Garment Industry Participates In International Brand Acquisition (1)

A takeover wind swept over China's economic circles.

"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,

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.

According to the announcement, KWD is a major clothing company in the United States, with sales of nearly US $2 billion in 2006 and listed on the New York stock 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.

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? What brands do they buy? They buy three or four foreign brands, or even very general designer brands, 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.