Xu Tingyu Explains The Way Of Running Women'S Shoes.

Thousands of International Holdings Limited (hereinafter referred to as "thousand degrees international") has become China's second largest middle and high-end clothing and casual shoes retailers. Its brands, such as "100 billion", "Iran", "fan Ou", "Sun Dance" and "Mio", are also sold through authorized brand "Na ran". Among them, the "thousand hundred" brand is ranked fourth in China's middle and high-end women's shoes Market in terms of its retail revenue in 2011.

Since its launch in 1995, the first brand has been ranked "the second in the industry" to the success of the industry. It is only one step away from the first step, but it is not urgent to catch up with it. CFO Xu Tingyu emphasized that "our business strategy is not to compete with the industry leader BELLE international, but to stabilize its second position and steadily increase its market share."

　　 The second Philosophy

Xu Tingyu has always emphasized China's Women's Shoes The market is very characteristic. In large shopping malls, the size and income of women's shoes are second only to clothing. At present, the top brand of the high-end shoes Market in China is BELLE group. In 2011, BELLE group occupied 50.4% of the high-end footwear market in the whole country, while the international market share was 7.4%. The market share in 2012 was expected to be around 8%, while the third and fourth shoe group's market share was around 3% or 4%.

In the face of the pattern of China's high-end footwear market, Xu Tingyu stressed: "our competitive strategy is to expand our market share based on our own development, and to acquire some new brands through absorption and merger, to form our richer product line, and strive to achieve a market share of over two digits in the next 3~5 years and become a real market second."

Does it mean that the international market is going to enter the low-end women's shoes market? Xu Tingyu denied this judgment. "The millennium will still be based on the high-end shoes market. We are rich in product lines, and we hope to introduce or create real high-end women's shoes."

In recent years, China's ladies leather shoes market has experienced a sustained and rapid development stage. According to the survey of 270 major shopping malls in China, the annual compound growth rate of sales and sales of brand ladies leather shoes is 15.54% and 39.19% respectively over the past five years, far exceeding the average growth rate of retail industry and the growth rate of footwear industry consumption.

Many industries such as leather goods, bags, sunglasses and so on are dominated by international brands. China's high-end women's shoes market is still the world of domestic brands. Xu Tingyu explained, "the market concentration of China's high-end women's shoes market is very high, and the basic market is dominated by domestic brands, mainly because the market model of China's footwear industry is quite different from that of the European and American markets. In Europe and the United States, the shoe industry's sales model is that shopping malls buy goods and sell them to consumers, which is very similar to the domestic supermarket mode. However, in China, the sales mode is the shoe brand in the supermarket rental counters, self marketing (or through distributors).

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In addition, the styles of women's shoes are varied and fast. In a year, there will be many products such as spring and summer, Xia Qiukuan, autumn and winter. The European and American footwear industry is divided into two seasons, one is spring and summer, the other is autumn and winter. And from the point of supply, European and American brands even have production lines in China, and the logistics base is also in Hongkong, so that the turnover time in the new market has lagged behind.

Moreover, for the hot selling styles, the speed of foreign brands replenishment is slower than domestic brands. Take 1000 international as an example, it operates three production facilities in Nanjing, Dongguan and Suining, and a R & D center in Foshan. The whole shoe group has design capacity of 2000 to 2400 SKU products per private brand annually.

Of course, even if such a market "natural barrier" makes the domestic women's shoes brand has a good development environment, but to stabilize the market position is not easy.

From 1996 to 2006, about 10 years ago, China's women's shoes market had undergone a period of rapid development and integration. In the 10 years, the most eye-catching development was BELLE group. They quickly followed the pace of development, and established their shoes industry's status.

　　 Xu Ting Yu There is no hesitation about the future prediction. "After 2006, the Chinese women's shoes market will enter an integration period. It will eliminate some small businesses and small brands like the ebb tide. The high-end shoes market will be more concentrated, and the channels and the market will be occupied by a few brands. It will be very difficult for other small businesses to enter again."

　　 Circular motion of capital

In September 23, 2011, the Millennium board was listed on the main board of the stock exchange of Hongkong. So far, the three leading women's shoes giants (BELLE, 5.95,0.00,0.00%) have officially entered the capital market, and the industry has also concluded that the competition for Chinese women's shoes market will become more intense in the future. "()

In fact, it was listed in Singapore in 2003, and the listing is also the most important task at the beginning of Xu Tingyu's accession. Xu Tingyu, who joined the company as chief financial officer in 2002, has experienced "rich" in the 11 years of joining the company. He has gone through the company's listing in Singapore's main board in 2003, privatization in 2010 and 2011's listing in Hongkong's main board. This series of "advance and retreat" is a very challenging process for Xu Tingyu.

For the Millennium International, whether it was the initial Singapore listing or the subsequent listing of Hongkong is an arduous process. In the process of listing in Singapore, the capital market was affected by the "SAS" virus. After making great efforts to overcome this effect, the company successfully became the first company to enter the Singapore main board market after the "SAS" virus. It was also the first overseas listing enterprise in Jiangsu province. In 2011, Hongkong was hit by the global financial crisis at the stage of listing, and the market was in a slump and the issuing difficulties were difficult. However, the company maintained its success and landed on the main board of the Hongkong successfully. "Thousands of labor, eventually, can be said to confirm the company's two listing process."

Singapore's capital market is very strict on the delisting of listed companies, requiring at least 90% of the shareholders to agree to the delisting price before allowing the delisting. In the process of privatization in Singapore in 2010, it did not invest through PE. Instead, it relied on the power of controlling shareholders and companies to complete privatization. "It also makes me feel that cooperation with foreign financial institutions is particularly important."

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Speaking of why Xu Tingyu was removed from Singapore, he said that a reasonable price earnings ratio was a major reason. "Singapore's market capacity is not large and its trading is not active, so we gave up the Singapore market decisively and turned to a more suitable Hongkong capital market." In the new Garbo capital market, there are few listed companies for daily consumer goods in China, and the market has never given a reasonable price earnings ratio to the listed companies of China's daily consumer goods. The price earnings ratio at that time in the Singapore market is only 6~9 times, that is to say, it has basically lost the ability to refinance in the Singapore capital market. In contrast, Hongkong's capital market, not only many mainland consumer goods companies are listed in Hongkong, but also the Hongkong market has a high degree of recognition for such enterprises, and the average price earnings ratio in 2010 is more than 20 times.

Xu Tingyu emphasized that listing is the baptism of an enterprise from its management capability to its operation and capital capability, but the choice of which market to go public must be closely related to the market environment and the "character" of the capital market.

Xu Tingyu, who has experienced the whole capital circle movement of "listing privatization and re listing", thinks that summarizing experience and accumulating constantly is a necessary process. "In the process of listing and delisting in the entire overseas market, I think that as a qualified CFO, we should first have an international vision and a wealth of financial and accounting knowledge. When we listed in Singapore, we adopted the Singapore accounting standards. When we listed in Hongkong, we adopted the international accounting standards and the Chinese accounting standards used in China. There are some differences between the different accounting standards.

As CFO, we should understand, master and apply different criteria to ensure the accuracy of accounting information disclosure. Secondly, all capital operations are based on the company's basic financial management. If the accounting foundation is not reliable and the financial management is lagging behind, it will be difficult in the process of listing, directly affecting whether it can be listed. Even after the listing, it will still face great pressure.

In addition, Xu Tingyu insisted on reasonable market value management. On the one hand, he should reasonably weigh the interests of controlling shareholders and small shareholders. On the other hand, he should not blindly ask for high price earnings ratio regardless of market conditions. "In the maintenance of investor relations, we are always in the spirit of being bigger and stronger, and actively returning the mentality of shareholders, and moving forward together with investors and shareholders."

　　 Good people help each other

In June 2012, Thousands times The three investment funds CVC, CCC and Mousse managed by Liang Botao, the father of red chip, were introduced internationally. It is understood that CVC invested in the company by China Champion Holdings Limited. The company is an investment vehicle wholly owned by CVC Asia Pacific Limited's Fund.

CCC, a China Consumer Capital Partners Ltd. management company, concentrates on Chinese customer / retail investment, has rich domestic and foreign industry resources and investment experience, and is good at bringing strategic value to Target Corp. The convertible bonds issued by CCC, CVC and Mousse respectively subscribe to the convertible bonds with a total value of 189024450 yuan. They subscribed separately 18902445 yuan (equivalent to 9687600 shares), 138617930 yuan (equivalent to 71042400 shares) and 31504075 yuan (16146000 shares) of convertible bonds, for a period of four years, with a preliminary exchange rate of HK $2.4 per share.

After the delisting of the company in 2010, the company is preparing to list in Hongkong, that is, in the process of getting acquainted with the executive director of CCC. "After investigation and consultation, they have the intention to enter PE to Hongkong. After deliberation, in the middle of 2012, the two sides formally reached a cooperation agreement."

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For the introduction of strategic investors, Xu Tingyu believes that this is a "step up" opportunity for the company. "CVC bought Samsonite bags in 2008 and 2009. After several years of integrated operation, Samsonite has also been listed successfully in the Hongkong capital market. The introduction of such strategic investors is very helpful for us to expand new brands and expand market share."

The international fund will be used as the fund for future strategic development and business capital, and will continue to focus on the development of the Chinese market and speed up the consideration of the introduction of the international two or three line shoes brand in the mainland.

At present, thousands of international are actively brewing their own acquisition plan, and in 2012 throughout the year are looking for suitable acquisition brand. For the acquisition of two or three domestic brands, the company has its own choice standard. Xu Tingyu told us: "we will choose some regional brand of women's shoes, and have a certain market visibility and a certain sales scale in a certain area of our country. The annual sales volume will be around one hundred million or two hundred million yuan. These brands already have relatively mature market channels and brand awareness in their territories, but it is not enough to expand the operation capacity of the peripheral market. After the acquisition, it can first help expand the brand through its own sales channels in the whole country. At the same time, the market channel that the brand is still forming in its territory will help other brands to enter, which is the power of resource integration. In addition, the company has also scanned its eyes on some mature national women's shoes brands. These brands are often better in positioning and design of the brand itself, but only because the brand's operation capacity is not enough, it leads to sales turnover and profitability.

In the acquisition of international brands, the international brand of the two or three tier brands is valued more. In the mainland, the main products are the high-end ladies' shoes. The main selling price is between 600 yuan and 800 yuan. In the future, we hope to develop a more high-end brand. Therefore, we consider introducing the international two or three line brand with retail price ranging from 1500 yuan to 3500 yuan.

　　 Lean Finance

"There is no doubt that with the development of China's economy and the acceleration of urbanization. The market potential of China's high-end women's shoes is huge, and the market share will be concentrated on the well-known shoe companies already existing in China. For the future trend of women's shoes market, Xu Tingyu believes that the market trend is very clear.

It sells its own products and licensed brand products to department stores retail stores and independent retail outlets in 123 tier cities in China. It also sells its own brand products to its licensed distributors. At present, the number of shops has reached 2000 or so. At the same time, they export products to the international footwear companies by OEM or ODM.

In the increasingly fierce competition for women's shoes, the improvement of financial management is an essential task. As the footwear industry is traditional manufacturing, plus retail, the international financial management is more complex. Therefore, Xu Tingyu has the following points in financial management. First of all, the mode of vertical centralized management of headquarters in financial management is implemented. The financial personnel of subsidiaries, branches and offices under the company are centralized centrally managed by the headquarters financial center. Secondly, the IT department is brought into the financial management system and is exercised by CFO.

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Much of the retail business relies on the business information system (PS), which strengthens the management of the business information system, improves the efficiency of the company's business operation, and directly improves the financial management level of the company. Xu Tingyu introduced, "we are also actively developing and applying the new system. The company has used the accounting system, the business information system, the financial budget system, the human resource management system, the OA system and the internal communication system, laying a solid foundation for the healthy development of the company."

"Meticulous management is the cornerstone of financial work, and also a solid foundation for the healthy and long-term development of the company." Xu Tingyu emphasized that the lean management of finance has always been the focus of everyday financial management, mainly reflected in the refinement of accounting and the refinement of management. The finer accounting is mainly reflected in the calculation of benefits to stores, sales indicators to shop assistants, cost indicators to a single section, to ensure profit and loss data, analysis support, can provide strong support for company management; and management refinement is mainly reflected in cost control and control, ordering replenishment science, accounts receivable follow up in time, inventory management in place, cash flow management daily. "As we have been listed in the overseas market, we attach great importance to internal audit. In the process of listing in Singapore, we set up an internal audit department to strengthen the supervision of the company's daily management and financial management. At present, this department is still the core Department of the company, accepting the leadership of the company's audit committee, and the internal audit department has promoted the improvement of the company's financial management level.

In the face of the problem of inventory turnover prevailing in the consumer goods industry, Xu Tingyu said, "the daily consumer goods industry requires relatively high inventory management. This is also one of my main concerns. Inventory turnover directly affects our operational efficiency and efficiency of capital use. At present, our inventory turnover is about 230 days, and the ideal number of inventory turnover days we want to achieve should be around 200 days." Xu Tingyu shared some management skills to reduce inventory turnover, such as controlling the first quantity of orders, and controlling the first quantity to 50% of the order quantity. The remaining 50% was replenishment by the later stage, while the replenishment speed was increased (within 30 days), which effectively reduced the turnover days of inventory.

"In fact, through the improvement of the overall supply chain system, we can make it more efficient." The inventory turnover capacity of enterprises is not only related to the management capacity of enterprises, but also determines the development cycle of enterprises. Xu Tingyu said, "when the enterprise is in its development stage, this means that more brands will be developed, more shops will be laid up, and the stock will naturally become more; and when the enterprises are in a stable period, the number of stores will be stable and the operation will be stable, so the number of days of inventory turnover will naturally decrease. We are now in a period of development. It is gratifying to note that our current inventory turnover is relatively good.