Overseas Clothing Brands Make Up For Short Boards Of Chinese Clothing Companies

The garment industry in China is generally more traditional.

Referring to the first batch of clothing enterprises listed on the market, most people think of seven wolves, wedding birds, Semir costumes, and Hai Lan's home.

They locate in the middle and low end, the image is local, the store opens in the old commercial center of each city, it seems that there are always tea shops and salt crisps.

The pformation took place in the past two years when China's fashion layout became more complex. From Europe to Japan and Korea, from luxury, light luxury to fast fashion and designer brand, more international brands focused on the Chinese market, and gradually squeezed the survival space of local clothing brands.

China

We have to resist external competitors and resist the pressure of pformation brought by China's macroeconomic slowdown to traditional enterprises.

In China or Europe, this time is rare. It shows 4 new brands, including Ed, Hardy Laur, l and IRO.

Among them, Ed Hardy, Laur e l and IRO were all the overseas clothing brands acquired by her in just a few months before that, and she became a multi Brand Company from a single Brand Company.

In September 2015, he invested 11 million 180 thousand euros to acquire 100% stake in Dongming international investment (Hongkong) and took the German German fashion brand Laur e l in the mainland's design rights, ownership and usufruct.

At the beginning of 2016, it spent another 240 million yuan to acquire 65% of the company's Ed Hardy shares in China.

In June, it became a major shareholder of IRO, a French fashion brand.

This capital operation is more shocking than the brand itself, because in recent years, it has not been lonely on the road of overseas mergers.

At the end of March, the French fashion brands Maje and Sandro were announced to be bought by Ruyi group of Shandong. In early September, the Shanghai fashion brand vicknus bought the "Teenie" Weenie, a Korean consumer familiar to China. We seem to be witnessing more and more overseas fashion brands changing the trend of China.

Several well-known Chinese gold masters were also standing at the stage.

Shandong Ruyi group was originally a textile enterprise whose main business was worsted fabric. It seldom butted the consumer market. While wicknus and singer were built as independent women's clothing brands, their original customer layer and market were fixed, their brand appeal was limited, and the market time in capital market did not exceed 2 years.

This forced the clothing companies listed in recent years to become more diversified in their layout.

After taking A shares, they want to catch catfish in the capital market.

Nowadays, there is a common trend in their efforts, namely, the use of mergers and acquisitions to pform multi brand groups to resist diverse market risks.

But that does not mean that the company must buy overseas clothing brands.

In the development of these listed companies, he focused on the acquisition of domestic enterprises.

In the first half of this year, he bought 6 medical beauty companies, including Sichuan Milan Bai Yu medical beauty hospital, with their own funds, and the total pfer price of shares was 327 million yuan.

As a perennial neighbourhood of the great singer, the old rival, choosing to speed up the layout of the medical field, has gradually expanded the source of profits.

Faced with this difference, the director of Ge Li Si, deputy general manager and Secretary of the board of directors, Lan Di believes that it depends on each enterprise's own positioning.

Once positioned the high-end young women's clothing, she still focuses on fashion, and she doesn't want to reach her unfamiliar field.

It has been waiting for 3 years since he started listing.

In 2012, during the period of submission and examination of listed materials, the company had already begun to discuss what to do with capital, but at that time only knew that it would be annexed, but the specific situation was not clear.

Until April 2015, Xia Guoxin, President and general manager of the Shanghai fashion exchange, entered the Shanghai stock exchange. The price of the clothing brand of the city began to face a qualitative change.

Perhaps it was time dragging too long. Xia Guoxin looked less excited at that time.

The capital market is full of wallets, but it also makes the former traditional enterprises steer clear that it is difficult for them to bear the growth pressure of post market performance alone.

According to the Research Report of Guotai Junan Securities, during the half year report period, the business revenue increased by 9.45% in the same period, and the net profit attributable to the shareholders of the listed companies decreased by 26.13% during the same period. The company's performance was lower than expected. It was mainly affected by the design and development of Laur e l, the investment in brand promotion, the increase in the number of shops opened, and the payment of the shares of the core backbone of the company.

The trajectory of future growth is relatively clear, and the acquisition of brand names is expected to reverse the decline in profits.

But in this case, Shen Wan Hongyuan securities showed that the sales of its main brand, gowns, continued to be under pressure. It earned 520 million yuan in the first three quarters of this year, down 8.6% from the same period last year, and it fell 15.8% in the third quarter.

Although the company's 2015 annual report and the 2016 earnings report as of today show a good momentum of profit growth, the main contribution is not always the main brand itself.

One of the reasons for this is that market expansion has become difficult.

Because of the increasing number of brands entering the electricity supplier, the cost of online drainage is rising.

On the other hand, in the online era, what GE lies is facing is the current situation that the department stores are being eliminated quickly. The shopping centers that pay more attention to the consumption experience are getting more and more young, and the bargaining power of the traditional brands can be predicted to be weakened.

"International brands are much less hindered when they enter the mall.

The domestic brand is difficult to negotiate with the channel, and for 20 years, he has done well in the channel, but it still does not have enough international brand standards.

Said he.

Of course, this is also related to his limitations.

In the view of this problem, the director of the commercial real estate consulting service Rui Yidan also proposed another non channel factor. "Merger behavior may also be aimed at extending the product line, depending on whether they are positioned differently, whether they are ladies, mature women's clothing or young fashion."

Ladies' Laur e l, Chao cool Ed Hardy and FA fan's IRO are different in style, while Geers think more, and blue is called "synergy effect".

Ed Hardy is a more complete lifestyle brand from women's clothing to home furnishing. Apart from making up for the lack of songs, the former shareholder of Ed Hardy is Carina Lau. The star resources accumulated over the years will provide richer marketing tools for brands.

After the acquisition of Laurel, the German brand set up a design team in Shenzhen, which will help improve the design ability of the company.

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In return, Chinese enterprises will help these brands to deepen the vast Chinese market, which also has both sides' intentions.

China's investment group Fosun has successfully invested many overseas fashion brands such as Folli Follie, Studio 8, Tom Tailor and so on. Chairman Guo Guangchang told the interface: "the brand side is relatively cautious and pragmatic when looking for potential partners, but the Asian market is particularly important for China's international development. Therefore, the brand side will generally take the initiative and welcome the deep cooperation with China's strong international reputation."

Although IRO has been stationed in Hongkong, it has not yet had any in mainland China.

And online store, the goal of George's is to make it catch up with the rapid expansion of Maje and Sandro.

Interestingly, in the 3 years ago, he invested 75% shares in the Shanghai electricity supplier operation company Bai Qiu network, which is also the operator of Maje and Sandro Taobao stores.

In addition, Bai Qiu also runs international fashion brands such as Fossil, Elle, Kipling and Pandora in China, and relies on the Commission to earn profits.

The marriage between Bai Qiu and Song Li Si shows greater Internet ambition, and its greater significance is also reflected in financial affairs.

Bai Qiu CEO Liu Zhicheng said to the interface: "our goal is to account for 80% of the group's financial report."

"This is very likely," he replied.

Even if the policy allows, we also encourage Bai Qiu to go public on an independent basis.

However, even if the unit price of 600 US dollars (about 4098 yuan) of IRO seems to be in the midst of the hottest middle end market, there is still a risk in acquiring overseas brands that haven't tested the water in mainland China.

Lan said that he was worried, but eventually decided to bet.

One of the confidence is that IRO's performance in Hongkong and Korea is good. This shows that the brand is more adaptable among Asian women. Besides, some people have gone out of the way, that is, the acquisition of IRO's competing products -- Maje and Sandro's Ruyi group.

The parent company of Maje and Sandro is SMCP, a French fashion group. Its negotiation with Ruyi has lasted for more than six months, and it has been shelved because of price differences.

However, the outcome of the acquisition is already in sight. Thanks to the rebound in French demand and the surge in Chinese sales, SMCP's sales in the first half of this year increased by 19.2% over the same period last year.

After a series of acquisitions and integration, the song and the Ruyi group began to draw a line with the two words of "tradition".

"We have to separate from the textile and garment industry and become a member of the fashion industry," he said.

Now the textile and garment industry, the upgrading of space is nothing more than optimizing the supply chain and channels, but fashion is not the case, fashion has the spark between brand and brand.

The chemical reaction between brands can make investors see the bottom at a glance, which can increase the valuation and ranking of listed companies. This is also the most intuitive benefit of acquisitions.

The international brand is now producing countless couplet series, which is precisely the idea of George's.

Before that, it needs a sufficient number of brands to support it. The company aims to buy about 10 brands in the next 5 years to cover more categories and wider people.

Its new goal is to become a "high-end fashion group with international influence".

At present, there is no good reference for this goal in China, but in France, Louis Vuitton's parent company LVMH group and Gucci's parent company Kai Yun group are the most typical examples.

But from their growth path, we also see the cruelty of capital.

The LVMH group, which was born in 1987, was also a merger of Louis Vuitton and Louis Hennessy, a liquor company.

At that time, Louis Vuitton realized that the high cold of luxury goods determined its slow and limited profit. In those days, Louis Vuitton's revenue was 290 million dollars, which was 1/5 of Hennessy's same year's revenue.

In order to fight for equity, Louis Vuitton's son-in-law Henry Racamier invited Bernard Arnott (Bernard Amault) as a helper.

But Amault, which will operate the stock market, has no special feelings for luxury goods. He bought the Louis Vuitton stock at a low price during the downturn of share prices, and used the beer company Guinness to increase its holdings.

The president bought more than 60 business in the next 20 years. He turned the fashion brand upside down. Some people said he destroyed the value of luxury, and others said he was French "Trump".

But no one can deny that Arnott has developed the once small workshop into an empire with more than 50 luxury brands, such as Dior and Bvlgari, which is a great success in business.

He will also buy a good price when others are in a downturn.

Looking at the case of Ruyi's acquisition of fragile Japanese clothing brand Renown in 2014, these experiences may be the long-term potential gains for Chinese brands.

When he bought IRO, he learned to play roundabout games.

In May, the song of fossing and Fuxing of China's fossing group established the investment platform of Shanglin, Qianhai, which accounted for 65%, 25% and 10% respectively.

As Fosun has a more mature experience in overseas M & A, he subsequently pferred 16% of the shares to Fosun, so that he first acquired IRO, and finally acquired the control of IRO through repurchase shares.

"IRO is in a lot of brand competition in the negotiations (including the L Capital of LVMH group), while Fosun is technically more professional, indirect acquisition is the fastest way to control the target in its own hands."

Blue explains why.

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Experience is very important for any listed company, and it can effectively enhance the competitiveness and sustainable development ability of enterprises.

More and more Chinese garment enterprises have joined overseas professional acquisitions like Fosun, and the capital operation capability and overseas M & A experience of professional investment institutions are needed by most traditional industry companies.

Guo Guangchang said to the interface, "this shows that China's capital needs to go out, and there is a value depression in overseas mature markets, which is a good opportunity for Chinese capital to buy overseas."

However, the gap with LVMH is also naked.

Chinese businessmen seem to have no choice but to cultivate their own "Louis Vuitton" first, and sometimes the successful listing and stock price limit can not be used as a measure of brand value. The road of capital may be strong and fast, but it is also dangerous and fragile.

Just like Vigna S, who used the 5 billion 700 million yuan to take the Teenie Weenie from his love and love, his brand value is only 4 billion 500 million yuan, and the net profit after listing is also declining.

Previously, according to Reuters, the acquisition was a huge investment for Vigna S, because the timing of selling Teenie Weenie raised its brand value, and Lee Gyu-jin, vice president of the clothing company of its former parent company, said: "Korean fashion companies are embracing the fashion very fast."

Today, the demand for Korean goods is still very large in China, but there is a rush to get rid of it, but the assets it sells includes Teenie Weenie brand and product line, tangible assets, intangible assets and so on.

And the management of brand after Chinese takeover is also worrying.

Lan said: "whether the strategic layout is clear is the most important thing. If the layout is not good enough, the brand within the group will probably be pinch to each other."

Domestic groups are now sharing resources, but often forget to set up a firewall.

For example, sharing design resources, the results of the two things are more and more like.

Therefore, it is necessary to ensure the independent operation of the brand. "

At the same time, they should also be patient with the psychological adjustment period of consumers.

Wu Yonger, a girl in Beijing, said, "when Maje and Sandro become Chinese brands, it seems that buying desire is not so strong.

However, the future depends on whether the product itself is good or not.