The Clothing Industry Has Entered The Tide Of Mergers And Acquisitions.

At present, Chinese enterprises' overseas mergers and acquisitions are very popular. From Teng's acquisition of Hummer to large mergers and acquisitions of large energy enterprises led by PetroChina and Minmetals Group, the acquisition of Canadian joint Thompson iron ore Co., Ltd. (CLM) by Wugang, and even Wantong aluminum's acquisition of luxury yacht brand DP such as Italy, even more, even TV stations have been bought and sold. There is also an outrageous call for PROPELLER, a British satellite television station called Xijing group. This is an astonishing move after Wenzhou people acquired foreign media in Arabia after the acquisition of "Asian business TV station" and "European radio station in Europe" in recent years.

We know that such M & A activities in the media are unthinkable in China, let alone commercial significance. Of course, more mergers and acquisitions also come from mergers and acquisitions in manufacturing. For example, the merger and acquisition of garment industry, after all, this industry is closely related to the Chinese people, and the concern is much higher.

Wenzhou businessmen have been the hot topic. pierre cardin The news also has a great impact on Shandong Weihai Di Group. At the beginning of this year, it invested $6 million 300 thousand to acquire the "HAVERY" brand in Paris. At the same time, the company also plans to spend $40 million to acquire one of the ten high-end women's clothing brands in Paris, France. Another Shandong company called Shu Lang also bought four men's Brand Company, GuidoBertagnolio, ADRIANORODINA and a woollen yarn factory and a woolen mill in one fell swoop. Recently, under the testimony of Sun Ruizhe, vice president of the China Textile Industry Association, Zhou Shaoxiong and Zhang Jianmin also signed a takeover agreement, formally announcing to the industry the news that Fujian seven wolf Industrial Co., Ltd. acquired Hangzhou Kenna Clothing Co., Ltd. for 70 million yuan.

Energy enterprises and television stations do not say so. Motivation and purpose are control over the resources of the industry. I mainly want to discuss whether the merger and acquisition of garment dealers can be successfully transformed into branding. As we all know, only consumer goods, fast food products and brands are closely related, because they compete fiercely and are closely related to personal consumption.

From the M & A of the above enterprises, Wantong aluminum industry acquired Italy luxury yacht brand DP, because the company has its own yacht company, which is very attractive to the Chinese target population who is rich first, and needs such a brand product to occupy the Chinese market. Xijing group's acquisition of British television and European Chinese radio station is intended to build an overseas media platform and provide a channel for Chinese enterprises to go abroad. (it's not known to spread the Chinese Culture). This is slightly different from the merger and acquisition of real enterprises.

For Pierre Cardan's M & amp; a, the former is a dealer in Pierre Cardan in China, and now the channel's main brand to sell is to let nature take its course. From the point of view of the industry itself, they buy brands, of course, and are the regional market brands centered on the Greater China region.

Shandong Weihai Dixie and Shandong Shu Lang used to be suppliers and brand designers collaborators of their brand raw materials. In the downturn of European and American economies, four enterprises also appeared to be unsustainable. At the low price of 10 million euros, four companies with high correlation with products were more likely to pick up a bargain. Because before the financial crisis, the price of the purchase of a single woollen yarn factory in the single FDS.R.L.FOGLIOEDOSIO would be RMB 300 million yuan.

From the above situation of Shandong enterprises, because there are factories and equipment in the acquisition, there are still some channels of value, and the price is relatively cheap. Although the brand is not widely known, it can be regarded as an act of the production and processing industry to take the opportunity to expand, which is beneficial to the increase of the enterprise's own value. Conversely, the channel strength of producers is weak. If the purchase price is high, the enterprises do not have the market operation experience, and the purchase is a small brand, and the risk must be greater. But in the current situation, the behavior of Shandong enterprises seems to be very worthwhile, at least for the two enterprises to transform from the processors to the brand business, which can also bring innovation value and cost benefits to the national market, and the brand premium.

But Pierre Cardan's identity is quite different. They are not a complete manufacturer, they are a more comprehensive OEM and channel providers. The knowledge and understanding of the Chinese local market is very profound. It should be said that no one knows more about the strength of the brand in the Chinese market than they do. Just when people talked about their money to buy rubbish brands, they completed the deal with the speed of thunder. Because they know that this brand is the only thing missing in the Chinese market. {page_break}

There are more layers in the Chinese market, and there is still much room for Pierre Cardan in the two or three tier market, which is in the quasi level store in Yansha friendship mall in Beijing. In March this year, Pierre Cardan's sales volume was the number one brand in the men's clothing brand. Not to mention the two or three tier market of other cities in the country, which does not include the confusion of counterfeit goods and channels.

Therefore, from the point of view of clothing OEM dealers or channel providers, it is a good opportunity for these enterprises to choose the transformation of enterprises at this time, and should not be timid or hesitant. Just as a large number of clothing OEM dealers are seeking their own brands, dealers and channel operators should act immediately, and sell the brand that has been selling for more than 20 years into the embrace.

Why? Because distributors and dealers are different from local brands themselves, the OEM dealers and distributors do not have their own brands. They can consider the problem of cultural integration less, but the organic integration of the market. It can be said that the wind and thunder on the ground are turning into an international brand owner. On the surface, consumers do not know any changes. For OEM dealers and dealers, you used to sell for others, but now you sell them for yourself.

On the other hand, as we all know, OEM enterprises and channel enterprises in China's clothing industry are more than ten thousand brand enterprises. Most of them, after passing through their survival period, are seeking to transform themselves into brand enterprises in order to map out the dream of long-term business and development. But the fierce competition in the brand market has left them at a loss. The OEM and dealers have no experience, two no talent, three no management, four no way to understand, and most importantly, no funds, and some even have no channels. In this case, if you want to build your own brand, not to mention an international brand, even if it is local brand or regional brand, chances are smaller.

Now, with the downturn brought by the financial crisis, dealers and OEM operators have the opportunity to have international brands. In this situation, instead of looking for orders or orders, it is better to create their own "orders" in the retail market by acquiring their own brands through mergers and acquisitions, that is, to upgrade their enterprises from manufacturing factories to the level of board of directors. In this sense, it is now an important opportunity for local apparel channel enterprises to acquire overseas brands. Of course, to form a good result of mergers and acquisitions, and to play the greater power of the original brand in the market, we need to solve the following management problems.

First, how to maintain the value of the original brand is not because the value of the brand has changed. There are two questions. First, continue marketing in the international market, let the audience feel that the brand value has not changed at all; two, if it is completely sold in the domestic market, let the domestic consumers feel that the brand has not changed greatly, but is more close to the people. In particular, it should stop the brand from declining, extend its value as long as possible, and properly channel the channel and manage it carefully. Maybe selling the next 30 years can be expected.

Two, at present, China's national segmentation brand has not been established. In a certain category, China's brand is the best, not much. It may be said that China's lighters are the best, but they are all cheap goods, and they are not much of a brand. China has a brand of porcelain, but it does not have an industrial brand, nor is it a leading industry. Chinese products are not only in the world, but also in the minds of the Chinese people. They can not produce or create luxury brands. China can only be some low-end products.

Why is there no high-end brand in China? This is closely related to the status of the country's cultural brand. It will take time for China to produce a global luxury brand. Let the people of the world or the Chinese people think that China's automobile is the world's top brand, clothing is a first-class brand, electronic digital products are first-class brands, and it needs the further strength of Chinese national brands. Otherwise, China can only be a strong product country rather than a brand country.

Therefore, after the acquisition of brand, we should carefully manage the original cultural quality of the brand, maintain its pure lineage, and let it go ahead with the strength of the national, regional and cultural interference that the world brand has and have a higher cost performance. Only in this way can we truly control and manage the world brand and complete the bright turn of the enterprise.

Finally, it needs to be explained that the overseas mergers and acquisitions of garment channel enterprises is the path to the world, and the first is to have strong brand competitiveness in the domestic market. Now it seems that the latter is in the majority. {page_break}

China's apparel industry mergers and acquisitions classic case inventory:

In 1 and August 2007, BELLE international acquired Fila China Trademark NIU and FilaNetherlandB.V. Hongkong retail companies FilaMarketing (HongKong) Limited for 48 million US dollars and 1 million 107 thousand US dollars in cash.

In 2 and November 2007, YOUNGOR signed a three party equity purchase agreement with the US KellwoodCompany and its wholly-owned subsidiary KellwoodAsiaLimited to acquire Smart100% equity held by KWDASIA and XinMa100% equity held by KWD, with a total investment of $120 million.

In 3 and August 2009, Anta's wholly-owned Affiliated Companies bought the FullProspectLimited85% stake in BELLE International (01880.HK) and purchased all the shares of FilaMarketing (HongKong) Limited from BELLE international wholly owned Affiliated Companies LeadChance. The cost of Anta's acquisition of FullProspect is 332 million yuan.

In 4 and September 2009, Hongkong YGM trading company formally acquired the exclusive and absolute control of Aquascutum, an old British luxury brand. YGM trading company was formerly the general agent of the Greater China region.

In 5 and January 2010, Pan Changhai, Sun Xiaofei and other four people in Guangdong completed the acquisition of some trademark rights in leather goods, knitted garments and leather shoes in Wenzhou, China, through the Wenzhou Cheng Long Limited by Share Ltd. The price was 37 million euros (about 370 million yuan).

In 6 and May 2010, Shandong Ruyi group became the largest shareholder of the Japanese Rena company through the third party's issuance of new shares. This is the first time that Chinese enterprises have acquired the main board listed companies in Japan. The Japanese buyer Renner Co., Ltd. is one of the oldest comprehensive clothing brand operators in Japan. It has a world-class fashion design, planning and operation team. Currently, it operates 35 clothing brands for men and women, and has more than 2400 stores in Japan, which include men's clothing, sportswear, sportswear, department stores, hypermarkets, supermarkets and other stores.

7, March 2011, Beijing new national exhibition W105 news release hall, in the China Textile Industry Association vice president Sun Ruizhe's testimony, Zhou Shaoxiong and Zhang Jianmin signed the purchase agreement, formally announced to the industry Fujian seven wolf Industrial Co., Ltd. with 70 million yuan to buy Kenna Kenna Clothing Co., Ltd.