China's Fashion Industry Is Buying Strong Brands.

　　 A takeover wind swept over China's economic circles. China's garment industry is also willing to let it go, and the acquisition of Pierre Cardan has made a lot of attention. "Pierre Cardan sold it to the Chinese at 37 million euros." The news that has not been explosive has ended the complicated and confusing purchase case.

Among the industry's applauders, "international brands like Pierre Cardan" are what Chinese enterprises lack. Therefore, it is a shortcut to buy the license directly and use it. Professor Wu Dayang, Dean of the Institute of textiles and clothing, Southwestern University, said in an interview.

"Today's clothing industry has entered the era of brand." Wu Dayang believes that in a sense, clothing sells brand names. To build a brand like Pierre Cardan, it is better to buy the brand license directly than its long hard creation.

However, this mode is also considered to have higher risks. Zhou Sheng, chairman of Shenzhen Yi Hui fashion group, feels that the brand needs a certain time to precipitate. He is not optimistic about Chinese enterprises' acquisition of international brands. Zhou Sheng believes that a high takeover may not be able to achieve its economic value. The acquisition of Pierre Cardan may not be able to quickly occupy the Chinese market. The acquisition of foreign brands is not as solid as the creation of its own brands. Local clothing brands that contain Chinese culture are not only easy to catch the psychology of Chinese consumers, but also with the rising international status of China, Chinese clothing brands will be recognized and accepted by more and more foreign consumers.

Duan Chunlin, director of the Institute of brand research, School of Journalism and communication, South China University of Technology, believes that it is difficult to judge who will benefit or abuse the international brand and the local self created brand. The market demand is diversified. The key is that the enterprise itself should find a suitable way of development. 　

Strong winds begin at the end of green duckweed.

In fact, the acquisition did not take place in the past one or two years. In 2007, YOUNGOR bought a blockbuster in the industry by buying a billion yuan.

In November 6, 2007, the company signed a three party equity purchase agreement with the US Kellwood Company and its wholly-owned subsidiary Kellwood Asia Limited, acquired Smart100% equity held by KWD ASIA and Xin Ma100% shares held by KWD, with a total investment of US $120 million.

The company said that the overseas investment amounted to 120 million US dollars and the investment method was cash. It invested about $70 million to acquire Smart100% equity and invested about $50 million to acquire Xin Ma 100% stake. After the acquisition, YOUNGOR will have all the ownership of the underlying company. KWD indicated that the underlying assets of the underlying company were no less than US $120 million.

The announcement said that KWD was a major garment enterprise in the United States, with sales of nearly $2 billion in 2006 and listed on the New York exchange. The company aims at meeting customer needs and exceeding customer expectations, concentrating on brand clothing design and promotion, and marketing clothing products that meet specific needs through various channels. KWD ASIA is a wholly owned subsidiary of KWD in Asia. Its main business is to invest in managing its subsidiaries. Its subsidiaries are mainly distributed in Hongkong, Sri Lanka, Philippines and the mainland of China. The main business of the company and its controlling subsidiary is to produce and export shirts, T-shirts and trousers.

YOUNGOR believes that the acquisition can drive the development of the existing industry, and promote the rapid growth of the company's shirts and dyed fabrics, and will play an important role in accelerating the internationalization of YOUNGOR in the future.

At the same time, YOUNGOR expects to enhance the international competitiveness of the company through the acquisition, expand the international market, and lay the foundation for its internationalization process. 　　

　 You can't go out to sea by boat.

What is the purpose of buying a brand?

Is it ripe for Chinese companies to buy in the face of European brands' failure?

First of all, the real international brand will not give China, such a brand like Armani, will never be bought by Chinese people. This is a challenge to the future development of Chinese clothing. Secondly, Shanghai's acquisition of Pierre Cardan is not a big deal. Pierre Cardan is already a force in the outside world. Its brand value and added value are very weak. It has become a symbol of decadent and aging. Finally, what brands do Wenzhou and Quanzhou private enterprises take to acquire foreign brands? It is a brand of three or four foreign brands, even a very common designer brand, which can not be sold abroad. In the face of the above three aspects, we must clearly understand the purpose of our acquisition abroad.

Our acquisition of foreign brands should be based on at least three considerations: gaining the visibility and cultural background of European international brands, gaining support from foreign brands R & D teams, and gaining access to foreign market channels and networks.

A number of acquisitions are underway.

Following Anta's 300 million yuan purchase of the global sports brand "old three" FILA, a number of famous enterprises in Quanzhou, such as "nine herd king" and XTEP, "follow suit" seem to say that they want to burn money to buy "famous brand" overseas.

"In fact, these enterprises buy overseas brands, or they are fighting for the domestic market." According to industry analysts, China's garment industry is eager to transform from OEM to ODM, with overseas brands and eager to compete for high-end domestic market share.

Quanzhou enterprises, which have always used to imitate each other's learning, are setting off an upsurge of "big money".

"Takeover is a strategy for the company, and it is expected to buy a foreign brand by 2010." A few days ago, XTEP President Ding Shuibo revealed that the second largest shareholder of the company and the internationally renowned venture capital Carlyle, who helped XTEP to list, was introducing potential acquisition opportunities to XTEP.

XTEP vice president Ye Qi also confirmed to reporters that the current negotiations have entered a certain stage, the goal is the international second line brand, is intended to expand the international vision and international brand management experience for XTEP. He revealed that XTEP, which is famous for its sportswear, is also a sportswear that is to be acquired. If the brand is purchased, it will help XTEP absorb international fashion elements.

At present, the acquisition wind is no longer the prerogative of productive enterprises. In March 2nd, "daily economic news" reported that a number of domestic first-line stars will become shareholders of the famous chain discount operator, Shanghai Fu TSE Industrial Co., Ltd., which is expected to be listed in Hongkong by the end of this year.

Lu Qiang, President of the company, said the company's second round of $80 million financing has been launched. "Within three years, we will open to 30. The acquisition of PRADA has entered our schedule."

According to Lu Qiang, in the next development of Fu's, there will also be a form of franchise, but the company will have a certain stake in the franchisee, not just a brand output.

Don't let acquisitions become poison and thirst.

An entrepreneur who has been engaged in garment export for more than 10 years, referring to the recent "Chinese brand acquisition of Pierre Cardan" by Chinese private enterprises, said: "if I am a business owner, I will definitely not spend the money to buy foreign brands. I would rather build a new brand from scratch. "

Why do we have such a conclusion? He analyzed, "Pierre Cardan is not a big brand in Europe. Now it is an age of information development. Any Chinese can easily know which brands are genuine European brands."

In addition, from the point of view of enterprise operation, this friend thinks that a management science enterprise must consider the issue of input and output, which is to calculate the cost performance of the brand. Although Pierre Cardan has the advantage of channel in the two or three line market in China, it is doubtful whether the money spent can be earned.

Though a few words are unintentionally, it has poked fun at the pain of "Chinese textile and garment enterprises eager to go to sea": most of the overseas brands that had been reduced to "selling themselves" in the financial crisis were not gold lettered signboards. Even if Chinese enterprises have a good eye and see the value of the acquisition, how to buy it is a difficult problem.

If an enterprise only buys the overseas brand's right to operate in China, it is like "the children of other families should be paid more than they can afford to buy." if the whole process of design, production and marketing is accepted, the original Chinese manufacturing enterprises will have to "make up lessons" in the complicated management of enterprises, and it will be even harder to assess the effectiveness.

Because of this, if we buy Pierre Cardan, we need to give it a future, not just yesterday. Now, is there any other way out besides acquisition?