Light Luxury Brand Has Become A New Hot Spot In Mergers And Acquisitions

Here world Clothing and shoes Xiaobian of the network introduces to you that the overseas merger and acquisition of consumption industry is 4 times lighter than that of luxury brands.

Recently, the morning whistle group research department released the "three quarter China's overseas M & A report" in the 2014. According to the morning whistle monitoring data, there were 6 overseas mergers and acquisitions in China's consumer industry, of which 5 disclosed the transaction amount, compared with the 2 quarter mergers and acquisitions transactions in the second quarter. The amount of transactions disclosed in the third quarter was about 595 million US dollars, which was 4 times that of the 143 million quarter in the second quarter.

In the third quarter of 2014, there were two obvious trends in overseas mergers and acquisitions of consumer industries. First, with the rise of the middle class, light luxury brands became a new hot spot in mergers and acquisitions. Two, the increasingly hot outbound tide has attracted the attention of large enterprises. The acquisition of overseas department stores has become a new choice for enterprises to expand their share in the global retail market.

Light luxury brand has become a new hot spot in mergers and acquisitions

With the rise of the middle class and the gradual increase of the public consumption level, light luxury brands are very popular among consumers. Chinese enterprises saw investment opportunities and bought overseas light luxury brands.

Whether in July, Fosun Group acquired 23.16% stake in TOM TAILOR Holding AG of German fashion clothes brand, or in September, China's group acquired LIME's FASHION KOREA of 180 million yuan to acquire the largest brand of infant clothing brand in South Korea, which shows that the luxury clothing brand is very popular among Chinese investors.

Morning whistle learned that Fosun bought Germany. fashion The brand TOM TAILOR Holding AG, which is the fourth overseas investment of Fosun in the fashion industry, is also the second list of the largest Portuguese largest insurer Fidelidade, which has been acquired by the company, and is moving towards the "Buffett mode" with the core of low-cost insurance. Previously, Fosun has invested in the famous Greek fashion brand group FolliFollie, the famous high-end women's clothing brand St. John in the United States, and Italy's high-end customized Menswear Caruso.

Mergers and acquisitions of light luxury brands in the third quarter showed a hot trend in overseas M & A transactions. In September, Zhou Dafu [micro-blog] Jewellery Group purchased US luxury brand diamond company Hearts On Fire Company LLC for $150 million in cash. This acquisition complements the existing brands and products of Zhou Dafu Jewelry Group, optimizes product mix, and promotes high value products to cater to consumer consumption patterns.

Hearts On Fire Company LLC was founded in 1996 by Glenn Rothman and Susan Rothman. It is a luxury branding company in the United States. It covers more than 500 retail outlets and consumer direct shopping platforms in 31 countries, and sells many advanced wedding and fashion diamond jewelry products.

Morning whistle believed that by buying a well-known diamond brand to strengthen another product line, it would be a good choice for Chow Tai Fook, started with gold products. In recent years, the consumption of Chinese diamonds has seen explosive growth, and the fluctuation of gold price has accelerated the transformation of gold jewelry retailers -- strengthening "non gold products". Zhou Dafu Group believes that Hearts On Fire has different price choices for each product category, and the premium of its brand products is higher than that of other famous brands, much higher than that of general non branded diamonds.

The largest overseas acquisition in the history of A share retailing

In September, Nanjing new 100 (16.75, -0.15, -0.89%) of the three cell group purchased the House of Fraser of Fraser and completed the merger and acquisition of equity, which is the largest direct acquisition of the listed company in the retail market of China's A share market. HOF is the oldest department store in Britain, providing private brand, purchasing brand and special brand products. It has a wide range of overseas brand supply channels, experienced management teams and advanced business models.

Morning whistle believes that the hot tide of outbound trade has attracted the attention of large consumer enterprises, and the expansion of share in the retail market by acquiring overseas department stores has become a new choice for enterprises.

Since 2014, the three cell groups have concentrated their efforts to complete a series of mergers and acquisitions. Including Nanjing international World Financial Centre (IFC), Israel's largest pension service company Natali, American listed company Mcglaughlin and so on. Roughly estimated, a series of mergers and acquisitions cost more than 5 billion yuan. From the recent types of mergers and acquisitions, they are all based on the existing triple industry entities, and the corresponding mergers and acquisitions, which correspond to the three groups. Finance Investment, trade and circulation, cultural media, information services, health care and other major sectors.