Yang Dayun: Revitalize Capital And Win The Other Shore Market

　　 From the shore to the other side

Speaking of " Merger "This topic, the most easily thought of is the world's largest LVMH group. From France's Givenchy, SEF, to Loewe of Spain, to the Heuer Watch of Switzerland, to the Donna Karan, Marc Jacobs and BeneFit of the United States, to Fendi and Emilio Pucci of Italy. The world's fashion brands, the merger and acquisition of Hermes and GUCCI, have been relish. The LVMH empire is regarded as "the most terrible corporate sniper in Europe". It is also the merger and acquisition of the more than 60 largest luxury brands in the world and the market value of more than 604 billion 946 million RMB.

Overseas capital markets are mature, mergers and acquisitions of fashion industries are commonplace, and the activity of mergers and acquisitions is used as a measure of the prosperity index of fashion industry in the season. WWD previously quoted a report from Dealogic that the amount of mergers and acquisitions in the global fashion industry (clothing and footwear retailers) fell 17% in the first half of 2013 compared with the same period last year. According to this, the global economy continues to slump, and the industry expects to pick up in the second half of this year or 2014.

In China, the clothing industry has been regarded as "industrial" rather than "commercial". For a long time, mergers and acquisitions seem to have nothing to do with practitioners in the industry. Due to knowledge accumulation and lack of talent experience, even if we want to invest in mergers and acquisitions, we also feel unable to start. In 2013, despite the merger and acquisition cases of Semir's GXG, Bosideng's acquisition of Greenwoods and BELLE's acquisition of Baroque Japan, everything was just a trial run of water, which is far from international standards. "Even the listed companies that have entered the capital market are very unfamiliar with mergers and acquisitions," said Yang Da Yun, President of UTA group. "They also have investment departments, but they are limited to the company's securities business. The experience, knowledge and information of this part of mergers and acquisitions is very scarce."

Only the women's clothing brand Ou Shi Li recently acquired the 1Corso Como of Milan life tide shop and introduced it to Shanghai. Yang Dayun seems to be an international standard of capital operation. The Enlightenment of Ou Shi Li is closely related to the LVMH group's involvement. At the beginning of 2012, the LVMH group bought a 10% stake in Ochirly and a part of Xiamen's Zhuo ya (JORYA) through its investment fund L Capital.

　　 Yang Da Jun's new identity

The name of Yang Da Yun is familiar to the industry. What people may not know is the new identity of Yang Da Yun's "overseas brand buyer". Reporters at Yang Dayun's Beijing company saw that the huge training department had already been cut off. The 7 branches were all turned off, the company was being renovated, and the business cards and logo were redesigned to show people in a completely new way.

Putting all the manpower and resources into overseas mergers and acquisitions is not the beginning of today. Yang Dayun and his reorganized team have been buried for two or three years. Since mergers and acquisitions involve basically a listed company, participants must abide by the confidentiality agreement and remain silent. Despite remarkable achievements, they can not enjoy the glory of the first World War.

There are mainly three kinds of enterprises that have to "start" mergers and acquisitions in overseas markets. One is a bankrupt enterprise. It needs to deal with the court and go to court to auction. Court auction assets are global, so the speed and accuracy of judgment are very important. The second is debt enterprises, but they have not yet gone bankrupt to the courts. Mergers and acquisitions enterprises need to deal with accounting firms, assess the price of commercial assets, and weigh and package them later. Third kinds of enterprises, no debt, good management and stable growth, generally adopt the method of share purchase in the face of such enterprises. "Because Chinese local enterprises do not have the ability to operate a global enterprise at present, we will replace the equity with the regional management rights, so that the investment income can be guaranteed. On the other hand, we should learn the idea of global management, and if the future head office wants to auction, it can buy it first." Besides brand, new generation designers, valuable buyer shops and lifestyle shops are also focused on hunting.

In Europe, Yang Dayun has regular employees and has a large network in important industrial areas of Italy. He collects information about the company all day, and then chooses him to take the "match" with China in his heart.

For decades, the industry has devoted its enthusiasm to various types of enterprises. management idea A thorough understanding of the status quo translates into precise judgment in overseas mergers and acquisitions, making him a "good buyer".

Not all overseas brands can survive in China. In fact, after LVMH's predators swallow their food, there are not many good assets overseas. They need good judgement to discover the remains of the world. In recent years, many social organizations and intermediate organizations have been carrying Chinese enterprises to overseas exhibitions, industrial zones and enterprises to "butt up", but often fail to work. The crux lies in the fact that organizers, overseas enterprises and Chinese enterprises are all in a superficial impression. Overseas enterprises are not clear about what Chinese enterprises want, and Chinese enterprises can not see the interest they want to buy.

"My advantage is that I know very well. Chinese Market Understand the capabilities of Chinese enterprises and know which companies can invigorate them. What I have chosen is what Chinese enterprises can control and make him complete in strategy. I know whose product line is weak and can be promoted through M & A; I know who will buy and enlarge what kind of shoes he can buy and increase his equity value. I also know who will be able to complete strategic transfer through M & A. Yang Dayun said that at the moment when he got a brand equity, he already had a candidate in his mind. He thought of the business strategy after grafting. He didn't think about second people. So far, the matching success rate is 100%. {page_break}

　　 Mergers and acquisitions as a good medicine in the industry

It will be very cold this winter. Where is spring? Some people say that there will be inflection points in 2015, or even longer.

The reason why this winter is hard is, on the face of it, that economic cyclical growth has entered a trough, overcapacity, demand has not been stimulated, and the growth rate has been too fast in the past. A more fundamental problem is that local clothing brands are far too different from overseas brands in terms of brand awareness, brand culture and other intangible assets. UTA group has conducted an investigation. Consumers will choose overseas brands rather than local brands if prices are close.

Under the circumstances of congenital deficiency, the "special difficulties" that Chinese local brands are experiencing at present is the integration of the global economy, the Internet making the world smaller, and the Chinese economy beginning to enter a complex stage.

Yang Dayun believes that these "special difficulties" have made Chinese brands lose the "local advantage" in the local market, and even suffered from "unequal competition". Take "fast fashion" as an example, Zara, H&M, Uniqlo and GAP expand so fast in China, and Yang believes that the main reason is the rapid development of local commercial real estate. "Our real estate economy has not only pulled the GDP of the government, but also accelerated the speed of international brands entering the Chinese market. Many fast fashion brands may have only 20 stores, but Wanda Plaza will open 100 real estate projects a year. It promises fast fashion brands without paying rent, and decoration subsidies are free. As long as they are willing to go, investment will be successful. With commercial real estate entering the prefecture level cities, these fast fashion brands have more opportunities.

"I do not think that in terms of logistics response speed, cost control ability or in" Terminal operation In terms of talent, for the local market, Semir, the United States compared to Zara, Uniqlo, after all, they worked in the mainland for so many years. I think the uncompetitive performance is not equal to the cost of expanding the market, and not equal competition makes them suffer great damage.

The unequal competition already exists, Yang Da Yun asserts that "two opportunities and two opportunities": in the two fields of luxury goods and fast fashion, Chinese local enterprises have no chance, and our opportunities lie in two fields: middle and high end brands.

Consumers choose overseas brands, and mergers and acquisitions of overseas brands are not related to national sentiment, but in the global market competition, even in the local market, it is already a market with brands both at home and abroad, and there is no choice. To compete in market competition, we need to win the same or even better competitive weapons of overseas brands.

Many enterprises in China start their business in the early years to survive and business, and to change their attitude from selling more clothes to making a brand that consumers like. What I used to do was capacity, and what I did in the future was lifestyle. Lifestyle requires faith, faith requires calm down, and details are slowly done. This is what Italy has been doing for a long time.

Through overseas mergers and acquisitions, a "slow" development mode was acquired. Yang Likin likened it to "marry a daughter-in-law in Italy, live with her for some time, go back to her family's development", and understand its cultural habits and lifestyle, so as to have the possibility of "learning". This process of learning requires strong intervention from external forces, because more than 95% of China's clothing listed companies are large circulation companies. The inertia of these companies' "big logistics" is too strong: it is very difficult to change the inertia development thinking through mass logistics.

The most direct and practical function of overseas M & A is to expand the middle and high-end space that international giants are not good at, expand our market share, and enable enterprises to maintain a healthy physique. When they shrink, we have ammunition to seize the market. "The current situation of the international fashion industry is two big medium small LVMH, Kering, Richemont luxury goods group are very large, fast fashion enterprises are very large, high-end enterprises in Europe are very small. This means that we have opportunities in the middle. If we seize the opportunity, we can seize the middle and slowly spread to the two ends.

"The domestic brand has basically reached its limit on the value of the brand itself. Re create a brand from scratch, the current market situation is very difficult. Many overseas brands have existed for decades or even hundreds of years. It is a brand recognized by consumers and a scarce resource. A good combination of assets makes him resurrection and shortens his investment growth time. This is an effective investment. A brand of 200 years, through mergers and acquisitions, only needs 10 years to make him value, and do it with you for another 200 years, which is a completely different investment effect.

The key to winter is to store and keep. cash flow 。 The acquisition of overseas brands is a safer way to preserve capital. Compared with the "Romance" of local brands, the brand vitality of overseas brands is always sustainable and investment has more value preservation function. "A lot of street shops in Milan were there decades ago, and they are still there decades later. The shareholders behind may have changed several crops, but the brand is still the brand, that is the value.

"The essence of today's business competition is how much you like and how much you have in the market. Therefore, the core competitiveness of modern enterprises is the integration of resources and mergers and acquisitions. This is not to say that investment and merger is the only way out, but this is the most important thing for future enterprises, and it is the trend. {page_break}

　　 Three steps of industrial capital operation

Not only is it enough to buy and sell overseas brands, but Yang Dayun's capital operation plan will go further.

Mr. Yang is preparing for the UTA fashion industry investment private placement fund. As a sponsor, he has participated in two or three listed companies. Private equity funds are mainly used for the acquisition of long term international brands. "What the fund wants to do is to take these brands to China and not sell them directly to any Chinese enterprise. The child will give you the adoption, we will own the equity, and we will also inject money into you. We ask him to have a certain rate of return on investment."

The second thing that the fund does is education. In the future, we want to build a top fashion business school like "China Europe Business School", which is non-profit and does not belong to any organization. "China's fashion industry is too short of international talents. This fund is a public welfare education, training high-end talent, after the candidates come out, we send the cost to Europe to train, hope that these talents will help China to enhance competitiveness."

The third step of Yang's acquisition blueprint is to build an overseas brand showroom center in China, "build a platform in China, bring in international brands, and incubate the brand on the platform through fund, capital investment and operation, so that these brands are suitable for China and at the same time enable him to globalized."

"These three steps, I think merger and acquisition is air force, fund is navy, showroom center is army, from merger and acquisition, concept to landing, Trinity, through capital means, to revitalize and enlarge these assets. We are not bridges, we are from this shore to the other shore.