KAPPA Behind Back-To-Back Success

KAPPA is a sportswear brand that has appeared on numerous football players in Italy for many times. Its semi high necked tight mid sleeve sportswear introduced in the 2000 European Championships is even considered to be an unsurpassed classic. But at that time, Chinese people were very unfamiliar with the letters of KAPPA, and even used to call it "back to back" according to its logo.

Today, KAPPA has become the brand that Chinese can pronounce accurately, and more importantly, its sales in China market have ranked third in the international sports brand, second only to Nike and Adidas.

To achieve all this, a Chinese company named Chen Yihong, founder of China, was first known as the leader of China's local sports enterprise Lining.

China moved in May 2006 to spend $35 million to buy the brand ownership of the KAPPA brand in mainland China and Macao, after which it had exclusive distribution rights.

Morgan Stanley is said to have contributed to the matter. In March 2006, Morgan Stanley injected $38 million into China and owned 20% of its shares.

In October 10, 2007, with the help of Morgan Stanley, China's trend was listed and sought after in Hongkong, with a total market value of nearly HK $30 billion.

By May of this year, Morgan Stanley sold some of its shares to HK $1 billion 100 million, which was about 10 times the selling price in 2006.

Morgan Stanley did not quit the feast.

At present, Morgan Stanley is working hard to find more treasures like China.

Through investing in Chinese companies, Morgan Stanley is implementing a strategy of high yield and high risk in the Chinese market. "Before it was mainly on IPO projects, it now favors some value-added services."

The company's top brass said publicly.

Companies that invest in China are part of the Morgan Stanley direct investment department, which is the most important part of value added services.

Analysts believe that in recent years, Chinese private enterprises listed overseas, the excess return for initial investors is the focus of Morgan Stanley's attention.

However, Morgan Stanley has its own killer, compared to other peers showing a strong interest in Chinese market infrastructure and heavy industry, it focuses more on consumer goods and retail markets.

"China sends an important message to the world: its economic development model will have a key adjustment from the export and investment oriented mode to private consumption pfer."

Morgan Stanley chief economist Stephen Roach said so.

Morgan Stanley's global investment strategy report also clearly expressed optimism about China's consumer goods market.

A further explanation is that the enterprises that Morgan Stanley sees has the following characteristics: leading position, famous brand and continuous profitability.

Facts have proved that Morgan Stanley's focus on consumer and retail markets has brought huge rewards.

Morgan Stanley Direct Investment Department official information, so far has invested in Ping An insurance, Nan Fu battery, Mengniu Dairy, Heng an international, Yongle Home appliances, BELLE international and other industries leading enterprises.

Statistics show that in the Ping An insurance project, Morgan Stanley shares US $35 million, the cumulative return is US $1 billion 100 million; in Mengniu Dairy, Morgan Stanley shares two shares in a total of more than 2 billion 600 million dollars; in the case of Yongle electric appliance, Morgan Stanley holds a total of 10% shares of the new company after the merger of Gome and Yongle in addition to the HK $1 billion 200 million in advance.

No one is not optimistic about the future of Chinese consumption. Morgan Stanley intends to buy gold in China's $800 billion retail market.

Statistics show that in the past 15 years, the income of Chinese consumers has increased 7.7 times, and McKinsey predicts that by 2010, China will have 40 million families earning more than 48 thousand yuan per year, and the purchasing power is equivalent to 24 thousand US dollars, which is comparable to the middle class of the United States.

Now, Morgan Stanley is taking the time to put more treasure into the arms.

In January 2007, Morgan Stanley invested $18 million in Hunan's Prince Edward milk group.

This is based on an estimate of the consumption trend of the lactobacillus milk market. Taizi milk accounts for more than 70% of the market share in the Chinese lactobacillus milk market. In October 2007, Morgan Stanley invested $18 million in KB Boloni's investment in China's home furnishing scheme to solve the market.

For the two enterprises that belong to different formats and industries, the biggest feeling of negotiation with Morgan Stanley is: fast.

In Hunan Taizi milk project, from negotiation to funding, the time is 3 months.

In Beijing, in the same 3 months, Morgan Stanley also dropped PK's Deutsche Bank, which had previously intervened in KB Boloni.

Cai Ming, general manager of BOLONI, said in his blog that (Morgan, Shi Danli) was rushing to invest money for us.

They said what Cai Ming was going to do was what we were going to vote for.

This is the answer to Morgan Stanley's early advertisement. If God wants to raise money, he will also look for Morgan Stanley.

Now, China's consumer company may be Morgan Stanley's "God".