Interpretation Of The Anti Cyclical Value Of Orlet

Sand boat (Shanghai) Holdings Limited (hereinafter referred to as "sand boat Holdings") and L capital, the United States Huaping investment group (hereinafter referred to as "Huaping investment") jointly announced: L capital, Huaping investment to sand boat holdings to inject hundreds of millions of dollars.

L capital is the world's first tier luxury goods group LVMH set up the main attack on Asian private equity investment fund, Huaping investment is a well-known PE institution in the United States.

And who is holding the sand boat?

This family originated in

At present, there are three outlets in Chongqing and Hangzhou, which are not well known in the retail industry.

Its first relatively high-profile appearance is to announce that it has won the B round investment from L capital and Huaping investment.

Huang Haoyun, chief financial officer of the sand boat, said that the B round of financing amounted to hundreds of millions of dollars, and the first batch of funds arrived at $100 million.

In 2011, Hua Ping invested in the sand boat. This round of investment was led by L capital, Huaping and investment.

This is the largest minority investment in the traditional retail industry that has been undervalued by the capital market in the past few years.

The last investment in this industry was remarkable. In 2012, Hirotake invested 1 billion 200 million yuan to invest in Suning Appliance.

Huang Haoyun pointed out: "Oteri J is different from traditional department stores.

The traditional department store industry is seriously affected by the electricity supplier, but Oteri J is a sunrise industry.

The United States is also a traditional department store, while the growth of orlis is very strong.

Xu Rongcan, founder and chairman of the sand boat, said: "Oteri J is anti industry."

Wang Qian, managing director of L capital Greater China, Huang Han Qi and Huaping investment executive director, both said: optimistic about the development of Oteri J in China and the sand boat.

Local brand + capital + operation combination

The two figures are enough to show how weak the traditional retail industry is.

Fan Junhao, a researcher at CICC, said in January 15, 2015 that sales of the 50 largest retail sales in 2014 dropped by 0.7% compared to the same period last year, and that the number of stores in 50 key large-scale retail enterprises decreased by 11.6% compared with that of last year, a decrease of 5.5 percentage points compared with that in 2013.

Contrary to traditional retail businesses, orter began to rise in a second tier city in recent years.

Oteri J is a pliteration of Outlets, a shopping center consisting of stores that sell famous brands over the seasons, shelves and yards.

Wang Qian cites data from Roland Begg's strategy consulting firms, noting that there are about 40 outlets in China. But according to the standards of overseas outlets, such as single store area, single store sales and the proportion of second tier brands, there are only more than 10 outlets in the strict sense of China.

From the perspective of Oteri J's development in Europe and America, there is still much room for its growth.

L capital and Huaping investment are optimistic about Oteri J's development in China, but Huang Han and Wang Qian believe that some domestic outlets are not professional enough, for example, some are operated by real estate developers. Two investors have doubts about whether the developers can successfully operate orlies.

In the end, they valued the sand boat as the industry leader and Xu Rongcan and team with more retail experience.

Xu Rongcan went to university in Chongqing. After graduation, he started business in Chongqing. From the very beginning, he became a well-known brand agent. In the 90s of last century, he introduced the first-line brands such as Armani and Givenchy to Chongqing. During the rush hour, he represented 18 famous international brands at one time. Later, he founded the women's clothing brand himself.

Xu, after many visits to Italy's Ortles, finally decided in 2006 to become China's own outlets.

In the end, Chongqing's Western outlets opened in 2008.

Xu Rongcan jokes that his past experience has helped enormously to make Ortles: many of the international first-line brands have cultivated his fashionable tentacles, and he was once rated as "Mr. Chongqing"; and the experience of making women's clothing has made him aware of the "pain points" of branding, and "making brands knows how hard it is to deal with the tail goods of clothing manufacturers".

Xu Rongcan chose Huaping investment and L capital, and valued more than just the financial strength of both.

"Hua Ping is very valuable to us in the operation of commercial real estate, and LVMH group is the initiator of luxury goods.

After introducing them, the structure and composition of our shareholders are very different. We hope that the three parties will bring the industry to a whole new height.

Wang Qian said that Hua Ping's investment in China's commercial real estate layout is quite wide: Hua Ping investment has cooperated with Huarun group to invest in ShoppingMall, together with its investment star Hongmei Kai Long, making shopping centers in the two or three tier cities; Huaping investment even invested in the wholesale market of Beijing animal farm.

Huang Han particularly indicated that L capital 80% funds were raised for external purposes, and L capital was independently operated as a fund. Therefore, this investment behavior does not represent the strategic behavior of LVMH group. However, because L capital has group background and resources, it will certainly help sand boat holdings to expand channels and introduce brands.

After Hua Ping and L joined the capital, Xu Rongcan was still the absolute majority shareholder of Sha boat holdings; Huaping investment successively invested in A and B rounds as the second largest shareholder; L capital was the leading shareholder in the B round, but now it is the third largest shareholder.

Xu Rongcan said that he was preparing for a large number of equity and option incentives for executives and core middle-level managers of Sha boat holdings.

Huang Han Ji and Wang Qian are reluctant to talk more about specific financing details.

Wang Qian mentioned that hundreds of millions of dollars of investment, the first batch of one hundred million U.S. dollars, followed by the funding of structural arrangements, but there are not many additional conditions.

Non-standard chain Format

In 2011, after Sha Wah ship holdings accepted Huaping investment in the A round of investment, Xu Rongcan made the initiative to suggest whether Hua Ping should be stationed in the chief financial officer.

Huaping investment finally chose Huang Haoyun.

This year is a particularly critical year for sand boat Holdings: second Oteri J in Hangzhou; western Chongqing has considerable commercial returns; Xu Rongcan has received the injection of Huaping, and he began to accelerate expansion: location selection and distribution team in other provincial capitals; therefore, there was the opening of Chongqing Bishan store in 2013; Nanjing stores and Hefei stores will be officially opened; in 2015, Kunming and Guiyang stores will also be built.

Unlike other outlets in the other countries, the otter boat operated by the sand boat is usually equipped with Italy shopping village, children's world and international food street, and the western Chongqing Western outlets store up to 220 thousand square meters.

Xu Rongcan's consideration is that he found that many customers stay at outlets for more than four hours, and many customers visit the family as a unit. Oteri J is basically far away from the urban area, so the food street and children's world will be perfectly logical.

Huang Haoyun introduced that the otter boat holding otter is a joint venture with other Brand Company. According to the brand influence, the proportion of the deduction points is also different, the overall deduction point is about 15%.

The children's world and gourmet street are also controlled by sand boats, which are linked to other businesses. These two stores have a lower point of deduction than the outlets, averaging 8 to 15 points.

The sand boat holdings are not as classic as the chain store mode when they are expanding in different places, trying to ensure that all stores are exactly the same so as to ensure the stability of customer experience.

Xu Rongcan said that his train of thought is not to the west of Chongqing.

Instead of replicating all over the place, the genes of the sand boat, orlies, "propagate" to all parts of the country.

The difference between reproduction and reproduction is that the former likes to make the appearance of the shop exactly the same, while the latter in different cities, from appearance to merchandise, introduces more local cultural factors.

Huang Haoyun said: "our orlies will inherit the local regional cultural symbols, and try to integrate with the scarce ecological resources in the site.

Like our Hefei store, there is a beautiful lake and Peninsula. The Nanjing store puts Nanjing's wall into the appearance of the outlets.

In attracting investment, planning and operation, it will absorb local elements, but these outlets are in business management, or sand boat DNA. "

Xu Rongcan added that when the sand boat was located, it was more important to see whether these places were suitable for otter, rather than whether the property in this area could be bought.

Some of the shops owned by the sand boat are owned by others, while others are signed for more than twenty years.

Told reporters that the sand boat otter from the appearance of non homogenization, to the operation of Italy shopping street, children's world, food street and other supporting, and even ice skating rink, behind the considerations are pointing to: sand boat auth rice is advocating a way of life, the city and the surrounding residents are not just to buy discount brand merchandise to come to otter, but to take it as a leisure tourist attractions.

In addition, Xu Rongcan told reporters in particular that he insisted on setting up good movie theaters in all of Oteri J, and some even the best local cinema, because he found that the movie theater raised the passenger flow of orlis from Monday to Friday - and all over the world, orter is a holiday economy, and the passenger flow and sales volume of holidays are much higher than that of working days.

Wang Qian very much agrees with Xu Rongcan's thinking.

"This one-stop shopping, entertainment and entertainment idea is what Xu always did before we came in. After we came in, we discussed it together to make it more mature.

Some commercial complexes do the same, but this is very innovative in the outlets.

We feel that Xu's idea is very grounded and more consistent with China's national conditions.

From the perspective of financial performance, the current customers of sand boat are very happy with this mode. Huang Haoyun told reporters that in the past seven years, every month after the opening of the orca ship, the cash flow of the sand boat will be even after 12 months' opening, while the sand boat will only account for 45 days for its affiliates, and the second year of its opening will be profitable.

Sand boat Holdings has over 30% revenue growth over the past seven years.

In 2014, the retail sales of Sha boat holdings exceeded 3 billion, and will exceed 5 billion in 2015, with a net profit margin of more than ten percent.

In the past few years, China's macroeconomic situation has changed a lot. Since 2013, many consumer industries are not booming, and traditional retail businesses are quite affected by the electricity supplier. When asked whether these will affect the performance of Sha boat holdings, Huang Haoyun said: in the past few years, the sand boat has maintained a steady high growth.

In addition, Sha boat holdings is not intending to expand in the first tier cities.

Xu Rongcan said that because local competition is too hot, it is more willing to plough deeper in the second tier cities of the blue ocean.

Because of this, sand boat holdings seldom encounter local competitors when opening stores in different provinces, so it is not very easy to encounter "tough dragon and hard pressed" at present. This is a problem that other retail formats are likely to encounter when expanding across provinces.

Local governments often welcome sand boats, because many cities in China have built many new districts. The local government hopes to have mature business matching to enhance the value of the whole region.