Behind The Brand Clothing Enterprises Listed 50% Is Not The Rate Behind

Since October 24th, the SFC announced the results of the audit of four companies on the trial board, and three of them passed.

Main camp

In November 2nd, the listing application of Shenzhen ladies' fashion Limited by Share Ltd was denied.

Reporters found that according to information statistics, from January 1, 2011 to November 11th, the SFC audited 283 companies' IPO, of which 219 were approved, accounting for 77.39%, and 54 did not pass, accounting for 19.08%.

But rough calculation, so far this year, the clothing industry's IPO pass rate is only about 50%.

Garment enterprises IPO audit more stringent?

What is the signal of the successive IPO of garment enterprises? A sponsor representative told the newspaper that the listing requirements of the SFC for garment enterprises have been raised.

Li Jiaqing, managing director of Lenovo's investment, believes that "this is not related to" clothing ". It should be related to" chain ". He said," for any retail chain of consumer brands listed, its authenticity, standardization and profitability will be more and more concerned. The barriers and barriers to listing will also be higher and higher. The requirements of regulators in this regard are much higher than that of Hongkong and the United States. "

Li Jiaqing himself has a lot of interest in the field of clothing. He has invested in the brand of women's clothing such as La Natsu Bell and Amoy brand seven.

It has been reported that in April and June this year, the relevant supervisors were focusing on chain operation enterprises at the two sponsor training sessions, and the sponsors not only focused on the top 5 customers, but also investigated more than 80% customers in the due diligence by means of information system.

For franchisees of such enterprises, sponsor agencies are required to check every franchisee as much as possible and pay close attention to their sustainability.

However, Xu Hao, President and partner of Kate capital, believes that "there are more problems in the profitability of enterprises, competitiveness and future trends."

In terms of normalization, Li Jiaqing takes inventory as an example. He believes that clothing as a seasonal product will devalue over time. According to his habit, "products that are over a year and a half or two years should be very conservative when they are prepared to fall in price, or even zero."

According to the prospectus of Shandong Shu Lang, by the end of 2010, the stock aged 1 years, 1-2 years, 2-3 years and more than 3 years were 189 million 67 thousand and 700 yuan, 29 million 857 thousand and 500 yuan, 8 million 547 thousand and 700 yuan and 7 million 97 thousand and 800 yuan respectively.

However, the company was prepared to make "2 million 637 thousand and 500 yuan" for the inventory depreciation in 2010.

In addition, on the issue of the payment of the social security fund for employees, he has also been questioned by the media.

For the future of Lady house, CEO of a women's clothing enterprise in Hangzhou expressed concern. He believed that the market was changing, and the style of lady's house changed little or not fast enough, which would lead to its gradual loss of market advantage.

On the sustainability of profitability, Vigna S is also doubtful.

In the 2008-2010 fiscal year, the number of shops increased from 143 to 272. In three years, the number of new stores increased to 32, 52 and 147 respectively.

But the number of stores has also been fierce, turning 4 stores from 2008 to 24 in 2009, and closing 46 in 2010.

Although the annual total revenue is growing, while the total sales volume of its products is basically "balanced", the annual sales volume of clothing products with the largest revenue contribution from 2008 to 2010 is declining, mainly due to the rise in the price. Over the past three years, the annual price increase has been over 50%.

Such a situation may be difficult to avoid worrying about its continued profitability in the future.

On the issue of authenticity, Bao Dai said that the reason why the SFC was more stringent was that the chain stores were "uncontrollable in terminal sales and hard to verify".

In fact, in June of this year, shortly after the listing of King Mu, the SFC gave public warning to its sponsor, CITIC Securities, Niu Zhensong, who is a sponsor of CITIC Securities, and pointed out that one of the problems in their underwriting process for the king of nine was "not enough to check the sales situation of the issuer, but not familiar with the specific data of the franchisee and the market positioning of the strategic franchisee, and the agreement on rights and obligations between the two sides".

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In addition, looking at the 5 garment enterprises, their revenues are between hundreds of millions and one billion, and the profits are mostly tens of millions of yuan, and the scale is not very large.

The scale is not big enough, maybe it is a reason why they are not.

Li Jia Qing feels that, especially the low-end price and mass market oriented clothing brands, the ideal state before the listing is: first, there are hundreds of millions or 1 billion of sales before and after the listing, and there are billions of profits.

Second, the network coverage is wide enough, it is a relatively national brand; third, it has a long history, we can see how the internal operation efficiency has been improved step by step.

"It is more practical for such clothing companies to go public," he said.

Therefore, in a VC view, whether these garment enterprises are listed is not the SFC's threshold for such enterprises to go public, but it should be "a more rigorous examination of the possible problems in the chain operation mode".

Small and medium clothing brand listing tide

Although some people are happy and sad, they still can not resist the enthusiasm of the clothing enterprises.

In November 11th, the domestic men's wear brand Nu Di Lu will go to the meeting again.

According to the reporter, many clothing brands in Hangzhou and Shenzhen are also on the way to the market.

Why did the clothing enterprises appear centralized?

In fact, the 5 garment enterprises that are not seen from the perspective of ownership structure are somewhat of the temperament of family businesses.

Are some people saying that this is the impulse of entrepreneurs to cash in?

Li Jiaqing did not agree with that.

He thinks that the key reason for centralized listing is that the garment industry is trillions of market in China, but the real brand size is still very small. But in the next 3-5 years, the industry will enter a very fast growth stage, and will concentrate on big enterprises. Therefore, for many small and medium-sized garment enterprises, these years are of great importance. If there is not enough resources, including funds, they are likely to be eliminated.

In a long period of time, CEO Yang Tao, a Hangzhou woman's brand, was worried about the market, so she was not active.

In May 2007, BELLE international listed on the main board of Hongkong, financing nearly HK $8 billion 700 million. After that, it quickly launched mergers and acquisitions in the industry. Now it is a big Mac in the field of women's shoes.

In August 2008, the United States and costumes landed at the Shenzhen Stock Exchange, raising nearly 1 billion 400 million yuan, which is also the leader in the field of domestic casual wear.

These two things are very stimulating to Yang Tao, and he also changed his view of listing. "If the brands with similar size on us first went public, they would have a magic weapon. If it struck me at that time, I would be more passive."

And AOKANG founder Wang Zhentao also told the media before that, no morning city is the important reason why Wenzhou shoe enterprises are rapidly catching up with a number of Fujian shoe enterprises listed by Anta and so on. Therefore, he is blunt, for AOKANG, "do not list, do not improve the specification is waiting for death."

PE/VC inflection point of chain retail investment?

It seems to be a trend for PE/VC to invest in the clothing brand of retail chains.

In 2009, the brand of women's shoes listed on the back of 2009 won the stake in Lenovo's investment. Before this year's listing, we introduced four PE institutions, including Jiuding, bridging Fu Kai, Germany Rui Heng Feng and long Bo.

The lady house is also an institutional investor such as Shanghai Tianxiang Business Consulting Co. Ltd.

As early as the end of 2007, IDG invested in the fashion women's clothing brand Yi Fu Xin Yue; in March 2009, Carlyle invested 150 million yuan in high-end women's clothing brand Shenzhen, in November 2010, the fashion women's clothing brand La Natsu Bell announced the completion of the second round of financing, and the investor was Lenovo investment.

Why is PE/VC so fond of brand retailing?

Li Jiaqing believes that this is related to consumption. Consumption is a big market in China. China can accommodate dozens of listed garment enterprises. Secondly, the growth characteristics of chain enterprises are nonlinear and explosive.

This year, the phenomenon of successive listing of garment enterprises appears in the view of Li Jia Qing, which can give people a wake up: the chain retail industry has a very high demand for entrepreneurs and investors.

Not only is clothing, the SFC has also been cautious about the listing of catering chain enterprises.

Now, the investment in Jiangnan and the pure investment of Shenzhen Venture capital investment, and the listing plan of Guangzhou restaurant, leopard, and Shun Feng Group are all shelved.

According to the report of Qing Ke, the two tier market is hard to break through, and VC/PE's exit is so keen that the investment in China's catering market has dropped to freezing point.

Then, will PE/VC's investment in chain run clothing enterprises also cool? The answer may not be too long.