Urban Beauty Or The First Entry Into The Mainland Underwear Market To Accelerate The Pace Of Listing In Hong Kong

< p > the mainland underwear enterprise listed on the mainland of Dongguan, the listing process of urban beauty or further news is spread around the Hong Kong stock market after the Spring Festival.

Recently, it is reported that the city beauty has submitted the application form before the lunar new year. It is expected to be listed in Hongkong in the first half of this year and will raise about $200 million (about HK $1 billion 560 million).

Urban beauty has announced its "plan for listing in the next three years" on various occasions since 2010. In October last year, the Guangdong provincial foreign trade and Economic Cooperation Department officially approved that the name of "Dongguan beauty Industrial Co., Ltd.", headquartered in Fenggang town of Dongguan, was changed to "urban beauty" a target= "_blank" href= "http://www.91se91.com/" > dress < /a > Limited by Share Ltd. The market generally believed that this means that the listing of urban beauty is accelerating.

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< p > yesterday (February 11th) afternoon, the reporter called the city beauty company, hoping to verify the above information about the progress of the listing, but the phone of the securities affairs department was not answered. The company's front desk staff said that the Department staff was temporarily away from the office and could not be contacted.

It is worth mentioning that there are two women's underwear stocks in the Hong Kong stock market, namely, Fang Li Fang Holdings (1388, HK) and the international group (0333, HK). If the urban beauty goes to Hong Kong successfully in the future, it is expected to become the "first brand of Mainland underwear" in Hongkong market.

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< p > < strong > listing will help "brand break through" < /strong > /p >

< p > because the company has not disclosed the prospectus at present, and its specific operating conditions can not be known, but the daily economic news reporter found that according to the public information, according to some of the management data disclosed by the executives in recent years in the media interviews, investors can also understand the underwear enterprises to a certain extent.

In an interview with reporters, insiders and market participants believe that while investors are concerned about the rapid growth of corporate income, they should also pay attention to the "arrival" of products at the end of the consumer level, especially the growth of same store sales. In addition, whether the store turnover and capital turnover capacity can synchronously improve will also be the focus of the market.

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< p > since signing Taiwan model Lin Chiling as an image spokesperson and playing an image advertisement in CCTV and other media, the popularity of urban beauty in mainland underwear enterprises has further expanded among consumers and investors. As the company's listing in Hong Kong is accelerating step by step, the market's attention to this brand is also rising.

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< p > > a href= "http://www.91se91.com/" > urban beauty < /a > official website shows that the company is a mainland underwear brand operator integrating R & D, production, logistics, sales and operation.

At present, the group is headquartered in Dongguan, with retail outlets covering more than 800 cities in China's one or two and three lines. These retail outlets are owned and operated by companies or retail outlets operators.

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< p > reporter noted that when interviewed by Dongguan TV station in July 2012, the urban beauty management group said that sales revenue was expected to increase by about 30% over the same period last year. In mid 2013, the vice president and chief information officer of the urban beauty group, Sha Sha, indicated in some media interviews that the sales of urban beauty in 2012 had exceeded RMB 5 billion yuan.

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< p > reporters browse the city beauty website found that the product structure chart and product price interval map revealed that the proportion of women's underwear and underwear was 50%, and that of women's underwear was about 35%.

At the same time, the company also disclosed that the price range of bra and lady underwear is 15~119 yuan and 3~52 yuan respectively.

And in the other six series, such as vests, household clothes, men's underwear, thermal clothing and Bottomwear, the price is also between ten yuan to two yuan and three hundred yuan.

The official website of the company said that the price of the company's products belonged to the level of "Popularization" and "Popularization".

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< p > Xiong Xiaokun, a light industry researcher at CIC, told the daily economic news reporter that the development of the underwear industry in China is relatively fast, and is in contrast with the downturn of the "a" target= _blank href= http://www.91se91.com/.

At present, the market size of women's underwear market has exceeded 100 billion yuan. In recent years, the market sales volume has increased by more than 10%.

The growth rate in the next three years will remain at around 10%, but it will decline slightly because the base has increased and the market space has gradually decreased.

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< p > "urban beauty bra price is the highest price 119 yuan, other products are only about two hundred or three hundred yuan, in the domestic women underwear industry belongs to the middle and low level.

The price of medium and high grade is generally 1.5 times higher than its price.

In addition, the proportion of high, medium and low end underwear industry in China is about 10%, 35% and 55% respectively, and is affected by the upgrading of consumption. The growth rate of middle and high end underwear is faster than that of low-end underwear.

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< p > Xiong Xiaokun further pointed out that at present, the concentration of women's underwear industry in China is relatively low. The main reason for this phenomenon is that the underwear enterprises do not have strong brand awareness for underwear, and then concentrate on more brands. They are more homosexual in positioning and price. Besides, the underwear brands with large expansion in the country are few and have the characteristics of regionalization development.

Therefore, the choice of city beauty will help the brand premium. Through listing, more consumers and investors will pay attention to this brand and help them achieve "brand breaking through".

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< p > market participants are also more optimistic about the potential premium of the brand and the potential markup.

A senior Hong Kong stock analyst at Huali securities, in an interview with the daily economic news, pointed out that if the brand premium can be realized through listing and promotion, the future cost shifting ability of enterprises will undoubtedly be strengthened. Especially when the market boom is rising, brand enterprises will have more advantages in terms of price increase ability than other enterprises.

Xiong Xiaokun believes that whether the increase is related to the positioning of the enterprise, but if the urban beauty will open up high-end products in the future, listing will undoubtedly have a positive impact on its development.

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< p > < strong > rapid expansion, put forward shop plan < /strong > /p >

< p > it is worth mentioning that at present, more than 5000 stores of urban beauty still plan to further expand the scale.

In the middle of last year, the company's chief information officer, Sha Sha, told the media that as of February 1, 2013, the company had more than 5000 terminal sales outlets, employing more than 20 thousand people. The company plans to expand to 8000 stores in 2015 and expand to 1 stores in 5 years, < /p >

< p > Xiong Xiaokun put forward a more cautious view of the "Wan Dian plan" of urban beauty. "It should be said that this plan will be difficult in the future implementation process.

From its plan, its expansion speed is too fast. Although the development of underwear industry is more optimistic at present, excessive expansion or oversupply will eventually lead to excessive brand expansion.

After the listing of urban beauty, the overall strength of funds can be enhanced, but the capacity of inventory turnover and capital turnover is difficult to improve significantly.

Underwear inventory management is actually the core of business management. If the underwear inventory handling capacity is not strong, the larger the scale, the greater the risk.

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< p > besides, the company's chief information officer, Sha Sha, once said, "every store in the future will grow at a rate of not less than 15% per store per year, but it will be a real store, otherwise it will be turned off."

At the same time, according to media reports, the number of outlets in the company is currently around 700, with more than 4000 franchises.

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< p > for the company's target of growth in the same store, the aforementioned senior Hong Kong stock analyst said that according to the current market environment, even after taking into account 5% of inflation, achieving 10% of the same store growth is a very optimistic target. Recently, the same store enterprises listed on the same store have been showing a certain decline in the same store growth, so in this context, if the higher unit number can be achieved, the market will feel more satisfied.

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< p >, the analyst said, "considering that more than 4000 of the more than 5000 stores are franchised stores, and the company does have actions to expand the stores, we can roughly judge that the high income growth of the company in the past few years is inseparable from the expansion of the stores, but at the same time, there will be a doubt about the existence of the market, that is, whether there is a possibility of large quantities of pressure from enterprises to franchisees, and whether the enterprise products reach the consumers in the terminal."

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< p > the analyst further indicated that from the perspective of the valuation of the two tier market, the assessment of the sustainable growth ability of the fast moving companies like urban beauty was mainly focused on several aspects, including the speed of shop opening, the same store growth and inventory turnover. Taking into account the current background of the garment industry, inventory turnover will be a particularly important concern.

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< p > reporter noted that in April 2013, the city beauty announced cooperation with IBM in intelligent commerce. From the replenishment system of the store to the scheduling system, the urban beauty will use IBMiLog to optimize the solution, hoping to further enhance the turnover capacity of the inventory.

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< p > above, the Hong Kong stock analysts pointed out that "information construction really helps to improve the enterprise's inventory management ability and the trend of the market, but this advantage takes a long time to accumulate. In the short term, especially for the garment enterprises under the background of the weak market, their turnover capacity mainly depends on the management's" price strategy "in inventory digestion.

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< p > he also said, "the overall sales market of the clothing market in the past two years is not good. Many enterprises are still in the process of going to stock. Although there has been some consensus in recent years about the warmness of clothing orders, there is some doubt about the future growth."

Therefore, from the expectation of the valuation, it is unlikely that the clothing listed companies will be particularly aggressive.

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