The Enthusiasm Of The Clothing Industry Is Unprecedented. Why Is The IPO Going Wrong?

SFC issued the evening announcement November 2nd, Shenzhen lady's house

Known as "popularity exceeds Dior, LV" is widely questioned.

Whether an enterprise is not a big news, but this time it is different.

In November 2nd and 3rd, the ladies house became the top news of the major financial media.

The search for "Lady house IPO is not available" on Baidu shows 20300 results.

The most popular media question, placed in the headlines or quotations, is the formulation in the prospectus of the ladies' housing prospectus: according to the Research Report on the regional brand planning of women's clothing industry made by the Shenzhen garment industry association, Shenzhen trade and Industry Bureau and Beijing golden dad Economic Management Institute, etc., in the consumer's favorite brand of women's clothing, the "lady's house" brand is only inferior to several well-known foreign women's brands. The popularity of the ladies' house exceeds the Dior, Esprit, Prada, CK, LV and so on, ranking the first among the domestic brands.

The above ranking data was questioned after being disclosed by the prospectus.

The media pointed out that as a domestic brand, the statistics of the ladies' house were compared with CHANEL, lady house and Metersbonwe.

The media pointed out that the quotes from the prospectus were not credible.

Sina micro-blog user chamnidy analyzed from the statistical professional point of view that the charts in the prospectus could not express the true situation. First, the consumer level of the surveyed consumers was not defined. Secondly, the number of the surveyed persons was not counted, and the age of the consumers was not explained again.

Therefore, charts can not reflect the true preferences of consumers.

Liu Zhenxian, a senior private researcher, said that one reason for the absence of IPO in the ladies' house was the excessive packaging of its draft prospectus.

Many aspects highlighted

In fact, as a well-known brand of women's clothing in Shenzhen, the lady's style is more obvious, forming a group of loyal customers. In recent years, it has indeed made good progress.

However, analysts believe that this will be denied, but also highlights the lack of many aspects of the enterprise.

Liu Zhenxian pointed out that although the scale, profit margins, business risks, cost fluctuations and other issues have been a stumbling block for the IPO of garment enterprises, the main reason for this is that "the company has lost to itself", and the most important thing is that there are some problems in the company itself, which are not related to the industry.

The reasons for the analysis of the major media are probably as follows:

The first is the problem of designer team.

Media pointed out that the prospectus disclosed, in addition to vice chairman of the Kuang TSE as chief designer, the company's four main designers include two brand design directors, a deputy director of design, and a design manager.

At present, these four positions are two in 1980, one in 1981, and even one born in 1985.

The four major designers graduated from local fashion design institutes or local art colleges, and there is no prestigious university degree.

And prospectus revealed that the annual salary level of the four designers ranged from 130 thousand to 170 thousand yuan, and the core designers' treatment level was not consistent with the brand value of the promotion.

Second, family ownership is too high.

The top four shareholders of the company had a shareholding ratio of more than 90% before the issue, and four were kin.

The prospectus shows that the founder Kuang TSE and his family members held heavy rights in the company and concentrated on holding over 90% shares.

Such a shareholding structure will have an impact on the interests of small and medium-sized investors.

In this year's second generation training, the SFC has issued a signal: for family businesses, it is particularly concerned about its composition and the independence of supervisors.

It is also pointed out that in the prospectus of lady's house, the risk of production dependent generation and the balance of inventory surplus is also exposed, which is also a hidden danger for the IPO road of Lady house.

The major media and analytical institutions have also given rise to several other reasons: the mode of diversification has been questioned.

There are as many as five brands in Lady house, including ladies' house, ladies' bedclothes, natural elements, FairyFair, little ladies and John.

In the prospectus, the above five brands contributed to the company's performance in the first half of the year. The ladies' clothing and natural elements accounted for 87.23% of the main business income. The other three brands accounted for 12.77%, including two less than 3% of FairyFair and little ladies and John.

When the enterprises are small, they will diversify more categories and disperse the limited resources of capital, talents, channels and management. Is it beneficial to the development of enterprises?

"Big Marla trolley, fund-raising to invest in the SAP system."

The collection of women's fund-raising funds includes a pformation of information system, with a total investment of 34 million 553 thousand and 500 yuan.

SAP's application market is mainly some large domestic and foreign companies, and occupy the top 500 companies in the world.

SAP's well-known clothing and textile enterprises include Lining, Adidas, Esprit and so on.

Lining's operating income in 2010 reached 9 billion 400 million yuan, and Adidas's revenue in China also amounted to nearly 1 billion euros, while in 2010, its operating income was only 586 million yuan, and its net income was only 60 million 770 thousand yuan.

It is doubtful whether a large scale information system will be cost-effective if we spend more than half of the profits a year.

In addition to the cost of the first phase of the system implementation, SAP has to charge the customers a lot of maintenance fees every year.

This year, the pass rate of IPO is low.

Since this year, the enthusiasm of IPO in garment enterprises has been unprecedentedly higher than in previous years, but the overall pass rate is relatively low.

In addition to the ladies' house, IPO of the clothing companies such as Li Rui, Zhuhai, Shanghai, Fujian, Shandong and so on this year are not allowed, and the clothing company IPO is cold.

As of press release, a total of 9 clothing companies applied for IPO. Apart from Semir, nine Mu Wang, LAN Zi and 100 round pants industry, 4 successful entries, the remaining 4 companies were not, 1 companies postpone, pass rate of 44.4%, in all IPO industry pass rate is low.

Analysts pointed out that the domestic A shares and H shares have higher requirements for clothing enterprises, which makes the IPO of garment enterprises more difficult.

The entry threshold of garment home textile industry is low, and homogenization competition is intense. Garment processing and export companies have the characteristics of low added value and weak bargaining power.

Moreover, from the overall situation of the A share market, the passing rate of women's clothing enterprises is more difficult than that of men's clothing enterprises.

At present, the most famous clothing companies in the A share market are men's clothing enterprises. Even men and women wear "Kaiser", men's clothing business accounts for about 60% of the total clothing business.

If we look at this year's situation, whether we will be postponed or not, Shu Lang, lady house and Waissman are all women's clothing enterprises, and the single product male trousers enterprises such as the hundred round pants industry, which rely highly on the joining mode, can succeed in breaking through the customs.

In addition, the clothing industry is sensitive to inventory and income.

Industry analysts pointed out that clothing belongs to fast moving consumer goods, so many franchisees and dealers will have a problem of inventory measurement and sales revenue measurement, and also prone to manipulate inventory and income problems.

These are the main reasons why IPO of garment enterprises has crashed.