Roley's Home Textile Acquisition Of 10% Stake In Big Piao Network, Textile Industry Mergers And Acquisitions Tide

"We have been looking for companies that are suitable for us. We met with Mr. Wang for the first time at a meeting in Beijing in August this year, and we soon struck an intention." In December 8th, Home textile Dong Mao Tian Lin finally released his "love affair" with Tai Po network. It is reported that the former will spend tens of millions of dollars on the acquisition of about 10% of the network.

Tai Po network is a well-known domestic textile vertical electric business, the main concept of health and safety. Its founder, Wang Zhiquan, founded the Internet company. It belongs to the cattle business in China.

In fact, since last year, the high growth momentum of the home textile industry has been greatly weakened, and the 3 home textile companies will not be able to place an order this year. Although the sale is not big, but as a leader in the industry, its move has attracted the attention of the industry. Company executives also told the "China Times" reporter that Luo Lai investment in the largest network is to expand the sales of electronic business platform, on the other hand, it is also the first time that the company has been investing abroad since its listing. In the future, it will not exclude that it will continue to expand its market share through mergers and acquisitions and enhance its revenue growth space.

　　 The first battle of rolls

At the recent press conference, apart from formally announcing the participation of the company, the two sides also described the process and cooperation considerations of the two sides, but they did not disclose details of the cooperation, the amount of shares and the proportion of equity. It is understood that in order to facilitate the entry of foreign venture capital institutions, the VIE network is also used in Tai Po network. Therefore, it is impossible to find out the exact division of shares from the industrial and commercial registration data.

It is worth noting that although Roley's home textile investment is only tens of millions of dollars, it is the first time that Roley's home textile has been put into foreign strategic investment since its listing.

In fact, in the 3 home textile listed companies, the cash flow of Luo Lai is the most abundant, not only has nearly 1 billion yuan of money, but also has a very high proportion of net cash flow in the past year.

"The company has plenty of capital. We have been studying to run the money and create value for shareholders." Roley, chairman of home textiles chairman Xue Weicheng, told reporters that "before the company was developing itself, but it just can't rely on itself. Now we need to start capital operation and expand sales channels."

The industry believes that this time, Luo Lai home textile with a deep Internet gene and background of the big park network cooperation, will focus on home textile business and cloud data integration, is expected to expand the two sides in the field of interaction in the field of effectiveness, to form a new growth space.

Founded in 2012, Wang Zhiquan, the founder of the Grand Park network, is known for its reputation in the electricity supplier circle. It founded the electrical appliance business in the 2006, and was purchased by Gome. In 2011, the sales volume of Coba network reached 2 billion yuan. In 2012, Wang Zhiquan led the core team of Coba to leave and founded the Grand Park network.

Wang Zhiquan said that cooperation with the home textiles of Luo Lai will help Tai Po get all kinds of scarce resources, such as stable supply of raw materials and high level of manufacturing capability, so as to further speed up the development of Tai Po and achieve the strategic goal of "changing the market with resources".

Statistics show that the main business of home textiles and home products of Tai Po network, the main safety and health concept, has attracted many fans. Currently, there are two brands of DAPU and dapubaby, and its vertical business users have reached about 300000. At the same time, there are flagship stores in the large integrated e-commerce platform such as Tmall, Jingdong and other 20 entities. By the end of 2013, Tai Po network got tens of millions of yuan investment in CDH investment.

Home textile industry or mergers and acquisitions

Roley's home textile has been regarded as the signal of home textile giant to increase market concentration.

"In fact, the biggest theme of this year's capital market is M & A, and the traditional textile and garment enterprises must take advantage of this opportunity to expand market share and expand channels." Ju Xinghai, chief analyst of CITIC Securities textile and garment industry, said: "in the past two years, many comprehensive e-commerce platforms have landed in the capital market. However, vertical platforms, including free brands, are not large enough to be listed in the short term. So in the next two or three years, these subdivision e-commerce platforms will be capitalized through equity cooperation with listed companies."

Home textile industry as a fully competitive industry, the market concentration has been relatively low. Even as the industry leader, the market share of the home textile market is less than 6%, even if 3 home textile listed companies add up to less than 20% of the market share.

"When the market is developing at high speed, this dispersion defect is not very obvious, but after the stable development period, the growth space of the textile industry will be restricted, and the growth potential of traditional channels is limited." Xue Weicheng said.

Data show that in the 10 years before 2012, the average annual growth rate of the 3 home textile listed companies was more than two digits, but from 2012 onwards, the revenue situation fluctuated significantly. Among them, the 002397.SZ of 2012 was the first negative growth, and the growth rate of fuanna 2013 and the first three quarters of 2014 dropped to single digits. The growth rate of the household product in the first three quarters of 2014 was only 9.13%.

From the 2015 order meeting situation, the home textile industry also did not see a significant recovery, the growth of 3 enterprises all dropped to single digit, and the enthusiasm of the franchisee to pick up goods is still not enough. The "double eleven" 3 companies have not surprised the market.

"The future home textile industry will face the integration of the industrial chain, including the expansion of brand and channel will be relatively large." Xue Weicheng said. From the perspective of listed companies, it is also an excellent opportunity to expand through mergers and acquisitions.

"The trend of future capital market is registration system, which means that those excellent small businesses are easier to list, so if you miss the two or three years' integration of industrial resources, many excellent companies may not be able to be integrated, so they can go public on their own. If you can't find such a cheap opportunity after the valuation is in line with the international market, the advantage of your listing will be weakened. " Ju Xinghai thinks.

Prior to that, Meng Jie home textile bought a German silk brand in July this year, and he bought a home furnishings company in Changshu in 2011 to increase production capacity.

Roley home textiles 9 30, issued a notice that plans to use its own funds 100 million yuan, invest in the establishment of a wholly owned subsidiary of Nantong Roley Business Consulting Co., Ltd. (hereinafter referred to as "Roley business"). In the future, we can make full use of the platform of Nantong subsidiaries to find valuable investment projects, push forward the company's project investment and merger and reorganization, and further consolidate and enhance the leading position in the industry.

"Foreign investment should be complementary to each other. Roley's home textile is positioned in the middle and high-end, and the traditional channel will give priority to the development of the popular brand and the low-end market, and mining new increments." Xue Wei said.

In terms of channel expansion, the recent action of Luo Lai home textiles is frequent. It is understood that the main task of Roley's recent business is to strengthen the business management of franchisee equity. The company said that the shareholding ratio of Roley's home textile investment partners will exceed 51%, but it will not be directly managed. Instead, it hopes to replicate their management experience and set up benchmarking effects.

Tian Lin said, Home textile More emphasis will be placed on expanding channels and differentiated products. Apart from home textile products, it will also extend to household products and accessories industry. Xue Weicheng believes that the expansion of the industry leader will affect other industries in the same industry and guide the whole industry to improve concentration.