve the excessive dependence of enterprises on franchising business, the hundred circle trousers industry will put most of the fund-raising into the construction of Direct stores. It will open 220 outlets in 8 capital cities of Changsha, Nanjing, Taiyuan, Nanning, Zhengzhou, Hefei, Lanzhou and Guiyang respectively.

The implementation of the project will help the 100 round pants industry to enhance the scale of the marketing network in the two or three tier cities, fill gaps in some markets, and further improve the market share of the company's products. Therefore, the progress and effect of these direct stores will directly affect the continuity and stability of the company's profitability.

But the new outlets will face competition with franchisees in these cities.

The hundred circle trousers industry also explained this kind of risk in the prospectus, which indicated that the direct business from the opening to normal profit needs a certain amount of time to accumulate. The net profit in the first three years is -1970.87 yuan, 607 thousand and 500 yuan and 46 million 155 thousand and 100 yuan respectively.

Upgrading of product structure is the key to future development

Hundred round pants industry has always been the main business of trousers, products are relatively single.

In 2010, the income of casual pants, trousers and jeans accounted for 99.7% of the total income of the industry, and the highest casual trousers were 36.73%.

In the long run, the management of single men's trousers is hard to get widely recognized by the market.

Take 9 Mu Wang (601566) as an example. At present, it has successfully pformed from the male trousers brand to the men's clothing enterprise. In 2010, the income of nine men's men's trousers was 877 million yuan, accounting for 52.53% of the total income, second of the jacket's income was 277 million yuan, plus T-shirts, shirts and other products, which contributed 47% of the total income. T-shirts and shirts had a gross margin of 60% above the gross profit margin of men's trousers 57%.

Hinur, who has performed well in the same category, has achieved a total operating income of 483 million 700 thousand yuan in the first half of this year by increasing the design and research capabilities, optimizing and adjusting the price structure of the products and actively developing the market. The total profit of the company increased by 22.04% over the first half of this year, and realized a total profit of 84 million 862 thousand and 398 yuan, an increase of 33.14% compared with the same period in the year of.

Among them, the operating income of shirts increased by 70.67% compared with the same period last year; the income of cotton jacket jackets increased by 329.25% compared with the same period last year; the income of knitted sweaters increased by 46.43% over the same period last year.

Wang Liping, Dai Hui Hui, a researcher of Shenyang Securities Research Institute, said that the men's clothing industry has gone through inventory from 2009 to 2010, and the inventory in the channel is lighter. With the continuous improvement of design, fabric, service, store display and supply chain management, the leading strengths of all men's wear brand enterprises have been continuously consolidated. Besides, enterprises are constantly cutting into the new market segments, and constantly inject new vitality into the brand.

From the valuation point of view, at present, the valuation of men's clothing is about 25 times that of 2011, and it continues to be optimistic about the future market space of medium and high-end men's clothing, especially the high-end business men's clothing, which has strong ability to raise prices, high unit price and insensitivity to customers.

From the whole men's clothing industry, Guo Haiyan, an analyst at CICC, points out that the overall price increases are obvious, and the cost increases have been passed on to the downstream consumers. The gross profit margin has improved significantly, and the sales volume has maintained healthy growth.

It is expected that over the next two years, it will maintain a growth rate of more than 30%.

With the arrival of the autumn and winter sales season, men's clothing enterprises such as 100 yuan trousers industry will have more opportunities. Therefore, the change of product structure will be an important concern for the market.

It is important not only to maintain accurate positioning according to brand image and product market, but also to upgrade the product structure according to the change of consumer groups. This is very important for the continuity and stability of the future profits of the industry.