Merger And Acquisition Of Popular Fashion Industry: Annexing Or And Singling Out The Beam

The fashion industry has been booming for many years before the economic crisis, and now it is slowly recovering, and acquisitions and mergers are beginning to prevail throughout the industry.

Catherine Malandrino is said to be in line with Kellwood Co.

Talks about acquisitions, and Andrew Rosen and Proenza Schouler are also discussing.

Over the past year, Steve Madden has acquired Betsey Johnson, Kellwood acquired Rebecca Taylor and Adam, VF Corp acquired the Ella and Kellwood, and purchased the company's investment in Mexico.

"More and more mergers and acquisitions are taking place now, and many companies like to adopt this approach to achieve their own further development," said Paul Altman, managing director of Sage Group.

Many of these companies are hesitant to sell or not to sell when they are profiting from the financing of large companies.

Industry analysts analyze the reasons why these companies decide to sell mainly three: companies want to set up retail stores; they want to expand their products or want to develop overseas markets.

These three reasons require the company to have large amounts of capital and manpower. If the acquired company has strong financial strength, it can help these brands invest in marketing and advertising.

On the other hand, those acquired companies may lose their ownership or even lose all their management rights.

Say No: mergers and acquisitions freedom of interference

Most brands such as Nanette Lepore, Milly and Tibi, which are run by husband and wife, choose to remain independent. In their view, only in this way can they freely develop their brands without interference from other investors.

AmySmilovic, the founder and designer of Tibi, said: "we have received many investors' intention to invest, but the problem is that although the sale of the brand has a large sum of money, we have to repay investors for a long time.

Nanette Lepore also received an investor's investment intention a year ago, but after a period of discussion, he finally rejected the investment intention.

Mr. CEO Robert Savage said: "we are all close to signing the agreement, but I am glad that no deal has been reached. Up to now, the company is still 100% of me. This situation is very good. I think it is not a good thing to grow slowly, and the number of retail outlets owned by the brand is also very good. We do not want to expand too much. The present situation is very good."

Private brand Milly has been established for 10 years, and it does not seek any form of acquisition and merger at present.

Mr. Andrew Oshrin, President, said: "when we first started the brand in 2000, the company's business condition was very satisfactory. In the past few years, we were all in break even, and the next few years began to make profits.

As a private enterprise, we can make long-term plans for the brand rather than just seeking short-term profits like investors. "

Milly brand also joined the children's wear brand series, and the business is very good. In 2008, the wholesale income of the brand was $4600-4700. This year, the brand opened its first flagship store on Madison Avenue.

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Say yes: sharing resources with large companies

And the brands like Rebecca Taylor, Adam and Vince are also very satisfied with the decision to sell the company. Rebecca Taylor's CEO Beth Bugdaycay said: "joining a large group allows us to share more resources, such as manpower, accounting, law, IT, customer service and so on, and the efficiency of the company is also greatly improved. At the same time, we can increase product categories and speed up the process of opening retail stores."

Rebecca Taylor brand has opened many new stores and is expected to open 5-8 new stores this year.

However, not all of the sales were ideal. Juicy Couture was sold to Liz Claiborne in 2003, but due to the differences in the management philosophy between the two companies, the founder and designer of JuicyCouture finally left the brand.

Therefore, selling or not selling should be considered by the company after careful consideration. According to its own circumstances, the mode suitable for a company may not be applicable to another company.