Analysis Of 2016 Global Mergers And Acquisitions In Fashion Industry

Looking at the world fashion The boundaries are always changing. 2016, for the global fashion industry, it is both a busy year and a difficult year. Influenced by global macroeconomic, geopolitical factors, a significant change in consumer behavior, and the impact of discount culture, digital upgrading, cost burden and creative crisis, the fashion industry needs to do more with less resources (including time, money, workload, etc.).

In 2016, we saw many losses, closes and bankruptcies in the fashion industry, and saw many growth, expansion and innovation. It can not be ignored that no matter how much classic eternity the rapidly changing world is mixed with, capital changes and resource reorganization are inevitable in the course of the fashion industry's advancement, and also the driving force for its iterative updating.

To this end, the reporter selected 20 cases from the important mergers and acquisitions events of the global fashion industry in 2016 to show the trend of industrial capital this year and the industry trends it disclosed to us. These cases are mainly focused on Clothes & Accessories , Shoe shoe Fashion brands, luxury goods groups and retailers do not include beauty products.

By summing up these cases, the reporter summed up the following 2016 information about the merger of the global fashion industry:

1, an important reason for Chinese enterprises to pick up overseas acquisitions is RMB depreciation.

There are comments that the depreciation of the renminbi is an important reason for domestic enterprises to go overseas for overseas acquisitions. Domestic enterprises, including fashion companies, have begun replacing the US dollar debt into Renminbi debt in the second half of last year and increasing US dollar deposits. In doing so, we can avoid paying the higher dollar interest and betting on the depreciation of the renminbi.

Whether this is the real cause or not, we do see some Chinese enterprises buying and buying overseas: the Shenzhen women's clothing group, the Ed group Hardy, Shandong Ruyi group's acquisition of Sandro, Maje brand parent company SMCP group and the British Centennial brand Aquascutum (Jagle Dan); Hangzhou textile company buys the French lace producer Desseilles Laces SAS; the luxury brand Balmain buyers also include Chinese investors.

Samson Lo, head of Asian mergers and acquisitions in UBS, has said that "the trend of the renminbi is a driving force for overseas acquisitions of Chinese enterprises, because they are concerned about the longer-term prospects". Since 2015, Chinese fashion companies and capital have acquired far more than billions of dollars in overseas fashion brands, and the spanaction volume is the highest in recent years.

2, the war of luxury goods groups competing for raw materials suppliers is becoming more intense.

European luxury goods groups continue to compete for scarce raw materials suppliers to ensure that they have enough excellent materials and technologies to produce high profit products that brands need. This trend was markedly intensified in 2016. For example, Italy's luxury men's clothing brand Ermenegildo Zegna (Zegna) has also kept pace with Hermes, LVMH and Kai Yun group this year, and has acquired the Achill of Australian sheep breeding farm to ensure the supply of raw materials for top woollen apparel.

Prior to that, in 2011, LVMH Group acquired a stake in HengLong 51%, a leather supplier in Singapore. In 2012, Chanel bought glove manufacturer Causse and Scotland cashmere knitwear manufacturer Barrie. This year, they bought French lace manufacturer Sophie Hallette parent company Groupe Halesco minority stake and French high-end sheepskin production plant Richard. Kai Yun group also acquired its leather supplier France Croco. In 2014, Prada held the French leather workshop Tannerie M gisserie Hervy. LVMH acquired the cashmere brand LoroPiana in 2013 and holds a stake in the Australian orchid supplier, which is rich in quality wool.

3, digital strategy is more common. Fashion retailers seek innovation through acquisition of e-commerce platform.

The application of e-commerce and digital tools is not new. But in 2016, digital platforms and digital strategies became more common and complex for fashion industry. On the one hand, Amazon, an online retailer, has decided to develop the fashion business as one of its strategic choices, and has launched 7 own clothing brands. On the other hand, offline retailers are also expanding online, accelerating the metabolism of the fashion industry.

Gap, a clothing retailer, bought the wedding social networking provider Weddington Way, and Lafayette department stores bought BazarChic of fashion electronics. Retailers quickly acquired the digitalized resources of the buyers through the way of "buying it". As GAP emphasized in the official statement, Weddington Way is a data driven shopping website featuring its "virtual fitting room" and using this product to run an active community.

4, luxury giants yearn for sports.

This year, LVMH first bought the Italy bicycle brand Pinarello through its L Catterton. After that, there was LVMH's report on the acquisition of the British bicycle brand Rapha. Some commentaries have pointed out that compared with Kai Yun group, which owns Puma, LVMH does not have a sports class player. The acquisition of bicycle brand may help it make up for this regret.

Of course, these acquisitions may be just the first step. In the future, LVMH group may make more practical actions in the strategy of sports. And what kind of competition pattern the luxury magnates will form in the sports industry is also looking forward to it.

5, yoga clothing brand as a sign of healthy lifestyle broke into the eyes of giants.

The word "lifestyle" seems to have been rotten by all trades and professions. But with the younger generation becoming the main force of fashion consumption, the fashion concept they are more willing to accept has become something that brands have to care about.

Over the past year, the word "Sports" and "health" have become more popular in the fashion stage, and the brand of yoga clothing has also attracted attention. For example, Sequential Brands Group Inc., the US brand management company, offered $146 million to acquire yoga Brand Company Gaiam. What they see is that at present, 35 million people in the United States practise yoga, which has increased by 76% over the past 4 years, and 80 million are eager to practise yoga.

6, the most common place for mergers and acquisitions is the traditional fashion country, France and Italy.

The horn of the world's four fashion week will be blown on time every year. Some people comment on their differences: wearing in New York, playing in London, the US in Paris, and Milan. From the perspective of the emergence, development and aggregation of many fashion brands, these four cities are well deserved leaders. Of course, most of the mergers and acquisitions in the fashion industry are here.

This year, most of the 20 mergers and acquisitions that we choose are from France and Italy, such as private equity Armonia acquisition of Italy luxury clothing brand Aspesi, Fosun international acquisition of French fashion brand IRO, Italy luxury group Tod "s" capital increase and acquisition of Roger Vivier, French Hermes purchase footwear design company Pierre Hardy minority interest, Qatar Royal Investment Fund acquisition of French fashion luxury brand Pierre Balmain, etc.

Below are 2016 details of the 20 major mergers and acquisitions in the global fashion industry.

[Italy private equity fund Armonia acquired apparel brand Aspesi]

In December this year, Italy private equity fund Armonia acquired most of Italy's luxury apparel brand Aspesi, buying more than 50 million euros.

According to the world clothing and shoe net, Aspesi's parent company Alberto Aspesi&C.SpA was founded in 1961, and is headquartered in Legnano, Italy. It operates in Italy and overseas markets. The Aspesi brand has four major product lines, such as women's wear DONNA and men's wear UOMO. It is famous for its neat lines, simple neutral trimming and high tech fabrics.

Armonia is an independent Asset Management Co newly established in Italy. It is authorized and supervised by the Bank of Italy and the Italy Securities Regulatory Commission (CONSOB). It is a member of Italy private equity and Venture Capital Association (AIFI), which aims to help small and medium-sized Italy enterprises expand overseas. Italy is also a member of Italy's private equity and Venture Capital Association (AIFI).

American apparel manufacturer Kellwood was bought by Hongkong private equity fund.

In December, Kellwood, a well-known clothing manufacturer in the US, was bought by a private equity fund in Hongkong, China. Previously, Kellwood was owned by Sun Capital Partners, an American Private Equity Fund.

Kellwood was established in 1961 by 15 independent suppliers. In its prime, Kellwood's sales amounted to $1 billion. At present, Kellwood's clothing brands include: My Michelle, Jolt, Rewind, Democracy, Sangria, JAX, Briggs New York and XOXO, focusing on women's wear and youth clothing.

[Chinese buyer Shandong Ruyi takes Aquascutum again]

In December of this year, following the first half of the year, the SMCP group of Sandro and Maje's parent brand was acquired. The Ruyi wool textile Limited by Share Ltd from Shandong, China, launched an overseas acquisition again, buying the 100 century brand Aquascutum (Jagle Dan) of the United Kingdom at a price of 120 million US dollars.

Aquascutum was founded in 1841 by John Emary. It was still owned by the family until 1990, and then changed hands several times until April 2012. It was only 15 million days before the bankruptcy deadline was acquired by the Asian agent of the brand and YGM trading company of Hongkong.

[luxury brand Zegna bought Australian wool farms]

Italy's luxury men's clothing brand Ermenegildo Zegna (Zegna) acquired Achill from Australian sheep farm in December this year to better control the source of clothing materials. It is understood that Ermenegildo Zegna has been in the textile business since 1910, and all wool materials are from Australia, and even become sponsors of the Australian wool competition to encourage the wool producers' enthusiasm.

[Gap acquisition of wedding social networking provider Weddington Way]

The American Apparel retail giant Gap Group acquired the wedding social shopping platform Weddington Way in early December. The latter was set up in San Francisco in 2012. It aims to provide wedding virtual exhibition hall for the millennial generation. It runs an online boutique store, selling modern bridesmaid dresses, wedding gifts and other merchandise to global customers, and all the dresses are designed and manufactured by Weddington Way itself.

[G-III group bought Donna Karan for $650 million]

G-III and its brand, including Calvin Klein and Vince Camuto, announced in early December that the Donna Karan International would be acquired through the combination of cash and bonds to acquire Donna Karan International, gaining the rights of fashion brand Donna Karan and DKNY 650 million.

[LVMH acquisition of British bicycle brand Rapha]

In November, according to the world clothing and shoe net, French luxury group LVMH is talking about buying the Rapha of the British bicycle brand. The brand, founded by Simon Mottram, a bicycle enthusiast, has only 12 years history, but is famous for its high performance equipment and high price. It is also a supplier of the British tour de France, and the Chris Froome kit that won the three time is from Rapha.

[LVMH's fund company acquired Italy bicycle brand Pinarello]

In October this year, the industry came out with LVMH's intention to acquire Italy bicycle brand Pinarello through its fund company L Catterton. In December 7th, Pinarello officially confirmed that the majority of the company's shares were sold to L Catterton.

According to the world clothing and shoe net, Pinarello was first founded by a Italy amateur cyclist Giovanni Pinarello in a small workshop in Treviso in 1952. Its annual sales volume exceeds 50 million euros, of which more than 3/4 come from other markets outside Italy. After the acquisition, Pinarello will further expand its business to the world and develop functional clothing and accessories.

[LVMH bought $80% of luggage brand RIMOWA for $700 million]

In order to continue to consolidate the leading position in the luxury luggage market, the luxury group LVMH announced in October 5th that it had acquired most of the RIMOWA stake in the German leather goods and suitcase manufacturer. This is also the first acquisition of German brand by LVMH group. The spanaction involved a stake in RIMOWA 80%, with a total value of about 600 million euros.

[Diesel parent company OTB acquired Milan handbag brand Paula Cademartori]

In October of this year, OTB SpA, the parent company of Diesel, made its first acquisition this year. It aims to set up a small handbag accessory designer with the name of Paula Cademartori, which has been a large number of followers for only 5 years.

According to public information, Paula Cademartori is a designer born in Brazil and has Italy ancestry. The interpretation of her bag to restore the old style, color block collision and material collage is a hot pursuit for her brand to attract fashion people. The brand also has shoes and accessories products, all made for Italy.

The Chinese clothing company, Wenger, bought 6 billion Korean fashion brand Teenie Weenie.

In September, in order to reduce debt, E-Land Group, the largest textile retailer in Korea, decided to sell Teenie Weenie, a young apparel brand (Vigny), and its buyer was VGRASS, a Chinese A share listed company. The deal cost Vigna S $900 million (about 6 billion yuan).

[LVL buys French fashion business BazarChic]

In September, the French department store group Galeries Lafayette Group announced that it would acquire the majority interest of French fashion business BazarChic and its tourism business company BazarChicVoyages and innovation investment company NGR. Prior to that, Lafayette department store also completed the acquisition of French second-hand luxury electric business Instantluxe.com.

Hermes purchased part of the designer's brand Pierre Hardy.

In July this year, the French luxury brand Hermes International announced that it had acquired a minority stake in Pierre Hardy, which has long been responsible for its footwear design. Hermes said in a statement that the cooperation between the two sides has been more than 25 years, and that the cooperation agreement will help Hermes to carry out global Hua Kuozhang Pierre Hardy.

According to the world clothing shoes and hats net, Pierre Hardy is the designer's namesake brand, famous for its rich color combination and unique architectural contour design. Since 1990, designer Pierre Hardy has been responsible for Hermes's shoe design, and has started designing advanced jewelry series for Hermes in 2001.

Italy Garment Group Benetton bought Philippe Model, the brand of board shoes.

In July of this year, Benetton Group Srl (Benetton) family inheritor Alessandro Benetton's private equity fund 21 Investmenti acquired the 70% majority stake of sports shoes brand Philippe Model in Italy this year.

According to the world clothing and shoe net, Philippe Mode is also a Italy brand. It was founded in 80s by Paolo Gambato. At present, its main business is wholesale business, and is sold in Yoox and Farfetch business platform, with annual sales of about 100 million euros.

Qatar Royal Investment Fund Mayhoola acquired French fashion brand Balmain.

In June of this year, Qatar Royal Investment Fund Mayhoola for Investments SPC agreed to acquire Paris fashion luxury brand Pierre Balmain SA (Balmain). Mayhoola said that it will speed up the development of Balmain, and create more new stores and expand accessories series for the brand in the international market.

According to the world clothing and shoe net, Balmain was founded in 1945 by Pierre Balmain. After the death of Pierre Balmain in 1982, it was spanferred to Canadian industrialist. In 1995, it was bought by Alain Hivelin, a former LVMH executive. 2004 was once on the verge of bankruptcy. According to the news, now Mayhoola plans to merge Balmai with its own Valentino Fashion Group SpA (Valentino), and then make an initial public offering.

Modern Boulevard purchase Italy luxury department store Excelsior Milano

In June this year, China Fashion Group Limited by Share Ltd fashion group Limited by Share Ltd bought Italy Milan luxury department store Excelsior Milano for 21 million 300 thousand euros. This is another important action in the overseas acquisition after a 40 million 680 thousand euro purchase of Dirk Bikkembergs, a Belgian designer last year.

According to the world clothing shoes and hat network, morden avenue through the full capital subsidiary of the Hongkong Limited by Share Ltd (Limited by Share Ltd) wholly funded merger and acquisition of Milano. The department store opened in 2011 and is located near the Duomo Church in Milan. The seven floor sales area is about 3000 square meters. It mainly covers men's wear, women's wear, accessories, restaurants and supermarkets. It has good cooperation with many brands such as Valentino, Versace, Gucci, Givenchy, Lanvin and so on, with annual sales of about 40 million euros.

[Fosun international and song and dance front and back holding French fashion brand IRO]

In June of this year, China's Fosun international bought the French fashion brand IRO, involving a spanaction value of about 130 million euros. IRO brand founder Laurent Bitton and Arik Bitton brothers retain 40% of the shares. Fosun international has acquired the remaining shares and Guess Group founder Marciano family held 25% of the shares, becoming the largest shareholder.

After that, ELLASSAY, a Chinese fashion brand, intends to buy Qianhai's Shanglin stock held by Fosun through cash and acquire the controlling power. Qianhai Shanglin holds a stake in ADON WORLD 57%, while ADON WORLD holds a 100% stake in France's light luxury brand IRO. This means that ADON WORLD indirectly gained the controlling power of IRO company.

American brand management company Sequential acquired Yoga brand Gaiam.

In May of this year, Sequential Brands Group Inc., the US brand management company, announced a $146 million acquisition of yoga Brand Company Gaiam.

According to the world clothing and shoe net, Gaiam has been founded for more than 20 years, with 3800 sales outlets and 19000 sales outlets. Sequential Brands currently has 13 brands, including Heelys, Ellen Tracy, Caribbean Joe, Revo, Jessica Simpson, AND1 and so on, covering clothing, shoes, sunglasses and many other categories. It has become the second largest brand management company in the United States.

[Tod] s group shareholders to increase capital and expand shares to acquire Roger Vivier]

A minority shareholder of Tods, a luxury group in Italy, approved the plan to increase its capital at the beginning of this year, and decided to buy shoes from its main shareholders in Italy luxury brand group, its brand name Roger Vivier.

Previously, the owner of the Roger Vivier brand was the Private Companies of the Della Valle family, the founder of Tod 's group. This spanaction allows Tods group to acquire Roger Vivier brand. It is reported that Roger Vivier accounts for 15% of the group's sales, compared with the entire group, the brand has a higher profitability.

[song] 240 million RMB acquisition of the US trend brand Ed Hardy

At the beginning of this year, the women's clothing brand in Shenzhen, China, signed the equity purchase agreement with Hongkong Tang Li International Holdings Limited, and acquired a 65% stake in Tang Li international through a wholly owned subsidiary, Dongming international investment (Hongkong) Co., Ltd. for RMB 240 million 500 thousand yuan. Tang Li International has the brand equity of the us light luxury brand Ed Hardy in mainland China and Hong Kong, Macao and Taiwan, as well as Ed Hardy Skinwear and Baby Hardy and other brands. Its main products are women's clothing and related apparel of American light luxury brand Ed Hardy.

According to the world clothing and shoe net, Ed Hardy was established in the United States in 2004, and has opened stores in the Americas, Europe, Asia and the Middle East. Brand designer Christian Audigier uses embroidery, water washing and ink splashing techniques to combine American culture with Asian elements. The product has a distinctive style and is loved by international stars.

More interesting reports, please pay attention to the world clothing shoes and hats net.