Why Are Brand Enterprises Eager To Expand After Listing?

Almost all of them spin Clothing terminal brand After the listing of enterprises, they are enthusiastically involved in the scale expansion. Now, after the rise of labor and raw material costs, the increase of interest rate will lead to the increase of enterprise loan cost, so the expansion mode is bound to be reexamined.

Although the overall price of commercial real estate will be restrained to a certain extent after the interest rate increase, it is impossible for the enterprise to make profits quickly and the proportion will not be too high. Whether it is to overcome the cost pressure in the short term, or to improve the use of funds in the long term efficiency "Single store efficiency" is considered as the potential growth point of enterprise profits.

Supply chain speed determines bargaining power

Under the demonstration effect of high profits brought by the rapid expansion of listed shoe and clothing enterprises such as Li Ning and seven wolves, in 2010 and 2009, three major home textile enterprises, fuana, Luolai and Mengjie, which were listed in succession in 2010 and 2009, continued this mode. After listing and financing, they quickly expanded channels and seized market share. The three enterprises planned to add more than 300 stores this year to meet the competition The report card also shows that the three enterprises have a good profit: the net profit increased by 41.77%, 58.96% and 32.75% respectively.

Although the profit rate of single store is not outstanding, the profit rate is not outstanding. Under the background of the rise of various cost elements in the industry, some experts have proposed that improving the profitability of single store can effectively control the expenses of terminal enterprises and increase the profits.

"At present, the channel expansion of home textile enterprises is mainly in the form of exclusive stores and department stores. Shopping malls and department stores need at least half a year of maturity, while exclusive stores need 1-2 years. Coupled with the high cost of commercial real estate, the profit-making period will inevitably be prolonged. In addition, home textile is an emerging industry, and it will take time to improve the operation and management of terminal channels. " Guojin securities textile industry analysts attributed the bottleneck of store profit to the extended profit period and channel management level.

Han Yongsheng, Professor of the school of management, Chinese Academy of Sciences, believes that if the terminal textile enterprises can establish a rapid supply chain response mechanism, change the operation mode, take the store as the center, place orders according to sales and consumers, so as to reduce inventory, it will greatly improve the profit margin and capital operation speed of enterprises while maintaining the same cost. For example, speed advantage can be achieved by increasing order frequency and establishing whole network sales control system. Using speed to obtain bargaining power can resist cost pressure and improve store profit.

In terms of improving the profitability of stores, terminal brand manufacturers have not failed to actively try. Last year, rolai company upgraded its information department from the previous secondary department to the first level department, and also adopted measures such as internal information system integration and channel integration, personnel deployment, and improvement of ordering system. Anna is speeding up the application of ERP, optimizing the structure of supply chain, improving the efficiency of supply chain, improving the system structure and response. Mengjie also began to implement a comprehensive ordering system this year to timely deliver customers' orders. In the first half of the year, the total number of stores covered by ERP system reached about 500.