LVMH's Fund Buys 10% Stake In Ou Shi Li Women's Clothing.

In the short term, "two shots" highlight the new idea of Asian market expansion.

Wind information in February 9th, Sina micro-blog came to the news that the French luxury goods giant Louis Weedon (LVMH) group's investment fund L Captital Asia recently joined the CITIC Industrial Fund to buy 10% of the famous domestic women's clothing brand Ochirly. The scale of the transaction amounted to 200 million US dollars, and 10% of the shares were mainly owned by Louis Weedon's Fund. The plan was launched overseas, and the company valued at about 2 billion US dollars.

Statistics show that L CapitalAsia fund company currently holds 25 shares in different proportions. Wu Yue, director of LVMH Group China, told the media that the LVMH group's private equity business has been in the history of more than ten years. In 2001, the LVMH group set up the L Capital Asia fund for $640 million, which is its private equity business in Asia. continue 。 Among them, China and India are two key markets. LCapitalAsia completed its collection in December 2010. Less than 10% of its funds came from LVMH group, a separate field in the LVMH group. The rest came from the US, European financial institutions and high net worth individuals.

The aim of the fund is to invest in some Asian companies that are developing rapidly but are generally smaller. These companies offer substitutes for luxury goods, such as clothing, home accessories, beauty care, The Inn Boutique, entertainment. media Even private education. The fund plans to invest 200 million to 300 million dollars this year. Up to now, L Capital Asia has invested a lot in the Asian region, involving brands and enterprises such as Royal watch and Jewellery Limited, Ming Feng Jewelry Group Limited, Singapore Charles&Keith and India Genesis Luxury.

Recently, the L Capital Asia fund started buying Asian fashion brands with $650 million. Ravi, the fund manager, said that he had invested $90 million in some of the three tide cards in Asia, and such acquisitions will continue. At present, it has invested 14 second-line brands.

The Ochirly brand, which is a brand of high and middle grade women in the domestic market, is famous for its popularity, reputation and market performance. It has a relatively high stationing rate in the mainstream and high-end fashion department stores of the second tier cities in China, and its sales performance is quite accurate. In recent years, especially in recent years, the brand has risen rapidly, and its positioning is more suitable for the demand of fashion white-collar workers. Sales are rising and becoming more and more popular among the high-end fashion department stores and shopping centers, such as its department stores, including Parkson, Yintai, new world department store and so on. By the end of 2009, the company has over 800 stores in 28 provinces and cities in China, with annual sales of 250 million. At present, the plan is going to be listed overseas, with a Preliminary Valuation of about $2 billion.

Not long ago, in the middle of December 2011, L Capital Asia just launched the first investment in China, which shares the second largest shareholder of Xin he (Xiamen) Garments Co., Ltd. Founded in 1992, we are located in the middle and high-end position of Higa. Currently, we have 6 brands including JORYA (Zhuo Ya), JORYA weekend, GIVH SHYH, ANMANI (En Manlin), CAROLINE and AIVEI. Similar to Ochirly, the main sales channel of Hsing ho is also a high-end high-end department store in China. Currently, it has more than 600 stores in the whole country, and its sales volume is about 2 billion 800 million yuan in 2011.

Daniel Piette, President of L Capital Asia, said it hopes to help these companies develop in the next three to six years through shares. Then, the shares held will be sold to other investors, major shareholders or listed companies. The two garment companies are the first Chinese clothing brands to buy, and their shareholding ratio is 5%-20%. In addition to financial support, L Capital Asia will provide strategic analysis of these brands and help them develop marketing positioning and store development, and at the same time strive to improve the consistency of their product lines.

As an international fund, China is frequently exposed to China. market The powerful high-end women's wear brand has attracted the attention of the domestic fashion industry and analysts.

Yang Dayun, UTA Fashion Management Group, said that with the arrival of major international luxury brands in Asia, the luxury goods market has been gradually discarding, and the high-end clothing market after luxury has become a hot "fat meat". "CEO" L Captital Asia has been fully looking for brands in Asia and has gone through many negotiations, but in the end it failed. The success of negotiations with Hsin ho is due to the fact that the Asian market has gradually become the strategic objective of the major luxury groups.

Cui Hongbo, senior partner of Lian Zhi Da Consulting Group, said that LVMH attached great importance to the second tier brands in Asia, especially those with luxury genes, but there were not many Asian brand resources that could be reassured. Unlike European brands, Asian brands did not have a long historical background, so the risk of takeovers was far greater than that of European acquisitions. But when it comes to luxury goods group When we put Asia in an increasingly important strategic position, what kind of acquisition means has become an urgent problem for major groups. So LVMH's incubator is far more visionary from another level.

Cui Hongbo also pointed out that the head of the L Capital Asia fund once said that although the European luxury brands still occupy an important position in the Chinese market, a large part of the market growth in the next period will depend on the promotion of Chinese local enterprises. This is exactly what the LVMH group hopes to enter through the fund. It is under the guidance of this idea that LVMH has set up a fund and has invested in Antichi Pellettieri, Gant, Pepe Jeans and other brands. Its L Capital Asia fund has invested in the brand of Shi Shi Hang, the Royal jewellery and so on. At present, it is looking for some other brands to invest in Asia.