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Semir Clothing Layout Multi Brand And Channel High Premium Worries

2013/7/1 21:36:00 76

Less than P, Semir clothing, which has only been listed for two years, has recently directed the biggest acquisition in China's apparel industry. A few days ago, Semir clothing announced the purchase of zhe Mu still 71% stake in the motion. 
 for Semir, which has always been built on its own brand, this transaction helps to expand its production line and layout channels, and also reflects the fierce competition in the market. Semir has begun to turn to epitaxial development. 10 times the premium to make Semir clothing resume trading two days after the share price plummeted, "we are not playing capital, we want the future." Qiu Guang and chairman of Semir group said. 
 layout multi brand and channel 
 last year, the argument that "Stock clothing is enough for Chinese people to wear for 3 years" reveals the problems faced by this industry. Under the influence of the big environment, Semir has not been excluded. 
 data show that in 2010 and 2011, Semir apparel realized net profit of 1 billion yuan and 1 billion 223 million yuan respectively, but with the industry competition, channel cost rising and stock proportion increasing, net profit in 2012 dropped to 760 million yuan, a decrease of 37.81%. 
At present, Semir has only two brands, Semir and Barbara, and it is particularly important to increase the market share of P. Semir clothing for the purpose of the acquisition also said, "for the development of high-end brand business, create multi brand cluster". 
 in Semir clothing 2012 annual report "the company's key implementation strategy" also clearly put forward: "the implementation of multi brand development strategy. We will develop Semir clothing into a multi brand clothing group that meets the needs of children and adults in a professional, fashionable and diverse life. 
 in fact, at the beginning of Semir's business, Semir was accompanied by the ideal of "Semir with your life" and hoped that Semir's brand communities could "eat" old and middle-aged consumers. It is this dream that Semir began to enter the children's wear market in 2002. 
 it is understood that zhe Mu Shang owns GXG of men's clothing brand, gxg.jeans of urban youth brand and gxg.kids of children's wear brand. "To a certain extent, Zhe's brand is a complement to the Semir brand, enriching the Semir production line." An insider told the new financial reporter. 
Besides P, many brands, Semir's emphasis is laid on improving the layout of channels. Zheng Hongwei, secretary and vice president of Semir apparel Limited by Share Ltd, introduced to the new financial reporter, through this acquisition, Semir's new layout of shopping centers and e-commerce based on the original layout of the exclusive store, to adapt to the new trend of future channel change. 
 at present, Semir's channel is mainly based on franchising, "most of which are street stores, and there are few channels to enter a second tier city department store." The profit city is focused on the analysis of the new financial reporter by Ding Youlin, a senior consultant in clothing industry consulting. 
More than 70% of GXG1200's retail outlets are located in mainstream department stores and shopping centers, and have strategic cooperation with major stores such as Yintai and Parkson, and occupy at least three of the top three outlets. Ding Youlin analyzed that after buying GXG, it was equivalent to mastering the resources of its shopping malls. "So if Semir's other brands enter the shopping mall in the future, it will be more convenient." 
 in his view, the scarcity of channels is the consensus of the industry. "A large number of second tier cities are limited, so many brands in the country want to go in, and Semir will be more convenient to occupy the scarce channel resources through this way." 
 High Premium: /strong > /p >
 after the suspension of nearly 20 days, a few days ago, with the announcement of the motion, at the beginning of the resumption of trading, Semir's stock price continued to tumbled, and the two trading days dropped 14.88%, evaporating the market value of 2 billion 459 million yuan. 
 although the discussion is only the result of preliminary negotiations on the willingness to transfer and buy shares between the two sides, there is still uncertainty. However, the sharp drop in share prices seems to indicate that investors are not optimistic about the transaction which is more than 10 times the premium. 
 for stock prices to fall, Zheng Hongwei said, on the one hand, "after the suspension of Semir clothing, the two tier market has begun to adjust, and the market index has dropped by about 250 points from 2325 points, which will also have a certain impact on Semir's share price". More essential is the publication of the June 19th bill, "the background material is very limited, leading to some investors' lack of understanding of the acquisition." 
 he also pointed out that the price earnings ratio corresponding to GXG2013 is not more than 12 times higher than that in 2015, and the price earnings ratio corresponding to the year will not exceed 8 times. At present, the average price earnings ratio of the clothing sector is 15 times, which should be a relatively good purchase price. When the premium is 10 times, the purchase amount is higher than that of the net assets in the brand clothing enterprises. The key is to see future earnings and acquisition P / E ratios. 
 for the future that has not yet been seen, at least for some investors now, the deal is not cost-effective. 
GXG has long been recognized as a dark horse in the industry. It has been officially operating in China since 2007, and by the end of 2011, it had achieved 2 billion 600 million yuan in terminal sales. Although these auras are still in existence, the industry insiders also said, "GXG did quite well in the past few years, but it may be that development has encountered bottlenecks, and these two years have begun to slide." 
 the motion also indicates that "China's zhe Mu main business is affected by many factors such as macroeconomy, market demand, market competition and so on, and its continuous profitability has the risk of falling. There is an uncertain risk of the impairment of goodwill formed by the company's Acquisition Premium." 
 it is noteworthy that Yang Herong, chairman of China zhe group, said in a media interview last year that "listing is the way we should consider in the next company strategy". In less than a year, he has handed over his brand GXG to others. 
 "he thinks this price is worth it at this time." A person familiar with Yang Herong said to the new financial reporter. 
 transformation epitaxy 
 from the very beginning, Semir relied on self built brand to open the market and achieved good results in its respective subdivision areas. Barbara, the brand of children's clothing, has won the "top ten children's clothing brands in China" for three times, becoming the leading brand of children's clothing industry. 
 "this acquisition can be regarded as the development of Semir's extensive development. The acquisition of brand directly helps enterprises directly enter the local market, because the brand already has a certain influence, which can save the cost of publicity, involvement, marketing and other aspects of the enterprise, while self built self-service can maintain the design style of the enterprise, is conducive to the extension of the corporate culture, and maintains the uniqueness and competitiveness of the market." Xiong Xiaokun, a light industry researcher at CIC, said to the new financial reporter. 
"P", many enterprises in the economic downturn, mergers and acquisitions, to improve the concentration of industry, in order to prepare for economic recovery can be a big show. Xiong Xiaokun believes that under the current bad environment of the clothing industry, Semir invested huge sums of money and adjusted its business strategy to achieve the goal of rapidly improving the product line through the acquisition and merger in the industry downturn, and the competition is relatively small at this time. 
 Zheng Hongwei revealed that the next step will be to cooperate with Korean high-end women's clothing, European high-end men's wear and children's wear brand. This cooperation is not carried out by M & A, but by product agents or joint ventures in China. 
 however, in any way, the self built brand seems to have been farther and farther away from Semir. 
 in Ding Youlin's view, the development of enterprises to a certain stage, due to the effect of the channel ceiling, will certainly be completed through mergers and acquisitions or cooperation to complete the multi brand road, "Semir is not wrong to go this way, but the key is whether the brand is compatible with Semir's business model". 
 in addition, Xiong Xiaokun pointed out that there is a certain risk in extending the extension at this time, because the enterprises that are acquired are worried about the profitability under the bad environment, and the integration of resources is also a challenge. 
Last year, Yang Herong told the media that women's wear and children's wear will be 2-3 years' incubation period. In addition, the company plans to open stores in Hongkong, Taiwan and Korea, Japan and Singapore in the next 3-5 years. 
 "Semir is now being bought and bought, whether this idea can be recognized by Semir. It needs to be verified. If it is not consistent, the game between the two will be very tragic." Ding Youlin said. 
Zhang Xiaofeng, vice president and Secretary General of Ningbo clothing association, also said that Semir's strategy is "right" and the final outcome depends on how to operate behind it, which is the most important thing. "P