Why Is The Headline Amoy Brand Coming To Market? Why Does The Capital Market Give The Electricity Supplier Brand A Higher Premium?

Amoy brand is ushering in a wave of listing.

from

Hui Mei (owned by the US)

Three brands of squirrels have been or are about to issue prospectuses. They also welcome the attention of the industry to these brands, or, more precisely, Internet brands.

These brands, which are placed under the spotlight, have also attracted various interpretations.

For example, the revenue and profits of crack and silk slipped in 2014, and some people questioned the growth of the brand.

However, many analysts believe that as a new thing in the commercial society over the past ten years, the brand name of the Amoy brand should be examined in many ways, taking into account the business background.

Moreover, a number of clothing business operators in the performance of the data is also good.

For example, in the overall bad environment of the apparel industry, the revenue and profits of the rink and silk products have started to rise in 2015, and the revenue of Hui Mei is showing a trend of rapid growth. In 2013 ~2015, it was 5.90 billion yuan, 949 million yuan and 1 billion 141 million yuan respectively.

Li Feng, a well-known investor and a pioneer partner of Feng Rui capital, has long been concerned about and invested in the Internet. Now, new channels and new media, including consumption upgrading, are stacked together.

When rough growth can not adapt to the new business competition, both traditional clothing enterprises and Internet apparel brands are seeking new growth opportunities. Traditional service enterprises accelerate the embrace of the Internet and mobile Internet, and the Internet brand including Amoy brands begins to fine operation, and seek new growth blue ocean by improving operational efficiency and supply chain optimization.

In 2015, the clothing industry continued to be constrained by the weak consumer market, and a large discount sale became the norm. There were even a lot of enterprises to reduce the business on a large scale. The downturn was not only influenced by the brand names such as cracking up and silk, but also many traditional listed companies were more vulnerable.

Take Metersbonwe, a domestic clothing brand, for example, the 2015 financial report shows that the first loss in the 7 years since the listing of the US bond market, the net profit in 2015 dropped by 396% compared to the previous year, and the deficit gap exceeded 400 million yuan.

Under the line of 2012, the United States has exceeded more than 5000 stores, but by the end of 2014, there were only 4000 more.

And ZARA, MUJI, UNILO and other international fast fashion brands have entered China, and consumers are gradually moving to the online market. The impact of e-commerce shopping has also become an important inducement of the market share of "Mei Bang" clothing.

Net profit fell year by year, not only in the United States.

According to Wind statistics, as of the end of April this year, the annual reports released by the 35 clothing listed companies in Shanghai and Shenzhen two cities showed that 16 of them appeared net profit decline, accounting for nearly 5 percent, including 11 companies such as the long and the American apparel companies, and even the decline in both operating income and net profit.

Hsin Ho (Xiamen) Garments Co., Ltd., which submitted its application to IPO almost the same period, has clearly stated that since 2012, the economy has been in the adjustment cycle, and the apparel industry has seen a rapid decline. There are some fluctuations in the company's earnings indicators, especially in 2015, which was affected by the slowdown in the economy and the weakening of the consumer market, and the company's operating profit dropped by 32.13%.

It is hard to finish eggs under the nest.

In the analysis of the reasons for the decline of revenue in the split share prospectus, it is also pointed out that the slowdown in the macroeconomic growth will also have a negative impact on the overall consumption intention and consumption ability of the society. In addition, with the large number of online brands coming up at home and abroad, the online clothing sales competition and the trend of fragmentation of online traffic and other factors will continue to divert the consumer traffic of the women's clothing business platform, resulting in a decrease in the operating income of 2014.

At the same time, the company pays attention to the long-term training and encouragement of core employees, and has formulated and implemented tens of thousands of equity incentive plans, which is also the main factor leading to the fluctuation of profits and losses in 2014.

The company has actively adopted various coping strategies, such as vigorously promoting multi brand and multi category business strategy, and further concentrating its efforts on designing high value-added links such as R & D, operation and sales.

A year later, these strategies began to see results.

Data show that revenue and profits in 2015 have begun to rise.

In the overall environment of the apparel industry is poor, the main income of Hui Mei is showing a rapid growth trend.

According to its prospectus, the company's operating income in 2013 ~2015 was 5.90 billion yuan, 949 million yuan and 11.41 billion yuan respectively.

In the prospectus, Hui Mei explained why its revenue grew rapidly. The company also complied with the good momentum of online shopping consumption and relied on strong online brand incubation and operation capabilities.

With the rapid decline of offline business, the development of online business seems to be the best choice for apparel companies.

According to La Natsu Bell's fourth quarter earnings report in 2015, group revenue in 2015 increased by 16.4% and 12.9% compared to 2014.

But data showed that La Natsu Bell's same store sales declined last year, while the growth rate of same store sales in 2015 was negative 3.2%, compared with 1.7% in 2014.

And in the overall proportion, La Natsu Bell's sales in 2015 dropped from 99.5% to 93.5%.

Where does the overall growth of brand and the steady development of offline business come from?

In August 2014, La Natsu Bell launched the business of electronic commerce, taking the same price as the online and offline models, and hundreds of offline retail outlets with online ordering and offline delivery strategy.

In addition, in February 2015, La Natsu Bell invested in the Internet brand seven grid, online business operation and management, through fans marketing, WeChat, micro Tao and micro-blog online platform actively interact with fans.

In 2015, La Natsu Bell ranked third in the category of Tmall ladies.

According to its earnings report, the expansion of online network channels and the rapid growth of online platform revenue have become an important source of La Natsu Bell's revenue growth.

AI media consulting CEO Zhang Yi believes that in the past, it is difficult for brands to obtain effective data from terminal consumers and track accurate inventories, and the more direct result is dilution of profits.

The electricity supplier channel can save the cost of the traditional channels, and the cost of the platform and online operation is lower than that of the line rent and maintenance.

Hsin ho mentioned in the prospectus that the company's sales channels are mainly franchised channels (distributors, franchisee, direct affiliate), e-commerce channel and direct channel. Group buying channel, international trade channel and TV shopping channel are subsidiary.

It is noteworthy that in 2013 ~2015, the gross profit margin of the company's e-commerce channel was 56.71%, 51.98% and 46.86%, respectively, compared with 33.93%, 34.74%, 33.97% of the main business gross profit of the same period, exceeding at least 12 percentage points.

Despite the weakening of the apparel industry environment, the apparel industry's online business has maintained a steady development trend. Taking women's wear and men's clothing as an example, it can be seen from the cloud data analysis report of the 2015 electricity supplier that in 2013 ~2015, the online sales of women's clothing still showed an upward trend, an increase of about 21% compared with the same period last year, while the growth trend of new and old customers was convergent. However, the proportion of the old customers' contribution did not decrease because of the new customers' entry. Men's clothing increased by 28.73% in 2015 compared with the same period last year.

Traditional brands and foreign brands have been actively launched, and the mode of online and offline integration has become an inevitable trend in the development of the apparel industry.

A large number of offline brands have stimulated the rapid growth of the online market, which has also made the online apparel industry more intense. But at the same time, it means that brands have broken the barriers between online and offline businesses and are competing in the same pool.

In contrast, offline brands have strong supply chain and higher brand advantages, and the electricity supplier brand has made up this lesson before.

Tang Feng said that in 2012, after accepting investment from Jingwei and Sequoia, it decided to make the listing a goal.

Since then, it has begun to standardize the business, finance, taxation and management, and has invested a lot of energy and resources in the regulation.

It is understood that the financial system has improved the budget system, and the turnover rate of single brand can reach 4~5 times.

The rolling budget of Matthew effect controls the risk of inventory very well and makes the turnover rate of the group accelerate. Every two months, the goods are all new. On the one hand, the word-of-mouth of suppliers becomes better, and the other side can form good cash flow, thus forming a virtuous circle.

In the face of the short supply chain that has been criticized by Amoy brand, Internet brand is also forming a supply chain which is more suitable for the speed of electricity supplier.

Tang Feng revealed that it took four years to build up its own IT team, and developed a full supply chain system including planning, R & D, production, sale on the shelves, docking, storage and distribution of all platforms, including intelligent BI system.

Li Feng, founder partner of Feng Rui capital, also said that now, new channels and new media, including consumption upgrading, have been stacked together.

When it comes to brand growth, he thinks the most important thing is brand ceiling and category ceiling.

Look at the growth efficiency of single brand sales, two look at brand power indicators.

With the increase of sales and the increase of passenger costs, the real branding enterprises should not decline, at least at the same time.

Many Amoy brands, despite the fact that the profits are not too much at the moment, their gross margins remain at a good level.

Why does the capital market give the electricity supplier brand a higher premium?

"Relying on the online brand, the store has insufficient operating capacity and lack of relevant experience. The road to development under the line will be bumpy."

This is one of the reasons why some people are not optimistic about the listing of Amoy brands.

In fact, this kind of speculation is not groundless. Taking Yin man and cracking silk as an example, in September 2011, Yin man's first physical store landed in Guangzhou. However, due to the lack of traditional retail genes, it was difficult to get through online and offline. Not long after the project was aborted, the first line shop in Beijing Zhuang Sheng Guang Guang Department store was opened up in 2012. Finally, due to the complexity of the offline channels, the trial of water under the broken silk line also ended in failure.

However, after several years of precipitation, in July last year, Yin man chose to start the next line business. According to Ma Xiaobo, director of the project of Yan man + thousand city store, after evading the previous mistakes, the number of shops opened in 10 months has reached 300, and 87% of the shops have already made profits. In the prospectus, the listed companies have also stressed that once the fund-raising is completed, it will become an important starting project and full of confidence.

Some people may think that quite a lot of Amoy brands are low, but Hong Tao, chief analyst of GFA's new consumption, said that in fact, the Amoy brand has made use of the electricity supplier channel to shorten the intermediate channel links and enhance the commodity price performance ratio.

On the other hand, Amoy brands have their own styles, forming their loyal fans to meet the needs of consumers' personalization and fast fashion.

Hong Tao also said that the Internet brand rapidly rises with the help of the electricity supplier's traffic dividend, and with the scale reaching a certain volume, it will pay more attention to the sustainability of the brand life cycle.

In addition to revenues and profits, the focus will also be on whether the Amoy brands have the core competitiveness of clothing brands, including front-end brand operations, category and channel development capabilities, product design, new capabilities, back-end information systems and supply chain management capabilities.

Simply speaking, on the one hand, whether the Amoy brand can seize the new traffic bonus, such as social business, net red economy, etc., on the other hand, whether the brand can realize flexible supply chain, speed up capital turnover and improve inventory control.

China and Thailand securities director general manager Lu Ge said that with the Amoy brand listed in succession, this systematic phenomenon will be discovered by the market. If the brand of the brand with ALI is imprinted, if the performance of the brand is good, when the new brand is submitted to IPO, it will be a dark horse in the eyes of investors.