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Opportunities For Chinese Retailers To Survive Overseas: Opportunities And Risks Account For Half Of Them.

2014/6/27 12:42:00 22

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Thomson Reuters Data Chinese Retail Enterprises Overseas Survival Opportunities Risks

< a href= "http://sjfzxm.com/news/index_z.asp" > Thomson Reuters data < /a > shows that in the past 5 years, the scale of global M & A has declined, but the scale of M & A in China is increasing year by year.

In 2014, Chinese buyers' overseas mergers and acquisitions have reached the highest level ever recorded, even before cross-border mergers and acquisitions in the retail industry which are not so hot.

Since the beginning of this year, the cross-border mergers and acquisitions cases of Chinese retail enterprises have been continuous. The three billion group has launched a massive takeover of billions of dollars. Jin Ying has won the Skinmint60% equity of American brand dealers, and Huarun has completed the integration with TESCO China. This has brought new vitality to the troubled Chinese department store industry.

despite the huge risks brought by mergers and acquisitions, but in the context of the impact of electricity suppliers and their own need for pformation, the pace of overseas expansion of Chinese retail enterprises is bound to be more rapid in order to seek the advantages of supply chain, brand and buyer resources.

overseas M & a tide /p >

in April this year, the Nanjing group's new hundred Fraser spent 200 million pounds on the successful acquisition of a 165 year old 89% stake in the British Department Store Group (HouseofFraser), which is still relished by the industry because it is the largest overseas investment in China's retail industry.

the cost is as high as 2 billion yuan, and it is to go abroad to implement cross-border mergers and acquisitions. The market is surprised and puzzled by the three groups.

for the confusion of the market, Yuan Yafei, chairman of Nanjing new hundred real holdings and group chairman, pointed out that Nanjing new hundred will take this opportunity to achieve a major pformation from traditional department stores to modern department stores.

It said that the acquisition of Fraser's department store in addition to expanding the department store business to Russia and the Middle East and realizing the overseas expansion of China's retail enterprises, also hoped that Nanjing new hundred could take this opportunity to introduce the mature private brand and buyer's mode of operation of Fraser's department store.

In fact, before winning Fraser's Fraser department store, the group also completed a series of acquisitions, such as Natali, the largest Israeli pension service company, and the Mcglaughlin company listed in the United States, with a total amount of nearly 100 billion yuan.

The overseas expansion of the P group is more than that. After the acquisition of Fraser's department store, Sanqi group took part in the acquisition of the US capital retail giant Broackes Don.

Although the three groups emphasized that they did not participate in the bidding, there was still a view that the three group played a particularly important role in the acquisition.

not only is the three cell group, but also in the tide of overseas expansion of Chinese retail enterprises.

Just last month, the Golden Eagle department also had a big deal to buy Skinmint60% equity of American brand dealer.

It points out that the acquisition will help the group to introduce famous western fashion brands to China in a large scale.

> in addition, < a href= "http://sjfzxm.com/news/index_p.asp" > reporter < /a > noticed that another form of retailing industry - the big supermarkets also appeared in the sea.

In May 29th, Huarun announced that the joint venture agreement signed by its parent company China Resources Enterprise Ltd (hereinafter referred to as Huachang) and TESCO, the largest British retailer, has been approved by the relevant Chinese government agencies.

So far, the 9 months of merger and acquisition had the final result.

according to the announcement, Huarun Wanjia and Tesco will form a diversified retail joint venture to operate retail stores such as hypermarkets, supermarkets and convenience stores in Greater China.

Huachang holds 80% of the joint venture company, and Tesco holds 20% of the joint venture company.

After the acquisition, Tesco's 135 stores in mainland China will be renamed "Huarun Wanjia".

Huarun pointed out that its cooperation with Tesco is not only valued in its wide stores in the China cloth Bureau, but also valued as the supermarket management experience of Tesco as the first largest retail chain supermarket in the UK, enabling Huarun to further integrate with the international market and accelerate Huarun's internationalization process.

According to another view, through cooperation with Tesco, Huarun can understand the operation of European enterprises and foreshadow its future expansion of the European market.

power comes from three aspects: .

in the view of the industry, there are three main driving forces for cross-border mergers and acquisitions of Chinese Enterprises: first, the internal development needs of Chinese enterprises; they need to realize pformation and upgrading through internationalization, and enhance the core competitiveness of technology, brand and channel through overseas mergers and acquisitions; two, the relaxation of the Chinese government's policy on overseas M & A, which provides a lot of operational space for M & A; three, the current European economic downturn, when investing overseas is just the right time.

some analysts told reporters that as Europe's consumption is sluggish and the expansion of local enterprises has reached a high level, it is difficult to rely on the expansion of emerging markets, so there are many declining retail businesses in Europe and America.

But it is worth affirming that these European and American enterprises have considerable strength in brand, supply chain and business mode due to their long operating history.

Compared with P, China's retail enterprises are mostly short of development, and there is not much accumulation in the real ones.

Through the rapid development of the past more than 10 years, China's retail business is facing the strong impact of the electricity supplier, and the whole industry is discussing the problem of pformation.

In this regard, the industry generally believes that the return to self run innovative business model has become particularly necessary.

in the return to self employment, we have to mention Zhong Bai department store.

In order to change the identity of the "two landlord", Cheng Jun, the chairman of the company, set up the purchasing department, and implemented the self purchase, and realized the high turnover efficiency of "selling goods without any warehouse, selling rapidly, selling high profit margins, and clearing the goods at the end of the season" through connecting the factory and the production base.

however, there are few examples such as China 100. In the process of joint operation, there are few cases of successful pformation.

Based on the cruel reality, many enterprises have turned their attention to themselves. Since they are hard to succeed, why do not they get the part they need by capital operation?

the parts that Chinese retailers need to acquire can be obtained from European and American enterprises.

Europe and the United States have excellent supply chain and business models, but lack of growth. China's retail enterprises lack resources and talents that can really be buyers.

Chinese enterprises rely on sufficient capital advantage to acquire those European and American retail companies with complete supply chain. European and American enterprises are regaining the growth power through China's "masters". This is undoubtedly a win-win thing.

take Huarun Wanjia integrate TESCO as an example, analysts told reporters that Tesco has advantages in introducing European high-end drinks and food.

The sharing of supply chain resources is conducive to the development of Huarun's high-end supermarket Ole.

operation integration is mainly a href= "http://sjfzxm.com/news/index_cj.as" > challenge < /a > /strong > /p >

acquisition can rapidly expand its strength, but the risks associated with M & A can not be ignored.

Senior retail expert and Zhong FA commercial management company CEO Ding Hao Zhou told reporters that according to their understanding, after the acquisition of Fraser, the group of three companies also noticed that some of Fraser's internal brands did not take much effect on China's performance because many of them were smaller brand designers.

Even if acquisition of buyer resources is achieved through acquisition, whether it matches the domestic market and whether it can achieve the desired effect remains to be seen.

A case in point is that the Martha store, which also sells its own brand, is still struggling in the Chinese market.

in fact, the risk of offshore mergers and acquisitions is not only the acquisition of brand resources and the buyer team's suitability after acquisition, but the integration of capital operation after mergers and acquisitions is the main challenge.

In the industry view, international merger and acquisition integration is not easy. Many Chinese enterprises "go out" not only did not grow and develop, but were dragged down with scarred.

Many problems will emerge after the merger and acquisition, such as strategic synergy, governance synergy, business synergy, cultural integration and so on, and this series of synergy problems must be supported by international talents, but enterprises are often faced with the problem of lack of international talents.

based on the experience and lessons of offshore mergers and acquisitions, the industry generally believes that overseas mergers and acquisitions must take strategic measures, not based on paction price, with a high degree of focus on the overall situation and core objectives.

M & A activities are not one-time projects. We must fully implement the enterprise operation strategy and become the leading business capability of enterprises through continuous improvement.