Hkex Will Be Listed Soon, Jinjiang Will Usher In Business Casual Men'S Fourth Shares

< p > < strong > > a href= "http://sjfzxm.com/news/index_c.asp" > men's trousers < /a > "second child": from former glory to gradually left behind < /strong > /p >

< p > the recent textile and garment market in the capital market can really be a good match.

In June 25th and June 27th, the Hongkong stock exchange ushered in two new stocks in the mainland market, the underwear companies, the urban beauty and the high-end women's clothing enterprises in Shenzhen. After the listing, they will usher in another listing of Fujian Quanzhou men's wear enterprise tiger in mid July.

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In June 30th, P announced that the company's global offering of shares on June 30th 9, the total offering of 120 million shares, including 12 million shares in the Hongkong market and 108 million shares in the international market, was HK $3.35 HK $~4.4 per share in the 02399.HK market.

If the price is HK $3.88 per share, it is estimated that the net proceeds will be about HK $391 million 200 thousand.

It is expected that the tiger will be listed on the HKEx in July 16th.

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< p > in many domestic men's clothing brands, the development track of tiger capital is very similar to that of King Mu.

They came out of the Quanzhou department, and started with men's trousers and became famous. They became the two leading brands of male trousers in Quanzhou, Fujian.

In the past seven or eight years, on the basis of men's trousers, the core category has gradually extended the product category to the upper garment and pformed into a high-end business casual menswear brand enterprise.

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< p > tiger was founded in 1988 by Guo Jianxin, founder of Quanzhou Xincheng trousers factory.

In the early 90s of last century, the Chinese brand name "tiger capital" and its English brand name TigerCapital were launched.

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"P" is different from many other men's clothing brands.

Then, when the wholesale market in all parts of the country flourished and became the "base camp" for brands to expand the regional markets, they still insisted on the sales channels dominated by shopping centers.

In the early 90s of last century, there were all the important shopping malls in the major cities of Shanghai, such as the 100th goods in Fuzhou, the East Jie Kou shopping mall in Chengdu, the people's market in Xi'an, the Minsheng department store in Xi'an, the Wuhan shopping mall and so on.

This has also become an important reason for their rapid development into the leading brand of men's trousers Market in the United States.

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During the period of < p > strong > 2001~2007, tiger has ushered in the most brilliant period of a href= "http://sjfzxm.com/news/index_c.asp" and "development /a".

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< p > first, its brand effect has emerged, becoming one of the leading brands of men's trousers Market in China.

During this period, the tiger upgraded its English trademark TigerCapital to FORDOO, and began to advertise in CCTV in 2001, and hired Guoli Zhang as spokesperson for the image. In addition, the terminal effect in the shopping malls of major cities has made it a professional and high-end brand in the national market.

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< p > secondly, with the establishment of the market position of men's trousers in the whole country, the tiger gradually realizes that when the brand develops to a certain stage, it must carry out the whole series operation of the product. It is very unrealistic to rely on a pair of trousers to "fight the world".

Therefore, before and after 2003, tiger began to try to pform the entire category of men's clothing enterprises, and gradually extended the product line from men's trousers to jackets, sweaters, shirts, belts and other products.

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< p > the booming performance at that time was intuitively reflected from the scale and sales quota of the enterprise.

Around 2006, there were more than 300 kinds of talents, such as brand research and development, enterprise management and so on, with more than 3000 employees, more than 500 shopping malls and about 3000000 men's trousers. The total annual sales volume of enterprises was about 1 billion yuan.

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< p > < strong > at that time tiger was in the status of men's trousers industry in the whole country. There are two very good indicators that can be a href= "http://sjfzxm.com/news/index_c.asp" > prove < /a >.

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< p > industry standard participants and formulator.

In November 2008, tiger was one of the few enterprises involved in the drafting and formulation of Chinese trousers design and production standards.

The two is market share and ranking.

According to the China National Business Information Center, the total market share of the top ten brands in the male trousers Market was 16.2% in 2000, and increased to 45.77% in 2009. Among them, the number one is always the nine shepherd kings, and the tiger ranks second.

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< p > but in 2007, with the drastic change of market competition pattern, under the combined action of various factors, the gap between the tiger and the nine Mu Wang and Li Lang became increasingly open.

In particular, with the listing of Li Lang in the HKEx in September 25, 2009 and the successful listing of A in May 30, 2011, the gap between the tiger and its partners has become increasingly evident.

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"P > this stage of the tiger, the development of relatively slow pace, in Quanzhou's entire business casual men's wear plate gradually left behind, increasingly awkward position.

But it is worth consoling that it has not fundamentally shaken the position of "the second man" in the men's trousers industry.

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< p > according to Sullivan, a world-renowned consultancy, in 2013, the five men's trousers brand accounted for only about 12% of the total retail revenue of China's men's trousers.

In 2011~2013, tiger has been one of China's top two men's trousers brands. Its share in men's trousers Market has increased steadily, from about 2.6% in 2011 to about 3% in 2013, ranking second.

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< p > as far as equity is concerned, in January 23, 2014, Bao Yong (Guo Jianxin and Huang Dong Yin respectively held 70%, 30%), and Shen Sheng (Guo Jianxin daughter Guo Shali all), all increased (Guo Jianxin's elder son Guo Hanfeng all, Ren tiger general manager), Ji Tai (Guo Jianxin little son Guo Hanbin all) and Zhonghui 5 institutions held 68%, 3.33%, 14%, 12.67% and 2% shares respectively.

Among them, in addition to the public remittance, 98% of the shares are held by the Guo family.

After the completion of the global sale, the number of Kuo family holdings was 73.5%.

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< p > < strong > 2013, the turnover was 1 billion 452 million 800 thousand yuan, and only 1300 shops had a href= "http://sjfzxm.com/news/index_c.asp" > self run < /a > /strong > /p >

Below P, tiger products include business casual wear series and business suit series. Its target customers are mainly middle-class men aged 30~60.

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< p > prospectus data show that in, the turnover of tiger cities was 818 million 500 thousand yuan, 1 billion 109 million yuan (35.5% year-on-year increase), 1 billion 452 million 800 thousand yuan (up 31% over the same period), gross profit of 233 million 600 thousand yuan, 362 million 500 thousand yuan and 497 million yuan respectively, with net profit of 105 million 800 thousand yuan, 152 million 900 thousand yuan (44.5% year-on-year increase), and 44.5% yuan (an increase over the previous year), with net profit margins of respectively, respectively.

Tiger said that the increase in turnover was mainly due to the increase in the average wholesale price and the increase in sales volume.

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< p > trousers are always their core products.

In 2011~2013, the turnover of trousers was 487 million 300 thousand yuan, 633 million 500 thousand yuan and 802 million 600 thousand yuan respectively, the proportion of total turnover was 59.5%, 57.1% and 55.2% respectively, and sales volume was 4 million 732 thousand and 300, 5 million 476 thousand and 900 and 6 million 403 thousand and 700 respectively.

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< p > on this basis, as a result of the pformation of the series of menswear brand operation, the sales of its clothing products increased year by year, especially the gradual increase of business casual men's clothing products, such as jackets, business casual pants and T-shirts production and sales.

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< p > 2011~2013, the turnover of business casual men's clothing was 379 million yuan, 621 million 800 thousand yuan and 851 million yuan respectively, and the proportion of total business turnover was 46.3%, 56.1% and 58.5% respectively. The turnover of business dress products was 345 million 400 thousand yuan, 388 million 300 thousand yuan and 457 million 500 thousand yuan respectively, accounting for 42.2%, 35% and 35% respectively.

In addition, the turnover of their leisure products was 85 million 724 thousand yuan, 86 million 842 thousand yuan and 125 million 700 thousand yuan respectively, accounting for 10.5%, 7.8% and 8.7% of the total turnover respectively.

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< p > the turnover of the top products was 322 million 900 thousand yuan, 463 million 400 thousand yuan and 631 million 600 thousand yuan respectively, accounting for 39.5%, 41.8% and 43.5% respectively, and sales volume was 2 million 53 thousand and 200, 2 million 713 thousand and 3 million 515 thousand and 400 respectively.

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< p > from the business mode, the tiger basically sells wholesale goods to all distributors and orders by distributors. The head office does not have a unified retail price and does not set retail prices for distributors and two level distributors. It only guides them to sell at 3~5 times the wholesale price of products.

In 2011~2013, the average wholesale price of each male trousers was 103 yuan, 115.7 yuan and 125.3 yuan respectively, and the average wholesale price of each pair of clothing was 157.3 yuan, 170.8 yuan and 179.7 yuan respectively.

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< p > tiger thinks that the wholesale price is a relatively low percentage of the proposed retail price, so that distributors and two level distributors can earn higher profits through each product sold.

This "wholesale pricing strategy" has always been a driving force for the company's sales growth.

Providing guidelines for retail price ranges rather than fixed retail price points will help distributors to flexibly adjust retail prices within the proposed retail price range based on changes in retail market, competition and customer demand in the area of operation.

In this way, distributors and two level distributors can flexibly carry out promotional activities or seasonal sales, so as to maintain brand awareness and reduce inventory level.

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P stores, almost all retail stores run by distributors and two level distributors.

In 2011~2013, its distributors were 42, 44, 45, and two distributors were 147, 164 and 177 respectively. The number of terminal shops was 1085, 1205 and 1300, but only two self operated shops were located in Quanzhou, Fujian.

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P > 175 new stores in 2011, 39 closed stores, 210 new stores in 2012, 90 closed stores, 172 new stores in 2013 and 77 closed stores in 2013.

By the end of 2013, it had 968 stores located in department stores or shopping centers (mostly in department stores), and the remaining 330 were independent shops.

Among them, the number of shops in the first tier cities is 126, accounting for 9.7%; the number of shops in the second tier cities is 359, accounting for 27.6%; the number of shops in three cities is 448, accounting for 34.5%; the number of shops in four cities is 367, accounting for 28.2%.

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< p > overall, there is a clear gap between the tiger capital and the "nine herd king" brand, but it still has a certain position in the business casual men's wear market.

According to the Sullivan report, in 2013, retail sales accounted for about sixth of China's high-end men's clothing market, which accounted for 30.4% of China's men's clothing market, ranking sixth. In the high-end business casual men's wear market and the high-end business men's clothing market, they ranked fifth, accounting for 4% and 2.9% of the market share respectively.

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< p > < strong > raising funds are mainly used for brand promotion and R & D, and the new leisure fashion series < /strong > /p >

< p > according to the prospectus, about 27% (HK $105 million 700 thousand) of the proceeds raised after the listing of the tiger market will be mainly used for brand promotion and marketing, such as advertising on the CCTV channel and advertising on the airport.

Meanwhile, some existing retail outlets are planned to be renovated in 2014.

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< p > about 20% (HK $78 million 200 thousand) of the fund-raising funds will be used to enhance the strength of research, design and product development, and will enhance cooperation with reputable design institutions such as the Shanghai standard.

As a matter of fact, since May 2011, tiger has hired the Shanghai top design company, led by renowned designer Wu Xuekai, as its fashion consultant.

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At the same time, in 2011, it signed a 5 year strategic cooperation arrangement with Donghua University, Shanghai, and jointly studied production technology, textiles and materials.

According to this arrangement, Donghua University will provide tiger's training on product development and product technology according to company requirements.

Tiger City will jointly research and develop the selected technology and products with Donghua University.

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< p > by the end of 2013, there were 124 members in the design and product development team of tiger capital, and 15 patents in trousers, tops and molding equipment, such as 8 cm crotch technology, healthy trousers, etc.

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In order to enhance research and product development capabilities, tiger has also made a 3 year cooperation agreement with China Institute of standardization in January 2014. < p >

According to the agreement, the R & D center in Huian, Fujian province will be designated as the center for the establishment of China's men's wear industry standard (men's clothing industry (tiger) standardized R & D center).

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< p > about 13% (HK $50 million 900 thousand) of the fund-raising will be used to expand the distribution network and provide store decorations for distributors and two level distributors. The cost will be borne by the head office.

It is expected that some 200 stores will be added by the end of 2014, and 100 existing stores will be renovated.

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< p > in addition, about 20% (HK $78 million 200 thousand) of the fund-raising will be used to repay part of the bank loans, including an additional bank loan balance of about $19 million 400 thousand (about HK $150 million 400 thousand) expected to be raised before the listing to repay the controlling shareholder of Guo Jianxin. About 10% (HK $39 million 100 thousand) will be mainly used to install the ERP system, and the relevant ERP system suppliers have already started discussions.

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< p > according to the plan, tiger will manage the whole value chain of design and product development, production, inventory control, marketing, advertising, sales and distribution through ERP system, and will require distributors and two level distributors to install ERP system in retail stores.

The system will provide real-time sales orders, sales volume and inventory level information.

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< p > < strong > the remaining 10% (HK $39 million 100 thousand) will be used for working capital and other general corporate purposes.

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< p > according to the plan, in order to expand and improve the product mix, tiger is going to push the "leisure fashion series" product line with the target customers of 18~30 years old customers.

The new product line will be sold exclusively at the retail outlets of a small number of distributors and two level distributors, and appropriate expansion plans should be conducted according to customer feedback.

Tiger said that the new product will expand the company's product supply, further provide diversified products, and optimistic about the market potential of the new product line.

Tiger also believes that "this will complement the strategy of consolidating the company's strong position in the men's wear industry".

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For the next development, tiger said, "the main goal is to consolidate our position in the high-end men's and men's trousers Market, strengthen our control over distributors and two level distributors and improve the design and product development capabilities." P

We seek to implement the natural growth strategy, and there is no acquisition plan or acquisition target. "

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