2012 Domestic Menswear Enterprises Challenge Capital Market

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Behind the fact that companies are seeking to go public is the fact that competition is becoming more and more serious in this field.

With many international brands and large domestic garment enterprises eyeing China's men's wear market, this kind of competition is not only confined to a single aspect such as brand, price, channel, capital and so on, but is increasingly reflected in the competition of overall strength.

Under such circumstances, it is necessary to widen the gap and get the opportunity to develop.

Embracing capital and actively listing is the only way for garment enterprises to seek greater development at a certain stage. It is also an effective way for a mature garment enterprise to implement capital strategy.

With the involvement of a new round of capital strength, the competition pattern of men's clothing industry may change again.

For most of the first-line men's clothing brands that are currently operating at a scale of 23 billion, brand influence and channel coverage, the listing is just like a new starting line.

Only if we get the qualification first, can we lead the race ahead.

However, in a sense, listing is only an admission ticket.

In the face of more complex internal management, channel sinking and resource replication capabilities after the listing, how should local clothing brands respond? Whether the hot market can spawn local Giorgio Armani and piercardan still need time to test.

Listing non endpoint

Once upon a time, yes.

Passion was once considered a woman's patent.

But today's taste men, especially most of the career elites, are becoming more and more concerned about their own image.

Compared to female clothing consumption impulsive, relatively small amount, lack of loyalty and other characteristics, men's consumption of fashion, brand and quality, more care about temperament and taste fit, and not sensitive to price - for enterprises, this is the most critical.

Data show that in 2009, the total retail sales of men's clothing in the business men's clothing market was about 206 billion 780 million yuan, and in 2010, it had exceeded 230 billion yuan, far exceeding the market performance of brand women's clothing.

As a piece of land which is relatively good in the growth and development environment of the garment industry, the prospect of business men's wear has aroused the hot concern of capital.

In 2011, the retail sales of the men's clothing market in China had reached 390 billion yuan.

However, this is still a semi barren place in competition.

Data show that in 2009, the largest number of five men's clothing companies listed on retail sales accounted for no more than 10% of the total market share, and less than 5% of the industry's top three, and only 2.16% of China's leading companies in the industry.

The problem of low brand awareness, single category, serious homogenization competition is very prominent. In contrast, most of the international men's wear market has been concentrated in the hands of less than ten big brands such as BOSS, Giorgio Armani, CK, Hermes, Dior and GUCCI.

For a long time, China's men's clothing brands and even the entire garment industry's homogenization competition is very intense.

Since 2010, driven by rising costs and brand upgrading, men's clothing enterprises have been experiencing unprecedented enthusiasm for listing.

But enthusiasm alone seems difficult to impress the market and regulators.

The dream of listing, such as Jin Ba, Qipai, and odd, has repeatedly shown that the mens brand still needs training.

The purpose of men's wear brand's listing is to strengthen their channels as soon as possible, make the brand bigger and take a firm foothold in the fierce competition.

But for the current situation, many companies do not have the core competitiveness of listed companies, and also lack the stamina of sustained growth of performance.

Among them, the decline in inventory turnover and the lack of core competitiveness have become a stumbling block for many garment enterprises.

Due to the rapid decline of inventory turnover, directly increased the sales risk and financial risk of enterprises, which also led to the biggest challenge for garment enterprises IPO.

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The reason is that the traditional business mode of "production outsourcing + Direct stores and franchisees" has led to the weakness of R & D design capability, marketing channel construction and management capability of enterprises.

In the whole garment industry, the brand clothing enterprises in the retail terminal link have the largest profit margins, and their profitability, cost pfer ability and risk resistance ability are the strongest.

But in the process of building marketing channels, there is a lack of comprehensive trade-off between speed and efficiency.

The rapid construction of the channel leads to the tight chain of the capital chain, and the profitability of the single store has yet to be improved.

For listed men's clothing enterprises, their management ability and resource replication ability will become the two pulse to decide whether IPO can succeed.

At the same time, domestic growth is still in progress.

External competition is also becoming increasingly severe. With the continuous segmentation of the market, the competitive pressure from domestic and foreign competitive brands will continue to increase.

How will China's men's wear brands cope with such a situation? Can the hot market spawn local Giorgio Armani and Pierre Cardin?

Under the pressure of rising cost and tight external market, the overall performance of China's garment industry in 2011 is not ideal: its performance decline, inventory is serious, and management team shocks occur frequently.

Under such circumstances, the clothing industry has also become the 2011 IPO application will be severely affected: 11 A IPO IPO applications will be garment enterprises, 6 were not, the rate will be only 45%.

However, in March 28th, the Limited by Share Ltd of Guangzhou's card slave Road, which positioned high-end men's clothing, was listed on the Shenzhen Stock Exchange successfully. In the background of the setback of the whole industry, it brought a bright color to the garment industry.

As a matter of fact, as a relatively good growth and development environment in the clothing industry, the prospect of business men's wear has long attracted the attention of all parties.

According to statistics, in 2009, the total retail sales of men's clothing in China exceeded the US for the first time, reaching 206 billion 780 million yuan, and exceeded 390 billion yuan in 2011, far exceeding the market performance of branded women's clothing.

A research report released by Sullivan, a famous American consulting firm in 2011, also confirms this view: in 2008, the total retail sales of men's clothing market in China was about 260 billion yuan. In 2010, it has expanded to 348 billion yuan in just two years, and it is expected to continue to maintain a stable development trend in the future, and will continue to grow at a compound growth rate of 16.9%. By 2015, its market value will probably be doubled on the basis of 2010 and over 700 billion yuan.

An irresistible temptation

"Money scene" is a bright Chinese men's wear market, which has attracted the "Princes" competing for food.

Not long ago, there was news that Italy luxury brand Ermenegildo Zegna (Zegna) was going to be listed in Hong Kong. At the same time, the French PPR group also expressed the intention to acquire a Chinese brand with its own characteristics. Before that, Hugo Boss, Burberry,

Dunhill and other brands have taken a firm foothold in China's men's wear market.

By the end of 2011, the top 20 men's clothing brands in the world have all landed in the Chinese market. Under the background of the continuous warming of the domestic market demand, the Chinese men's wear market has become the international brand competition.

Not only are the major international men's wear brands competing, but domestic clothing companies also show unprecedented enthusiasm.

In fact, domestic clothing enterprises have been looking for new profit growth points due to adverse factors such as raw material price instability and RMB appreciation.

Among them, they all chose to wear men's clothing.

The Shandong Dai Yin Textile Group, which built Renault brand, is an example.

In the words of its chairman Zhao Huanchen, "business casual men's clothing has quickly become one of the most dynamic plates in the market with the change of consumer dress concept and the improvement of consumption ability. Therefore, business casual men's wear is attractive and the market scale will continue to expand.

We are launching the Renault brand based on this situation.

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In addition, the bright money scene of men's clothing industry has also led many large garment enterprises positioned in diversified businesses to return to their main businesses.

The most typical of these is YOUNGOR.

Similar to most garment enterprises, YOUNGOR's life in 2011 was extremely difficult.

The real estate industry has encountered severe regulation and control. In the field of financial investment, the depression of capital market is also a great blow to YOUNGOR, who has huge financial assets.

When the "fast money" channel is blocked, returning to the main business has become the only choice for similar enterprises in YOUNGOR.

At the beginning of this year, the world's largest flagship store, which invested 450 million yuan and built a floor area of more than 10 thousand square meters, settled in Hangzhou's Wulin business circle, marking the beginning of YOUNGOR's return to the main business of men's clothing.

In the background of continuous fever in the domestic market, many domestic men's wear brands have begun to participate in international competition with more proactive attitude.

The landmark event is the acquisition of Hangzhou Kenna by seven wolves.

In March 29, 2011, at the China International Clothing Fair, the seven wolves announced the purchase of Hangzhou Kenna Garments Co., Ltd. to create an international luxury brand agent platform for entering the Chinese market.

The acquisition, the seven wolves won the Connally (Canali) and Versace collection (Versace) agency business in mainland China, greatly enhanced its voice and attractiveness in the international brand agency.

Listing contest

The market continues to be hot. In the field of capital market, more and more men's clothing enterprises begin to seek listing.

Data show that in 2011 alone, 11 clothing enterprises IPO applied for the meeting. Although the passing rate was only 45%, it still can not stop the enthusiasm of the clothing enterprises to go up. As of January 31, 2012, the clothing industry has already been listed in Zhejiang Georges white dress, Jiangsu AB group, Jiangsu cloud bat dress, Ningbo Kaixin dress, noble bird, Shanghai La Natsu Bell dress, Hai Lan home dress and Kun NDI Road 8 garment enterprises queuing up.

Among them, the clothing of Guangzhou's card road has landed on the small and medium-sized board in February 28, 2012. The Kaixin clothing of Ningbo and Shanghai La Natsu Bell dress are in the initial stage of trial, and the rest are implementing feedback.

The successful listing of card slave road is a great dose of hope for all prospective Enze investors in the capital market and men's clothing companies to be listed.

Among them, the most inspiring thing is nothing more than a Guangdong men's clothing company that has a same door with Kennedy Road.

In fact, over the past two years, a number of men's clothing enterprises in Guangzhou have been in contact with securities dealers' institutions and capital strength.

As early as in November 2010, Changxin International (Guangdong V.E.DELURE, a leading player in the menswear brand in Changxin), successfully landed in the HKEx with its two men's wear brands, Denton Di Lai and Testantin iron lion. With the promotion of the successful listing of the card slave Road, the listing enthusiasm of menswear Enterprises rose again.

According to the blue Institute of international finance and securities, the number of Guangdong men's clothing brands entering the capital market will not be less than 10 in the next 5 years.

In addition to Guangdong, Fujian men's clothing business listing impulse is more intense.

In fact, many years ago, a lot of Fujian Style Men's clothing enterprises have been looking for help from the capital market, many of which are sprinting IPO's powerful, seven, and odd.

These "Jinjiang faction", which has long awaited the capital market, will definitely not miss this round of listing boom.

With the involvement of a new round of capital strength, the competition pattern of men's clothing industry may change again.

Many years ago, YOUNGOR, Shanshan and other enterprises were by listing, opened up the gap with other local enterprises, quickly formed its position and influence in the national garment industry, and in the next ten years, with the power of capital, sustained efforts to form the leading position today.

Including Shanshan's "multi brand" camp, YOUNGOR's "integration" industrial chain.

And in stark contrast, the other garment enterprises in Zhejiang started at the same time, but because of their lack of development, their gap was widening. Some of them even abandoned their own brand building and returned to the OEM stage.

For most of the first-line men's clothing brands that are currently operating at a scale of 23 billion, brand influence and channel coverage, the listing is just like a new starting line.

Only if we get the qualification first, can we lead the race ahead.

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Post market competition

Behind the domestic men's clothing enterprises seeking to go public, the competition situation in this field is becoming more and more serious.

With many international brands and large domestic garment enterprises eyeing China's men's wear market, this kind of competition is not only confined to a single aspect such as brand, price, channel, capital and so on, but is increasingly reflected in the competition of overall strength.

The overall strength must be backed up by solid capital.

Under such circumstances, it is necessary to widen the gap and get the opportunity to develop.

Embracing capital and actively listing is the only way for garment enterprises to seek greater development at a certain stage. It is also an effective way for a mature garment enterprise to implement capital strategy.

However, in a sense, the listing is just a ticket to participate in the competition of men's wear market.

What the future depends on still depends on many factors.

From the experience of the listed men's clothing enterprises and the information disclosed by the prospective listed companies, it is the only choice for the major brands to get through the marketing channel and strengthen the channel construction.

In fact, the main purpose of most public enterprises to raise public funds is to increase the marketing network of store expansion.

Whether it is the seven wolves, the lucky couple, the good news birds, and the newly listed card slave Road, the funds raised by IPO are mainly used in the expansion marketing channels.

Among them, a very obvious trend is that two or three, even three or four line cities have gradually become the focus of channel construction.

In fact, as the domestic market continues to heat up, the saturation of the domestic front-line market and the gradual increase of business costs make more enterprises turn to the two or three line market, which is also regarded as a new market growth point for enterprises.

On the other hand, the huge consumption potential released by the two or three line market in recent years has made many brands eager to try.

With the channel sinking becoming the same choice for garment enterprises, while continuing to consolidate the advantages of the first line market, men's brand competition for the two or three tier market will become increasingly fierce.

In this regard, industry experts also predict that with the advent of the new consumption era, the rapid pformation of men's clothing enterprises and brand upgrading through innovative marketing methods will greatly enhance the market competitiveness of domestic men's wear brands.

In the future, this region will become a domestic brand.

The main battlefield of close combat.