With the continuous improvement of the national consumption level, especially the younger parents such as the 80s and 90s, the fashion quality of the younger parents has been increasing. The domestic market has maintained strong demand for high-end children's apparel products for a long time. The liberalization of the national two-child policy will also bring more favorable development opportunities for the development of brand children's apparel enterprises.

Text | "Investment Times" reporter Su Hui this is undoubtedly a market with great potential. According to relevant data from Euromons Passport database, the per capita consumption of China's children's wear market has increased from US$52.1 in 2010 to US$95.9 in 2015, while the annual growth rate of children's wear market capacity during this period has also reached 9.2%. It is estimated that in 2020, the retail sales of China's children's wear market will reach 216.8 billion yuan. So market conditions has also become a large company engaged in domestic sales of children's clothing product development to break loose, the opportunity to establish a benchmark brand, mainly engaged in initial shares as children's shoes, children's clothing and children's clothing accessories design, development, production and sales of 603,557, limited consultation shares The company (hereinafter referred to as “starting shares”) is trying to take a step forward in the development of the business by leveraging the power of the capital market. The "Investment Times" reporter noted that the starting shares were listed on the Shanghai Stock Exchange with a stock code of 603557 and the company's IPO issue price was 7.73 yuan per share. There are no more than 47 million new shares in this public offering, and the total share capital after the issuance does not exceed 470 million shares. The funds raised are intended to be invested in the construction of marketing networks and regional operation service centers, the construction of omni-channel O2O platforms, the upgrading of information systems, and the replenishment of working capital. The latest news shows that the initial listing application for the starting shares has been approved by the CSRC. In recent years, the company's revenue and net profit growth is good, and the product structure is also very stable. According to industry insiders, the current “6+1” family structure in China constitutes a huge consumer base for the children's apparel market. With the continuous improvement of the national consumption level, especially the increasing fashion taste of young parents such as the post-80s and post-90s, the domestic market has maintained strong demand for high-end children's apparel products for a long time. The liberalization of the national two-child policy will bring more favorable development opportunities for the development of domestic children's apparel enterprises. According to the operating results of the rapid growth of "investment Times" reporter, shares start to the domestic industry well-known children's products brand operators, is committed to providing complete category, a variety of styles of clothing products for children 3-13 years old, including sports shoes, shoes, shoes, Children's wear and accessories.

The company relies on China's leading apparel industry clusters such as Zhejiang, Fujian and Guangdong, adopts a production model combining independent production and outsourcing production, and provides consumers with healthy and comfortable children's apparel products through a sales-oriented sales model. “ABC KIDS” is a well-known children's apparel brand of the company and is well known to consumers. At present, its children's shoes and children's wear business develop synergistically, and the rich product line satisfies consumers' one-stop shopping experience and all-category shopping needs for brand children's clothing. In recent years, the company's operating results have also grown rapidly and its profitability is good. According to the company's prospectus, the “Investment Times” reporter learned that from 2014 to 2016 (hereinafter referred to as: the reporting period), the starting income of the starting shares was 91,403,600 yuan, 1,12,758,800 yuan and 1,233,738,700 yuan, 2015 and 2016. In the report period, the net profit increased by 23.36% and 9.42% respectively. During the reporting period, the net profit was 10,518,730 yuan, 150.627 million yuan and 175,656,400 yuan respectively. In 2015 and 2016, the year-on-year growth was 43.20% and 16.62% respectively. According to the starting shares, the steady growth of the company's main business income is mainly due to the rapid increase in dealer outlets and the increase in the sales price of the company's products. During the reporting period, the number of operating outlets of starting stock distributors increased from 1,885 to 2,273. In addition, with the gradual increase of brand influence, the company also increased the sales price of its products to dealer customers. After years of development, the starting shares have grown from a regional children's products company to a nationally renowned children's apparel brand company. By the end of 2016, the company had established 2,278 stores nationwide, with 36 dealers, and its sales and service network spanned 31 provinces, municipalities and autonomous regions across the country, forming a huge channel scale advantage. In addition, the company also keeps pace with the development of the times, builds e-commerce channels, and cooperates well with well-known e-commerce platforms such as Tmall and Jingdong. The company said that as the company's children's apparel products become more prominent, it will launch a more complete online planning layout. Children's shoes, children's wear research and development wins According to the reporter, the main products of the starting shares include children's shoes, children's wear, footwear OEM and children's clothing accessories. Driven by the business strategy of “children's clothing to promote the consumption of children's shoes and the growth of children's shoes and children's wear”, the children's wear and children's shoes have achieved rapid growth. The data shows that children's footwear products account for a relatively high proportion of the annual revenue of the starting shares, which is about 56%, of which the proportion of sports shoes is as high as 36%. In this regard, the starting shares said that because the company's products mainly for the 3-13 years old children are in the growth and development period and lively and active, so the relatively comfortable sports shoes in the company's children's shoes sales revenue accounted for a relatively high proportion. At the same time, children's wear products also occupy a low share of the overall revenue, reaching 36%. This is also in line with its business strategy of “children's wear to promote children's shoes consumption, children's shoelaces and children's wear growth” formed in the ongoing product development and operation. Starting shares believe that, on the one hand, children's shoes are the company's traditional superior products. Since the establishment of the company, children's shoes products have created a high brand loyalty to ABC KIDS with its fashionable design and comfortable wearing experience; In recent years, the increasingly complete range of children's wear products has provided a richer selection basis for consumers to achieve one-stop shopping for children's wear children's shoes. During the reporting period, the starting point retail outlets of the company used the above advantages to achieve a steady increase in product sales through the matching sales of different categories of products. Children's wear products also achieved rapid growth under the leadership of children's shoes. Technological innovation is a key measure for products to stand out in homogenized products. In order to make their products have strong market competitiveness, the starting shares have been market-oriented and integrated management as a means to establish and continuously improve their technological innovation mechanisms. . For example, the company has independent children's shoes and children's wear research and development departments, product development staff has a wealth of children's apparel product development and design experience. In terms of children's shoes, it has set up leather shoe development centers and sports shoe development centers in Qingtian and Quanzhou, integrating the advantageous resources of various regions, absorbing the leather shoes industry in Wenzhou and its surrounding areas and the talents of Fujian sports shoes industry to jointly build the company's children's shoes product line. Improve product comfort and style design. In terms of children's wear, the company set up a garment development center in Shenzhen, recruiting a team of senior designers at the forefront of the domestic industry, and working with international designers such as France, South Korea and Malaysia to continuously improve the company's design level. At the same time, the company's garment development center also cooperates with trend information platforms such as WGSN, POP, and Butterfly Network, which provide international designers with the latest popular information, including fabrics, colors, patterns and styles. A quality information platform guarantees the diverse needs of consumers. The four major players to enhance their competitiveness start-up shares The fund-raising investment projects mainly include marketing network and regional operation service center construction projects, omni-channel O2O platform construction projects and information system upgrade projects. According to industry analysts, the fundraising project is in line with the company's development strategy and national industrial policy, and has good market prospects and economic benefits. With the implementation of the fundraising project, the scale of the starting stock assets will further increase, the marketing network structure will be gradually optimized, and the scale effect will continue to strengthen. In addition, the implementation of fundraising projects will also help improve the company's corporate governance structure and management level, and further improve the company's profitability, thereby comprehensively enhancing its comprehensive competitiveness and ability to resist risks. For the future, the starting shares said that they will continue to focus on the existing core consumer groups, adhere to the main business of children's shoes and children's wear, and improve the strategic layout of the market: first, continue to enhance brand value through brand promotion and brand marketing; second, through strengthening products Design and R&D continue to improve product value; Thirdly, optimize the existing operation mode by perfecting the marketing channel network and establishing an omni-channel O2O platform; Fourth, further improve the company's operational efficiency and management performance by strengthening information construction, and improve all-round The company's market competitiveness. In addition, while expanding the company's market share, it will consolidate and enhance the company's leading position in the children's apparel industry, and build the company into a leading brand in the Chinese children's products industry.