Carlyle Group Will Buy Supreme 50% Stake For $500 Million.

There is analysis that after acquired equity,

Will face how to retain it

The problem of uniqueness and scarcity.

Last week

The group's acquisition of street fashion brand Supreme has made new progress.

According to the world clothing and shoe net, the The Carlyle Group Carlyle Group, the US private equity firm, plans to buy Supreme 50%'s stake at a price of 500 million US dollars.

Insider sources revealed that Carlyle's valuation of Supreme will top up to $1 billion and $100 million in debt.

Up to now, spokesmen of Carlyle Group and Supreme brand have not responded to the news.

However, some industry sources say that Supreme founder James Jebbia worried that Carlyle's large acquisition of brand equity would undermine the reputation of Supreme in the existing consumer groups. If the deal is concluded, Supreme will face two thorny issues, first of all, how to make large sums of money injected into the Carlyle Group, followed by how to maintain its unique positioning of the high street tide brand after being acquired.

The new Supreme store in Broolyn high street, New York, was officially opened in October 5th. It is shown that the Box on sale on the day is limited to Box Logo Tee.

It is noteworthy that Supreme has never announced its profit level, but the Carlyle Group's 1 billion valuation means that the profit of the brand annual interest tax depreciation and amortization is about 100 million dollars.

After capital investment by Carlyle Group, Supreme must work hard to achieve Carlyle's expectations through accelerated expansion.

However, it is temporarily unknown whether the two sides have signed a gambling agreement.

As more and more young consumers seek more personalized products, Supreme does, like some luxury brands, continue to create the desire to consume, and is beginning to attract all kinds of capital in the world.

In February of this year, according to Highsnobiety, luxury brand LV parent group LVMH group (LVMH.PA) bought Supreme Chao Supreme for $500 million. Although the news was denied by LVMH later, it was only 20 days from LV's cooperation with Supreme in Paris men's wear week, which prompted speculation in the industry.

After the news of the capital invasion Supreme came out, some of the loyal fans of Supreme, that is, the real skateboarding fans, did not buy it. They expressed strong opposition and thought that the invasion of capital runs counter to the original belief of the tide brand.

The British James Jebbia founded Supreme in 1994. More than 20 years later, Supreme has gradually become a symbolic brand of street culture. Its status can not be shaken. Every time the new product is released, it will be released temporarily and draw lots, and buyers will have a long queue like the new Apple iPhone.

As a small group of street brands Supreme, the brand has not declined to the present. Some analysts believe that it is due to the star effect formed by social media in recent years, such as Rihanna, Kanye West and Justin Bieber.

The picture is Supreme founder James Jebbia.

The strength of Supreme lies in the trend of manufacturing. You can't guess who the partners are. Until now, including Damien Hirst, HR Gigar, Murakami Takashi, Larry Clark, Mike Tyson, Terra Patrick, Tyson, cable, cable, cable, cable, cable, etc.

And these brands are just the brands that hip hop singers love. After Supreme's W, the cooperative products were almost sold out.

This summer, Supreme's collaboration with luxury brand Louis Vuitton men's wear is called the highest ranking joint venture in twenty-first Century.

It is rumoured that the Supreme x Louis Vuitton cooperation series has made more profits for brand creation than its 6 entity stores and official website, and the profits are very high.

Supreme's hunger marketing means that every time the new product is sold, it leads to a long queue of consumers.

In addition, Supreme's hunger sale marketing has sold out its single products every minute, and even regularly launched the list of Supreme single products sold out on the Internet.

The frying price of all kinds of second-hand pactions made Supreme more immoral.

For young consumers, Supreme, which others can't buy, is particularly important.

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Some analysts think that the success of Supreme is not only the result of an era and culture, but also a reflection of James Jebbia's overall ability to control brand packaging.

That is to say, at the beginning of creating a successful and developing brand, he perfectly integrated the current street culture and rebellious trend crowd.

The concept and persistence of James Jebbia constitute the uniqueness and continuity of its brand, forming a phenomenal Street trend brand.

Through the unique way of operation and promotion, Supreme is almost religious in the consumption level of young subculture, and more loyal consumers say that "Supreme can buy anything and let it guide me."

In recent years, Carlyle Group has made frequent acquisitions of fashion luxury brands, holding Moncler, Twin Set and Golden Goose Deluxe Brand and other brand equity.

Moncler has become one of the most outstanding luxury brands in the past three years. At the end of 2013, Moncler was successfully listed on the Milan stock exchange. Last year, its sales increased by 18%, and entered the 1 billion euro club.

Analysts say that as an investment group that has been particularly concerned about the growth of China's market, if Supreme is successful in acquiring capital by Carlyle capital, the brand may also embark on a global expansion, especially in the Greater China market on the eve of the tide market.

Keith Tran, owner of Black Market, a US sporting goods buyer, agrees with the statement. He revealed that although Supreme has not yet entered the Chinese market, most consumers of the brand come from mainland China.

But there are opponents who say that investing in Supreme's niche brands does not seem to fit Carlyle's continuing investment style. The latter is a direct investment behavior, selling arbitrage arbitrage in 3 to 5 years.

At present, the Supreme shop is very harsh. It is considered that cities that do not have shops will not be opened. Their shops are distributed only in Losangeles, New York, Tokyo, Paris and London.

A person familiar with the matter told reporters that as a trend brand with a soul belief, Supreme will avoid the Chinese market which is not fast enough but the trend culture is not mature, and maintain its rarity and particularity.

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