IPO Application Is Frequently Denied &Nbsp; Why Garment Enterprises Are Successfully Listed?

2011 is approaching the end of the year.

Mode of winning and losing

The mainland garment enterprises have become the hardest hit areas of IPO applications this year. The reasons for the failure of these enterprises are also different.

The Shenzhen ladies' brand "lady's house" has always taken the sweet princess route.

Li Jiaqing, the managing director of Lenovo investment, who has invested in women's clothing brand La Natsu Bell and Amoy brand seven, said that any retail chain's consumer brands listed, its authenticity, standardization and profitability of sustainable development will receive more and more attention, and the barriers and barriers to listing will also be higher and higher.

At present, there are 5 brands of ladies' houses, including women's clothing, bedding and so on. The ladies' houses and natural elements account for 87.23% of the main revenue, while the other 3 brands add up to 12.77%. Among them, two of the "FairyFair" and "little ladies and John" account for less than 3%.

When enterprises are small in scale, they diversify their categories and disperse their limited capital, talent and channel resources. This undoubtedly brings hidden danger to the sustainable development of enterprises.

The chain retail of its brand can really expand the scale of enterprises. However, excessive expansion of self run stores may lead to a drop in single store interest rate, and at the same time increase operating costs, which will definitely affect the overall profits of enterprises.

Whether the profitability of the enterprise is optimistic or whether the business risks are prominent or not is the key factor for the SFC to consider whether the company can successfully list.

On the other hand, Semir clothing, which is successfully listed, adopts the light assets operation mode of "independent research and development + outsourcing production + franchising". It operates Semir and Barbara's two brands, and the practice of increasing the upper and lower ends of the main industry chain has prompted Semir to quickly grow into a well-known high-quality apparel operator, and finally get the approval of the SFA.

Sustained profitability is the key.

The rapid decline in inventory turnover or the risk of sales and finance will be another important reason for the clothing companies to apply for IPO this year.

Since last year, the cost of clothing enterprises in the mainland has generally increased substantially. In order to ease the upward pressure on costs, clothing enterprises began to substantially increase the sales price of products, which rose by about 10%~20%, resulting in a substantial increase in the number of garment enterprises that were too interested in gross margins and a substantial decline in inventory turnover.

After the season, a lot of backlog caused the capital turnover of enterprises to be ineffective, lack of follow-up funds to support the renewal and development of products, and the continuous profitability of enterprises was greatly implicated.

Before restructuring and listing, garment enterprises must accurately analyze the internal and external environment, evaluate their own strengths and weaknesses, identify the location, establish the brand image of the enterprise, and make the development strategy clear.

Entering the era of retail fast consumption, a good business model will eventually be implemented to the profitability of single stores.

While paying close attention to the main categories, enterprises should also make good use of the additional categories, make full use of every inch of the shop space, increase the profit margins of individual shops, rather than increase the private stores themselves.

Chen Yongbin, general manager of Zhengzhou leading clothing Limited company, believes that if enterprises want to take a firm foothold in the market, first of all, they should have a reasonable position and establish their own brands, and on this basis, choose suitable formats for the characteristics of consumer groups, and thus extend to products, prices, channels, promotion and so on.

From the view of Semir and seven wolves, these successful listed companies are also concerned about the management of franchisees, establishing brand business units, and also implementing indirect management of two level franchisees with shop access, quality control and window guidance. This management mode reduces management costs and improves communication efficiency.

Diversified business trend

At present, China's garment industry is in a period of pformation, and this trend is gradually appearing in the retail industry.

Li Guangdou, a brand strategy expert, said that the future retail format will be pformed into a multi-level professional and will become richer.

Compared with the early listed YOUNGOR and Shanshan, the company that appeared on the IPO application list in the past two years should be China's third generation clothing enterprise.

Most of these consumers are very young and well-educated, and their understanding of fashion and future is more personal.

Yang Dayun, President of UTA Fashion Management Group, thinks that in the pformation period of China's garment industry, enterprises should think about how to improve management level and reduce costs, so as to cope with the impact of inflation on enterprises.

In the increasingly complex environment of the global economy, it is a general trend for the domestic garment enterprises to be listed to carry out the development and management mode of "professionalism, diversification, fashion and brand optimization".

On the one hand, it will pform the brand to specialization, enhance the domestic popularity and global attractiveness of the enterprises, establish brand confidence of domestic consumers, on the other hand, bid farewell to the extensive production mode in the past, keep up with the fashion trend, and develop diversified formats to meet the new generation of consumers.

Epilogue

Many well-known domestic garment enterprises choose to compete in 2011 to embrace the capital market and raise funds, behind which is the objective demand for the development of enterprises and the whole industry.

Before applying for listing, enterprises should optimize the allocation of resources. Therefore, restructuring and listing will play a significant role in promoting the development of enterprises.

Especially for family businesses, shareholding reform and application for listing can further clarify the direction of enterprise development, improve the company system, stabilize basic management and achieve standardized development.

At the same time, the use of capital market can enable enterprises to obtain long-term and stable capital funds, effectively enhance the brand value and market influence of enterprises, and achieve equity appreciation.

But unfortunately, in this year's upsurge of the mainland's clothing enterprises listing, the enterprises that had been defeated were mainly defeated in their own wrong positioning and unfavorable factors of corporate profits.

Fortunately, the capital market has never rejected the clothing enterprises. The threshold of the application will not be unattainable. In the past, the success or failure of the listing of the mainland garment enterprises is just a reference for more enterprises.