Stronger Clothing Companies Are More Likely To Enter High-End.

< p > > a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > after the industry has entered a low ebb, the merger and acquisition of enterprises unexpectedly become more positive.

Shortly after Semir's acquisition of the clothing brand GXG, there was news of the takeover of the high-end men's clothing business.

Another reporter has learned that, recently, many domestic clothing brands regard overseas brands as the target of mergers and acquisitions, and for a time, the trend of vigorous fashion brand mergers and acquisitions is spreading.

However, under the reality of high inventory, high cost and low profit, the multi brand strategy of garment enterprises may increase the capital burden and not be valued by the outside world.

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< p > apparel industry M & a tide < /p >

< p > mid June, leisure > a target= "_blank" href= "http://www.91se91.com/" > dress > /a > big guy Semir hit the biggest merger case in the clothing industry at a high price. Its announcement said it would use 1 billion 980 million -22.6 billion to buy 71% stake in Ningbo zhe Mu sang Holdings Limited.

According to introduction, zhe Mu Shang is a self owned clothing Brand Company, which is mainly located in high-end casual menswear. Its brands include GXG, gxg.jeans and so on.

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After a month, P also heard the news about the acquisition of high-end men's clothing business. The company's secretaries Wu Huirong also confirmed this. He also stressed that from the industry point of view, the integration of clothing brands is a long-term trend.

"We also have more cash flows, and we hope to take more brand development strategies after raising funds, but such opportunities can not be met."

Wu Huirong said.

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< p > not only is the two industry bigwigs fond of mergers and acquisitions, many garment enterprises are eager to buy.

According to the Beijing Commercial Daily reporter, the domestic garment enterprises have strong desire to acquire Korea Companies.

It is understood that the Shandong Weihai Di Group has been holding shares in the way of holding South Korea's three largest clothing companies listed on the AVISTA company's 38.96% stake, becoming the largest shareholder.

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< p > multi brand dream of garment enterprises < /p >

< p > some analysts believe that although the clothing brands are facing serious problems such as high inventory and declining profits, they also create a good time to hunt for the bottom. Especially those big brands, in the face of the temptation to "eat small fish with cheap big fish", will not let go.

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< p > take the above overseas M & A as an example, the reason why it is more and more popular to purchase Korean clothing enterprises is not only the obvious trend, but also the low purchasing cost.

It is understood that the Korean garment enterprises affected by the economic downturn, sales and profits fell sharply, many of the shares of enterprises also fell to the "cabbage price", taking over the cost is relatively low.

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< p > besides, for large brands, the bottom line is not the ultimate goal.

From the direction of mergers and acquisitions of Semir and King Mu, we can see that they are interested in high-end pformation, so as to realize the diversification of business brand.

For this wave of mergers and acquisitions, Zhu Qinghua, a light industry researcher at CIC, said that if the clothing market is not at a low ebb, the valuation of high-end brands will be higher. At the present stage, there is a value depression, and the acquisition is just right at that time.

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< p > fear of capital and integration difficulties < /p >

< p > but there is always a distance between dream and reality.

In the process of merger and acquisition, there are many problems such as resource integration, financial control and so on.

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< p > Zhu Qinghua pointed out that M & A has a further risk of dragging the enterprise. "After the merger and acquisition, the growth of business performance will slow down due to improper integration and inadequate allocation of resources, or the large amount of purchase will result in the company's financial crisis, resulting in the fragmentation of the capital chain, especially the acquisition of high-end brands and higher costs."

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< p > another industry analyst said that after the introduction of multiple brands, the effective integration of resources is the key. "This includes not only the integration of brands, but also the integration of management and culture between two companies, which will cost a lot of time and money for enterprises".

The industry said.

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