Ray Tibor: Poor Performance And Embarrassment

In the capital market, it will be taken for granted that the textile and garment enterprises that sprint IPO will come from important industrial clusters such as Fujian, Shenzhen and Zhejiang. Ray Tibor, the menswear brand known by more consumers than the southwest market, is headquartered in Sichuan. Appear Many people were surprised when the China Securities Regulatory Commission recently announced the pre disclosure list of listed companies.

According to the prospectus, Ray Tibor intends to visit the Shenzhen Stock Exchange, and intends to make no more than 50 million shares of the initial public offering to the public. Among them, there will be no more than 50 million shares in the proposed public offering, and no more than 25 million shares will be offered by the old shareholders. The fund-raising funds will be invested in marketing channel construction, design and research center expansion and information system upgrading projects.

On the one hand, the overall performance of men's wear listed companies is sluggish, and the industry is undergoing in-depth adjustment and transformation. On the other hand, the overall rate of textile and garment enterprises is low, especially the concept of men's clothing has long been "not favored". Ray Tibor can launch the listing in this context, and the difficulties facing it can be imagined.

　 Regional brand characteristics obvious 2012~2013 net profit continued to decline.

Ray Tibor is located in the middle and high-end business casual men's wear. The company has two independent brands, Raidy Boer (business casual) and GHILARO (fashion leisure), and has the exclusive agency right of Italy Ferrante (Ferrante) brand in mainland China and Hongkong and Macao. The company actually controls Liu Changming, holding 49.03% of the company's shares directly, and holding 68.91% shares through Ray Tibor's investment and 13.39% and 6.49% of the new and indirect holding company.

In recent years, domestic Middle and high-end business casual men's wear industry is more impacted by international brands. International front-line brands have the advantages of capital, brand and design, and take the road of high-end and high price. Domestic brands make use of the localization advantages that are more familiar with consumer preferences, shape characteristics, regional differences, channel sinking, and so on, and compete with international brands. They have obvious advantages in the two or three tier cities. Even for domestic brands, there are strong rivals such as Dile, V.E.DELURE, Testantin and Bosssunwen.

From the perspective of the industry as a whole, the output of Enterprises above Designated Size in garment industry has increased slightly in the first half of this year, but the output of enterprises below the scale is still declining, and the total output should be basically the same as that of the same period last year. Among them, enterprises above Designated Size have achieved steady returns and reduced losses, but the polarization of operation quality is obvious, while a large number of SMEs still face greater pressure.

In the fierce market competition, Ray Tibor is also under great pressure.

Prospectus shows that in 2011~2013, the company's revenues were 549 million 500 thousand yuan, 606 million 800 thousand yuan and 542 million 400 thousand yuan respectively, with net profits of 92 million 289 thousand and 600 yuan, 81 million 166 thousand and 900 yuan and 71 million 424 thousand and 400 yuan respectively, with gross margins of 56.42%, 52.80% and 55.31% respectively, and the net profit rates were 17.34%, 13.77%, and 13.77% respectively. This year 1~6 month, the company's revenue is 230 million 600 thousand yuan, net profit is 43 million 400 thousand yuan, gross margin is 59.06%, net profit margin is 19.41%.

It can be seen that the company's revenue declined in 2013, and net profit and net profit margin declined in 2012 and 2013 for two consecutive years. The company said weak demand and rising labor costs were the main reasons for the decline in performance. In 2011~2013, the total remuneration of employees was 36 million 608 thousand and 700 yuan and 4977.84 respectively. Ten thousand yuan 61 million 2 thousand and 700 yuan, rising rapidly. The number of stores has also experienced rapid growth to stagnation and then to negative growth. At the end of 2011, the company had 570 stores, an increase of 150 compared to 2010, but only 2 and 1 in 2012 and 2013. In the first half of 2014, the company closed 36 stores, and the total number of shops was 537, of which 295 were Raidy Boer stores, 166 were GHILARO shops, 76 were Ferrante stores, 438 were franchise stores, and 99 were self owned stores.

From the perspective of channel mode, the company can join and operate independently. In 2011~2013, the proportion of self operated principal revenue remained at 25%. Among them, the self employed business mainly adopts the management mode. The company promotes the brand promotion by using the sales channels and resources advantages of the managers in various places, and entrusts them to carry out daily management of the stores and pay management fees to them. By the first half of this year, there were 57 management mode stores, accounting for 57.58% of the total self owned stores, accounting for 10.61% of the total number of stores. In addition, the company adopts the multi brand integrated store mode, and collages two or three brands in the same sales area, so as to enhance the overall sales ability and operation efficiency of the product. But it is worth noting that the company stores are mainly concentrated in the southwest region (Sichuan, Chongqing, Yunnan, Guizhou, Tibet). The proportion of stores in Southwest China accounted for 65.79%, 66.61%, 69.28% and 70.2% of the total number of stores in the 2011~2013 and the end of this 1~6 month respectively. The proportion of main revenue in Southwest China accounted for 72.9%, 69.6%, 72.1% and 74.34% respectively. It can be seen that at present, Ray Tibor can only be regarded as a regional brand.

Ray Tibor admits that compared with the international famous brands, the company has a big gap in brand awareness and R & D capability. Compared with the listed domestic competitors, the company also has a certain gap in terms of capital size and market share.

　　 Transformation into the theme of men's clothing industry

The company will enhance its competitiveness from four aspects.

The overall performance of the apparel industry is currently in the doldrums, but surprisingly, this year the apparel home textile sector has increased by more than 28%, winning the market. Counting the prices of "giving power" of various enterprises, the capital market is more attracted to the "landing" of ray depot.

According to Dongfang fortunes data, on June 20th ~10 10, the textile and garment sector showed a unilateral upward trend, with a 44.29% increase in the period, while the Shenzhen Composite Index rose 14.36%, while the small and medium board index rose 21.79%. Apparel stocks have been in the doldrums after a long downturn.

However, the rebound of the clothing sector is due to the transformation and innovation of the apparel enterprises. For example, Busen shares may turn from a clothing company to an agricultural company. Hong Wah's agricultural backdoor news has injected Busen shares into a strong heart. After the resumption, Busen shares have been trading all the way for 5 consecutive days. Seven wolves recently announced cooperation with Suning, and its "Wolf Totem" brand is the ultimate shirt to enter the Suning dual channel to open the pre-sale. The person in charge said that the product will create the ultimate single product through pre purchase, online customization mode, and subvert the marketing mode of the traditional clothing industry.

For ray de Bohr, there are many areas to be promoted in the future. According to the prospectus, Ray Tibor will consolidate his main business through four aspects.

First of all, the company will vigorously promote brand building, develop and deepen strategic cooperation with international famous brands, consolidate and enhance the reputation and recognition of its brand.

Secondly, we should strengthen the research and development level of product design, build planning center, 3D simulation Exhibition Center, process R & D center and advanced customization center, integrate international design and R & D resources, and carry out industry university research cooperation.

Thirdly, it will consolidate and improve the market share of the dominant areas, continue to establish flagship stores and image standard stores in the iconic business district and major airports, fill gaps in the regional market with strong potential for development, and continuously enhance the single store efficiency of the stores.

According to the prospectus, in the next 3 years, 221 new stores will be used to raise funds in China, including 183 franchises, 20 strategic cooperative shops (jointly purchased by the company, franchised businesses and franchisees), 18 self operated stores, and central and Northern China are the key markets for development. At the same time, it will strengthen the management of existing terminal stores, carry out spatial visual images, display and display upgrading in batches to terminal stores, and carry out standardized and meticulous management in line with the transformation of information system.

Finally, the company will promote the "two integration" of industrialization and informatization, explore the marketing mode of O2O online and offline integration, optimize the information management platform, promote the reorganization of business processes and organizational structure, and realize the integration of design, production, sales, logistics, information and e-commerce. Operate 。

And from the whole men's clothing industry, as the domestic men's clothing industry has long extended the "barbarous" growth mode of light expansion and light connotation development, since 2013, a large number of inventory, large area closed shop, profit decline and other problems have emerged. Now it is still sinking in the mire, and has produced a subsequent chain reaction, and even some of the business owners lost their way. In the context of the continuous adjustment of the whole industry, the men's clothing enterprises are still struggling to move forward, seeking to break through the tricks and seek transformation.

The latest statistics show that A shares listed 45 textile and garment industry listed companies in the first three quarters of 2014, with only 5 companies increasing in advance. Nevertheless, the capital market is still a must for all enterprises. Insiders have suggested that 2014 will become the watershed of the industry, and the differentiation between brands will intensify. Some Brand Company will be marginalized or even eliminated. Only a few companies who take the lead in the transformation of products and customer interaction experience will be able to win and gain a new valuation upgrade.