Hai Lan'S Home IPO Lost Its Way: Join The Model To Cause High Debt And Become A Stumbling Block.

In May 11th, the securities and Futures Commission of China Securities Regulatory Commission rejected it. Hai Lan's home The listing application of apparel Limited by Share Ltd (hereinafter referred to as "Hai Lan home"). It is interesting that just two days ago, the announcement of the eighty-second meeting of the Commission in 2012 announced that the Limited by Share Ltd IPO (initial public offering) was adopted.

Similarly, as a well-known brand of domestic clothing retail enterprises, Hai Lan's family has suffered a halt for the first time, and the birds and birds have passed smoothly. Although the listing is not the end of the development of enterprises, but summing up will eventually enlighten.

The cost of beautiful mode

Hai Lan's family failed to pass the meeting this time. Although the SFC did not give any reasons, the industry seemed to have formed a consensus: it was all caused by the pattern.

Indeed, in the 1919 stores of Hai Lan's home, there are 1854 franchises, 63 shopping malls, and only 2 outlets. Over the years, the Hai Lan home, which is based on the "man's Wardrobe", has implemented the nationwide franchise purchase mode.

It is understood that its general line of operation is: the upstream is outsourced to suppliers, making its own brand, supply chain and marketing management. According to the insiders, such a line will bring unprecedented challenges to the management of enterprises. Once the supply chain or any problem arises, it will backlog the stock and affect the development of the brand.

However, Pei Liang, Secretary General of China Chain Store Association, said that this is not the problem of franchising itself. The main reason is that they haven't really done a good job of franchising. This year, several enterprises that highlight the pressure of high inventory pressure are basically the mixed mode of distribution and licensing, and their management methods are relatively extensive.

Of course, the 3 modes of distribution + concession, even distribution, concession and direct operation, are also a current situation of China's current product distribution system, and now it has come to a period of spanformation. Pei Liang said that in order to achieve high efficiency and meticulous management mode, first of all, it is necessary to ensure that the headquarters and terminals are spanparent, rather than the long chain mode between headquarters, regional and franchisees, so that if problems are found, it is too late to solve them.

It was also learned that, according to the established route of Hai Lan's home, the number of shops will increase to 2500 in the short term and the medium-term plan to 3500. Such a growth rate will undoubtedly keep its inventory and liabilities high, and the rapidly expanding franchise will plunge it into a crisis cycle.

And compare its potential competitors. Guirenniao In terms of terminal sales, the "noble bird" aims to enhance the profitability of dealers. It is responsible for monitoring the regional market, guiding and controlling the regional sales behavior of dealers by the customer management center, the channel management center and the commodity operation center. It also provides comprehensive services such as marketing network layout planning, retail terminal location criteria and product display guidance to distributors, so as to help dealers solve practical difficulties so as to enhance the profitability of dealers.

According to the "bird bird" prospectus, the fund-raising fund will be used for the following purposes: national strategic store construction project, shoe production base (Hui Nan) construction, design and research center construction, information construction project and other working capital related to main business. It can be said that the birds have been steady and steady in their own path and gradually entered the new path.

Industry analysts believe that in the next 3 to 5 years, the garment industry will enter a very fast growth stage. If the enterprises do not have enough capital and strength, they will eventually become a small fish eaten. The reason why small and medium-sized clothing brands are listed on the market is to make their own channels stronger as soon as possible, to expand their brands and to gain a firm foothold in fierce competition. But with careful calculation, there are several business models like winning birds.

No wonder, even ran Rong, the investment director, ran Lan also said that from ITAT to Hai Lan's home, it seems that they want to prove that the beautiful mode can make money and forget the feeling of terminal consumers alone.

The challenge of "two high and one low"

In addition to the controversial mode of operation, the high inventory and high liability of the high-end Hai Lan home has also become a "stumbling block" on the IPO road.

According to the prospectus, its profit has been good in the past three years, but at the same time, the assets and liabilities ratio of the enterprise is very high, and the inventory turnover rate is very low. At the end of 2011, the inventory value of Hai Lan's home was 3 billion 860 million yuan, an increase of 2 billion 270 million yuan over the end of 2010, an increase of 134.1%, accounting for 56.82% of the total assets, and some people estimated that the turnover would take 460 days.

The industry experts pointed out that in fact, for Hai Lan's home high-end mode, such stocks are normal. However, the proportion of funds in production turnover is too high compared with the same people who strive to be listed.

Ji Qinchuan, a consultant at IPO consulting, said that Hai Lan's home IPO Failure will make the new projects and scale expansion of enterprises constrained by shortage of funds, making it difficult to achieve leapfrog development. At the same time, the high debt ratio caused by expansion scale may make the company face financial crisis.

Even the "confident" Hai Lan's prospectus also admits that if the market environment changes dramatically or the competition intensifies, inventory sales will slow down or the selling price will fall, which will adversely affect the operation of the company.

According to industry analysis, the success of IPO is also benefited from its sinking channel layout. Compared with Hai Lan's home and most other sports brands, the noble bird has the advantage of marketing network layout in the three or four tier cities.

Statistics show that the number of retail outlets of the birds increased from 1847 at the end of 2009 to 5067 at the end of 2011. By the end of 2011, 90.03% of the company's marketing networks were distributed in two or three and four line cities, and only 9.97% of the shops located in the first tier cities.

At the same time, the noble bird also said that it will seize the historical opportunity to popularize the national fitness program and return the sports to the public life in our country, dig the essence of the life of sports, dig the "sports leisure" as the focus of product development, and create the connotation of "moving happiness" of the brand.

Since the beginning, the brand of the bird has always been located in the public consumption market, and the products are focused on sports and leisure shoes. At present, the great bird has won the favor of the vast number of consumers with its differentiated brand positioning, multi-level and integrated marketing activities. Therefore, compared with the Hai Lan family, the IPO way of the noble bird seems to be more popular.

Core competitiveness is the key.

It is not a case of the failure of the clothing enterprise IPO to say that Hai Lan's home is not. Since last year, IPO, a domestic clothing company, has been repeatedly denied. There are publicly available data. Last year, only 5 out of the 11 proposed IPO clothing enterprises were over, including Shandong, Nanjing, Vigna S, Shanghai, Shanghai, Zhuhai, Zhuhai, Fujian and so on.

But from now on, the low passing rate does not affect the enthusiasm of IPO in clothing enterprises. The industry said that clothing companies are highly enthusiastic about listing, driven by brand upgrades, but enthusiasm alone seems to be difficult to impress the market and regulators.

In recent years, more IPO of garment enterprises can find that one of the main reasons for the failure of IPO is to provide OEM business and lack of independent R & D capability. Clothing companies think IPO is too simple.

Nowadays, the competition in China's garment industry is very fierce. Whether or not it has strong core competitiveness determines the prospect of clothing enterprises to a certain extent.

Huang Gang, general manager of Hansen Century Consulting, believes that the inventory of Hai Lan's home is a representation of problem accumulation. The problems of upstream supply chain coordination, market prediction, information visibility, and management capability of terminal join are all accumulated together, and ultimately, it is manifested in the core competitiveness of their enterprises.

Therefore, the IPO of garment enterprises is hindered, and more is the existence of a series of problems in the profitability, competitiveness and future development trend of enterprises. In addition, the listed clothing companies should design their own investment projects from their management capabilities and resource replication capabilities.

Weiss, chief marketing officer of Kaihua South District, said that there are dozens of domestic enterprises in China preparing for listing, planning to go public and sprint. The expansion of channels without cost becomes the crisis point of these garment enterprises. Once the listing fails or delays, the capital chain fracture is fatal.

Although you have successfully listed, but compared with Anta, XTEP, PEAK and PEAK, there is still a big gap in the business income, profitability and terminal sales strength. The core competitiveness of the company is not obvious. How to break through the market will be an urgent problem.