How Far Is China's Shoe Industry Going Public?

Data from the first international footwear industry forum just concluded show that in 2006, China's shoe-making enterprises exceeded 10 billion pairs of annual output, accounting for nearly 70% of world output. Last year, a total of 14 billion 800 million pairs of shoes were produced in the world, and 13 billion 500 million pairs were produced in Asia. Most of them came from China, while in Dongguan, Guangdong, the total number of shoes purchased in the Pearl River Delta accounted for 60% of the world's total. Indeed, in recent years, China's footwear industry has developed rapidly. China has become the largest footwear manufacturing base and footwear exporter in the world. In this forum, experts are optimistic about China's footwear market in the future: by 2010, the output of footwear industry will exceed 15 billion. Asia has become the world's footwear manufacturing center, and its share of world output is increasing. China accounts for 75.1% of the total output of about 11000000000 of Asia. However, even with such an important production position and broad market, there are few listed footwear companies. It seems that only the "Daphne international" listed on the Hongkong stock exchange and the "Hong Guo international" listed in Singapore are listed on the list. The double star, famous for its footwear industry, also focused on tire manufacturing. As a typical labor-intensive industry, footwear manufacturing has been neglected by the capital. But this year, everything seems to be changing. This has to mention BELLE. In from May 9th to 14th, when BELLE publicly offered shares in Hong Kong, it was highly praised by investors. In May 23rd, BELLE international officially listed on the Hongkong stock exchange. The first day of listing rose by more than 30% to HK $8.14. According to the closing price, BELLE group's market capitalization exceeded HK $67 billion, ranking the top of the mainland retail listed companies. BELLE, the leader of Chinese women's shoes, sounded the horn for the listing of footwear companies. The fund raised more than HK $8 billion. For the use of HK $8 billion raised by the listing, BELLE prospectus clearly shows that about 27% to 31% will be used to implement the group's project expansion plan, including acquiring company or alliance with strategic partners. About 24% to 25% will be used to open new retail stores and set up new retail sports mall, so as to expand our group's retail network of footwear and sportswear. Sure enough, what followed was a series of big acquisitions by BELLE. First, the Hongkong MII Li brand and FILA China Trademark were successfully incorporated, and then spent about 2 billion 200 million yuan to acquire the company. In this way, BELLE officially entered the men's shoes market. In addition to the previous 6 brands such as BELLE, Staccato, he, Teenmix and others, plus BELLE, the brand of BELLE has increased to 11. Regarding "BELLE" merger and acquisition, the China Leather Association believes that after mergers and acquisitions, "a group of qualified enterprises will be able to use capital market to strive for excellence and strength", which marks the arrival of the new round of competition in the footwear industry. China's footwear industry is mostly OEM production, and its products are mostly low and medium grade, and are located at the low end of the world footwear industry's value chain system, with few brands. Besides, with the increase of energy and raw material prices and the appreciation of RMB, the cost of footwear manufacturing is increasing. Therefore, for Chinese shoemaking enterprises, it is urgent to speed up the transformation of product quality from low end to middle and high grade, innovate and cultivate their own brand, increase the added value of products, and actively participate in international competition. Zhang Huarong, chairman of the footwear association of Asia, said that China's shoemaking enterprises are faced with the transformation from "made in China" to "created in China". Long Yongtu also pointed out that the "made in China" breakthrough bottleneck must have four main elements: to achieve international standards, to enter the international market, to grasp the international pricing power and to have international brands. All these efforts are inseparable from capital support. In July 10th, Anta sports landed in Hong Kong, and the stock price rose 42% on the first day. Ding Zhizhong, President of the company, is confident: facing the good opportunity brought by the Olympic Games, Anta is confident that it will achieve double growth. AOKANG chairman said AOKANG will be listed in two years. In addition, Kangnai, red dragonfly, XTEP, del Hui and so on all hope to be listed, and achieve faster upgrading through capital. In December 15th, the highest price of Yong en international was 5.79 yuan, the highest price of Anta sports was 9.6 yuan, and the highest price of BELLE international was 10.7 yuan. Xie Rongfang, President of Wenzhou Leather Industry Association, once said that after listing, it can attract more talents to join, control more resources, manage more standardized, and become a public enterprise. This will be the process of Chinese shoe enterprises' Phoenix. Chen Jiyi, director of the listing Office of Wenzhou listed company, said: "listing is not for the purpose of" collecting money ". Many private enterprises gradually realize that the most effective way to gather many resources is capital operation. It seems to be the best choice for footwear manufacturers to seize the current opportunity to go public. An industry executive said that if the mainland private shoe-making enterprises want to achieve sustainable development, they should learn from BELLE's thinking, get sufficient cash flow through capital operation, and expand their market share through mergers and acquisitions. Data link: in November 13th, BELLE international purchased 5 companies of Jiangsu Sunda wholly owned by 1 billion 600 million yuan, including Jiangsu Sunda shoes industry Co., Ltd., Zigui Yong Xu Shoes Co., Ltd., Jiangsu Sunda Group Three Gorges Shoes Co., Ltd., Shanghai Bath Industry Co., Ltd. and Shanghai Wei Dun International Trade Co., Ltd. On the same day 18, BELLE International announced that it would buy 563 million yuan to acquire all rights and interests of Shanghai, Jiangsu, another wholly owned Affiliated Companies. BELLE was taken over by the company. According to the agreement, BELLE will pay 200 million yuan deposit to the Sunda group within 7 working days, and all acquisitions will be completed in January 10, 2008.