Zhejiang Costumes Fly A "Pacific Bird", Can It Borrow IPO To Fly Farther And Farther?

Zhejiang, which is rich in clothing brand, has recently launched a "Pacific bird".

Following the listing of YOUNGOR, wedding bird and Semir costumes, Ningbo Pacific bird fashion dress Limited by Share Ltd (Stock Code: SH603877) officially landed on the Shanghai stock exchange in January 9th, becoming another listed Zhejiang clothing brand. Its market value exceeded 14 billion 500 million on that day, and the opening price was the limit.

At this point, IPO may save the performance of the birds in the past year.

Listing announcement shows that in the first three quarters of 2016, Taiping bird revenue was close to 4 billion, net profit margin of 160 million, down more than 20% over the same period, while current liabilities were more than 3 billion.

At present, net profit decline is still continuing.

Based on this achievement, Taiping bird forecast net profit of 2016 decreased by at least 14% compared with the previous year.

However, this is not a long-term phenomenon.

Prior to that, from 2013 to 2015, Taiping bird's revenue and net profit increased year by year, with revenues of 3 billion 800 million, 5 billion and 5 billion 900 million yuan respectively, with a compound annual growth rate of 24%. Net profit was 210 million yuan, 430 million yuan and 530 million yuan respectively, and the compound growth rate was close to 60%.

Taiping bird said that the growth in 2016 slowed down, net profit fell and current liabilities increased because of the expansion of business scale.

In the first 9 months of 2016, the average store of Taiping bird opened 1.5 new stores per day, an increase of more than 400 over the previous year.

At present, there are more than 4200 shops in Taiping.

With the expansion of stores, the cost increases sharply, while the profit growth of new stores is slower.

Taiping bird, founded in 1996, originally started as a men's shirt, and is currently positioning itself as a fashionable "mid-range casual dress".

Its six major brands are divided into three gradients, namely core, emerging and start-up, in order to cope with differentiated demand in the market segments, complement each other and develop interlaced.

In addition, Taiping bird joined the French design brand AlexisMabille in 2015.

In recent years, Taiping bird has been well received by the industry for its fashionable design, cutting-edge content marketing and multi-channel marketing.

Prospectus shows that in 2015, Taiping bird ranked fifth in China's casual wear market.

According to Euro reports, in 2014, Taiping bird ranked sixth in women's and men's mid-range casual wear market. It is the only local clothing company that ranks the top ten in the two markets at the same time.

Faced with brand aging and consumer growth, its founder, Zhang Jiangping, has publicly stated: "at least five years to pform once, understand your audience, seize your customers."

This spirit, which follows the trend, is first manifested in design innovation and content marketing.

In recent years, Taiping bird has gone far ahead of many domestic garment enterprises.

On the day of the listing, Taiping bird ran a fashion show called "FLY" in the Shanghai Stock Exchange. The models showed their major brands in turn.

This unique listing ceremony is a Pacific bird style that has always advocated the trend of entertainment and interaction.

And this is obviously not all.

Since 2015, Taiping bird, which has been well versed in the "net red" economy, has set up the "net red" business department under its electricity supplier department. It also invited Disney, a fashion designer, to design a series of costumes, and invited model Zhang Liang to be his spokesperson.

In the same year, Taiping Bird held the "space and technology" 3D show in Ningbo, where many models, fashion stars and stars were invited.

On the same day, PEACEBIRD women's wear tried to move the stage back to the T stage to restore the designer's work scene. This is similar to Chanel2016's autumn winter's old Buddha's move to the show.

Then the brain hole opened wider.

In 2016, PEACEBIRD menswear and the former flower show master ThierryBoutemy, such as Dior, Lanvin, GIVENCHY and so on, launched the FEVER series men's clothing. In order to salute the East West's minimalist clothing philosophy, convey "fashion without borders", PEACEBIRD women's clothing and Italy independent designer MINIMALTO MINIMALTO work together to design "MINIMALTOFORPEACEBIRDWOMEN" series. In the same year, Taiping Bird held the "fanaticism" online concept exhibition with the theme of "50s art and events".

On the eve of double 11 in 2016, Taiping Bird held "bird bird Music Festival". Cross border fashion and music produced an interactive marketing with good drainage effect.

Double 11 days, Taiping bird sales exceeded 600 million, an increase of 61% over the same period, ranking second in the list.

These content marketing can be effective, of course, not just rely on entertainment stunt.

Many factors behind it, such as fashionable clothing design, effective sales mode and supply chain, are fundamental.

At present, there are more than 500 people in Taiping's design team.

In order to improve R & D capability, employees have often visited ZARA factory in Spain in recent years.

Zhang Jiangping said in an interview with first finance that Taiping bird adopted the production method of "more money and less quantity".

In order to maintain the freshness and fashion of the goods and ensure that the retail stores are new every 1 to 2 weeks, more than 8000 new products are developed each year.

The company also implements flexible supply chain, and generally only orders 60% to 70% of the order from the factory.

The sale is not good, the remaining fabrics are used separately, sold well, and immediately added production.

From the point of view of sales channels, Taiping bird carries out multi-channel coverage of "Street shop + department store + Shopping Center store + online sale".

With the change of retail formats, the proportion of its channels is constantly adjusting. The proportion of sales of traditional street stores and department stores has been declining, and the proportion of shopping centers and online sales has gradually increased.

At present, its offline sales mode is mainly direct and franchising, part of the agent.

By the end of June 2016, the number of franchisees accounted for the most, about 70%, but the income of direct outlets was the largest, close to 3 / 5 of total revenue.

Taiping bird started off the line, but in 2007 it entered the electricity supplier, and the online layout was relatively early.

By 2016, its electricity business accounted for more than 15%.

The prospectus shows that Taiping's electricity business has increased substantially in recent years, and the number of online retail sales has increased from 400 million in 2013 to 1 billion 100 million yuan in 2015.

In the double 11 wars, Pacific bird uses offline stores to participate in O2O mode.

On the one hand, online ordering, offline store delivery.

In addition, goods from offline stores and dealers can also be sold through online activities.

Behind huge sales, Taiping bird relies on self built warehousing.

Its Tsun logistics base costs 500 million, and the automatic storage and replenishment operation platform can be controlled only by a small number of management personnel.

The development of China's local garment industry is not optimistic behind the bustling success of Taiping bird.

According to the Ou Rui report, the overall strength of China's local clothing brands is still hard to compete with several international fast fashion groups.

Whether or not Taiping bird, who leverages capital markets, will be able to go farther and farther in the subsequent expansion will need to wait and see.

In the first half of last year, Zhang Jiangping, chairman of Taiping bird, told a daily economic news interview that he plans to open 2000 stores in five years, and IPO can become a catalyst, so he hopes to enter the A share market quickly.

After listing, Taiping bird said that more than 1 billion of its funds will be used to build and strengthen marketing networks, distribution logistics centers and information systems, and invest 580 million yuan, 350 million yuan and 150 million yuan in these three parts respectively.