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Follow Up Report On Semir 2 Billion'S Acquisition Of GXG

2013/8/24 9:33:00 33

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Semir 2 Billion Acquisition GXG Semir GXG

"P > has been seeking to develop high-end high-end" a target= "_blank" href= "http://www.91se91.com/" clothing "/a" brand business Semir clothing has finally made a substantial step, the company intends to own its own funds about 2 billion yuan acquisition of Ningbo zhe Mu sang Holdings Limited 71% of the controlling power, the latter "GXG" "gxg.jeans" brand has relevant channels and customer groups, this move is expected to Semir clothing future performance branding.

However, through this "a target=" _blank "href=" http://www.91se91.com/ "> clothing /a > industry biggest acquisition case", can fast fashion brand Semir enter the high-end channel smoothly?

Semir has finally extended its tentacles to shopping centers and department stores. Not long ago, Mori Ma invested heavily in buying 71% of the shares of GXG parent company, Ningbo zhe Mu sang Holdings Limited (referred to as "zhe Mu Shang").

this merger case has been crowned "the biggest merger and acquisition case of domestic garment industry" by the industry.

because GXG owns department stores and shopping mall channels, the industry generally believes that the acquisition is an important step for Semir to pform to high-end channels.

GXG can bring important connections, /p >

The biggest problem facing P < a href= "http://sjfzxm.com/news/index_f.asp" > Semir < /a > is how to adapt to the rules of entering high-end stores.

Qiu Guang, chairman of Semir, who has been in the takeover scandal Center for P, simply stated that "we will make greater efforts in restructuring the future garment business."

it is understood that the reason why Semir threw olive branches to GXG is because they have the same development mode, that is, to develop brand and expand channels through the mode of investment and joining. The industry thinks that this may lay the same foundation for Semir's future management as GXG.

reporters call the Semir investment promotion department, the Department official said, "at present, our department has not established contact with GXG, and how the future investment department will interface with GXG, and the overall operation needs."

"P >" for GXG, its network store is an important pillar. It is understood that the sales of GXG in the Taobao men's clothing field is second only to JACK&JONES.

"P >" and Semir has always wanted to be able to build its own superior network exports.

An executive who once worked in Semir told reporters that "Semir has always wanted to buy an enterprise or brand that has the advantage of network sales. Through such acquisitions, the integration of its own network sales is mainly the integration of supply chain links in network sales."

reporters call the GXG network sales department. The Department said that it had not yet prepared for the merger with Semir.

Similarly, GXG's investment promotion department has not made preparations with Semir to cooperate with P.

Statistics show that the brand "GXG" and "gxg.jeans" of zhe Mu Shang are located in the leading brand of urban youth casual men's clothing.

At present, China zhe Mu has set up about more than 1200 retail outlets in the mainstream department stores and shopping centers nationwide, and ranks the top three in the sales of men's similar brands in Wanda, Yintai, ocean department stores, new world department stores and other major chain stores. It ranks the top in the Taobao platform menswear e-commerce sales.

"before the acquisition, Semir has been dominated by street shops, which has paved the way for Semir to enter high-end channels."

Brand marketing expert Haisheng told reporters.

Hai Sheng said, "Semir's usual choice is to open a shop on the street level in the bustling area. This shop is relatively low-end, and the shopping mall that goes into department stores and open street shops are totally two modes. The biggest problem facing Semir is how to fit into the rules of high-end stores."

"P > Hai Sheng takes Wanda as an example to introduce to reporters," for example, GXG has opened its store to Wanda, which is very difficult for a brand like Semir. "

it is understood that Wang Jianlin, chairman of Wanda, has set up a brand library to prevent the corruption of Wanda shopping center. Wanda has developed more than 85% of its brand from every brand new store.

According to Wanda investment mode, if a brand wants to enter Wanda, it needs to go to Wanda's brand library first before it can have access to Wanda.

"first of all, when Semir enters this brand library, it needs people who know Wanda. GXG can help Semir do this.

That is to say, GXG has already lost its way, so long as we can help Semir introduce it.

Haisheng said.

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Semir's low end development dilemma

Semir's deep mire in the low-end market has been plagued by channels and inventory.

in Semir street, we can see that most of its products are priced at around 200 yuan, while GXG price is usually around 500 yuan.

it is understood that the Semir brand is Metersbonwe, while the GXG brand is SELECTED.

The first problem faced by low-end clothing brands is the drop in profits.

In 2010 and 2011, Semir apparel realized net profit of 1 billion yuan and 1 billion 223 million yuan respectively.

However, as macroeconomic fluctuations and industry competition, channel costs rise, inventory ratio increased and so on, the company's net profit in 2012 dropped to 760 million yuan, a decrease of 37.81%.

that is to say, Semir is deeply in the mire of the low-end market, and channels and inventory have been plaguing Semir.

In order to increase profit margins, Semir has been doing research on reducing inventory in recent years.

In 2012, the company began to restructure its channels, and launched a "re investment" plan for the purpose of reducing inventory.

And launched the "three networks in one" digestion inventory, the "online Internet", "offline entity store channel network" and "mobile phone network" three networks in one sale.

in fact, the problem of inventory has been plaguing fast fashion brands in China. In 2012, Semir kept on contacting the network sales and operation companies, expanding the network channel with the purpose of selling stocks.

"we and Semir have been discussing the issue of network sales."

Yuan Feng, director of offline operation center of Shanghai green box Network Technology Co., Ltd., told reporters. "But we can not disclose progress now."

at present, the green box brand is the "bellwether" of Taobao and Tmall network sales of children's clothing, and many traditional brands are optimistic about the green box's operation mode and operation experience, and negotiate with the green box.

according to the reporter, borrowing the green box sales mode, brand investment will need at least 4 million to 6 million yuan to build up.

In fact, this amount of money is only a drop in the ocean for Semir.

Data show that Semir's inventory is about 1 billion 300 million yuan, an increase of 30% over the end of 2011.

Yuan Feng introduced, "many offline brands still want to carry out inventory sales through network channels, and new products are relatively few."

because of this cooperative negotiation, Semir has even heard rumors that the green box will be bought.

Wu Fangfang, chairman of the green box, said in an interview with reporters, "we only attract strategic investment and have no intention of selling the business."

And Wu Fangfang believes that the green box is completely different from the Semir model, so it is impossible to generate mergers and acquisitions.

No doubt, Semir has been salivating over the online operation of the green box P.

But the green box is obviously not buying.

the acquisition of GXG undoubtedly made up for the short sale of Semir network sales.

Another reason is that GXG has a consumer group similar to Semir, namely the 80 and 90's consumer groups.

"although shopping is an inevitable form of consumption, but this era also needs the way of network sales, because a growing part of the life of post-80s and post-90s consumers depends on the network.

So this area GXG attaches great importance to.

GXG network sales department thinks.

August 2010, the official flagship point of GXG was officially stationed in Taobao.

With the help of this large platform which accounts for nearly 80% of the share of e-commerce sales in China, GXG has really started its online sales career.

On the first day of their stay in Taobao mall in 2010 P, their turnover was 16 thousand yuan, which was 700 thousand yuan on August 31st, while the turnover in November 11, 2013 was 10 million yuan.

A year later, GXG's sales performance ranked second in Taobao mall men's clothing category.

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upgrading difficult problem

even if Semir and GXG cooperate, GXG can bring a lot of opportunities. Whether Semir can grasp the opportunity is also a difficult problem.

in the announcement, Semir said that zhe Mu still effectively filled the company's high-end leisure apparel business in products, channels and customer groups. At the same time, it also provided resources for the company to develop other high-end brand businesses such as channels, talents and supply chain. This paction will strongly promote the implementation of the company's multi brand strategy.

GXG positioning high-end casual men's clothing, Semir brand is mainly located in the public casual wear.

As GXG's brand positioning and pricing are significantly higher than Semir brand, GXG's brand image has been challenged after the acquisition.

before the merger, GXG has always called itself a foreign brand with a hundred years of brand history.

However, after the acquisition of Semir, someone immediately released "on the Internet," through the acquisition, we finally know the true background of GXG (not its propaganda from the French brand, but the parent company's registration in Ningbo). The implication is that Semir brings negative value to GXG.

the answer given by Semir is that after the acquisition, Semir will form a board of directors with the original shareholders and management, and manage the subsidiary company through the board of directors, and the central management still remains unchanged and sign a long-term work contract to ensure the stability of the company's operation and development.

In addition, the GXG brand design team, suppliers, channel structure and other third party service systems remain unchanged, ensuring that the original brand positioning, design style and quality level of GXG brand remain unchanged.

secondly, in terms of channel integration, it will take some time to see the effect.

it is understood that due to limited channels in recent years, coupled with the impact of the industry downturn, Semir's performance has gradually declined.

So that Semir fell the issue price on the first day of listing (March 11, 2011), and then entered a long bear Road, the lowest drop to 16.91 yuan, compared with the highest price on the first day of listing, 62.58 yuan, or 73%.

Marketing expert Haisheng said, "even if Semir and GXG cooperate, GXG can bring a lot of opportunities. Whether Semir can grasp the opportunity is also a difficult problem."

for example, in the store location of Wanda, "Wanda now wants to integrate all clothing stores into thousands of department stores, which is a challenge for GXG itself, and a better sales location for Wanda. GXG usually needs a layer of location.

With GXG as an additional condition, Semir can apply to the three level at most. As everyone knows, this is not a good sales position.

in addition, Wanda has a huge plan to expand commercial real estate every year.

"No one knows where a good store is for a new store."

Haisheng explained.

Less than P, the old stores can solve the location problem by counting the number of people at the doorway.

Haisheng thinks, "new stores, only Wanda own talents know, where will be the most densely populated area."

in this case, choosing a good location is also a difficult problem for GXG. How can GXG take into account Semir? Hai Sheng said, "GXG's greatest strength is its connections. How to make use of connections is a very subtle knowledge."

by the end of 2012, the net assets of zhe Mu Shang were 270 million yuan, and the premium of this acquisition exceeded 10 times.

For the acquirer Semir, whether the smooth access to high-end channels is still unknown in the industry.