Source: Times Weekly
Rongmei Co., Ltd. is sprinting to become the first A-share Hanfu stock in Taobao.
Recently, the GEM IPO of Taobao brand Hanfu Rongmei Co., Ltd. According to the prospectus, Rongmei Co., Ltd. plans to raise 601 million yuan in funds, which will be used for the construction of a modern manufacturing service industry base, design and R&D center construction, information construction, and exhibition center construction.
Previously, Rongmei Shares underwent three rounds of inquiries from the Shenzhen Stock Exchange, covering the company’s R&D and design status, production model, gross profit margin, litigation penalties, etc., and even included specific issues on whether there was fraud during the transaction process.
In fact, after years of development, Rongmei Co., Ltd., which specializes in Internet Hanfu, still cannot get rid of the doubt that sales channels are too concentrated. On the eve of its listing, it was even involved in the controversy of product failure and design infringement. Whether Rongmei Co., Ltd. can deliver satisfactory results in its future development remains to be tested.
On April 28, in response to the meeting and related development issues, a reporter from Times Weekly contacted Rongmei Shares and sent an interview letter. As of the time of publication, no reply was received.
Relying on the "Taobao" channel
Since its establishment, Rongmei Co., Ltd. has been a "native" online retail brand.
Founded in 2012, Rongmei Co., Ltd. is based on the Internet platform and operates clothing planning and design, supply chain management and sales business. Its products include professional and casual style clothing and accessories.
The founders of Rongmei Co., Ltd., Guo Jian and Wendy, are both MBA masters from Tsinghua University. Together, they directly or indirectly hold 98.24% of the shares of Rongmei Rongmei. They are also involved in all aspects of the company’s development. Almost in person. Previously, the proprietress Wendy did not even invite celebrities and Internet celebrities to bring the goods, but wore a mask to explain the products in a live broadcast.
Wendy’s brings goods in the live broadcast room
Rongmei Shares is positioned as a high-end boutique route. The prospectus shows that from 2017 to 2019, the average order price of Rongmei Shares was 410.66 yuan and 441.88 yuan. Yuan, 441.50 yuan. Judging from the current selling price of Taobao products, the price is basically more expensive than Uniqlo, the world's largest clothing company by market value.
For many years, Rongmei Co., Ltd. has mainly relied on the "Rongmei RUMERE" brand to achieve the development of its clothing business on the Internet platform. Up to now, Rongmei Co., Ltd. mainly operates the "Rongmei High-end Hanfu" Taobao store, two Tmall stores "Rumere Flagship Store" and "Rongmere Flagship Store", and a WeChat store.
As an online retail clothing company, Rongmei’s reliance on a single channel is very obvious.
In the prospectus, Rongmei Shares also directly stated that its sales channels have a high degree of concentration: the company’s revenue is mainly realized through third-party platforms such as Taobao and Tmall. Among them, Alibaba platform sales revenue accounts for more than 99%, and Taobao store operating revenue is the main source of revenue.
2017-2020, Rongmei SharesThe operating income of the Taobao store was 550 million yuan, 690 million yuan, 689 million yuan and 849 million yuan respectively, accounting for 99.69% from 94.07%; the operating income of the Tmall store was 34.6486 million yuan, 14.4988 million yuan, 4.9585 million yuan The revenue of Weidian was 14,100 yuan, 22,300 yuan, 35,900 yuan and 9,500 yuan, and its proportion dropped from 0.002% to 0.001%.
“The over-concentration of channels in Rongmei Shares is the result of past development. The Taobao platform itself is the largest sales channel for clothing, but now that e-commerce is three pillars, the traffic from other channels should not be ignored." April 28 On the same day, Ma Gang, a clothing brand expert, said in an interview with a reporter from Times Weekly.
Regarding the relative concentration of sales channels, Rongmei shares believe that there is a certain degree of stability. "Concentrating superior resources on in-depth cultivation of major e-commerce platforms has ensured the overall growth of Rongmei Shares' operating performance."
However, Rongmei Shares also stated in its first round of inquiry responses that Rongmei Shares The company does not have any relevant agreements or restrictions with its current major cooperation platforms, and it does not rule out independently expanding other sales channels besides the Alibaba e-commerce platform in the future.
In order to ensure the stable income of core Taobao stores, Rongmei’s platform promotion fees and customer acquisition costs are rising.
From 2017 to 2020, the promotion expenses of Rongmei’s e-commerce platform were 40.4924 million yuan, 36.426 million yuan, 50.5723 million yuan and 78.961 million yuan respectively. Among them, the promotion expenses of the Taobao platform were 29.3981 million yuan, 43.3727 million yuan, and 72.8208 million yuan respectively. At the same time, calculated by dividing the promotion fee by the number of customers, the customer acquisition costs of Rongmei's Alibaba e-commerce platform stores are 71.27 yuan/person, 67.83 yuan/person, 103.52 yuan/person, and 139.43 yuan/person respectively.
Data shows that the domestic Hanfu market market concentration is still not high. According to Euromonitor, the market share of the top ten brands in my country's Hanfu industry in 2019 was 8.4%, and the market share of the top ten brands in the men's clothing industry was 18.9%. Although competition in the domestic Hanfu industry is fierce, the scale of front-end companies is still small.
Under competition, as the traffic dividends of e-commerce platforms gradually disappear, Ma Gang believes that moving from a single channel to multiple channels, from a single brand to a single brand with multiple series, and from multiple brands with multiple series, will become the mainstream The path of the Hanfu brand, I personally judge that Rongmei Co., Ltd. will follow a similar path.
Guo Jian and Wendy’s family
Caught in an infringement scandal
Previously, the listing journey of Taobao brand clothing companies was not smooth.
Among brands similar to Rongmei Co., Ltd., such as Clothing Tiancheng, Yinman and other companies, from the submission of IPO application to the silent failure, the traffic dividend of the platform cannot support the "Taobao" business.Ambition; Green Box and Handu Yishe also experienced ups and downs during their listings, encountered business crises, and even intended to leave the capital market temporarily.
“The pace of online sales is faster than offline, and the requirements for supply chain, rapid response to product design iterations and operational capabilities are higher. Many companies can make explosive products, but they lack continuous innovation. Changchangpin’s capabilities are worthy of reflection.” Ma Gang said that the development time of Taoxi brand itself is not long, and a lot of experience still needs to be accumulated and accumulated.
Rongmei Co., Ltd., which has a relatively single brand and channel, also lags behind in research and development.
From 2017 to 2020, the R&D expenses of Rongmei Co., Ltd. were 7.8308 million yuan, 11.2944 million yuan, 11.3651 million yuan and 12.0603 million yuan respectively, accounting for 1.34%, 1.60%, 1.64% and 1.64% of operating income respectively. 1.42%.
Compared with listed clothing companies, Rongmei Co., Ltd. does not invest much in product research and development. In the past two years, the average annual R&D expense ratio of Langzi Co., Ltd. and Anzheng Fashion has exceeded 2.5%. Xinhe Co., Ltd., which focuses on independent research and development products, has R&D expenses accounting for more than 3.0% of revenue.
At the same time, Rongmei Co., Ltd. has been involved in design infringement incidents several times.
Tianyancha data shows that there are as many as 10 infringement disputes related to Rongmei shares. Among them, Rongmei Co., Ltd. has been involved in multiple copyright ownership and infringement disputes with Shanghai Zhihe and Shanghai Lushen for two years, involving various clothing styles and design elements on the products.
In December 2020, Rongmei Co., Ltd. had a dispute with Hangzhou Wabi-Sabi due to alleged infringement of patterns printed on T-shirts sold in its stores, and was sued by Hangzhou Wabi-Sabi to the court. In the end, Rongmei Co., Ltd. reached a settlement with Hangzhou Wabi-Sabi, paid 100,000 yuan to Hangzhou Wabi-Sabi, and subsequently withdrew the lawsuit this year.
As an online clothing retail company, Rongmei Co., Ltd. seems to be unable to escape the "common problem" of product quality problems.
In March 2021, a CCTV program exposed the quality supervision and spot inspection of winter clothing products in 2020. In the spot inspection results, 8 batches of adult down jackets were unqualified, and the products had false standards for down filling and substandard fillings. Shoddy and other situations, including products of Rongmei Co., Ltd. Prior to this, Rongmei Co., Ltd. had already experienced public complaints from consumers about product quality.
