Clothing Industry Appears Listed Wind Capital Changes Industry Pattern

For PE, investment is not only the courage to compete, but also a consideration of the ability and vision of selecting projects.

　　 Venture capital in the industry

Starting in 2009, China Garment industry Significant changes have taken place in the development factors, and the transformation and upgrading of industries from passive to conscious. In 2011, the adjustment of China's clothing industry brand layout became a hot spot. Resources integration, capital operation, international cooperation and other means gradually became the brand creation and innovation mode. All these highlights show that China's fashion industry has laid a solid foundation for the construction of the dream of "strong clothing power".

In China, with the continuous introduction of new and high technology and modern management concepts into the garment industry, industrial transformation and upgrading are being carried out, and the continuous innovation of business mode, management mode and marketing means has great room for growth.

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 previous garment industry did not cause enough capital attention, the cost of intervention was very low and the risk was relatively low. Once the capital was involved, the investment would be much higher than that of the high-tech industry. In the same period, the average return rate of the garment industry was about 40 times, while that of the high-tech industry was 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: at the end of 2007, IDG invested in fashion women's clothing brand Yi Fu Xin Yue; in December 31, 2008, Babu bean was invested by 8 million yuan from Fuxin international main investment and Jiangsu hi tech investment group, and in March 2009, Carlyle Asia growth base invested 150 million yuan in Shenzhen's Song Li Si and formed a strategic partner.

In 2009, the sports brand Fujian PEAK group also announced that it had invested nearly three dollars from Sequoia Capital China fund, Jiayin international and Lenovo investment private equity investment institutions of the total of about 60 million. 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 fans, Mcglaughlin and Martha Maso, there are venture capitalists.

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　 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 Asia Growth Fund, Zhu Wen Cai, also said that financial crisis With the extension of the clothing industry, the value advantages of the fashion industry are fully exposed. Carlyle dares to invest heavily in the winter. Besides the good prospects for the enterprise, greater confidence comes from the judgement of the value of the invested 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 in an interview with reporters that investing in PEAK was valued not only by its excellent profitability and rapid growth, but also by PEAK's professional strategy and its future development.

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 a future leader, but I believe such a leader will exist, which will inevitably attract all kinds of funds." Tang Yue said.

　　 Capital changes industry pattern

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 and capital market is rapidly changing the competition pattern and competition mode of the industry, and the financing function of the capital market. Resource allocation The function is most effective in the clothing industry.

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Find value in search, realize value in transaction and create value in competition.

In recent years, bombardment has poured into China's Private Equity Fund (PE), venture capital (VC) and hedge fund (HF), which has strengthened the "Pathfinder" team of China's garment industry. Capital has become a powerful driving force behind the "creative destruction" game of China's economic and commercial mode and industrial order.

Compared with traditional capital operation, the new capital strength 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 compound effect brought by overseas listing also makes more Chinese companies' path and speed to go overseas and internationalize. On the international capital platform, the use of international capital has changed from the once distant dream to the reality of hand.

Now, the traditional natural accumulation mode of growth has begun to give way to the explosive growth mode through capital means.

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