La Natsu Bell'S Public Offering Will Be Used To Expand The Retail Network.

According to reports, the "mainland Zara" positioning of multi brand clothing retailer La Natsu Bell Shanghai recently to 29 this month, the public offering, the price range from 13.98 to 18.2 yuan, 200 shares per hand, the admission fee of 3676.69 yuan.

La Natsu Bell plans to issue 121 million 600 thousand shares, raising 1 billion 700 million to 2 billion 213 million yuan.

About 83% of the company's fund-raising will be used to expand the retail network with the goal of opening at least 1000 retail outlets in the next 3 years.

La Natsu Bell has 8 brands, including La Chapelle, La Chapelle Sport and 7.Modifier, which offer the latest fashion clothes with competitive prices.

Unlike the wholesale clothing distributors in the mainland, La Natsu Bell adopts the direct camp mode, that is, all retail outlets are directly controlled and operated by the company.

Significant increase in revenue and profits

La Natsu Bell has benefited from the expansion of retail network and the growth of same store sales. In recent years, both income and net profit have increased significantly: income increased from 1 billion 864 million yuan (the same below) at the end of 2011 to 6 billion 225 million yuan at the end of last year, and the compound annual growth rate was 82.7%.

Even in the first half of this year, the company's revenue increased by 25.4% yuan to 3 billion 511 million yuan from 2 billion 800 million yuan a year ago.

The increase in net profit was also obvious, from 123 million yuan at the end of 2011 to 413 million yuan at the end of last year, with a compound growth rate of 83.3%. This reflects that the company's expansion strategy is quite successful. It is believed that the company has a direct relationship with the company's special department stores (such as new world, Parkson, Bailian and Wanda).

First tier cities accounted for continued decline

Although La Natsu Bell's retail network has expanded dramatically in recent years, the number of retail outlets has increased from 1841 at the end of 2011 to 5671 at the end of June this year, which has increased by 2.1 times.

Although the number of retail outlets in the first tier cities in the mainland increased from 277 at the end of 2011 to 561 at the end of 2013, the percentage of retail outlets in the first tier cities accounted for 561 of the total retail sales. The proportion of retail outlets in the first tier cities decreased from 15% at the end of 2011 to 10.4% at the end of last year.

The above trend changes, or reflect the fierce competition faced by the first tier cities in the mainland and the pressure of profit margins, have shifted the focus of sales to the three tier or other cities, but the consumption power of these cities is relatively low, and the company may not be able to benefit from it.

Because of the rapid development of e-commerce and online shopping in recent years, La Natsu Bell dared not neglect, and opened an online flagship store in Tmall in August this year to capture the business opportunities brought by changes in the mainland's consumer shopping patterns.

Although some competitors La Natsu Bell launched the online business platform of their own operation or the third party operation earlier, the first advantage is not the key factor, but the supply chain, logistics support, website server infrastructure and after-sales service system have a greater impact on online retail sales.

If Tmall platform's sales strategy is successful, it is expected to add momentum to the company's sales and expand consumer groups.

In terms of risk, due to the cyclical nature of the clothing market (fashion trends and consumer preferences), Ku La Natsu Bell's future sales performance is hard to predict.

Post marketing performance largely depends on the company's future trends in the business location and the ability to predict consumer preferences.

In addition, La Natsu Bell's extensive retail network in the mainland and the consumption patterns and preferences of different regions and different consumer groups are also different, making forecasting difficult.