Quanzhou's Brand Of Shoes And Clothing Is &Nbsp. Risks And Opportunities Coexist.

In the second half of last year, FUN, a casual dress, was found to be a buyer. Reporters recently learned from the industry that FUN was eventually bought by a Quanzhou company. However, due to the consideration of business plans and so on, the new owners kept secret about the acquisition.

It is understood that the acquisition of FUN (Quanzhou) is a listed garment company. The company has prepared for expansion in the future for its future growth and preparation for the listing. As for the details of acquisition funds, the company's staff did not respond to reporters.

To win the cards

On the basis of the acquisition by Quanzhou enterprises, the winning card has become the main player.

In the second half of last year, FUN, the founder of domestic casual wear, was sold by the brand owner Xiamen fan Pai Garments Co., Ltd. in Shanghai joint property rights transaction at a price of 7 million 800 thousand yuan, and its trademark was transferred.

Before the Xiamen fan Pai dress limited company, the owner of FUN is Benefun International Holdings Limited's wholly-owned Affiliated Companies -- Xiamen daga Enterprise Co., Ltd. Benefun International Holdings Limited is a listed company in Hongkong and Singapore. Its subsidiaries include Xiamen Dassault Enterprise Limited and Hongkong Benetton Holdings Limited. It also owns garment factories, knitting mills, bleaching and dyeing plants, water washing plants and Xiamen Anxi hair company limited.

In 1985, Singaporean merchants set up the Xiamen Dassault Business Co., Ltd. in front of the Xiamen hall, successfully imported the famous brand FUN leisure clothing into the Chinese market. The main products were FUN brand denim dress and casual wear series, including denim, sweater, shirt, trousers, T-shirt, sports shoes, socks, hat, bags, belts, glasses and so on. As the first retailer to enter China's casual wear brand, the birth of FUN has begun to familiarise Chinese with the retail mode. In the early days of reform and opening up, the popularity of western pop culture has spread rapidly in China. FUN has attracted a large number of urban youths through this easterly wind.

Since 1995, international clothing brands have entered the Chinese market and stimulated the rapid development of domestic brands. Since 2000, FUN has become a leader of the volume brand in order to adapt to competition, expand product areas, reduce prices and participate in the two or three line marketing competition. After 2005, faced with the rush of foreign brands, FUN began to go downhill.

In the face of the rapid rise of competitors, facing the risk of the domestic fashion retail market suddenly rising, the FUN owners chose to sell the company's main fashion label "FUN", and outsource all production orders to the group outside the group for production and franchising. The FUN store came from Bao. In addition, Benefun International Holdings Limited's own cash flow shortage also forced it to "cut the wrist". The international financial report of 2006 and 2007 shows that in the two fiscal year, the company lost 5 million 100 thousand Hong Kong dollars and 38 million 700 thousand Hong Kong dollars respectively in the two fiscal year. According to the announcement at that time, we made efforts to run 264 FUN stores in China.

In May 2008, the Benefun International Holdings Limited announced that "the wholly owned Affiliated Companies, Xiamen Dassault Enterprise Co., Ltd. transferred the FUN trademark to Xiamen fan Pai Garments Co., Ltd. at a price of 20 million yuan. At that time, Xiamen fan Pai Garments Co., Ltd. purchased FUN brand stores, goods and sales channels in addition to buying 20 million yuan for trademark ownership. If sold at the bottom price only, Xiamen fan Pai Garments Co., Ltd. holds FUN trademark for only 14 months, and it has shrunk by 12 million 200 thousand yuan.

In the second half of last year, Xiamen fan Pai Garments Co., Ltd. was listed on the Shanghai stock exchange.

[background]

Wave of mergers and acquisitions

The great reshuffle of the industry brought about by the changes of the international economic environment and the rapid upgrading of the brand position of Chinese shoes and clothing in the international market make the overseas acquisition of spring enterprises become a trend.

As early as 2007 when Anta went public, the company announced that it had plans to acquire famous foreign brands. In 2009, Anta won BELLE's FILA business in China at a price of more than 300 million yuan.

Ding Shuibo, President of XTEP (China) Limited, disclosed in a media interview the plan to acquire foreign brands, and the target brand of the acquisition might come from Europe. The industry speculated that XTEP's future European brands might be UMBRO (UMBRO), Diadora (DIADORA) or some other well-known outdoor brands. Another rumor is that another famous European brand, AIVA, is also becoming the target of Quanzhou sports brand acquisition.

Lin Congying, chairman of the nine Mu Wang (China) Limited, has also indicated that he should cooperate with three European Brand Company in the form of joint ventures or acquisitions.

In fact, the idea of mergers and acquisitions by Quanzhou enterprises is not just the above cases. The words of Zhao Jianhe, chairman of Fujian Green Group Co., represent the aspirations of most Quanzhou Entrepreneurs: "now is a good period for M & A. The acquisition of some brands should not be limited to domestic brands, but also to foreign brands. If conditions are ripe, we will also consider cooperating with foreign brands to help them expand the domestic market, and we will rely on their marketing network to compete abroad. " {page_break}

[demand]

"Supplement" and "grab high end"

Why do Quanzhou brands have made efforts to carry out brand mergers and acquisitions in recent years? Many industry experts believe that the most important reason is: the lack of high-end brands in China, and trying to seize the high-end market has become a major concern of many enterprises. Some people in the industry believe that the cultural value of high-end brands comes from their historical values, traditional culture and social concepts. European and American brands often have high historical value and are easy to form a quality and noble image in the minds of consumers. However, the history of shoes and clothing brands in China is short, and cultural accumulation is thin, so it is difficult to undertake the task of "grabbing high-end".

In addition to seizing the appeal of high-end market, "lack of compensation" is also the purpose of brand mergers and acquisitions of Quanzhou enterprises. The industry speculated that the FUN garment manufacturer in Quanzhou hoped to enrich its product system by using FUN jeans and casual wear series. In the past, Li Ning Co has acquired all the shares of Fujian Kaisheng sports company in order to develop the badminton market, making full use of the advantages of the two brands, and rapidly improving the market share of the company in badminton.

In addition, "promoting the listing and financing" is also an objective for enterprises to seek M & A activities.

[prospect]

Risk and opportunity coexist

Some experts said that the acquisition itself needs a long time to prepare for communication. It must undergo the so-called "love" running in period. After the acquisition, we must keep the core technology and cultural connotation of the brand in order to maintain the original style and quality of the overseas brand product.

Experts believe that the acquisition process needs rationality, because "opportunities and risks coexist". Take overseas M & A as an example, if an enterprise only purchases the overseas brand's right to operate in China, it is likely to be "raising children for others". In the end, it will be empty handed. If the whole process of design, production and marketing is fully accepted, the original Chinese manufacturing enterprises will have great thoughts in the complicated management of enterprises, and the results need to be tested by the market. In addition, we should analyze the basic problems of overseas brands, such as market positioning, product characteristics, operation mode and so on. In this regard, Pierre Cardan's acquisition is a lesson from the past. Its authorized operation mode is more involved in the Chinese market, and its branches are chaotic, which has been widely criticized in the industry. Even if the domestic enterprises replan their operations in the future, they will also consume huge amounts of inertia due to the brand's protracted pattern.