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Chinese Fashion Designer CABBEEN Apparel Goes To Hong Kong To Be Listed On The Dust.

2013/10/24 13:50:00 34

Fashion Designer BrandCABBEENCABBEEN Listed

In October 21st, when CABBEEN completed its offer, it sold 6 times as much as it sold publicly in Hong Kong, and nearly 3 times the international placement, which resulted in over 10 times the total purchase of the prospectus.

According to the prospectus disclosed by CABBEEN in the HKEx, the CABBEEN offered 175 million shares, of which 157 million shares were used for international placement, and the remaining 0.175 shares were offered for sale in Hongkong.

CABBEEN will raise HK $354 million at the median selling price of HK $2.53 per share.

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< p > as the leading Chinese original a target= "_blank" href= "//www.sjfzxm.com/" designer /a brand, the performance of CABBEEN in the past three years is commendable in the case of a target= "_blank" href= "href=" and "clothing industry".

In the first half of 2010-2013, CABBEEN achieved 292 million yuan, 890 million yuan, 940 million yuan and 335 million yuan respectively.

But at the same time, because of the excessive reliance on CABBEEN brand, CABBEEN confessed in the prospectus that the failure to maintain or promote the brand could have a major adverse impact on the company.

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"P", which is frequently seen in the domestic apparel industry, is also troubled by CABBEEN's daily inventory pressure.

At the end of 2010, the stock of CABBEEN was 93 million 764 thousand yuan. Although the stock amount was reduced by half by the end of 2012, the pressure still existed.

"At present, the inventory of our channel is very healthy, and the inventory is declining continuously, and the sales revenue is also very real. Orders in the fourth quarter of 2013 and the first quarter of 2014 have seen double-digit growth."

CABBEEN a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > brand promotion department director Zhang Caili told reporters.

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< p > < strong > 915 retail stores only 2 self-employed < /strong > < /p >.


< p > this "most valuable Chinese designer brand" will be tested by the two level market.

In October 28th, CABBEEN will be listed on the main board of the HKEx. The stock code is 2030, which will be traded on 1000 shares per hand.

Prior to the market news, CABBEEN had already subscribed to a basic investor in Hongkong when it offered shares in the stock market. The subscription amount was HK $140 million, accounting for about 26% of its fund raising.

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< p > according to the CABBEEN prospectus, about 40% of the fund-raising will be used to enhance the design and R & D capability; about 20% will be used for brand promotion and marketing; about 20% will be used to set up additional self retailing stores; about 10% will be used to improve and enhance the company's ERP system; about 10% will be used for working capital and general corporate purposes.

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< p > for the purpose of setting up a self operated retail store with 20% of the amount raised, CABBEEN further explained that "the group plans to open 15-30 self operated retail outlets since the end of 2013-2014, and to open a total of no more than 50 self operated retail outlets by the end of 2017".

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< p > it is understood that CABBEEN's sales channels are mainly distributors. At present, CABBEEN's first tier distributors and two tier distributors operate 913 retail outlets in the mainland, while its own retail outlets in the mainland are only 2.

"CABBEEN's self operated stores are mainly set up standards for retail operation, store layout and retail store image.

We will guide all of our distributors through these standards.

Zhang Caili said that the establishment of self run stores will play a benchmark role in the operation of distributors so as to promote the efficiency of distributors.

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The establishment of CABBEEN P self shop may be aimed at reducing the excessive dependence of distributors.

In the prospectus, CABBEEN acknowledges that the company relies mainly on third party distributors to sell products. If the distributor terminates or does not renew the distribution agreement or the volume of purchases of distributors decreases significantly, it will adversely affect the company's business, financial position, business performance and prospects.

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< p > as designer brand, "design research and development" is still the main brand after CABBEEN's listing.

Zhang Caili said: "we plan to increase the building of new buildings to expand the area of R & D centers, and at the same time we will buy relevant R & D software and equipment to improve the efficiency of the whole design and research. We will continue to deepen the design and research capabilities from the aspects of fabric research and development, product categories, product technology and production process."

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< p > at present, CABBEEN owns two brands Cabbeen Lifestyle and Cabbeen Urban, the former has high-end subsidiary brand Cabbeen Chic.

Zhang Caili told reporters that 95% of CABBEEN's turnover came from Cabbeen Lifestyle.

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"P >" CABBEEN's brand is well done, its originality is high, and it can attract consumers. This is its advantage.

But at the same time, this is also a weakness. Too much business will bring some risks to CABBEEN. "

A famous designer of men's clothing in Hunan told reporters.

CABBEEN is also aware of this. It admitted in the prospectus that if it fails to maintain or promote CABBEEN brand, it may have a significant adverse impact on the company.

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< p > < strong > performance for 3 years, continued adverse market increase < /strong > < /p >


< p > in the downturn of the entire garment industry, CABBEEN's performance is an important reason why the market is optimistic.

According to CABBEEN prospectus, from 2010 to the first half of 2013, the company achieved 292 million yuan, 890 million yuan, 940 million yuan and 335 million yuan respectively.

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At the same time, CABBEEN's gross profit margin has also been rising. P

In 2010, the gross profit margin of CABBEEN was 21.2%, and by the end of 2011, the gross profit margin had increased to 31.9%.

Subsequently, the average wholesale price of CABBEEN rose from 133 yuan to 162 yuan, making CABBEEN's gross profit margin increased to 40.5% in 2012.

In the first half of this year, the gross profit margin of CABBEEN increased to 43% because of the sales rebate amount to distributors.

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Data from Frost Sullivan, a well-known market research firm, showed that CABBEEN's market share of casual men's clothing in 2012 was 2.7%, earning 210 million yuan, ranking third in terms of retail income in 2012.

The number one brand is JACK&JONES, with a yield of 550 million yuan, a market share of 7.1%, and the left bank ranking second, with an income of 250 million yuan and a market share of 3.3%.

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< p > "for our region, the average annual sales volume in these three years is around 10 million yuan."

A two level distributor of CABBEEN in Hubei told reporters that the sales of their city ranked the top five among CABBEEN distributors in Hubei.

"CABBEEN should be able to say that our men's clothing sales NO.1", when it comes to this, the distributor is very confident.

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< p > despite the brilliant performance, CABBEEN stock pressure can not be underestimated.

At the end of 2010, the stock of CABBEEN was 93 million 764 thousand yuan, which increased to 128 million yuan in 2011.

Subsequently, CABBEEN took a series of adjustments and measures to the continuous rising stock level. At the end of 2012, CABBEEN's stock amount dropped to 41 million 25 thousand yuan.

In 2013, CABBEEN postponed the launch time of the spring series to give distributors more time to digest seasonal products. By the first half of this year, the amount of inventory dropped to 21 million 322 thousand yuan quickly.

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< p > but in the second half of this year, the stock of CABBEEN increased again. As of August 31st, its stock amount increased to 48 million 512 thousand yuan, double that of two months ago.

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< p > "economic depression and the reduction of consumption demand in the market, the whole industry is facing the pressure of going to inventory."

The designer said reluctantly.

She told reporters that during the 14 spring and summer subscription conference, many companies were throwing away the old ones. Even her company would conduct a special sale during the Dragon Boat Festival, the Mid Autumn Festival and the Spring Festival in the past few years to clean up the stock.

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< p > "at present, the inventory of our channel is very healthy, and the over season inventory is declining."

Zhang Caili is more optimistic about CABBEEN's inventory. She thinks CABBEEN as a designer brand, pays attention to the experience of retail and terminal consumers, and uses the ERP system to supervise and manage the operation data of the sales outlets. The situation of high inventory industry is a good opportunity for CABBEEN.

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< p > > strong > winter. The way to survive is < /strong > /p >


< p > in fact, the overall decline of the garment industry is far more than the pressure of inventory.

Many garment listed companies failed to turn the tables in the first half of 2013.

According to the 2013 semi annual reports of the companies, the seven wolves achieved a business income of 1 billion 423 million yuan, down 4.27% from the same period last year, and the basic earnings per share declined by 12.82% compared with the same period last year. The US state clothing business income was 3 billion 738 million yuan, down 18.74% compared with the same period last year. The net profit attributable to the stock market of the listed companies was also down 48.52%. The net profit of Semir clothing although the operating income and attributable to the shareholders of the listed companies increased slightly compared to the same period last year, its total assets fell by 5.48%, and the net assets attributable to the shareholders of the listed companies decreased by 4.92% over the same period last year.

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< p > "on the one hand is the rise of domestic rental, labor, pportation and other costs, on the other hand, the economic crisis has caused long-term shortage of international demand, and the volume of clothing exports has declined sharply."

The designer analyzed the reporter.

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< p > the strong rising electricity supplier is also slowly eroding the traditional clothing retail channel. Many garment enterprises are trying to get the market cake by increasing the electricity supplier.

In October 18th, Smith Barney announced that it would withdraw the state purchase platform that had previously been stripped of listed companies. The controlling shareholder of the company, "Shanghai Huafu Investment Co., Ltd.", intends to pfer the BNN domain name to the company without compensation, and its wholly owned subsidiary, "Ai Shang Bang" will no longer operate the e-commerce business related to this.

Mei Bang apparel said it will fully integrate the physical shops and Internet business operations, providing consumers with interactive experience of life scene shopping and Internet shopping.

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< p > "our clothing enterprises are basically pforming into electricity suppliers or adding e-commerce departments to the company, and some slanting policies are also following up."

Qiu Wanru, director of Shishi Electronic Commerce Association, told reporters.

The "a target=" _blank "href=" //www.sjfzxm.com/ "> //www.sjfzxm.com/" /a "clothing production base and distributing center is experiencing an electricity supplier storm in the southeast coastal area of Fujian province.

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< p > CABBEEN, as a clothing company of Shishi, entered the Taobao Shishi hall together with the Shishi men's clothing brands including the awaiting, rich birds and left banks in April this year. It became Taobao's first exclusive clothing channel named after the region.

There are 44 merchants in Shishi hall, with an average monthly turnover of around 330 thousand.

The average daily sales volume is 13 thousand and 400 yuan, with an average daily visit of more than 2500 people, with an average of 234 orders per day.

Qiu Wanru further explained to reporters.

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< p > to this, Zhang Caili said: "CABBEEN now has independent distributors selling off-season products on the Internet.

Although online sales are indeed a sales trend in the future, the experience of consumers in real store consumption can not be replaced by electricity providers.

In the future, we will continue to focus on the business operation of our electricity supplier. "

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