The Path Of "Sparrow To Phoenix" In China'S Footwear Industry

BELLE has become the "crystal shoe" in the hearts of clothing and footwear enterprises, and a "myth of sparrows becoming Phoenix".

In May 14, 2007, BELLE International's offer ended with a price of HK $6.20, frozen over HK $433 billion 700 million, breaking the record of HK $415 billion 600 million, which was launched by the ICBC.

This round of IPO, BELLE international raised HK $8 billion 660 million, the market value of HK $50 billion on the day of listing, Gome, which is worth more than HK $38 billion 600 million, is strongly praised by Hongkong media as "the king of the mainland's retail market value".

"May 23rd is a watershed. It has changed the history of China's footwear industry."

Wang Zhentao, President of AOKANG group, said to everyone.

This day, BELLE International's listing on HKEx has stimulated almost all the domestic shoe enterprises' nerves.

China's clothing shoes and hats were formerly synonymous with high quality and low price.

Now, BELLE's success in the capital market has created a "bright light" for the traditional China.

BELLE's listing is only the beginning of the "wear" industry's upturn.

In July 10th, the Anta of Fujian, Jinjiang, landed in Hongkong, 183 times oversubscribed, raising about HK $3 billion 168 million.

In August 16th, Wenzhou's wedding bird clothing ringing the SME Board of the Shenzhen stock exchange raised 220 million yuan.

In October 10th, Bosideng, China's largest down garment manufacturer, listed on the Hongkong stock exchange for HK $5 billion 677 million.

Before that, Hong Kong and Taiwan's footwear industry dominated Ying Jin and nine Xing also listed in Hongkong. After that, the main trend of China's sports brand sales also caught up with the wave of the clothing and footwear industry listed in the capital market, and the market value of the company was 5 billion 500 million Hong Kong (the company that was divestiture by Lining's main business) now has more than 3 years' market value of Lining.

Wenzhou's shoe industry has never been on the market, and its stubbornness is beginning to get loose. Ao Kang Wang will soon contact more than 20 of his investment banks in 5.

In September 2007, the Red Dragonfly company, which was listed in Wenzhou, was listed, and the share reform was completed before the listing, and the investment bank was also identified as CITIC.

On March, at BELLE's base in Guangdong, Foshan's footwear industry on Saturday gained Lenovo venture capital and is ready to go public next year.

In addition, Metersbonwe, a clothing company, is also pressing ahead with the launch.

AMT sports goods Development Research Center said in a report that Jordan sports, XTEP sports, 361 degrees, PEAK sports and other sports brands in Jinjiang, the estimated timetable for listing is around 2008.

Wang Maoquan, mayor of the town of Chen Tai, Jinjiang, who has nearly half the output of sports shoes in the national market, announced to the media in 2010 that there will be 6-7 listed companies in Chen Dai town.

"There was no wind before, and the dragon was lying on the ground.

Now the wind is rising, the pigs are all in heaven.

A deep industry insider laughed.

How did China's clothing and footwear companies suddenly get the favor of the capital market?

Will there be an overall upgrading of the industry after the surging tide of listing?

How will the industry structure reverse?

Capital is never an angel, not a savior, a shuffle in the industry of capital drills, or a heaven for you, or a land for you.

The reordering of industries has just begun, and everything is in the immediate choice.

Favored by "BELLE", "Ying Jin" and "nine Hing" brand shoes listed in a short period of time, which shows investors' recognition of China's pformation from "world factory" to "world market".

Shen Chun, manager of investment bank of Dafu securities, said publicly in an interview with the media.

According to the international development law, the per capita GDP will exceed 1000 US dollars, and the growth of clothing consumption will accelerate.

In the past 15 years, the income of Chinese consumers has increased by nearly 7.7 times.

According to McKinsey, by 2010, the annual income of 40 million families will exceed 48 thousand yuan, equivalent to 24 thousand US dollars at purchasing power parity, enough to reach the middle class level in the United States.

The increase of wealth makes people have the ability to consume brands and high-end products, and the process of urbanization makes people pition to enjoying consumption and pay attention to brand experience.

Garment retail starts in 2001, and the annual growth rate is maintained at around 20%. In May 2007, the growth rate of retail sales of clothing consumer goods rose to 23.5%.

Global investors want to benefit from China's $800 billion retail market, and it is easy to understand that clothing and footwear companies have been popular in the process of listing.

China's rapidly upgraded consumer economy is becoming an important thrust for many private enterprises to grow across the threshold of growth. This also makes many fields contain opportunities to build a business empire.

On the concept of "world market", those who can achieve Longmen in capital market are those with strong sales channels.

The number of BELLE and Anta stores at 3000 or 4000 stores has given these companies huge profits.

In 1991, Deng Yao, who founded shoe making enterprises in Hongkong for 10 years, founded a joint venture company in Shenzhen, BELLE. He selected Sheng Bai Jiao as his general manager in the list of managing output of China Merchants.

6 years later, Ding Zhizhong, a young boy, set up his own factory with a 1 million yuan sum.

The two seemingly dissimilar companies have the same choice, increasing the number of outlets like the go go.

"When dealers have a comprehensive sales network, they have the basis of bargaining with manufacturers. They can use network resources to expand their support to manufacturers, or to get the most direct cash flow by using the Internet to expand their businesses.

Similarly, when an enterprise has a mature brand, it can choose manufacturers at will. As long as the quality meets the requirements, it can be OEM in different cities, and it can be profitable without the investment of fixed assets.

In 2004, Sheng Bai Jiao gave a speech in an industry forum to give his full thought on BELLE's development.

However, the pilot scheme of foreign funded commercial enterprises in 1999 blocked the way for BELLE to go.

In the face of the obstacle conditions of "foreign joint venture that applies for retail business, joint venture commercial enterprises must meet the average sales volume of more than US $2 billion in the first three years", Sheng Bai pepper decided to make a detour.

Since 1997, 16 individual distributors have signed exclusive distribution arrangements with BELLE to become wholesalers of BELLE.

By 2002, these distributors had opened more than 600 retail outlets.

In July 2002, distributors jointly established BELLE investment.

In 2004, the "foreign investment business area management measures" promulgated, BELLE international obtained the retail business license, BELLE investment value of existence is not large, and now began to consider the listing of BELLE international also need to clarify the relationship between the two companies.

BELLE invested most of its shares in March 2005. In August, BELLE international terminated its agent sales relationship with BELLE. However, BELLE's original equipment sold at a discount and sold with BELLE international.

In this way, BELLE international certainly will not lose its original outlets due to the departure of BELLE investment. The speed of self built network will accelerate instead, and within 1681 years, it will grow rapidly from 3828 to two.

Anta's terminal reform started late, but it worked equally well.

In 2001, Anta began the compilation of retail display manuals, abandoning the practice of laissez faire channel management, and invested huge capital and manpower to help channel operators "upgrade".

More than 70 shop management regulations were completed in 2 months and distributed to more than 4000 stores.

In 2003, Anta upgraded simple merchants to a regional operator of sporting goods and upgraded the business department to a trading company.

This means that the previous 4000 points have now become a net.

It is these sales networks formed by these many sales outlets that make the capital of "China market" give about 40 times the price earnings ratio of BELLE, Anta and other companies, far higher than the price earnings ratio of Hongkong's local clothing and footwear listed companies.

"Now is the golden opportunity for clothing and footwear industry.

The pursuit of capital market for this industry may last for 3-5 years.

It is certain that the industry will have an obvious upgrading after the current boom in the clothing and footwear industry.

Improving the design level, improving the management structure and expanding the outlets will be easy to achieve with the influx of capital.

State securities Zhang Bin said.

"Now every enterprise is groping for its own path of growth and cultivating its own talents.

In the next five to ten years, the brand, business and design talents of the market will emerge in large numbers, and the standardized management mode will gradually be finalized.

This is the mature condition of the industry. "

The listings of newly listed companies such as BELLE, Anta, Bosideng and seven wolves will be found by the listless, unlisted investors. They will find that the upstart of these capital markets are quite consistent after obtaining huge sums of money: expanding capacity, expanding channels and mergers and acquisitions.

BELLE Sheng Bai Jiao revealed that after the listing, BELLE will take about 24% to 25% of the amount of funding to open new stores, including increasing the market share of the primary market and expanding the market share in the two or three tier cities, from high-end to mid-range, from occupation to leisure, from fashion to sports.

There is speculation in the industry that BELLE will raise funds for 1/3 at least 3 billion yuan!

It is used to acquire enterprises to eliminate competitors and supplementary product categories.

According to the reporter, the acquisition battle after the listing of BELLE has been rolled out across the board, the first acquisition will be announced in the near future.

"Although BELLE is the main player in women's shoes, it is possible that men and women wear shoes together after a few years."

The pressure of the first listed companies on the same industry is condensed in the instant of listing.

"When BELLE first came into the market, my first feeling was that it buys whoever it wants now.

On the second day, I held a conference above the middle level. The first thing to say is that BELLE is likely to annex us at any time.

Qian Jinbo, chairman of red dragonfly, told reporters.

Like the red dragonfly, AOKANG, Kangnai and other traditional men's shoes were quite confused by BELLE.

These companies that used to compete with BELLE in men's shoes and women's shoes were not impossible to become BELLE's 9 billion yuan BELLE.

"If BELLE sends an invitation, I can refuse it, but BELLE's brand name for men's shoes similar to that of red dragonfly is not difficult, which will also make me very passive."

Qian Jinbo said.

In addition to the risk of takeover, BELLE's plan to increase 1000 stores a year has added more air to the fiercely competitive shoe market.

Such as red dragonfly, AOKANG, Kangnai and other brands, the market share in the two or three tier cities is in the front, but this situation is likely to change after BELLE finished the layout of the first tier cities.

The best way to turn passive into initiative is to catch up with the listing of the clothing and footwear industry.

As a matter of fact, all the shoe companies in Wenzhou started to consider the issue of listing two or three years ago, but good cash flow made the listing problem less urgent.

Now, the pressure brought by the first listed companies will greatly accelerate their listing process.

AOKANG chairman Wang Zhentao told the media at a forum that AOKANG will be listed as soon as possible within two years.

The red dragonfly has already completed the shareholding system pformation. After choosing the investment bank, it started its own IPO trip.

"Red Dragonfly now has 17 million pairs of annual sales, the number of single brand sales is the first in the industry, and the number of stores is more than four thousand, which is more than before BELLE's listing. It's not very difficult to want to go public."

But under pressure, turning around the capital market has always puzzled Qian Jinbo. In his nearly 2 hours of talks with reporters, his worries about capital are always beyond words.

"Capital makes money too fast, and brand cultivation is too bitter.

After listing, will I be "corroded by capital", attracted by various investment opportunities, and farther away from my brand dream?

Like many clothing and footwear companies, red dragonflies have diversified attempts in the process of development, and they are involved in the fields of real estate, education and finance.

However, in 2005, Qian Jin Bo put forward "zeroing" in the red dragonfly, that is, giving up diversification and returning to the main business.

"The clothing and footwear industry has not been listed in the last 10 years. It has always been the leader of the industry. Is there any improvement in their main business brand?

I can't see them. They only invest in real estate and finance.

Qian Jinbo said he could understand the choice of these peers, because of understanding, and so worried that he would go the same way.

"What about my brand?"

Qian Jinbo kept repeating that he wanted to remind himself of his original intentions and dreams.

Then let Qian Jinbo hesitate on capital road.