How Does "First Share" Go To The Bottom Of Rivers And Lakes?

Today, " Amoy brand "For us, it has become strange. The familiar Taobao shop is net red. Among the few remaining brands, Han Du Yi she , Inman (Hui Mei), the split and silk were submitted to the securities and Futures Commission prospectus in advance. Collectively (application) listing is behind the competition for the first brand of Amoy brands. Of course, now they are more willing to be called "the first brand of Internet apparel brand".

From the angle of Ali, they also quietly put down the slogan of "Amoy brand for original cheering". After turning to Tmall, the brand seller called it an important part of Ali ecosystem. To this end, at the end of April this year, Ali set up a "office to assist businesses listed", and joined the tide of listing AFU, three squirrels, ten month Mommy, puppy electrical appliances and other more than 40 companies.

So here comes the question....

Why is Amoy brand listed collectively?

An era has made the brand of Amoy, and another era has made the brand of Amoy brand dim. This phenomenon is particularly evident in clothing.

Before 2009, most of the traditional products had not yet been "struck". Many Korean brands such as Han Du, Ru Bo, Yin man, aka, green box, seven Ge and so on had sprung up, enjoying the flow bonus of PC Internet era. But after 2010, a large number of traditional brands are experiencing a severe inventory crisis, with the help of e-commerce channels to digest, taste the sweetness of electricity providers to accelerate the pace of spanformation. And Amoy brand "out of the Tao" or mergers and acquisitions shuffle, such as Shanghai La Natsu Bell clothing to buy seven grid.

In 2012, in the era of mobile Internet, Taobao mall changed its name to Tmall, and Ali increased its support for traditional brand businesses. The Amoy brand was promoted from C store to B store, but it can no longer get more support from Taobao's second place as before. The volume of dividends has been exhausted, and the cost of acquiring passengers has increased. With the upgrading of consumption, "cheap" can no longer become the core competitiveness.

To "blood spanfusion", listing and financing has become the best path for the past brand to the future. In the first half of 2016, there was a collective listing of Amoy brands. Taking Han Du, Yin man and cracking silk as examples, the main reasons were as follows:

1) enterprise development cycle, time window, "first strand" temptation

According to the above brand development trajectory, its aura is no longer, "out of the Tao" with Jingdong, vip.com and other more business channels of synchronous operation, they re advertised themselves as "Internet brand". Compared with the traditional brand, it was established in 1995, and was listed in 2008; Semir was established in 1996 and listed in 2011; almost 13 to 15 years' listing cycle.

Han Du and rip and silk were founded in 2006. It was founded in 2008 and has been in the 8 to 10 years. The development speed of Internet brands is more than 2 times that of traditional brands. Therefore, it is in line with the development cycle of apparel enterprises, and they actually have the opportunity to start listing two years ago. But last year, the SFC saved the market for IPO. The macro aspect led to the collectible (application) listing of the Amoy brand this year, and everyone wanted to grab the title of "first share" before closing the time window.

2) big wave "Amoy" gold, shuffle mergers and acquisitions to lay the foundation for expansion.

After 2012, Amoy brand shuffled up. Han Du bought ANYMO AI, Yin man bought the initial language, cracked the silk and bought the angel city (established in 2004, once reelected Taobao women's clothing sales NO.1), Lady Angel and so on.

On the subdivision category, they expanded from women's clothing to men's wear and children's wear. And in the design, flexible supply chain spanformation, laid the foundation and entered a mature development period.

3) Ali's "surge", the listing resistance becomes smaller.

Although Han Du, Yin man and rip have already called themselves the "Internet brand", they do not hide the history of the "Amoy brand". After listing in the US, Ali needs to consolidate and expand its territory, promote successful cases, set up "assisting businesses to list offices", echo with collectively listed Amoy brands, help their business customers build bridges with brokers and exchanges, and indirectly reduce the listing resistance of Amoy brands.

4) do not rule out a bet agreement with investors to limit the time limit for listing.

Take South Korea's clothing house as an example, one of the investment agreements signed has clearly stated that factors such as the failure of IPO or qualified public offering before June 30, 2018 triggers the provisions of Founder shareholders or companies to repurchase external investors' equity and liquidation priority.

The two runways of gem and new three boards are only "one step away".

The reporter made a collation and analysis based on the prospectus of three companies, including Han Du, Yin man and the company. According to the difference of user age and style preferences, they operate several clothing brands under a big tree, and the subsidiary companies are responsible for the related links (design, procurement, warehousing, etc.).

By the end of December 31, 2015, there were 6 subsidiaries and 14 brands in Korea. There were 16 subsidiaries and 14 brands in Yin man. There were 15 subsidiaries and 8 brands in battalion.

Why are there more sub companies than sub brands? It is found that the main reason for this situation is that three companies have made a structural reform of the stock market for the preparation of the listing, and the part of the employee stock ownership has been turned into a wholly owned subsidiary.

Han Du

Management: holding 51.17% and five executives acting in concert: Zhao Yingguang 18.15%; Zhang Hongxia 10.74%; Liu Jun Guang 10.74%; Du Tingguo 6.6%; Wu Zhentao 4.94%

Strategic investors: not yet introducing strategic investors

Institutional investors: shareholding 31.04%, Jolly View11.06%; Big Profit7.79%; Jing Lin nine Sheng 8.09%; Jing Lin Jing Qi 4.1%

Others: four ESOP platforms 5.04%: Han Ku investment, Tengteng investment, Yi Xun investment, and 1.26% investment in Ru valley. Stars Li Bingbing and Huang Xiaoming each 0.54%, Ren Zhen Quan 0.4%;

Inman

Family: 34.79%, Fang Jianhua and Dan Yufang.

Management: holding 13.39%, signed the concerted action agreement.

Strategic investors: 25.2% stake in search, clothing listed companies.

Institutional investors: holding 26.62%, of which employee stock ownership is indirectly held by "Zhuhai Hui Cheng" 9.17%, while the rest are held by three institutions.

cut silk into pieces for writing letters

Family: 55.84% stake, big soup, soup couple four people, holding 13.96% respectively.

Management: holding 21.63%, the ESOP platform: Tianjin's heart and material, 9.61%; Tianjin's 7.13%; Tianjin's angel city 4.89%.

Strategic investors: not yet introducing strategic investors.

Institutional investors: holding 22.52%, longitude and latitude 13.51%; Sequoia 9.01%.

It can be seen that the ROK shareholders are scattered and split, and Yin man maintains a distinct family business color. However, this phenomenon is not special. Qiu Guang, his founder, and his family still hold more than 31.61% of the company's shares.

In fact, Han Du had been seeking overseas listing, and in February 2011 the Handu Esell was set up in the overseas (Cayman Islands) listing body. Perhaps Zhao Yingguang, founder of Korea's capital, saw that the privatization of stocks in recent years had returned to the A stock boom. Han Du began to terminate the VIE agreement in December 2013 and bought some shares through the three equity changes. Finally, it completed the share reform in March 2016, and submitted the new third board listing application to the SFC in two months.

Yin man and the split listed companies chose the Shenzhen Stock Exchange Board to launch the stock market, and the listing of the track was different. The Korean stock prospectus disclosed only the financial data of the past two years (2014 and 2015). However, the report mentioned that it was also losing money in 2013. It only achieved about 33 million profit in 2015, and did not reach the listing threshold requirement of the gem "two consecutive profits".

From 2013 to 2015, the annual revenue of Yin man was 590 million, 949 million and 1 billion 141 million respectively, corresponding net profit of 34 million, 39 million and 12 million.

From 2013 to 2015, annual revenue of cracking and silking was 688 million, 579 million and 546 million respectively, corresponding net profit of about 70 million, -400 million and 31 million.

It is worth noticing that in recent three years, the scale and net profit of the revenue and distribution of the company have been declining rapidly. Even in 2014, there has been a loss. The main reason is the decline in revenues and the dramatic increase in management costs, resulting in non recurring gains and losses (in 2014, the stock market incentive for employees to split shares, the cost of producing shares in the past year was 2976.46 million, while no share fees were paid in 2013).

How does "first share" go to the bottom of rivers and lakes?

The gross profit of clothing category is even more significant than that of 3C appliance in the standard, and the gross margin level of the former industry can be around 50%.

In the past three years, the gross profit margin of the silk and silk fabrics has declined significantly from 57.13% to 50.26%, but it is the highest among the three Amoy brands, followed by Yin man, the gross profit margin has dropped slightly from 47.18% to 45.62%, and the lowest gross profit Korean stock has increased from 34.84% in 2014 to 39.42% in 2015.

On the whole, the clothing brands that start with the e-commerce platform and the traditional clothing brands set up by offline stores are basically close to the profit level, but the cost composition of the two is quite different. In addition to fixed production cost (purchase cost), the cost of e-commerce brand clothing mainly comes from network marketing (purchase flow) and logistics distribution costs.

The period expenses (sales expenses, management expenses and financial expenses) of the three companies are mainly based on sales expenses, which basically account for 80% of the total cost. The sales investment of Han Du and Yin man is increasing year by year, while the shrinkage is shrinking, which is the main reason for the decrease of annual income.

The reporter also compared the cost rates of the three e-commerce clothing brands with those of the three traditional clothing brands, and found that there was no obvious difference, reflecting the spanformation effect of the electricity supplier channel and the store. The cost level of Semir is obviously lower than the average level of the industry.

We will further analyze the cost of three e-commerce clothing brands, and see more accurately their respective business operation ability.

Platform and advertising costs (including promotional activities, platform commissions and technical service fees) account for more than 50% of the sales cost, which is a very normal phenomenon in three companies (the cost of electricity supplier channel is mainly from Tmall, Jingdong and vip.com), among which Korea is the highest, reaching 62.99% in 2014. Everyone knows that all the electricity supplier companies play the "hidden rules" brush, the cost is also included in the platform and advertising costs.

The three companies adopt foundry and flexible supply chain, so the logistics distribution cost is much higher than the storage cost. Because of their own silos, and Yin man and Han Du are outsourced to the third party, so when the turnover is far lower than the latter two, the cost of warehousing and warehousing is close to the split.

Clothing replacement rate is relatively high, under normal circumstances, there are 20%, and this part of the non quality problem returns (size, color, etc.) cost is borne by the buyer, not included in the cost.

The biggest risk of traditional clothing brand comes from inventory, and clearance sale is a great harm to the brand. However, the use of flexible supply chain of clothing brand to reduce the risk of inventory to a certain extent, but stocking is necessary, especially to create "burst money". Compared with the three companies, in terms of inventory turnover and inventory risk, Yin man has a far higher position than Han capital.

To sum up, Yin man should be "heavy". If there is no obvious advantage in the market conversion efficiency, the bottom of the stock increase will come from offline distribution channels.

Han Du's "puffiness": the increase in sales volume comes from the increase in the cost of sales. The panel system will design, produce and sell the independent budget, and the internal competition brings vitality, but it can not be optimized in the overall investment. It is noted that one of the details in the prospectus is that the cost of personnel in the sales cost has obviously exceeded the personnel cost in the management cost, mainly due to the formation of the performance cost of the group system.

Cracking and silking is tight: the negative growth of annual spanactions is due to the "throttling" effort, mainly due to reduced input in operating costs. In 2014, the logistics system was optimized, and Shanghai warehouse was revoked into Beijing warehouse, and the corresponding layoffs were reduced from 1046 in 2013 to 465 in 2015.

Listing requires new stories.

What is the survival of traditional clothing enterprises?

In 2015, 26 listed apparel announces that the total sales amount amounted to 103 billion 40 million yuan, of which 10 enterprises had a year-on-year decline in revenue and net profit amounted to 12 billion 586 million yuan, of which 11 companies had net profit declining. Both revenue and net profit fell by 6.

E-commerce clothing brand is also very difficult to be independent, listing is also to take the following three steps:

Channel sinking - increasing penetration and increasing user experience

The above statistics can be seen that traditional clothing stores are far ahead of the apparel brands in terms of scale of revenue. Besides, traditional clothing enterprises are moving to the "offline + online" integration channel spanformation, so the clothing brand to the line is the only way to "billions of dreams".

Cracking down on silk and silk has begun experimenting with offline stores such as physical stores, factory stores and so on. The revenue generated by them has accounted for 0.55%, 0.61% and 0.28% respectively, accounting for a relatively low proportion. In the purpose of listing funds, we plan to invest 50 million of the investment in offline channels, accounting for about 1/8 of the total amount of financing.

In 2015, Yin man launched the "1000 City store" plan. The turnover was 22 million 980 thousand in the same year, accounting for 2.01% of the total revenue. In the same year, Dongguan invested 324 million yuan in the apparel company to invest in the company, laying the groundwork for offline expansion. Yin man disclosed that after the listing plan, 140 million of the investment channels will be built, accounting for about 1/3 of the total amount of financing.

By contrast, Han Du has not touched the line yet. According to the tiger sniffing business, Ali will follow through the Yintai and meow street to assist the former Amoy brand to open shop under the line, the mode of franchise is very mature.

Brand incubation -- solve the problem of single category and too narrow audience

Generally speaking, clothing brand incubation will be carried out in three ways: internal incubation, external stock swap, and partner mode. From clothing to luggage, adult clothing is extended to children's clothing.

Apart from previous mergers and acquisitions, rip and silk did not invest in brand incubation. Han Du and Yin man highly praised their brand incubator ecological projects and even launched their own brand incubation base. After listing, 1/2 will put 220 million into the brand incubation project, close to the total amount of financing.

Net red IP -- to cope with higher traffic costs and enhance customer loyalty

One direction of brand incubation is to focus on the excellent design team, and the other is the grass root red. The root of "net red card" is that traffic is becoming more and more expensive. Prior to this, Han Du accepted Li Bingbing, Huang Xiaoming and Quan Ren's star investment, also for the Bo eyeball, now is trying to broadcast live.

Yin man's strategy of "net red + electricity supplier", through the community linkage line entity store, as an interactive scene, and then signed the net red, do the fans management. "The national wind" is completely broken, and the best way of combining has not been found on the net red road.

"One will make thousands of bones dry" and compete for "first share". Let's remember three names: Han Du, Yin man, and split silk, and countless brand names have been forgotten.