Capital "Invasion" Clothing Industry &Nbsp; &Nbsp; Appear In The Industry Venture Capital "Figure"

At present, China's new capital power has completely changed the traditional rules of the game. Small companies have experienced unprecedented growth and new business models. Successful samples have been replicated quickly. Under the "reverse thinking" rule, companies are pushed forward by capital, reshaping governance structure and paying more attention to the interests of investors.

The traditional natural accumulation mode of growth has begun to give way to the explosive growth mode through capital means. But this process is not smooth: competition, innovation, breakthroughs, game between people and things, the game between man and money, the wisdom of man's control of money, and the philosophy of existence between man and money, are a purgatory process for participants in it, whether investors or enterprises. Hardship and hardship.

However, capital is more than money. The formation of a new capital era is more important than the formation of a new concept of capital value.

　 Capital invading clothing industry

　　 Venture capital in the industry

Since 2009, the development elements of China's garment industry have undergone significant changes, and industrial transformation and upgrading have moved from passivity to self-consciousness. In 2011, the brand layout adjustment of China's clothing industry has become a hot spot. Resources integration, capital operation and international cooperation have gradually become the mode of brand creation and innovation. All these hot spots are clear. Chinese fashion industry It will lay a solid foundation for the realization of the dream of "clothing power".

Ya Sheng Investment President Mao District Jianli believes that the Chinese garment industry will usher in a disruptive development in the future. First, China is the most perfect country in the textile and apparel industry chain; second, China has a large domestic market of 1 billion 300 million people, and third, the garment industry can have many innovations in the business mode.

On the other hand, because the clothing industry has not attracted enough attention from the capital, 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 the garment industry is about 40 times, while that of the hi tech enterprise is only 5-20 times.

"Now many companies invest in innovative business models such as business models, business models, business models and market segments." Mao District Jianli told reporters.

For example, the "red child" used the Internet e-commerce platform in 2004 to creatively sell baby products on the Internet. In a short span of six months, it reached a balance between revenue and expenditure. In 2007, it won a $10 million venture capital. The leading brand of Chinese maternity dress, "October Mommy", was Sequoia Capital and Baikal capital injection in June 2011.

At present, the clothing brand of investing in chain retailing seems to be a trend for PE/VC.

Statistics show that by the end of 2007, IDG had invested. Fashion ladies Brand: Yi Fu Xin Yue; in December 31, 2008, Babu gained $8 million investment from Fuxin international investment group and Jiangsu hi tech investment group. In March 2009, Carlyle Asia Growth Fund injected 150 million yuan to Shenzhen's Song Li Si and formed a strategic partner.

Sports brand in 2009 Fujian PEAK group It also announced that it had invested nearly 60 million dollars from Sequoia Capital China fund, Jiayin international and Lenovo investment three private equity fund investment institutions. This financing is PEAK's third round of investment. Sequoia China and advantage capital made the first investment in PEAK in 2007, and PEAK introduced the second round of private equity funds such as Jiayin international and Shenzhen innovation investment in early 2008.

By the end of 2010, Wu Fangfang, President of Shanghai green box Network Technology Co., Ltd. announced that it has won DCM, a world-renowned venture capitalist, with about 100 million yuan of venture capital. Prior to that, the company received the first round of financing in September 2010 about 20 million yuan. In November 2010, La Natsu Bell, the fashion ladies' brand, announced the completion of the second round of financing, and the investor was Lenovo investment.

In addition, the brand of women's shoes listed in 2009 had been invested in Lenovo's investment on Saturday. In 2011, before the restructuring of the Rand Group, the four PE institutions, including Jiuding, bridging Fu Kai, de Rui Heng Feng, and dragon cypress, were also introduced. In addition, there were also some institutional investors such as Shanghai Tianxiang Business Consulting Co. Ltd.

In fact, behind all brands such as fan, Mcglaughlin, Masa and Marceau, there are venture capitalists. {page_break}

Optimistic about the future of the industry

Why is PE/VC so fond of brand retailing?

Li Jiaqing, Lenovo's investment director, believes that this is related to domestic demand. China can accommodate dozens of listed garment enterprises. Secondly, the growth characteristics of chain enterprises are nonlinear and explosive.

The managing director of the Carlyle investment group and the director of Asian Growth Fund, Zhu Wen Cai, also said that with the extension of the financial crisis, the value of the fashion and fashion industry is fully exposed, and Carlyle dares to invest heavily in the winter. Besides confidence in the prospects of the business, greater confidence comes from the judgement of the value of the investment project.

"This is the farthest case I have ever cast in my life." Liu Kunling, an international partner of Fuxin, commented on his investment in Babu beans. Liu Kunling was good at investing in semiconductor, communications and consumer electronics. In fact, this is the first time Fuxin international has invested in traditional industries.

Shen Napeng, founder and executive partner of Sequoia China, said that the investment in PEAK in the adverse market was attracted by the company's excellent profitability and rapid growth and so on. What we value is the specialization strategy that PEAK has insisted on for many years and the future development period.

For the financial crisis in the winter, PE is generally shy. Investment is not only a contest of courage, but also a consideration of the selection of project capability and vision.

Kevin, a project manager of a UK investment company, shows that for the past development of VCs, the traditional technology of clothing is a breakthrough technology and a disruptive technology application to traditional industries. For example, is the business model expansionary? Does it take advantage of the cost value of different countries and the service of different products? Does the two traditional fields collide with a new model at the intersection?

Wang Dapeng, Fuxin's international investment and investment manager, admits that Fuxin has long taken a fancy to the Chinese children's market. "We believe that there will be a burst of growth in the market in the next 3-5 years. Based on this judgement, we have contacted some Chinese children's products companies. Babu bean is one of the best companies we can see."

"There is no doubt that there is a great opportunity for China's clothing industry." Tang Yue, founder partner of China capital in Lanshan, said.

In his view, China as the largest clothing producer, the largest clothing consumer country, the development of the existing garment industry is still in a very chaotic state, or the status of the clothing retail industry, is also in a very chaotic state. Chinese clothing distribution channels still belong to low efficiency.

"We don't know what kind of company will become such a leader in the future, but I believe such a leader will exist, which will inevitably attract all kinds of funds." Tang Yue said.

Because of the strong involvement of external capital, these new business models and market segments have been rapidly ripened. Relying on the traditional mode of self accumulation and development, they are facing more and more challenges.

At present, the integration of garment industry market and capital market is changing the competition pattern and competition mode rapidly. The financing function and resource allocation function of the capital market play an extremely important role in the clothing industry.

With all kinds of external investment, clothing enterprises are frequently throwing out olive branches, and garment enterprises are beginning to see an unprecedented trend. Apparel listing Trend.