Strategy Is More Important Than Financing: Clothing Industry: The Positive And Negative Sides Of Capital Coins.

　　 Can all the problems be solved when the funds arrive?

"Use the power of capital to help China. Clothing industry Be stronger and bigger and achieve China brand The dream of soaring the world. The introduction of "capital power", Liu Wenxian, founder partner of FDS capital of China

Guest speaker

M & M director of PWC accounting firm

Lan Banghua, senior manager of Shenzhen Stock Exchange listing promotion department.

Ge Xiaojun, deputy general manager of Cci Capital Ltd

Wang Qian, chief representative of London Stock Exchange in China

Senior assistant to general manager of Zhou Bin Minsheng Bank Retail Banking Department

Tang Bin, chief investment officer of Fosun fortune

Liu Erhai Lenovo investment general manager

Zhang Liang, chairman of Luzhou Laojiao Limited by Share Ltd

Summing up people

Director of media center, China Textile Industry Association

Another boss was on the road and bigger than before.

This is Hu Fulin, chairman of Zhejiang Xintai group. In September 20th, creditors went to Zhejiang Xintai group to look for Hu Fulin, but executives of Xintai group had no way to contact him. In the morning of September 21st, Hu Fulin called Xintai executives to admit that he had run away and said that the company would go bankrupt.

Founded in 1993, Xintai group has more than 3000 employees. Its dolphin brand is the only well-known trademark in China's eyeglasses industry. Hu Fulin is also called the king of glasses. In 2010, the sales revenue of sun Tai Group's eyewear business was 270 million yuan, the ultimate goal of which is the top one hundred of China's private enterprises.

But Hu Fulin's running to the enterprise was a brakes on the brakes. Data from speculation indicate that Xintai group's real arrears amount to up to about 2000000000 yuan, of which 1 billion 200 million yuan is usurious, and the monthly interest rate is as high as about 20000000 yuan, and the bank loan is 800 million yuan, with a monthly interest rate of about 5000000 yuan.

The reason for Hu Fulin's run is the fragmentation of the capital chain. Behind this is the financing problem of small and medium-sized enterprises.

　 Capital easterly

In fact, the tentacles of capital extended to China very early. Clothing industry 。 Starting from the Shanghai Stock Exchange in 1996, the Chinese garment enterprises have been linked to capital for fifteen years.

Li Kai Luo, President of Bi LAN International Investment Consulting Co., Ltd. believes that after ten years of development, there is a trend of wave band development in the continuous integration of garment enterprises and capital. Before 2007, it was the first band, and the clothing companies such as Shanshan and YOUNGOR were listed on the market. In the 2007-2008 year, second bands were introduced, representing enterprises such as BELLE, Anta, good bird, Bosideng, Smith Barney and so on. From 2009, the clothing industry dominated by the Fujian plate was listed on the market, and subdivided into home textiles, children's clothing and other sub sectors. This is the third band. In 2010, it entered the fourth band, Kaiser shares were listed, and A went on the market.

This year, Semir clothing and nine Mu Wang have successfully landed on the A share market. In addition, nearly 100 textile and garment enterprises are waiting outside the capital market, and many of them are repeatedly sprinted again and again. The pursuit of capital in the clothing industry once again showed a "blowout" trend. Li Kailuo believes that the fifth wave of clothing companies will come soon.

Just like a coin has two sides, the disadvantages of listing are constantly being mentioned. After listing, companies need to announce company information regularly. If they are subject to capital constraints, they will enter the shareholders' meeting to intervene in the company, or even intervene in the daily affairs. If the shares are diluted, the management will lose part of the control of the enterprises. After listing and listing, enterprises will have to pay higher fees; if they want to fulfill more obligations and assume more responsibilities, the management will also be under greater pressure.

　　 However, this can not stop the pace of enterprises' sprint.

Under the influence of multiple factors such as the appreciation of RMB and the rising cost of labor, most of the small and medium-sized enterprises today do not exceed 10% of gross profit, usually in 3-5%.

Such enterprises are naturally not appreciated by many investment institutions. After the financial crisis, the garment industry, which has been regarded as a traditional industry, has begun to enter the field of investor vision. But what the investment institutions like is the light asset company, whose assets and management capabilities are mainly concentrated in the field of product design and marketing. The performance of these companies can be increased as the number of stores increases, the channels and scale continue to expand, such as the United States and Lining.

Therefore, when the central bank has repeatedly raised the deposit reserve ratio and the pressure of monetary tightening, the pressure on the capital side of small and medium-sized enterprises has suddenly increased. This leads to rising interest rates for private lending.

Zhou Dewen, President of Wenzhou SME Development Association, said that the current interest rate of private lending in Wenzhou has exceeded the highest historical value. The average monthly interest rate is 2-6 points, some even as high as 1 cents and 5 cents, with an annual interest rate of 180%. Small and medium-sized enterprises rely on private lending to solve urgent problems, but private lending is likely to become an urgent need for enterprises. Hu Fulin is an example.

Listing is the only way to solve the financing problem of SMEs. Because the capital market can solve the funds needed for development and obtain a stable and long-term financing channel for the sustainable development of the company, which can form a benign capital cycle, help enterprises attract talents and open up market space, benefit the market against risks and diversify production, and enhance the public image of entrepreneurs. {page_break}

　 How to treat capital

The advantages of listing enable enterprises to get the resource elements that can compete with their rivals. Xia Guoxin, chairman of the company, said: "I thought I was not short of money, but then I slowly changed my mind. The so-called" no money shortage "depends on how big things you want to do. To compete with international brands, what do you compete for? What are you relying on to attract talent? "

After many clothing enterprises and brands have certain strength, talents and channels, the ability to compete is the capital of enterprises.

"Now the competition is like this, though it's just a little bit different, but the ending may be totally different. If a brand has invested tens of millions of yuan, and another brand has no money to invest, the result of competition can be imagined. New theory of Xia kingdom.

In fact, it is not brand war, price war, or channel war, but capital war that will be launched in the industry in the future. In the future, the garment industry will change its pattern in "fission" and "fusion". "Split" refers to the further subdivision of the market and industry. "Aggregation" refers to the further accumulation of capital and resources to the dominant enterprises. Along with the market segmentation, the further agglomeration of brands will take place. Fine category areas will go to the road of integration. The intensification and collectivization of clothing brands are inevitable for the development of garment industry.

But this does not mean that capital is omnipotent. "The power of blind worship of capital is very dangerous." Professor Wu Hong, vice president of the school of art and design of Shenzhen University, cautioned that it is not to say that when capital arrives, all problems can be solved.

As a matter of fact, some clothing enterprises have not been really used in the design, R & D, terminal construction and market development of clothing, but rather to other high profit industries such as real estate, minerals and logistics.

Hu Fulin is involved in the eyeglasses industry as well as solar photovoltaic, real estate and other industries. The demand for capital in these industries is huge. Xintai group's insider said, "the funds borrowed from Xintai before have been invested in the project", "solar photovoltaic has invested heavily" and "part of the funds are invested in shops". The company's public information shows that last year started the Wan Jia American glasses chain project. Therefore, when the cost recovery of photovoltaic power generation is slow and the real estate industry is experiencing the property market regulation, the investment scale that has been too fast will push Xintai to the edge of the capital chain fracture and eventually lead to Hu Fulin's run.

Blindly cross the industry investment risk is relatively large, for example, clothing enterprises invest in real estate and other industries, from the perspective of enterprises is beyond reproach, but for those who want to make big brands, they should put more capital in R & D and other links, so as to promote the brand value greatly improved.

"I am not opposed to capital operation. The key is how you use capital correctly. In other words, the development strategy of enterprises is more important than financing. Water can carry a boat, and it can also overturn. " Wu Hong said.

How to scientifically deploy and use capital? How should we establish a capital risk control system? It is a question worth pondering over as soon as possible to become a listed and already listed garment enterprise. And what means can we effectively finance? Is there an optimal capital combination? This is the answer urgently needed by SMEs.