High Inventory Prevents Enterprises From Listing

High storage test management capability

For enterprises, whether they are

The sales model, or the use of direct store model, is not the fundamental means to reduce its inventory, the root of the problem is the management ability of the enterprise.

Compared with Hai Lan's home, in May 9, 2012, the Limited by Share Ltd, which was approved by the SFC, was much better in inventory.

From 2009 to 2011, the stock amount of the company was 96 million yuan, 147 million yuan and 197 million yuan respectively, and the proportion of the total amount of stock in the total assets was only 10.83%, 10.86% and 10.26% respectively.

In 2011, the listed companies in the clothing industry accounted for only 15.13% of the total assets of the nine Mu Wang (601566, stock bar), while the seven wolves accounted for only 20.11% of the total assets.

From the inventory turnover rate, IPO crashed.

There is also a big gap between the first and the first listed companies that have been approved by the SFC.

From 2009 to 2010, the inventory turnover rate of Hai Lan's household was only 0.79 or 0.88 times. During the same period, the stock turnover rate of nine Mu Wang was 2.08 times and 1.90 times respectively, and the turnover rate of expensive birds was 6.40 times and 8.62 times respectively.

From a certain point of view, the purpose of inventory turnover assessment is to plan and predict the cash flow of the company from a financial point of view, so as to assess the entire company's demand and supply chain operation level.

This is also one of the indicators to evaluate whether a garment enterprise is running smoothly.

For enterprises, whether they adopt the sales mode of franchised stores or the mode of direct shop is not the fundamental way to reduce their inventory. The root of the problem is the management capacity of enterprises.

From 2011 to 2012, women's clothing enterprises accounted for a relatively large proportion of IPO's clothing enterprises, and the women's clothing enterprises that were not identified also mostly focused on direct sales mode.

Although Hai Lan home, which is located in the high-end men's clothing brand, takes a franchise based business model, but its inventory pressure is significantly higher than that of the same industry, and the inventory turnover rate is also significantly lower than the industry average.

In response, Wang Bing, an analyst with the clothing industry of Sun Xin securities, told our reporter that no matter what the enterprise adopts is the sales mode of franchised stores, or the sales mode based on direct shop, the capacity of a clothing enterprise can be fully seen by its inventory level.

Wang Bing believes that clothing enterprises, from design can meet the interests of the target group, to the timely display of related products in front of consumers, and then to the company's brand image, are closely related to the company's management level.

If the management level of the company is high and all links can be carried out according to the plan, the sales of the company will not be a big problem, and the inventory problem of the company will be solved.

Conversely, if there are problems in the links, there will be a lot of unsalable products, and the pressure of inventory will follow.

Southwest Securities (600369, stock bar) Su Jianguo, general manager of Chengdu investment bank, told reporters that inventory is too high, inventory turnover is low, that is, poor inventory liquidity, resulting in continuous profitability is difficult to judge, this is also the main reason why Hai Lan's home IPO crashed.

For part

Because of the high inventory problem that has not been approved by the SFC, Wu Jianmin, chairman of Shu Lang, told our reporter that the CSRC audited the garment enterprises to IPO, which mainly depends on inventory and inventory turnover.

For the fast developing stage of garment enterprises, the index that can accurately reflect the healthy development of enterprises is whether the expansion speed of the store is matched with the increase of business income. If an enterprise's business revenue growth can correspond to the speed of the expansion of the shop, it shows that the development of the enterprise is in a relatively healthy state.

Franchised stores have large capacity to digest inventory.

Although the franchisee has a good ability to "digest" inventory, it can not reflect inventory in the financial data of enterprises, but the inventory pressure of Hai Lan's home is still very large.

According to the statistics of the reporters, from 2011 to the first half of 2012, the 7 enterprises in the clothing enterprises IPO which were not examined by the SFC, sulang shares, Vigna S fashion Limited by Share Ltd ("Vig Nash"), Zhuhai Wiseman dress Limited by Share Ltd ("Wieman"), and ladies' houses were all women's clothing enterprises, accounting for 57.14% of the garment enterprises' IPO failure rate.

Su Jianguo also told reporters.

Because of the strong seasonality and the different preferences of women in different places, the inventory pressure is relatively high relative to men's wear and sportswear subdivision industry.

From the point of view of sales mode, three of the above four women's clothing enterprises are mainly direct sales outlets.

Through related channels, the reporter learned that Hai Lan's home sells products to its customers through franchised stores, shopping malls and direct stores, among which the franchisee is the main sales channel of the company.

As of December 31, 2011, the "Hai Lan home" marketing network consisted of 1854 franchised stores, 63 shopping malls and 2 Direct stores. More than 90% of the sales revenue of the company's stores came from franchisees.

Although the franchisee has a good ability to "digest" inventory, it can not reflect inventory in the financial data of enterprises, but the inventory pressure of Hai Lan's home is still very large.

"Under the same circumstances, only selling products to consumers can they be sold out, not counting in stock."

Wang Bing told our reporter that the franchised businesses only need to sell their products to the franchisees, regardless of whether the products have been sold to consumers, even if the goods sold to the franchisees are not sold to consumers, this part of the products will not be included in the company's inventory.

Because the volume of goods to franchisees is large, the higher the proportion of the number of franchisees in the total store is, the less it is reflected in the inventory of enterprises, and the higher the number of Direct stores, the higher the inventory rate of enterprises.

In August 2011, the women's clothing firm 002612.SZ shares the number of self operated stores in 002612 (109 shares), and the number of outlets at the terminal level was 308, and the proportion of self owned stores to sales terminals was 35.39%.

In the actual sale, the group agreed with the distributor in the special sale agreement. After the end of the season, the dealer could only exchange a certain proportion of the off-season goods for the next season, so the dealer was more cautious in stocking and stocking, which was the main reason for the store's stock being lower than the self store.

A brokerage analyst in Shanghai pointed out that the stock pressure of the shares belonging to the women's clothing industry was significantly smaller than that of other women's clothing enterprises, because its franchised stores had "digested" many stock of the company.

An investment bank in Beijing told reporters that the number of franchised stores was higher than that of self owned stores, and that the company had agreed on a replacement rate in the special sale agreement. Therefore, most of the stocks in the franchised stores had not been returned to the company, and to a certain extent, the company's inventory pressure had been displaced.