Shoes, Brand People Want To Get Rid Of IPO Or Repeat The Mistakes Of Lining.

February 21st news, 2011, famous sports in China

In July 2011, the website of the Fujian provincial development and Reform Commission issued a notice that it clearly supported the construction of marketing projects through IPO financing. The total number of new shops opened in Fujian province was 60 yuan, with a total investment of 552 million yuan, and the duration of the project was two years. That is to say, the average store construction cost up to 8 million 748 thousand and 200 yuan.

In fact, the sporting goods industry, which has been expanding at a high speed, is facing a market predicament. The reason is that the over expansion in recent years has led to a slowdown in performance, an increase in inventories and a decline in profits.

At the same time, the price increase is also an important reason. In the past 2011, the share prices of those sports brand listed companies also fell by about 20%.

At the end of the spring and summer products ordering meeting in 2012, Chen Zongrong, director of the development center of the noble bird shoe industry, acknowledged that the price system of the birds would be adjusted, but the birds would try their best to digest the cost of rising prices internally.

But the market predicament faced by the whole industry has not stopped the expansion plan of the birds. The company is still building big stores in many small and medium-sized cities, opening a bird nest shop with an area of 316 square meters in a class a business district in Baoding, Hebei, and opening a bird nest shop in 380 square meters in Zaozhuang, Shandong.

According to relevant media statistics, as of July 2011, more than 1000 new stores were set up by the company, an increase of 7.5% over the same period last year.

And plans to expand the number of stores to 10000 in three to four years.

Entering the expansion period, the noble bird claimed that there will be 1000-2000 new stores in the future.

Another listed company, Anta, admitted on the "enterprise day" that the order growth in the two quarter of 2012 will be lower than the 15% level in the first quarter. The industry will be full of challenges in the next six to 1 years, and it is difficult to guarantee the third and fourth quarter order results in 2012.

Planned to increase 600 to 800 shops next year, it may also be adjusted downward due to the increase in the number of outlets.

6 years of tight capital, the good guys want to get rid of IPO financing.

Do you not worry about the dilemmas caused by over expansion? By reading the prospectus of 2011, the reporter found that in fact 2006 years ago, the 14 million yuan was temporarily pferred to Tai Asia due to liquidity constraints.

Since then, a total of 60 million yuan credit guarantee has been provided to the birds in July 18, 2008. Until December 31, 2009, the credit under the above credit limits was completely cleared.

It has been discovered that the funding problem of expensive birds is not the recent increase in the construction of big stores. It is very likely that capital turnover has been accompanied by the expansion plan of shops.

At the same time, the listed companies are ready to carry out the "downsizing" in 2012. At the same time, they want to supplement the expansion fund by A share IPO financing. Maybe they will repeat the mistakes of Lining.

Related information:

By Lining's poor performance in the second quarter of 2011, the stock price dropped sharply, and the investment institutions sold the dilemma. The industry saw that the sports apparel industry now relies on a large number of new stores to improve the performance of the growth mode has been difficult to sustain.

Lining, the first to break through 7000 retail stores, is faced with the problem that the growth of store size is not directly proportional to the growth of performance, while the decline of similar store performance is a wake-up call for trying to open the sporting goods industry in the era of "ten thousand shops".