Garment Enterprises "Cooperation" And "Cooperation" To Promote Pformation

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With the frequent occurrence of mergers and acquisitions, such as overseas mergers and acquisitions, shell reorganization and diversified investments, a series of "cooperation" events of garment enterprises are also taking place.

Garment enterprises frequent "cooperation"

Recently, garment enterprises have repeatedly announced cooperation events.

Sports announced in April 20th that the wholly owned Affiliated Companies ANDES, DGR, Itou Tada, Desanto Japan and the company entered into a joint venture agreement for the establishment of a joint venture group to operate exclusively in China.

Procurement, marketing, sale and distribution of products of all types, including trademarks, and the manufacture of products that are trademarks of all categories within or outside China.

According to the joint venture agreement, ANDES, DGR and Itou Tada agreed to provide initial capital stock for the joint venture company by 150 million yuan, 75 million yuan and 25 million yuan respectively, which accounted for 60%, 30% and 10% of the joint venture respectively.

According to the announcement, the joint venture group and joint venture group's sale and distribution of trademark products will expand the business areas of Anta sports in China's high-end sports apparel market (including "skiing", "comprehensive training", "running" and other categories) according to the joint venture agreement, aiming at improving Anta's sports profitability, sustainable development ability and enhancing group financial performance.

In April 20th, Ying Jin group, a footwear company, also announced that it had entered into a memorandum of understanding with 7 companies. Accordingly, the contracting party intends to establish a long-term partnership. Through the establishment of a joint venture company, the group will have more than 600 retail outlets in the mainland, and intends to create a large number of stylish living rooms in the mainland so that customers can enjoy the one-stop online and offline lifestyle experience.

Ying Jin group believes that the proposal to set up a joint venture will help the group take advantage of the respective market advantages and relevant experience and network of the contracting parties, so as to help the group increase its revenue sources and improve its financial performance.

The seven companies are Guoxin shadow cool, Guotai Huitong, galloping sports, sunrise assets, superior assets, annual investments and Xu Tong assets.

With regard to the retail outlets, the proposal includes the cooperation with Chinese financial institutions to issue prepaid membership cards, and the design and production of a series of sneakers and related products in cooperation with a famous football player in Italy. An automatic smart shoe customization machine is set up at retail outlets to provide customers with more diversified footwear choices. With the WiFi platform of the famous chain hotel in mainland China, large data is imported to promote group brands and products, and the cooperation of e-commerce platforms is enhanced, thereby improving online and offline consumption performance.

The proposal includes the opening of a fashion life hall, including the opening of a special store with Italy famous club clubs and related products of players, the sale of the brand related products with the famous luxury sports car brand stores, the establishment of coffee shops and dessert houses in the fashion living houses, the sale of foreign characteristic desserts and beverages, the sale of consumer goods, daily necessities, clothing, footwear, accessories, leather goods and cosmetics, and the opening of private mini cinema.

Another shoe company announced in April 18th that the company is in consultation with the Highland Group of Xinjiekou, Nanjing, on the arrangement of the venue for Hamleys and integrated management services provided by orient Fred department store.

Highland Group owns the UK retail department store brand "House of Fraser", with a total of 59 stores, mainly in the UK and Ireland.

According to this cooperation, the company will be able to invest in Highland Group to achieve greater synergy.

The cooperation between them can increase sales potential and increase channels, and can also take part in business segments and product areas that have not been touched before.

On the other hand, the two sides may improve their information technology expenditure and enterprise functional efficiency through cost saving measures (including shared services and background portfolio).

It is said that the introduction of Hamleys to the flagship store in Nanjing is the first step in the entire development plan. The next step will be to start flagship stores in cities such as Shanghai and Beijing.

According to the news of April 21st, Metersbonwe announced the opening of strategic cooperation with heroes at the occasion of the 21st anniversary celebration.

The cooperation will include IP licensing, joint promotion, game embedding and so on. Heroes' mutual entertainment games, including the nationwide gun battle, adventure and mining, and custom dress like "Three Kingdoms" will be on sale at Metersbonwe Tmall, Jingdong and Banggo official flagship stores.

In April 8th, Hai Lan's home also held a press conference to announce the strategic cooperation with the Oriental DreamWorks factory and launch the "Madagascar" series of clothing and derivatives.

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"Cooperation" to promote pformation

Behind the frequent occurrence of cooperation events in clothing enterprises is the result of the comprehensive promotion of China's economic structure pformation, the integration and reconstruction of garment industry, the pformation and upgrading of garment enterprises, and the change of clothing consumption market.

In the past two years, the strategic cooperation of garment enterprises has occurred frequently.

Typically, YOUNGOR and CITIC share strategic cooperation, investing billions of CITIC shares.

YOUNGOR announced in June 10th last year that the company signed a strategic cooperation agreement with China CITIC Limited by Share Ltd. The two sides agreed to set up the two sides' strengths to jointly seek and seize major strategic opportunities in China and the global market, and to cooperate with each other to make use of their existing resources, channels and advantages to cooperate and provide business partners with convenience and support to enhance their value.

Then in July 17th, YOUNGOR announced that its wholly owned subsidiary, Xin Ma international, subscribed for 859 million shares of CITIC new shares at a price of HK $13.95 per share, with a total paction value of HK $11 billion 986 million.

YOUNGOR said the move is aimed at consolidating the established strategic cooperation relationship between the two sides, and promoting the strategic resources and business opportunities of YOUNGOR through CITIC share platform, promoting the pformation of the company and strengthening profitability and influence.

AOKANG international and Skech strategic cooperation, strategic investment Lanting Pavilion gathering potential.

In August 2015, AOKANG International announced its strategic cooperation with Cage, the second largest sports shoes brand in the United States, and plans to open about 1000 AOKANG brand stores in mainland China in 5 years. This shows that AOKANG, which is mainly engaged in leather shoes, has begun to march into the sports sector.

AOKANG International said it will establish long-term strategic cooperative relations with Cage, establish information sharing mechanism, business matching mechanism, communication and communication mechanism, cooperative research mechanism, and integrate resources between both sides.

In addition, in April 2015, Luo Lai home textile announced its strategic cooperation with the company and planned to jointly research and produce a series of smart home and family health products for bedroom. Meng Jie home textile announced a strategic cooperation with the company and developed and manufactured intelligent bedroom products.

The two major home textile enterprises have worked with the same company successively. They should value the strength and leading position of the company in the home electronic intelligent controller industry.

Observation: acceleration of industrial integration

A series of strategic cooperation events of garment enterprises are synchronized with the tide of diversified investment and merger and reorganization of garment enterprises, which is the embodiment of accelerating the integration of garment industry.

Cooperation and mergers and acquisitions often go hand in hand.

Recently, several garment enterprises announcing strategic cooperation events also have plans and actions for mergers and acquisitions.

At the beginning of the year, Anta said that the company was negotiating with two or three international sports brands. Anta would provide funds for potential mergers and acquisitions with internal resources, but did not exclude the possibility of financing large pactions. The cooperation with Xinjiekou in Nanjing focused on developing sales channels for last year's acquisition of Hamleys. In March, Ying Jin group announced the acquisition of Design Management, a footwear company, in 13 million yuan.

Under the influence of various forces such as the pformation of China's economic structure, the integration and reconstruction of garment industry, the pformation and upgrading of garment enterprises, and the change of clothing consumption market, garment enterprises need to find new outlets, new boundaries, and new ways to raise efficiency and reduce costs, which will lead to more strategic cooperation events.

The purpose of cooperation is a win-win situation. It is a synergistic effect, which requires the two sides to take out complementary resources to share.

This means that, just as mergers and acquisitions need to avoid integration risks, garment enterprises should also choose the right objects to avoid opportunistic behavior, manage the cooperation process, establish mutual trust relationship, and reduce the competition risk in the process of cooperation.

Once we play the power of "two swords", we will find new directions, create new spaces and form new competitive advantages for garment enterprises in pformation and upgrading stage. This is also an important way and way for garment enterprises to pform.