Zhang Xiaoquan recently landed on the Growth Enterprise Market, and Wufangzhai and Tianjin Tongrentang are also waiting for admission——

　　Can old brands tell new stories?

　　Not long ago, Zhang Xiaoquan, a 400-year-old brand, landed on the ChiNext and became the "first scissors" in the A-share market.

In fact, Zhang Xiaoquan is not the only time-honored company that is actively rushing to the A-share market. Wufangzhai, Tianjin Tongrentang, and Xi’an Bingfeng Soda are all waiting in line to enter the capital market.

Why do time-honored brands love the capital market?

Can the listing of time-honored brands tell new stories?

What homework needs to be done for time-honored brands to use the capital market to achieve faster and better development?

　　Why is it rushing to be listed?

　　The listing of time-honored brands is nothing new. Many time-honored companies have already caught the capital market's express train and are advancing all the way.

For example, the 500-year-old Guang Yuyuan, the 180-year-old Hengshun Vinegar Industry, and the 450-year-old Pien Tze Huang have all become scenic spots in the A-share market.

　　Since the beginning of this year, the enthusiasm of time-honored brands to enter the capital market has been even higher.

In addition to Zhang Xiaoquan, many time-honored brands have submitted A-share listing applications.

In June, Wufangzhai submitted a prospectus and plans to land on the Shanghai Stock Exchange to raise about 1.056 billion yuan; in July, Xi’an Bingfeng Beverage submitted a prospectus to the Shenzhen Stock Exchange, intending to issue no more than 60 million shares, and intends to raise funds 669 million yuan; in June, Tianjin Tongrentang's GEM IPO was accepted, and it plans to raise 722 million yuan; and so on.

　　Why are time-honored brands competing to be listed?

Industry experts believe that, at present, the development of some time-honored enterprises is facing domestic and foreign difficulties.

External difficulties lie in the rise of various online celebrity shops proficient in social marketing to divide up existing markets such as food, beverages, etc.; internal difficulties lie in organizational structures, institutional mechanisms and other issues, and time-honored enterprises upgrade iteratively, and the pace of innovation and development is slow , Insufficient release of technological advantages.

To regain a new life, time-honored companies need to break the current dilemma.

　　Some companies try to use the listing to relieve the troubles of growth.

"Time-honored companies usually have good brand awareness and reputation, but their historical burdens are relatively heavy and their innovation capabilities are relatively insufficient. Listing can effectively solve the problem of development funding, help resolve inherent problems such as poor liquidity, weak innovation capabilities, and aging teams, and promote enterprises Products and services are innovated and upgraded to keep pace with the times." said Wang Yong, chairman of the brand alliance.

　　Wang Yong said that previously, due to high listing costs and insufficient self-demand, time-honored brands were generally conservative in the face of the capital market. However, with the continuous advancement of the registration system reform, the listing environment has become more friendly, and many time-honored brands have been successfully listed. Naturally, other time-honored brands are not far behind.

　　"A time-honored brand has a history, a story, and a brand. It is a kind of goodwill in itself. A time-honored brand with a good reputation can increase its valuation through listing and use the brand to obtain a premium. In turn, through listing, time-honored brands can also gain more Capital attention and favor, strengthen brand awareness, let more young consumers know it, and gain greater market opportunities.” said Pan Helin, executive dean of the Institute of Digital Economy, Zhongnan University of Economics and Law.

　　Listing does not mean going ashore

　　Will the time-honored brands be reborn if they are listed?

The answer does not seem so simple.

　　Counting down the performance of time-honored companies that have been floating in the A-share market for many years, it can be said that a few are happy and a little worried.

Some time-honored brands rely on capital assists to ride the wind and waves all the way.

For example, Kweichow Moutai is already the “leading” A-share market with a market value of more than 2 trillion yuan; Haitian Flavor has been listed for 7 years, from an initial market value of less than 50 billion yuan to around 400 billion yuan today; Pien Tze Huang has been listed for 18 years , Operating income and net profit keep growing every year, becoming the undisputed industry leader.

　　Some time-honored brands eventually came back because of "unacceptable" and poor management.

For example, Tianjin Goubuli, which was listed on the NEEQ in 2015, has been delisted in 2020 due to difficult operating conditions; Harbin’s century-old Qiulin Group, which was listed on the Shanghai Stock Exchange in 1996, has lost money for three consecutive years. Delisting in 2020.

　　It can be seen that even if the door to the capital market is opened, it does not mean that you will sit back and relax, and listing does not mean going ashore.

　　“In general, going public is an effective way to reinvent the time-honored brand and rejuvenate the new year.” Wang Yong said, but going public will also bring greater challenges to the company’s business management, risk control, marketing, and sustainable performance. Put forward higher requirements, "Many listed company chairman jokingly said,'The year before listing is one year, and the year after listing becomes four years.' The company’s long-term business strategy interferes, how to maintain strategic determination and not cause the company’s own strategic actions to be deformed due to short-term performance fluctuations. This is a problem that tests every time-honored listed company.”

　　Perhaps the biggest difficulty lies in the fact that time-honored brands that are accustomed to "being alone" will stand in the spotlight after listing, and problems such as outdated products, insufficient innovation, and slow transformation will also be completely exposed to the public's view.

　　“Some companies have been scrutinized by more regulators and investors after listing, and some internal problems have been externalized, causing companies to lose market trust and performance decline. The industry is seeking growth points, and in the end, not only did the main business fail to do well, but also the sideline business failed to keep up.” Pan Helin said that performance is still the most critical factor for time-honored brands to gain recognition in the capital market.

　　Where is the way forward

　　Although through listing, time-honored brands have received more capital "blood transfusions", which has provided support for enterprises to expand production, but if they stop here, it may not be a long-term strategy for enterprise development.

For time-honored brands, the road to a successful listing may have only just begun. There is still a lot of homework to do to make better use of the capital market.

　　"Bigger depends on capital, strong brand, and long-term culture." Wang Yong said that in addition to capital operation, time-honored brands must also make great efforts in brand building and cultural construction. The only way to build a brand is to build a brand outside, to build a culture inside, and a time-honored brand. Only enterprises can achieve rapid development.

At the same time, capital operation must serve the main business and cannot be willful with the money. It is necessary to maintain determination in strategic choices, focus on the main business, pay close attention to research and development, upgrade products, optimize services, and must not blindly expand.

Many listed companies have problems, mostly not because they did not seize the opportunity, but because they failed to refuse the temptation.

　　Pan Helin believes that the capital market has rules. Failure to follow the rules will not only lead to elimination, but also damage the company's reputation.

Time-honored enterprises must keep pace with the times and actively transform, vigorously remove their own system and mechanism barriers that are not suitable for development, standardize corporate governance, improve the level of modern management of enterprises, and achieve both revenue and profit growth through the steady growth of product sales, so as to obtain capital. Continue to favor.

　　In the Internet age, time-honored brands have to learn from online celebrity shops and explore more marketing methods and business models.

“The smell of wine is also afraid of the deep alleys. Without brand promotion, it means that they will be buried. Time-honored brands must actively embrace online channels and actively use Internet channels to carry out marketing.” Pan Helin said that brand management is a magic weapon for time-honored brands, and companies must Attention should be paid to protecting brand reputation, operating with integrity, preventing vicious incidents from damaging the brand image, and guarding the foundation of the time-honored "brand" carefully.