Spinning And Weaving Industry: When Will Mergers And Acquisitions Be Made Back To Real Gold And Silver?

The pace of mergers and acquisitions in textile and garment industry has been accelerated. However, in recent years, mergers and acquisitions have not yet produced a multiplier income, but they continue to generate adverse effects. Observing the effect of M & A with actual data, the conclusion is that M & A is basically not the profit contribution of the listed textile enterprises for the time being. Most of them are at the stage of buying experience.

　　 Seven wolves Recently announced in Beijing, the completion of the Hangzhou Kenna Clothes & Accessories The acquisition of 100% stake in limited company costs 70 million yuan. The seven wolves won the world's top clothing through Hangzhou Kenna apparel limited. brand Connally (Canali), Versace (Versacecollection) and the famous jewellery brand, Jason George (GeorgJensen), are the agents in China.

This is the latest masterpiece of mergers and acquisitions of Chinese textile and garment enterprises, and Bosideng also announced that it will buy clothing brands in France and Italy in the year. In recent years, the game of "swallowing fish" that has made itself stronger than ever by eating fish that is smaller than itself has been especially popular with financially strong listed companies, and has gradually become an important means of multi brand and internationalization strategy.

　 The focus of mergers and acquisitions is profit contribution.

Compared with previous mergers and acquisitions of YOUNGOR, Shanshan, Shandong Ruyi, Anta and other listed textile enterprises, the acquisition of seven wolves shows that the continuous progress of the merger and acquisition of textile and garment industry has not gone through too many breakthroughs. It is still focused on brands, channels, matching industrial chain and design.

The significance of the acquisition of the seven wolves is also defined as: strengthening international brand cooperation, creating international luxury brands to enter the Chinese market agent platform, and providing opportunities for exchanges on the international stage, thus opening up the way of overseas mergers and acquisitions. Step by step to reduce risks and accumulate experience.

The pace of mergers and acquisitions in textile and garment industry has been accelerated. However, in recent years, mergers and acquisitions have not yet produced a multiplier income, but they continue to generate adverse effects. Observing the effect of M & A with actual data, the conclusion is that M & A is basically not at the moment contributing to the profits of the listed textile enterprises, and most of them are at the stage of buying experience.

Lining's latest earnings report revealed the exclusive franchise operation of the Lotto trademark purchased three years ago, which lost 12 million 400 thousand yuan in 2008, and the deficit increased sharply to 76 million 910 thousand yuan in 2009. In 2010, it continued to expand to 91 million 749 thousand yuan in 2009. In the past 3 years, the total loss was nearly 200 million yuan.

YOUNGOR was dragged down at the beginning of the new Malaysia and had to make an adjustment strategy. Anta spent HK $600 million buying FILA brand in mainland China, Hongkong and Macao, and has been remodeling its brand, adjusting its product mix and integrating internally. It is expected that there will be a slight deficit in 2011, and it is expected to break even in 2012, but sales are still small.

Shanshan 2010 annual report mentioned that during the reporting period, the company obtained the right to use the trademark and logo of the international brand ELLE in the form of re authorization. The brand has a high reputation and reputation in the domestic and foreign markets, and plays a positive role in enhancing the brand influence and the overall value of the clothing plate. ELLE's specific revenue figures are unclear at this stage.

The problem still needs to go back to the starting point to straighten out the whole industrial chain pattern of YOUNGOR from upstream cotton planting to spinning, garment weaving and marketing channel construction, so as to effectively control production costs and protect profit margins. In the environment where cotton prices soared last year, YOUNGOR relied on early production in the layout to slow down the cost pressure and get steady growth in garment business.

Shandong Ruyi's acquisition of Renown 41.53% of Japanese apparel manufacturers is based on the rapid intervention in the terminal area. Renown operates more than 30 famous clothing brands in Japan and Europe and has more than 2000 clothing stores in Japan. Just in line with the lack of terminal strength, fabric advantages of Shandong's Ruyi demand. But Shandong Ruyi temporarily did not rely on mergers and acquisitions to achieve a breakthrough on the terminal.

　 It is hoped that the bid will have multiple resources.

From many previous mergers and acquisitions cases, we can see that the premise of mergers and acquisitions is presumed as follows: the profits of independent brands are high, while brand cultivation and market coverage are time-consuming and energy consuming, and the success coefficient is not guaranteed. However, it is no doubt that it is more difficult for brands lacking international influence to open up overseas markets and rely on their own strength to build brands and channels.

Experts believe that the main reasons for the failure of overseas listed textile companies are mainly due to miscalculation of overseas markets, resulting in poor integration, unfamiliar with culture and legal environment, indirect losses, short time for acquisition and merger, and lack of experience in mergers and acquisitions.

In China's textile and garment enterprises, there is a serious shortage of managerial talents who can control different cultures at home and abroad, control risks in M & A, familiarity with local laws and regulations, and have international vision. In the few mergers and acquisitions cases that have been launched, few domestic textile and garment enterprises can export key talents of practical M & A projects, and generally maintain the original management team and have weak control over the project. Many enterprises involved in mergers and acquisitions are aware of the necessity of subsequent integration, but are trapped in the introduction of integrated talents.

Although the mainstream mode of mergers and acquisitions has not changed, enterprises seem to prefer hybrid acquisitions. The merger and acquisition of the supporting industry chain is also included in the vision of Chinese textile and garment enterprises. Most enterprises will choose the supporting industry chain according to their own advantages.

The idea of mergers and acquisitions is known as "walking backwards and forwards". Besides brand and channel, R & D design capabilities, managerial talent reserves, land assets and other real assets have become the considerations and objectives. In addition, textile and garment enterprises are trying to buy foreign factories and workers directly in the form of share holding and holding.

Some analysts suggest that the use of listed companies' fund-raising needs to fully assess the feasibility and value of profitability. The focus of social attention will inevitably come from the appreciation of the strength of the merger and acquisition of enterprises with a certain brand strength in the capital market, and the enrichment and accumulation of experience, which is the beginning of Chinese enterprises' maturity and their dreams come true.