Can The "Red Dragonfly" Go On The Market And Catch Up With The Pace Of AOKANG?

Wenzhou is the shoe capital of China. After years of shoemaking, the shoe market is hard to come by.

Listing a wave of fold

For listing, Wang Jieming, who was once the middle management of red dragonfly, said: "at last, it has been listed on the market, and it has also completed the wish of the total money (Qian Jinbo, chairman of Red Dragonfly) for many years."

He told the new financial observer.

To this end, red dragonfly began planning 6 years ago.

In 2009, red dragonfly began to seek listing on A shares.

At that time, Qian Jin Bo had publicly disclosed that the plan for listing A shares of red dragonfly was actively promoting and plans to submit the application materials to the SFC next 2010.

In October of the same year, the Red Dragonfly held indirectly 2.2% of the shares of the big business of the listed company by grasping some of the property rights of the big business group.

This is generally considered by the industry to be a warm-up in the capital market before the listing of red dragonfly.

In the next few years, the news of several IPO Moratorium of the SFC has more or less affected the listing of red dragonfly.

In April, the initial inquiry of red dragonfly was completed. "Because the company received the report and needed verification, the company and its main underwriter Guotai Junan decided to postpone the follow-up issue for prudential consideration."

Explanation.

Therefore, the online roadshow which was originally held in May 5th was pushed to June.

The report refers to the real name of Lucheng Red Dragonfly shoe factory, which was reported to the China Securities Regulatory Commission on 1 May.

It is understood that the two sides in recent years because of the "Red Dragonfly" trademark on the use of a number of lawsuits.

In Wang Jieming's view, although it has been five or six years before and after, it is good for the final success. "For money Jin Bo, it should be a great event. The most important cultural brand dream will also play a direct or indirect role in boosting it."

He said.

Extension expansion worries

According to the information of the Red Dragonfly prospectus, the largest use of the fund-raising fund is the marketing channel construction project. The direct measure is "130 new independent stores will be added in two years, including 10 flagship stores, 20 standard stores by way of purchase, 20 flagship stores through leasing, and 80 standard stores, which will increase the proportion of independent stores to marketing terminals to 2.96%."

In the aspect of red dragonfly, such a move helps to improve the marketing mode of the company, enhance the brand image and market competitiveness of the company, and promote the sustained growth of sales revenue.

What people can't understand is that the terminal of red dragonfly has been decreasing in recent years.

Data show that the number of stores has increased from 4458 at the end of 2012 to 4321 at the end of 2014, of which the number of outlets has decreased from 639 to 502 during the same period.

In this regard, the Red Dragonfly said, "the company has integrated the marketing network.

On the one hand, we should adjust the development strategy of Direct stores, strengthen the operation and management of direct run independent stores, optimize the layout of direct store stores, and the number of direct street stores has developed from 36 in early 2011 to 49 at the end of 2014, and the closed outlets are mainly from the structural adjustment of direct market stores.

But in any case, under the current market environment, it is not necessarily the best way to take the expansion of shop expansion.

Wang Jieming judged, "after all, more than one store has more expenses. The whole market situation is not good, so it is difficult for new stores to make profits."

The most valuable example is AOKANG, a footwear company in the same city.

AOKANG International said in its prospectus in 2011 that it raised funds to build marketing channel projects (mainly new stores), but because of the sluggish demand and less than a year's listing, AOKANG extended the cycle of the project.

Zhu Qinghua, a light industry researcher at CIC, also believes that the red dragonfly is still not a wise move in the bad environment. "The most urgent task is to carry out connotative development, constantly improving product quality, optimizing brand image and strengthening design innovation."

He told the new financial observer.

Catch up with

Today, when it comes to red dragonflies, it is inevitable that they will not talk about AOKANG. The leaders of the two enterprises are kin, which is no secret in the footwear industry of Wenzhou.

It is understood that Qian Jin Bo is the wife of AOKANG Group Chairman Wang Zhentao, wife Lin Liqin.

In 1989, Wang Zhentao, Qian Jin Bo and others invested ten thousand yuan to establish the Yongjia Huang Tian Olin shoe factory (the predecessor of the AOKANG group). In 1995, Qian Jin Bo pferred all the capital contributions to the Wang Zhentao shoe factory in Yongjia, and then established the red dragonfly.

"No one knows why Jin Bo was going to retire all the time and did not know whether they would be able to communicate with each other in private, but later the development of red dragonfly was similar to that of AOKANG."

Wang Chieh said clearly.

Red Dragonfly's main products are men's shoes, women's shoes and children's shoes, mainly for two or three line cities, strong economic towns and first tier cities two or three line business district consumers, these consumers are 25-40 years old, usually have stable occupation and income, mainly for ordinary white-collar workers, public institutions staff and state organs and civil servants, etc., the main products of leather shoes retail prices are mainly between 300-500 yuan.

Besides the fact that AOKANG has no children's shoes, its market positioning and pricing policy have obvious coincidence with red dragonfly, and the former has been listed successfully in 2012.

Although the red dragonfly is 3 years late than Ao Kang, and the background of the whole footwear industry is stagnant, but the capital market is hot. "The A share market has entered the Daniu period. The red dragonfly has a certain advantage in valuation."

Zhu Qinghua further pointed out that the Red Dragonfly will get sufficient funds on the one hand after the listing, and the capital constraint will be less in the development process; on the other hand, the market attention will further enhance and the brand influence will expand.

"This will pose a greater threat to AOKANG."

No matter whether the red dragonfly can overcome its shortcomings and catch up with AOKANG after listing, it appears that the Red Dragonfly's listing goes to Wenzhou and even China in the presence of vice chairman of the China Leather Association and executive chairman of Wenzhou shoe leather industry association, Xie Rongfang.

The industry is a good thing, "to encourage those big companies that have not yet been listed to fight for it, can also improve the overall competitiveness of the market."

She told the new financial observer.