The High-End Way Of Semir Casual Wear

As an important step to enter the high-end brand market strategy, Semir announced last year that it intends to acquire 71% stake in Ningbo zhe Mu sang Holdings Limited. However, a few days ago Semir shares announced that according to the previous framework agreement, as of December 31, 2013, the two sides did not agree on the specific terms of the equity transfer agreement, which means the acquisition aborted. Semir dress officials in an interview with our reporter said, did not disclose the specific reasons. But the relevant responsible person said that the enterprise focused on the original public leisure and Children's wear At the same time, we will continue to seek the development of high-end brands.

　　 Aims to fill the gap of high-end brands

As early as June 2013, Semir apparel announced its 71% stake in zhe Mu's acquisition. At that time, zhe Mu Shang had "GXG" and "gxg.jeans" brands, and opened about more than 1200 retail outlets in mainstream stores and shopping centers throughout the country. The total assets of zhe Zai Shang in 2012 were 1 billion 327 million yuan, the total liabilities were 1 billion 55 million yuan, and the net assets were 272 million yuan. The expected purchase amount of Semir clothing was announced from 1 billion 980 million yuan to 2 billion 260 million yuan, with a premium of 10 times.

According to the industry news, the traditional casual wear industry has experienced the development of "great leap forward" in the past few years, and now there is the impact of fast fashion brand. Under the internal and external troubles, the traditional casual wear industry must seek the development path of multi brand differentiation. In the acquisition of Semir clothing, zhe Mu officially valued the high-end menswear brand GXG. However, many analysts at that time were not optimistic about the acquisition. They think this 10 times premium is a bit too high. Insiders also say that although zhe Mu Shang has the title of "urban youth casual menswear leadership brand", it has been difficult to get rid of the suspicion of "fake foreign brands".

Zheng Hongwei, Semir fashion director, said in an interview with relevant media that Semir is currently in the stage of differentiation. Zhe Mu still has the GXG brand of high-end menswear. The acquisition of GXG is just to make up for the gap between high-end brands and cultivate new profit growth points.

　　 Share price differences or main reasons

However, at the beginning of this year, Semir clothing announced that as of December 31, 2013, the company and the transferor failed to agree on the specific terms of the equity transfer agreement. According to the framework agreement, "if the Semir clothing and the transferor fail to sign the agreement on equity transfer of the transaction on or before December 31, 2013, the framework agreement is rescission (termination) without requiring any other party to issue a written notice or give written confirmation or recognition." Therefore, the relevant agreements are terminated naturally.

For the reasons for the termination of the buyout plan, some analysts believe that the divergence of purchase price may be the main reason. And the relevant person in charge of Semir only told us in an interview with our reporter that "there is no agreement between the two sides in terms of agreement". Semir's secretaries also do not accept any interviews, "the related issues are based on company announcements and public information."

According to the securities times network, Buy The cause of the abortion, Zheng Hongwei said, was mainly because the two sides did not reach agreement on the agreement. Semir's book cash was nearly 5 billion yuan, and the acquisition amount of 2 billion yuan was not an obstacle. "The acquisition will not hinder Semir's multi brand development, and children's clothing and women's clothing are actively developing Semir."

A source closely watching the trend of the event believes that the abortion of the merger is a wake-up call for the entire garment industry. Clothing companies need to think carefully. They can not rely on the acquisition of growth brands to pick up cheap ways to improve their profitability. "In mergers and acquisitions, we must consider several strategic levels such as inter firm positioning and brand positioning. Such cooperation will be more beneficial to the development of both sides."

　 Will continue to exert strength in high-end brands.

about Semir apparel The next strategy, Zheng Hongwei said, will continue to consolidate and develop the leading edge of the original business and develop new brand new businesses. Semir clothing is focusing on the existing public leisure and children's clothing business. For the development of high-end brands, Semir mainly relies on agents, investments and mergers and acquisitions, because the threshold of the high-end brand segmentation market is high, and cooperation with strong hands helps to integrate resources quickly.

Looking at the announcement of enterprises since 2013, Semir has been accelerating its multi brand strategy in the acquisition of zhe Mu's stock ownership plan. For example:

In September 2013, Semir invested 25 million 500 thousand yuan and SisunInternationalCo. Ltd (Chinese registered name: Shanghai Fashion Co., Ltd.) set up a joint venture company, Sheng Xia Clothing Co., Ltd. (registered in the name of industrial and commercial registration), and the registered capital of the joint venture company is RMB 50 million yuan.

In August 2013, Semir apparel signed the strategic cooperation agreement with the beautiful rainbow dress (Shanghai) Co., Ltd., which granted Semir the right to promote, distribute, promote and sell Sarabanda and Minibanda products in China.

In November 2013, Semir clothing and MarcO 'PoloInternationalGmbH' (hereinafter referred to as "MarcO" Polo) signed the MARCO "POLO general agency cooperation agreement (leisure series)", Semir costumes and MarcO Polo Polo to carry out brand agency business.

In terms of Semir's strong children's clothing, balbala currently ranks first in the children's clothing market in China, and has integrated the four children's clothing brands through agency and merger. With the good result of the second child policy, Semir will continue to overweight children's clothing.