New Trend Of Garment Industry: Will 2016 Be The Year Of Garment Industry M & A?

Judging from the situation in March of this year, almost every month there will be a big news about the merger and acquisition of garment enterprises.

As early as the end of last year, the 2016 forecast for Hua Shang Hui would be

In the first quarter of the year, many garment enterprises are increasing horsepower and continuing to expand horizontally and vertically through the merger and acquisition.

And what new trends or trends can we find in the M & A events in the first quarter?

Ed Hardy

January 29th, Shenzhen

brand

The announcement indicates that the company and

The shareholders of Tang Li International Holdings Limited signed a share purchase agreement, and acquired a 65% stake in Tang Li international through 240 million 500 thousand yuan in a wholly owned subsidiary, Dongming international.

Huayi International Holdings Limited, held by Carina Lau, is holding 80% of Huayue International Holdings. The company has direct and indirect agents such as Affliction, Giuliano Fujiwara, Tendence and other fashion watch brands.

Tang Li International has the brand equity of the US International Light luxury brand Ed Hardy in mainland China and Hong Kong, Macao and Taiwan, as well as Ed Hardy Skinwear and Baby Hardy. Its main products are American fashion brands and clothing related to Ed fashion.

The international light luxury brand Ed Hardy was established in the United States in 2004. Brand designers use embroidery, wash and ink splashing skills to combine American culture and Asian elements with distinct product styles, and now have stores in America, Europe, Asia and the Middle East.

Ed Hardy currently has 79 stores in Greater China, mainly in important shopping malls or shopping centers in the core business circle.

It is reported that the future Ed Hardy main brand business will continue to expand new stores and do deep single store performance, and will start developing Ed Hardy Skinwear brand synchronously in 2016. In the past three years, Tangli international sales in mainland China and Hong Kong, Macao and Taiwan have increased rapidly. It is estimated that in the next three years, Tangli international sales revenue and profit compound growth rate will not be less than 30%.

Grace

Development plan

In the beginning of this year, it will synchronize the development of Ed Hardy and Ed Hardy Skinwear brands to create a comprehensive lifestyle collection store. In 2016, EdHardy will open 50 new stores, and will open 207 stores in the next three years.

Comment

Ed Hardy has a high reputation in the world, and the acquisition of mature clothing brands will provide a good complement to the brand lineup of the group and enrich the brand culture in different fields.

Meanwhile, the sales and profit growth of Ed Hardy brand is faster, and it will make great contributions to the future.

Anta -- Descente

In February, Anta sports announcement said that the wholly owned subsidiary ANDES Sports Products Limited and Descente Ltd (Desanto Japan) subsidiary Descente Global Retail Limited (DGR), Itou Tada's subsidiary, Retail (()), (Desanto), Japan and Japan, Japan proposed the establishment of a joint venture group to enter into a letter of intent to operate exclusively in China and engage in the design, sales and distribution industry of all categories of products with "brand" trademarks.

Anta, DGR and Itochu jointly hold 60%, 30% and 10% interest respectively.

The joint venture recommends that the initial injection of $250 million be made to the joint venture group, and the capital will be injected into the joint venture group according to the proportion of its rights and interests.

Anta -- Descente

Development plan

After Anta's acquisition of Descente, the operation right of Descente brand will be allocated to the experienced FILA brand operation team running high-end commodities.

The joint venture group will start its retail business in the first half of 2017, focusing on the high-end market in the region, covering a wide range of products, including skiing, comprehensive training, running and others.

Comment

Descente is a professional sports apparel brand in Japan. It has abundant technology accumulation in functional fabrics, waterproof and thermal insulation technology, and also emphasizes the comfort of sports and excellent sports protection.

At present, Anta's sports industry already has the layout of high-end sports activities and high-end sports activities in the sports industry, and Descente will become Anta's leveraging outdoor ski market and open the next market segment.

Creation of Da Yang -- INDOCHINO

In March 10th, INDOCHINO, a men's clothing and custom startups from the Internet, announced that it had won 42 million Canadian dollars (about 200 million yuan) from China's garment maker.

In addition to investment, INDOCHINO has signed a five year cooperation agreement with Dayang creation group.

The agreement allows INDOCHINO to launch 3 new suits at the same time online and offline, and increase the fabric size of suits and shirts by two times, increasing the number of customized options for suits three times.

Founded in 1979, Dayang creation is dedicated to producing and marketing all kinds of high-end clothing. At present, the annual output of Western clothing is 6 million. It has a senior men's wear brand TRANDS (Genesis), business dress brand KEYMEN (Kamen) and online direct selling brand YOUSOKU (excellent search cool.)

INDOCHINO, headquartered in Vancouver, was founded in 2007. It is an innovator for Internet men's clothing.

INDOCHINO produces all kinds of unique men's clothing according to the needs of customers. Customers are distributed in over 130 countries and have retail space in seven cities in North America.

Creation of Da Yang -- INDOCHINO

Development plan

INDOCHINO plans to open ten retail stores by the end of this year, and expects to have 150 stores in the world by 2020.

Comment

The cooperation between Da Yang and INDOCHINO is based on the common concept of customization and symbolizes the opening of the strategy of Dayang's customization.

In addition, it was obvious that Dayang created the US market and chose the brand investment in North America.

For Da Yang's creation, this paction can undoubtedly expand its visibility in the North American market and face the North American consumers more directly.

La Natsu Bell -- Xi Chen

In March 14th, La Natsu Bell announced that the company bought 16 million yuan for Guangzhou Xi Chen clothing and had 80% of the latter.

La Natsu Bell -- Xi Chen

Development plan

The two sides will soon launch a new high-end brand Siastella, which is expected to be launched in August this year.

Siastella style is simple and modern, female art, exquisite taste.

Comment

About La Natsu Bell, previously, Hua Shang Hui had an analysis of La Natsu Bell's plot.

In 2015, La Natsu Bell bought 4 clothing Brand Company, including seven grid, Jack Walker and so on. The acquisition of Xi Chen clothing is La Natsu Bell's first acquisition this year.

Up to now, the number of La Natsu Bell brands exceeds 10, and the number of stores has reached 7893.

According to La Natsu Bell's earnings report, the group's revenue in 2015 was 9 billion 96 million yuan, an increase of 16.4% over the same period last year. The growth of the group's revenue was mainly due to the expansion of the retail network and the rapid growth of the online platform revenue.

La Natsu Bell's ambition was vividly portrayed by his non-stop movements.

It is not hard to speculate that La Natsu Bell will continue to expand strategically and selectively invest in new brands.

How to speed up the integration of online and offline, how to improve the efficiency of terminal, to expand the retail network and enhance the profitability of existing retail outlets to achieve a balance may be the key to La Natsu Bell's future development.

But the downturn in the clothing industry has been going on for many years. In such a case, when it came to Hong Kong, it announced that it would be La Natsu Bell, a Chinese version of ZARA. Its net profit has increased by more than 20%.

Behind the brilliant performance is the decline in the same store sales and the growing inventory.

Summary

As early as the end of last year's inventory, Wah sang Hui had predicted that 2016 would be the new year of mergers and acquisitions.

In the past March, news of mergers and acquisitions of garment enterprises continued, and mergers and acquisitions entered the fast lane and became increasingly fierce.

It is easy to see that after several years of pformation and adjustment, the garment industry has come to a revival. Every sub sector has the potential to become a leading enterprise, and the trend of industry differentiation is getting more and more obvious. The cash reserves of many garment enterprises are quite good, which has created a moist and rich soil for mergers and acquisitions.

Compared with the self innovation brand, the brand that matures and has a certain market reputation will be less risky for the future expansion of the company, and at the same time, it can enrich the company's multi brand camps, which will help the two sides achieve complementary advantages in the channels and brand promotion.

This trend can be seen from the movements of garment enterprises in the capital market in March this year.

However, whether horizontal or vertical mergers and acquisitions in the industry, or the cross-border development of mixed mergers and acquisitions, all need to conform to the development strategy and capital logic of enterprises, and also need to adhere to, optimize and expand the traditional industries of garment enterprises.

With the further reform of the merger and reorganization market, the reorganization and regeneration of resources driven by capital can be expected that the phenomenon of merger and reorganization, pattern differentiation and industrial convergence will become the norm in the future, and the survival of the fittest and the stronger will become the rule of the industry.