Samsonite Buys Brand Of Mobile Phone Shell And Handbag Brand

2014 is a year of great harvest for Samsonite. In April 1, 2014, the company acquired the French fashion luggage brand Lipault; in May 28, 2014, the company acquired the second largest mobile phone shell brand Speck in the United States; in July 23, 2014, the company acquired the outdoor and adventure backpack brand Gregory. These brands that seem to have nothing to do with Samsonite's big and practical large suitcases actually hide Samsonite's determination to improve its industrial chain.

When Samsonite first came into the market, most of the company's revenue came from the sale of suitcases and bags. According to the company's prospectus, the sales of luggage and suitcases in 2010 accounted for 72.9%. "In the future, we must fulfill our commitments at the time of listing, try our best to expand the non luggage business, and hope that the next two businesses can be evenly divided," Deng Ruxi, Samsonite's chief executive, said in an exclusive interview with the first financial daily.

Examples of unsuccessful failures in consumer brand acquisition are everywhere, so many brands choose to develop new product chains independently, and so on. but Samsonite But Deng Ruxi did not do that. Deng Ruxi said that the company had tried to use the brand to develop some mobile phone shell business, but ultimately it was difficult for consumers to accept it.

"Consumers always think that Samsonite is doing suitcases. What do you do (cell phone shells)?" Deng Ruxi said helplessly, so the company decided to start buying other brands that had taken the lead in specific areas from that moment.

Deng Ruxi, for example, acquired the smart device shell brand SPECK last year. "SPECK itself is very strong in design and brand. It is the second largest brand in the United States, but this brand is no match for Samsonite in the global supply chain. We will retain its original design, but provide stronger backstage support."

In addition to the smart device shell Market, Samsonite also hopes to make a difference in the backpack market. Last year, it also purchased the outdoor brand Gregory, plus its own fashion brand Samsonite RED and the High Sierra, which was purchased in 2012. "These three brands have made us very comprehensive in the backpack market. Samsonite can make use of its global channel advantages to produce synergies with these brands," Deng Ruxi said.

In order to further improve its product chain, Samsonite also has a new acquisition plan in 2015, Deng Ruxi said, has already spotted two in Europe and South Korea. Handbag Brand and a business package brand in the US will be announced at the right time.

"The opportunity to buy is like a bus that is not on time, and sometimes it doesn't come for a long time. Sometimes it comes to several cars in a few minutes," Deng Ruxi told reporters.

But the capital market seems to be on Samsonite. Acquisition plan Not particularly good. UBS issued a report that although Samsonite's multi brand strategy has increased its growth in the global market of macro consumption and unstable exchange rate, but because of its high operating expenses and the less favorable regional combination of gross margins, the bank announced that it lowered its adjusted earnings per share in 2015 by 9%, maintaining its "sell" rating, and the target price was raised from HK $20.4 to HK $21.3.

HSBC also held a relatively pessimistic attitude towards Samsonite's EBITDA rate (pre tax profit margin and amortization profit rate), mainly because the integration takes longer after the acquisition of the brand. Faced with the problem of brand integration, Deng Ruxi also admitted that when the brand was just bought back, the profit rate would never be as high as the existing core brand, and integration would take some time. In 2012, he bought Gaoshan as an example. In 2013, the profit margin of the brand was much lower than that of the core brand, but in 2014, the profit margin had already caught up with the profit margin of its core brand.

Deng Ruxi said that the time required for the integration of the three brands acquired last year is usually two years. I believe that the profit margins of these brands in 2016 will catch up with the profit margins of the core brands.

According to Nomura's latest report, if the three brands of Samsonite's latest acquisition were removed, the gross margin level of the company in 2014 was still at a higher level. According to the estimate, the adjusted net profit in 2014 increased by 9% to 206 million US dollars over the same period, which is higher than the previous forecast of the bank. Nomura also believes that Samsonite's multi brand strategy will help the company to raise its gross margin level in the future.