The Seven Wolves' Rescue Is Based On The Two Merger.

It is more difficult for the seven wolves to emulate the situation of the current performance decline in 2011 through mergers and acquisitions.

"The key is to digest the ability of the merger and acquisition project and digest it to the main business. If indigestion, it will become a drag for the seven wolves."

Since 2011, the performance of the seven wolves has not continued to grow.

In 2013, seven wolves appeared their first performance decline since listing, until now their performance is still in a downward trend.

According to the 2014 report of the seven wolves, last year, seven wolves operating income and net profit were 2 billion 390 million yuan and 280 million yuan respectively, down 13.79% and 23.76% compared with the same period last year, which has been far below the level in 2011.

On the decline of performance, the seven wolves explained in their earnings report that along with the continuous downturn of the macro-economy, the emergence of various new business models, new economy, new technologies and new applications, the traditional industries are facing an urgent situation of pformation and upgrading.

Because of the decline in terminal profitability, the company's agents and dealers have slowed down the pace of expanding terminal channels.

Apparel industry insiders told the Beijing daily news reporter that when both revenues and net profits fell, the seven wolves resumed the merger and acquisition business, and once again increased the agency business. In the short term, they would promote the performance of the seven wolves, and would have some help for the performance of the seven wolves, but the degree of digestion in the latter stage remains to be seen.

Another noteworthy thing is that the seven wolves will target the acquisition target in light luxury agents.

Insiders pointed out that since the beginning of 2013, the development of the domestic luxury goods industry has been restrained. Although the luxury is still thriving, how long will it last?

The key to success or failure.

For the two details of the seven wolves' acquisition, the reporter tried to contact seven wolves for several times, but as of press release, he did not get the reply from the other side.

although

In terms of restarting mergers and acquisitions, it is clear that there is more concern in the industry.

"M & A will bring some hope to the seven wolves, and it will bring some profits on the surface.

But there are still many obstacles and challenges for the seven wolves to get out of the continuous losses.

Clothing industry analyst Ma Gang for seven wolves two acquisition effect is judged.

In the industry view, the first difficulty faced by the seven wolves is

Domestic and foreign competition intensifies.

The relaxation of the import and export trade policy has made the competition of clothing brands both at home and abroad more intense. Besides, the clothing industry has not only spelled the brand, but also has other problems such as supply chain turnover.

In addition, Ma Gang further pointed out that the profits of garment enterprises mainly come from two aspects: first, the expansion of channels, and the two is the number of stores.

The seven wolf's acquisition of light extravagant projects is the expansion of its business channels. Although it is feasible on the surface, the problem of frequent closure of its own brand stores can not be solved.

"Seven wolves as a listed company in the clothing industry is also strong, but it lacks its own creative team."

An anonymous clothing expert admitted that clothing companies want to survive from four aspects of design, workmanship, service and sales to go long and far away, and the seven wolves have not yet made breakthroughs in this regard, which is the third problem the company has encountered.