Seven Wolves Invest In Fashion Brand Karl Lagerfeld China Operation Entity

Never thought about it.

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It can appear in the same headline. In fact, before that, the former is in the impression of everyone.

"Two words are far away, but yesterday, the company was the top IP in the fashion industry.

According to the world clothing and shoe net, yesterday, the seven wolves announced that they will invest 320 million 400 thousand yuan (RMB) to invest in the fashion brand Karl Lagerfeld China.

The English name of this long string of letters may be unfamiliar to many readers, but it must be clear to mention "Lord Buddha", and Karl Lagerfeld is the same brand design brand of "fashion master".

The first step: the seven wolves acquire the 80.1% share of Karl Lagerfeld Greater China Holdings Limitedd (hereinafter referred to as "Karl") for 240 million 300 thousand yuan acquisition of the Lagerfeld Holdings Limited (BVI) (hereinafter referred to as "KLH").

The second step: after the completion of the pfer of shares, the shareholding ratio of Target Corp and other shareholders of Target Corp will provide 1 billion yuan or equivalent capital increase to the domestic operation main body of the Target Corp (KLSH), which is equivalent to $80 million 100 thousand or equivalent.

KLGC has the trademark right to use Karl Lagerfeld in the Greater China region (including Mainland China, Hongkong, Taiwan, Macao and Singapore), which includes a series of core rights such as design, production and distribution.

When it comes to old Buddha, you can easily remember his signature style: wearing sunglasses, holding a fan with his hands, and wearing a long hair braid behind his head. The famous German fashion designer has been a luxury designer of Chloe, FENDI and CHANEL for many years. He has pushed FENDI to the forefront of high fashion, and has made the dying CHANEL full of blood resurrect to become one of the most profitable fashion brands in the world. Its achievements in the fashion industry can be said without doubt. It can be said that it is the most qualified and prestigious designer in the fashion industry.

In 1984, Karl Lagerfeld launched the brand of personal namesake, but unlike Karl's outstanding performance in other brands, the brand of Lord Buddha herself can only be described as "not warm but not hot".

According to the article,

"Due to the Karl Lagerfeld Lagerfeld's efforts to enter the brand of the same name are far less powerful than Chanel (Channel), Fendi (or Fendi), or even several times, it is announced that it will restart.

Until 2011, it was repackaged and covered with clothing for men and women, bags, accessories, watches, glasses, perfume and other products. Positioning is now in the range of affordable luxury or boutique.

Nevertheless, the performance of Karl Lagerfeld brand is not good. "

But this piece of "gold lettered signboard" is still quite easy to use, so authorization is certainly welcome: the Karl Lagerfeld brand licensing business has been deeply cooperating with many brands including SWAROVSKI, Welton and Tokidoki.

In 2013, Karl Lagerfeld officially entered China, now has 6 boutiques, located in Shanghai, Beijing, Wuhan, Nanjing and Changchun.

The actual controller of Karl Lagerfeld B.V. is the Cao Qifeng family in Hongkong. Cao is a well-known fashion tycoon. The industry calls it "Hongkong textile king".

Fashion's interview notes that Karl Lagerfeld's business in Greater China has been in a state of deficit for many years.

In 2014, ~2016 achieved operating income of 4 million 50 thousand US dollars, US $5 million 420 thousand and US $4 million 960 thousand respectively, and realized net profit of -1017 million, -598 million and -359 million respectively.

In 2017 1~4, its revenue was $1 million 830 thousand, and net profit remained -103 million dollars.

In such a less beautiful situation, it is not so difficult for Karl Lagerfeld to pick up the olive branch of the seven wolves. Besides capital, the international brand may be more valued in its channel and operation resources as China's local apparel group.

For the seven wolves, the 320 million high volume paction really wants to buy, except for the "gold lettered signboard" of "old Buddha", perhaps including its fashionable and light luxury brand business mode and format.

In fact, in recent years, there are many cases of overseas acquisitions of Chinese brands. In April last year, Shandong Ruyi also paid 1 billion 300 million SMCP to three French luxury clothing brands in one breath, but last week there was news that SMCP group was preparing for listing in France. But at that time, some people in the industry said: "because there is no synergy effect, if their products do not contribute to these French brands, the resources of both sides are not integrated.

SMCP operates independently, and Ruyi does not interfere in its operation. "

I do not know, in the case of seven wolves, the final direction will be how, a question mark.

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