Interpretation Of Rich Birds' Diversified Business Expansion

< p > shoes and men's brand 01819.HK is listed on the main board of HKEx in December 20, 2013.

Its offering price per share is HK $8.81, and its net capital raising is about HK $1 billion 90 million. It has become another enterprise after Quanzhou's CABBEEN shoe and clothing plate went to Hong Kong.

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< p > according to the prospectus, HK $638 million (60%) is used to maintain and expand existing sales channels; HK $266 million (25%) is used for overseas expansion, including the establishment and development of overseas sales channels, global sourcing raw materials, potential strategic acquisitions and promotion and advertising in the international market; 106 million Hong Kong dollars (10%) are used to purchase relevant electronic equipment and software to improve and enhance information systems; 53 million Hong Kong dollars (5%) are used for operational capital and other general corporate purposes.

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< p > the listing of rich birds can be described as "going back and forth".

In 2010, it originally planned to invest in Hong Kong stock IPO.

In 2012, it turned to A share market. However, after the A IPO suspension and financial verification began, the birds in the queue did not submit their financial self-report and withdrew their materials in May 31, 2013.

In the end, it was pferred from A shares to H-share IPO.

Moreover, the current H-share policy will not be closed until now. It only goes to Hong Kong in the form of ordinary H-shares, and its domestic stocks can not be converted into H shares to achieve full circulation.

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< p > the issuing shares of rich birds are divided into two kinds, namely domestic stocks and H-shares. The strategic investors hold 48 million 800 thousand shares of domestic stocks, accounting for 8.82%; 351 million 200 thousand shares of H-shares converted from unlisted foreign shares account for 63.47%, and public H-shares account for 27.71%.

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"P," said Lin Ping, chairman and executive director of fortune bird, "the successful listing of birds of fortune" marks an important milestone for the company and has taken a big step in the international capital market to help the company's business development.

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< p > < strong > footwear products account for about 80% of total revenue < /strong > /p >

"P >" is one of the main shoe manufacturers and retailers in China. The main business includes the design, manufacture and retail of men's shoes and women's shoes. The business is divided into three parts: formal shoes, business casual shoes and sports casual shoes.

It is also a well-known domestic business leisure men's wear and leather accessories.

Its brands include the main brand "rich birds" and FGN, AnyWalk, the three accounts for more than 80% of the total revenue.

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< p > according to survey data of Sullivan, a world-renowned consulting firm, as of December 31, 2012, fortune bird is China's third largest brand of business casual footwear manufacturer and the six largest brand men's shoes and women's shoes manufacturers, accounting for 4.1% and 2.3% of the market share respectively.

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< p > one of the founders of the birds is Lin Ping.

He dropped out of school in 1984 because of family difficulties. In 1984, their 19 cousins raised 40 thousand yuan to establish the predecessor of the rich bird group, a tourist souvenir factory.

Other cousins were not optimistic about the development prospects of the factory.

In 1989, the plant was reorganized, with only four shareholders left by Lin Ping, Lin and lion, Lin Ronghe and Lin Guoqiang. The company also shifted from the production of artificial leather sandals and slippers to the production of leather casual shoes.

In 1991, the factory was renamed the Shishi Fulin shoes industry Co., Ltd., and the same year it was founded.

In 1992, the lucky bird group was founded.

In 1995, the company began producing men's leather shoes.

In 1997, the production line extended to the production of women's shoes.

In addition, Lin Rong Zhou, a cousin, founded the brand of business casual shoes, "Mu Linsen". Lin Zhengrong, who belonged to Lin's family, founded auspicious birds.

In Shishi, three enterprises are known as "the three largest birds."

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From P to 2000, the company also began to carry out OEM processing or design OEM for foreign shoe brands. Its main customers are BLONDO, COVANI and CONNI.

At present, its overseas processing business has been extended from women's shoes to men's shoes, but also for the famous brand of men's shoes, processing business accounts for about 15.2% of its total revenue.

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< p > as of June 30, 2013, fortune bird has 3195 retail outlets and 60 distributors in 31 provinces, autonomous regions and municipalities directly under the central government.

Among them, there are 1259 distributors, third retail outlets, and 234 Direct stores (mainly in the first tier cities).

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< p > 2010, the total turnover of rich birds was 1 billion 70 million yuan; in 2011, it was 1 billion 652 million yuan, an increase of 54.39% over the same period last year.

In 2012, its total turnover was 1 billion 932 million yuan, an increase of 16.95% over the same period last year. According to the category, the turnover of footwear products was 1 billion 500 million yuan, an increase of 9.22% over the previous year, accounting for 77.7% of the total turnover. The turnover of men's shoes was 509 million yuan, accounting for 26.4% of the total turnover; the turnover of women's shoes was 991 million 300 thousand yuan, accounting for 51.3% of the total turnover.

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< p > in the first half of 2013, its total turnover was 1 billion 84 million 400 thousand yuan, an increase of 20.07% over the same period last year.

The sales volume of footwear products increased significantly, to 875 million yuan, an increase of 26.56% over the same period last year. The turnover of men's shoes was 301 million yuan, an increase of 17.5% compared with the same period last year. The turnover of women's shoes was 573 million yuan, an increase of 31.92% over the same period last year.

In the three quarter, its turnover was 473 million 400 thousand yuan, and the increase in performance was mainly due to the increase in sales of self owned stores and the increase in unit price of products compared with the same period in 2012, with a gross profit of 187 million 500 thousand yuan during the period.

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< p > gross margin, the gross profit margin in 2010 was 26.4%, 31% in 2011, 33.8% in 2012, 38.6% in the first half of 2013 and 39.6% in the three quarter.

The company forecasts that as at the end of December 2013, the company's net profit will not be less than about 403 million yuan.

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If P makes a comparison, BELLE international and Saturday will take women's shoes as the core. If BELLE acquired a leading shoemaking company in the world a few years ago, the contribution of men's shoes to the overall performance is limited in the past few years because of the lack of integration in.

AOKANG International's product line is more like the rich bird.

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< p > although the overall size of AOKANG is more than an order of magnitude (3 billion 455 million yuan in 2012 and a net profit of 513 million yuan), it has started with men's shoes, and the current men's shoes still play a decisive role in the whole shoe business.

Later extended to the category of women's shoes, and gradually developed and expanded.

Besides, shoes and shoes for men and women both have processing business.

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< p > in the first half of 2013, AOKANG International's main business income was 1 billion 479 million 500 thousand yuan, of which men's shoes earned 749 million yuan, accounting for 50.6%; women's shoes earned 605 million yuan, accounting for 40.89%; and OEM business income of 121 million yuan.

However, in the first half of this year, AOKANG International's performance declined twice, with a total revenue of 1 billion 493 million yuan, down 7.79% compared to the same period last year, and net profit of 213 million yuan, down 17.43% compared with the same period last year.

Among them, the revenue of men's shoes decreased by 4.86% compared with the same period last year, and the sales of women's shoes decreased by 11.41% compared with the same period last year, and the income of leather goods decreased by 6.21% compared with the same period last year.

By contrast, the high growth of fortune 3 shoe products is particularly eye-catching.

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< p > < strong > Expand men's clothing and other diversified businesses < /strong > /p >

< p > > a href= "http://www.91se91.com/news/index_c.asp" > shoe business < /a > is no doubt the core competitiveness of rich birds, but at the same time, its performance depends too much on the main brand, and the risk of operation is too concentrated.

To this end, in recent years, rich birds have accelerated the development of new businesses, and men's wear has become the focus of cultivation.

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< p > in the stone lions, the rich bird's men's clothing is naturally positioned for business and leisure.

Although it authorized an independent third party to sell men's clothing since 2004, it really started to promote men's clothing business in 2011.

In May of this year, it began selling men's clothing on its own.

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< p > 2011, the men's clothing sales volume was 269 million yuan, accounting for 16.3% of the total turnover, and 428 million yuan in 2012, an increase of 59.1%, accounting for 22.2% of the total turnover.

In the first half of 2013, the turnover of men's clothing business decreased by 0.92% to 207 million yuan, accounting for 19.1%.

In general, new business has reduced the sales of Fu's shoes.

In 2010, its footwear business accounted for 99.8% of the total turnover, and dropped to 80.7% in the first half of 2013.

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< p > although the domestic men's wear market has suffered from cold weather this year, it can be seen from the decline in the sale of men's clothing.

But in the long run, the domestic men's wear market still has potential for development.

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< p > according to Sullivan data, the composite annual growth rate of China's men's wear market is 15.3% in 2007-2012 years.

In the next five years, the compound annual growth rate of men's clothing market will reach 17.7%.

Among them, business men's clothing is the fastest growing part. By 2017, its market share will increase from 31.1% in 2012 to 37%.

This has also become a deep reason for the layout of men's clothing market, such as rich birds and a number of men's clothing brands.

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Besides P > a href= "http://www.91se91.com/news/index_c.asp" > men's wear > /a >, rich and precious birds begin to implement multi brand strategy in the field of shoes.

In 2010, it launched the AnyWalk brand, the main high-end fashion casual shoes and leather accessories for the fashion crowd of 16-35 years old.

In 2011, its leather accessories business turnover amounted to 34 million 650 thousand yuan, accounting for 0.1% of the total turnover.

In 2012, it launched FGN, a brand of medium and top grade business casual shoes, serving urban consumers aged 25-40.

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > "rich bird" < /a > indicates that at present, the company's product line has been extended to suits, trousers, jackets, shirts, belts, leather bags, suitcases and wallets. Through diversified product combinations, it aims to provide customers with a range of 50-2800 yuan products.

Multi brand strategy can promote the formation of a wide range of income from different customer groups.

Next, expanding the product mix to diversify will continue to be an important strategy for the company.

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< p > for the future development prospects, the chief executive officer Lu Wen Li is optimistic.

Although the overall footwear industry is in a depressed market, Lu Wen Li believes that the downward trend of the industry is already bottoming out.

He said that the company plans to open 1600 stores by the end of 2015, and the FGN brand will have the most chance to open a store in Hongkong in the future.

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< p > in addition, it is worth mentioning that with the successful listing of rich birds, Quanzhou's shoe and garment enterprises are paying more attention to the listing of enterprises.

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< p > 2013, the A share IPO market has not yet opened the gate, making the Quanzhou plate actively preparing for the listing of a number of enterprises suffering.

Under such circumstances, many local enterprises choose to go overseas.

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