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The Business Mode Of Hai Lan Home Is Unveiled.

2012/3/26 13:07:00 53

In the whole mode of operation, Hai Lan's home has perfectly broken down the two biggest problems of clothing enterprises, inventory and capital, to the upper and lower reaches, providing brand management, supply chain management and marketing network management.

The Limited by Share Ltd, who is in the queue stage, has announced the draft of the IPO prospectus.

The company intends to issue 49 million shares and plans to go public at Shenzhen Stock Exchange.

There is no suspense. The fund-raising investment is still directed towards the development of the core business circle of the second tier cities in the key developed provinces. Compared with the conventional recruitment projects, Hai Lan's home has a supplier who can undertake returns, and the operation mode of the franchisee who only pays money does not really make the industry bright inside and outside.

Magic risk dismantling method

Although the argumentation of the "men's Wardrobe" Hai Lan's home prospectus is not sufficient for the necessity of its recruitment and investment projects, its unique business model is quite clear and clear.

Hai Lan's home

In the industrial chain of Hai Lan's home, the upstream suppliers, based on the production plan of the company's design center, adopt the retail oriented credit buying mode, paying only 30% of the amount of money before entering the warehouse, and clearing the suppliers with the suppliers according to the actual sales situation.

The company and the supplier sign the purchase contract with the return clause for the unsalable goods. Besides the unqualified products, two goods that are still unsalable in the season of sale can be returned to the supplier.

In the downstream area, the request of Hai Lan's home to franchisees and the way of consignment cooperation is quite new.

Franchisees do not need to have professional experience in the clothing industry. They only need to have or rent a store at the company's authorized location and pay a million yuan deposit (which can be refunded when they are closed).

Franchisees do not need to be involved in store management. They are managed by the company in a standardized manner. All the inventories are included in the company. Franchisees do not take any risks.

In the prospectus, Hai Lan's home has repeatedly stressed that this model is intended to attract more "social investors" and idle social funds.

Marketing

Network management, and summed up for this is the concept of interest community that has been implemented by the three suppliers, franchisees and companies.

Relying on this model, Hai Lan's home has rapidly completed nearly 2000 stores from more than 600 to three stores nationwide.

The annual operating income also increased from 1 billion 383 million yuan in 2009 to 3 billion 594 million yuan in 2011, with an average annual compound growth rate of 61.17%. The net profit attributable to the parent company increased from 301 million yuan in 2009 to 701 million yuan in 2011, with an average annual compound growth rate of 52.66%, and its profitability was significantly higher than that of the same industry.

Spin

The level of clothing enterprises before listing.

Although the pattern is familiar, it still opens up horizons. The upper and lower reaches of the whole industry chain are rich in money, houses out of houses, shipments of goods, hardships and risks ahead of them, and the enjoyment of sub interests has created a fast-growing and highly profitable listed company.

Li Jiaqing, managing director of Junlian capital, commented with ridicule.

The unique business model of Hai Lan's home has attracted many doubts as well as the envy of the industry, and its biggest selling point will become capital.

market

Torture the doubts of development.

The way of financing?

Traced back to its roots, Hai Lan's home belongs to Hai Lan group. Hai Lan group, which started with production fabrics, provides abundant supplier resources for Hai Lan's home as support. Although the supplier's pressure is not small under the return mechanism, because of the slow updating of men's clothing category and the whole range of products set up by Hai Lan's home suit, trousers, shirts, T-Shirts, jackets and so on, the risk is dispersed to a certain extent.

For the reason why the downstream franchisees will give up their management rights and satisfy their doubts, the consultant of a financial institution explained that the requirements of the Hai Lan's home for franchisees are already very clear. The target group is a social franchisee who owns stores and capital resources, and is a social investor rather than a professional operator in the apparel industry.

More investors with idle social capital do not have the ability and experience to operate in the industry. They only care about whether the profit margin of investment is within the scope of acceptance and whether the risk of investment is low enough.

Hai Lan's home is ingeniously integrated the clothing production design resources, high-quality shop resources and social capital resources in the upstream and downstream industry chain, and achieves a better profit model, but this way makes the Hai Lan home look more like a Finance Companies than a traditional clothing enterprise.

It sets the idle funds of the society and makes use of this part of the funds to expand the project. The company takes out manpower and management, joins the business out of shops and funds, and realizes the division of investment interests.

What puzzles some experts in the textile and garment industry is that the domestic apparel industry is in an important period of brand formation. Is this kind of Finance Companies's way of handling clothing enterprises really able to make brands that can compete at home and abroad?

In the investment world, some experts think that the competition of business mode in the future is the key point.

Hou Ruiqi, a senior consultant with Mr. Wang, said that the hosting of Hai Lan's home is still very innovative. The success of this model represents a trend of future franchising. Local partners provide venues and funds, and headquarters is responsible for the comprehensive deployment of personnel and goods, but at the same time, the requirements for joining the headquarters will be higher and higher.

The management of Hai Lan's home to 2000 stores in the country is quite difficult now. According to the business expansion plan of Hai Lan's home, the number of shops will increase to 2500 in the short term, and the medium-term plan will increase to 3500. With the existing business mode and expansion speed, whether the company's management ability can be followed up, whether the quality store resources can be smoothly acquired and whether the profit level can be maintained is the key to judge the sustainable development.