Lining And Other Garment Enterprises Are Helpless.

Li Ning Co and extraordinary China announced separately that the extraordinary China plans to spend HK $1 billion 359 million to buy about 25% of Li Ning Co shares.

The industry believes that

The company's financing action is intended to enter the real estate industry.

In recent years, cross-border textile and garment enterprises entering the real estate industry are mostly like "river crossing crucian carp", but Lining is just a rising star.

Migration of assets

As early as in 2010, Li Ning Co became a shareholder of extraordinary China through a series of equity pactions, acquiring and operating Shenyang's industrial park project through the company.

Since then, Li Ning Co has decided to "anti takeover", Li Ning Co plans to put about 31% stake into the extraordinary China's stranded.

Two years later, Lining moved again.

In recent years, cross-border property has entered the real estate market.

Textile enterprises are mostly like "crucian carp".

In September this year, Semir group and Huarun landed jointly in Wenzhou, and by virtue of its 49% stake in the consortium, Wenzhou Huarun the Mixc became the "two masters".

In addition, YOUNGOR, Shan Shan, Hong Dun, Metersbonwe and other domestic clothing brands are cross-border business for many years.

In 1992, YOUNGOR set foot in real estate. In the mid and late 90s, it was frequently paid high prices in Ningbo, Hangzhou and Suzhou. So far, it has accumulated 3 million square meters of property such as residential, villas, business buildings and so on.

In 2001, the red bean group established red bean home, and now has more than 10 real estate projects in Wuxi, Zhenjiang and Nanjing, covering various types of housing, urban complex, and so on.

According to media reports, in 2009 alone, Metersbonwe spent nearly 1 billion yuan in the six provinces of Zhejiang and Fujian on a large scale "hoarding", and its purchase or long-term lease of shops and stores area of nearly 100 thousand square meters.

According to public information, A share market real estate business clothing companies, mostly in 2000 or so.

In recent years, with the next round of real estate regulation policies, clothing Housing enterprises are slowing down investment in residential real estate, and commercial real estate has become a new capital destination.

With more and more clothing enterprises "involving housing", a new wave of capital movement is being staged.

Cross boundary helplessness

Throughout the past ten years, clothing enterprises have been involved in real estate, and there is a great "escape" helplessness.

It is understood that the decline in operating performance and low profit levels are the hidden worries of the whole garment industry.

According to Semir daily,

Revenue in the first half of the year was 2 billion 511 million yuan, down 17% compared with the same period last year, and net profit decreased by 43% compared with the same period last year.

In the Hurun rich list of 2012, the wealth of the 1000 clothing giants who had entered the list seriously shrank.

Among them, Semir's Qiu Guang and family wealth shrank by 59%, while Metersbonwe's Zhou Chengjian family shrank by 36%.

Hu Run said: "clothing industry too much inventory, sales network can not keep up, and domestic demand is insufficient."

Guo Zengli, director of China shopping center industry information center, believes that most retailers enter the commercial real estate, which is a passive choice.

In recent years, the clothing industry is facing multiple challenges due to its multiple effects.

The continuous rising of rents and the cost of rents in urban core shops are believed to be the driving force of the "new way" for garment enterprises.

According to the global shopping center report released by high latitude global recently, the rental of shopping centers in the Asia Pacific region increased by 2.8% last year.

Independent fashion critic Ma Gang said: "from the purchase of shops, if the price difference between rent and store value is about a dozen times, enterprises will dare to invest."

Semir chairman Qiu Guang and Zeng indicated that 85% of Semir's channel outlets were mainly street shops, 90% of which were mainly rented, and increased proportion of their own property could reduce channel risks.

Actually, the clothing retailing industry and the real estate industry have "natural connection".

Clothing retailers are the most important tenants and buyers of commercial real estate such as shops, shopping malls, and urban complexes.

Ma Gang believes that most of the garment industry's "real estate industry" is based on the development of its own retail business.

Besieged city

Public information shows that YOUNGOR has gradually changed from "rent shop" to "buy shop" and "hoarding" since the 90s of last century.

By the end of 2011, its own shops amounted to 189, accounting for 33% of the total number of Direct stores, with an area of nearly 190 thousand square meters.

It is estimated that in 2012, the company will invest about 1 billion yuan to continue to purchase high-quality shops resources.

However, since last year, there has been news that YOUNGOR's diversification strategy is blocked, and we have to concentrate our resources on the garment industry.

Red bean home this year also reported a double drop in revenues and profits, pulling down the group's report results.

According to the 2012 semi annual report, the main business of Hong Kong's home purchase decreased by 46% compared to the same period last year.

The temptation of real estate to clothing enterprises is like a "Besieged City", with sharp heads and drills, and there is a choice to quit.

However, at present, there is no sign of relaxation in the real estate control policy, and the real estate industry is still at a low ebb tide.