Why Clothing Companies Frequently "Hand In Hand" Behind Internet Companies?

Over the past two years, especially since this year, it seems that more and more garment enterprises have announced strategic cooperation and strategic investment relations with Tencent and Alibaba Internet companies. Will this be a new and effective way of pformation development?

Hai Lan's home: introducing Tencent as a strategic investor, achieving strategic cooperation with ALI

On the evening of February 2nd, Hai Lan's home announced that the Rongji International Limited, the controlling shareholder of the company, signed a share pfer agreement with the Shenzhen Tencent Pu and limited partnership.

After consultation, Rongji intends to pfer about 239 million shares of shares to Tencent Pu and 10.48 yuan / share price. The total pfer price of the shares is about RMB 2 billion 500 million yuan, and the pfer shares account for 5.31% of the company's current total share capital.

On the same day, Jiangyin Hai Lan Home Investment Co., Ltd., a wholly owned subsidiary of Hai Lan home, Linzhi Tencent Technology Company Limited and Ningbo Zhixin investment management partnership signed the "framework agreement on CO sponsored industrial investment fund" in Shenzhen.

The investment orientation and purpose of industrial investment funds are to invest in apparel related industry chains, excellent clothing and apparel brands, garment manufacturing companies, and strengthen the multi brand, multi category and multi-channel layout of the company.

The target size of the fund was set to RMB 10 billion yuan.

According to reports, after the announcement of Tencent's stock subscription, Hai Lan, an owner of Hai Lan's home, has selected the life shop's Micro mall on the line. Its products include office supplies, toiletries, table articles and so on.

In addition, Hai Lan group's Aex, OVV and other brands are also on the micro mall.

In April 8th, Hai Lan's family officially launched the micro mall.

There are categories of goods, such as suits, shirts, sweater and so on, in the mall.

Before announcing Tencent becoming a strategic investor, Hai Lan's home also announced a strategic partnership with another Internet giant Alibaba.

In September 1st last year, Hai Lan's home announced the signing of the strategic cooperation agreement with Alibaba.

The two sides plan to carry out strategic cooperation in brand building, channel management, product innovation and other fields.

The announcement said that the strategic cooperation between the company and Ali is in line with the company's goal of creating a fashion industry ecosystem and a multi brand platform.

City Beauty: Tencent, Jingdong and vip.com become strategic investors and establish cooperation fund with Jingdong.

Like Hai Lan's home, city beauty has announced strategic cooperation with Internet companies and introduced strategic investors.

In April 26th, the city beauty announced a total of 121 million shares to Windcreek (Jingdong indirect wholly owned subsidiary), image structure investment (Tencent wholly-owned subsidiary), vip.com and QuickReturns (wholly owned subsidiary of China Rui Holdings), with a subscription price of HK $4.2. The allotment shares accounted for 5.67% of the existing issued share capital and 5.37% of the issued share capital after the expansion.

Among them, Jingdong accounted for 56 million 50 thousand and 700 shares, Tencent accounted for 18 million 683 thousand and 600 shares, vip.com accounted for 18 million 683 thousand and 600 shares, and Sino Swiss holdings accounted for 28 million 25 thousand and 400 shares, holding 2.48%, 0.83%, 0.83% and 1.24% respectively.

The placement is net HK $509 million, which will be provided by the company as a group's sales and distribution channel reform, potential merger, acquisition and cooperation projects and general liquidity purposes.

In addition to the introduction of Tencent, Jingdong, vip.com and other Internet companies as strategic investors, urban beauty has announced the establishment of a joint fund with Jingdong.

In February 7th, the city beauty announced that the company's wholly owned Affiliated Companies Guangdong city beauty, Jingdong wholly owned Affiliated Companies century and Li Guocheng (as a representative of the fund management team) made major provisions.

According to the terms, the target size of the cooperative fund is expected to be RMB 1 billion yuan, and the scale of the fund will be expanded according to actual needs.

The first investment is expected to be no less than 350 million yuan, of which the Guangdong metropolitan beauty is expected to invest 250 million yuan, while the Jingdong century is expected to invest RMB 100 million yuan.

The fund management team may also contribute to the fund, but its contribution is not more than 5% of the total amount of the initial investment.

The investment target of the cooperative fund is mainly related to China's domestic and foreign companies involved in clothing brand, upstream and downstream and related peripheral industries.

The duration of the cooperation fund is expected to be 8 years and may be renewed for another two years, each time for one year.

The city beauty said in its announcement that it hopes to use its industry experience in the body clothing industry to carry out industrial funds that mainly invest in related industries at home and abroad for the industry mergers and acquisitions and resource integration suitable for group business.

Another popular clothing company Taiping bird announced a strategic partnership with the Internet giant last year.

In September 20, 2017, the Pacific bird announced the company's cooperation with Alibaba's Tmall in the new retail strategy.

In the future, the two sides intend to carry out new retail strategic cooperation in the field of brand building, big data application, consumer operation and online channel integration and international market development.

The company announced a double billion plan with ALI. The company expects to achieve retail sales of 3 billion yuan in 2017. By 2020, Taiping bird will open up new retail strategy cooperation with Tmall in the field of brand building, big data application, consumer operation and online channel integration.

Taiping bird said that the strategic cooperation intention between the company and Ali is in line with the company's brand new retail platform and the strategic layout of the channel.

Taiping bird 2017 annual report shows that 2017 of the year, the company achieved a net retail sales of 2 billion 166 million yuan (excluding returns), representing an increase of 35.6% over the same period last year, 1 billion 597 million yuan.

In 2017, on the day of "double eleven", the retail sales volume of the company's brand reached nearly 808 million yuan, and the retail sales increased by 31.4% over the previous year's "double eleven".

Among them, Pacific bird's men's daily sales exceed 328 million, ranking fourth in men's clothing category. Taiping bird's clothing sales exceed 208 million in single day sales, sixth in women's clothing category, Lok Chai's single day sales exceed 163 million, women's clothing category eighth, MiniPeace single day sales exceed 72 million, children's clothing category seventh, and MaterialGirl single day sales exceed 37 million.

Taiping bird said in its annual report that the company promoted the integration of online and offline channels, explored and co operated with Tmall in the new retail sector, expanded the interaction between the offline stores and online retail outlets, and opened up new businesses such as store purchase and store self purchase through commodity, payment and other dimensions.

In April 19th, Hong Kong shares issued a notice, the company signed a strategic cooperation framework agreement with Jingdong, the two sides will cooperate in the retail shop no boundaries, special intelligence stores, brand communication and other aspects of cooperation.

The announcement said that the two sides' cooperation will open up the online shop of red bean men's wear brand and create a consumer centric shopping experience.

The two sides will cooperate in the field of building "Digitized" operation system and creating new eco environment for clothing retailing. Through the functions of JPass, cloud POS, payment and so on, we will create "full touch point experience marketing, accurate marketing at all times, and full channel digital marketing". We will create intelligent red bean + Jingdong technology brand flagship store, and layout the national key first tier cities; the two sides cooperate to join the red bean Wan Hua City, and jointly choose the economically developed satellite towns with 100 thousand population as the development goal, together with the new town complex as the carrier, and create a shopping scene with convenient shopping experience and rich matching of life services.

The two sides will build a red bean Tanabata Cultural Festival, plan the annual super brand day, force the important business holiday (618, double eleven, double 12), and promote online and offline joint marketing.

Red beans said that the company signed a strategic cooperation framework agreement with Jingdong, through the application of big data, Internet and intelligent technology, to create integrated online and offline marketing, and promote the integration of the company's clothing business and the Internet.

In May 8th, HOSA International announced the launch of the indoor clothing and sports brand listed company. The company and Ali sports group jointly held a news conference in Beijing. The group will join hands with ALI sports in the whole of China to integrate online and offline, and carry out strategic cooperation in the apparel industry, sports service and big data.

The announcement said that after the group and Ali sports cooperation, Ali sports online platform will support the group's electricity supplier, and the Group sales network will also become the offline sports scene of Ali sports promoting new sports retail.

Ali sports online users can experience professional services and products under the group line, while the flow of group's online sales channels will be expanded.

At the same time, HOSA membership system and consumption data will interact with the platform supported by Ali sports. Ali sports rely on Alipay and other Ali platforms, and have "sports account" service products, which can turn the number of users' walking steps into Alipay's "calorie currency", and exchange or preferential purchase group sports related products.

The announcement also said that the group will jointly develop sports related products in line with international standard sports training courses with ALI sports, and promote it under the offline sales network of the group.

The two sides will cooperate in the marketing and landing of all kinds of sports events, and will also jointly excavate and operate the related services and products of intelligent sports cities everywhere.

In 2017, especially since this year, it seems that more and more garment enterprises have joined hands in the cooperation of Internet companies. There are not only the market value of Hai Lan home, Taiping bird and urban beauty, but also the case of large garment enterprises and Ali and Tencent departments. There are also a few smaller clothing companies that have a market value and a smaller channel than HOSA international. They also announced some strategic cooperation with the Internet giant, and I believe that more clothing enterprises will be seen by Ali and Tencent.

In view of the current situation, the cooperation between garment enterprises and Internet enterprises is mainly a combination of strong and powerful enterprises, which is a reflection of industry integration.

The cooperation between clothing enterprises and Tencent departments is more related to the level of capital. Tencent shares shares as strategic investors, such as Tencent's stake in Hai Lan's home, Tencent, vip.com, as a strategic investor in urban beauty, and the two sides also have the actions of establishing buyout funds and investment funds. In the future, "garment enterprises + Internet enterprises" will be the pattern of mergers and acquisitions of other garment enterprises or other enterprises in the field of mergers and acquisitions.

From a more macro perspective, in the past two years, especially since this year, the Internet giants represented by Tencent and Alibaba as strategic investors have repeatedly acquired entities under the merger and acquisition of shares, which has become another form of integration of industrial capital outside the traditional private equity investment institutions. The garment industry as a typical traditional industry is naturally "the first to bear the brunt".

Another way of cooperation is not to involve "strategic cooperation" at the capital level.

Of course, it does not mean that Ali will not become a shareholder or a merger.

Enterprises should be regarded as a "temporary" phenomenon.

From Ali itself, its recent M & A moves are dazzling and strong.

More importantly, cooperation with ALI will be introduced into the "new retail" framework mentioned by Ali, one of which is "integration of online and offline channels", which is a requirement or objective for the traditional offline entities and Internet companies.

Internet companies need to be "platform" or "connector", and for garment enterprises, they are also creating multi brand and multi category "ecosphere", requiring "one member" consumption experience, which can be seen as a new way of garment industry pformation and integration.

Semir clothing, another popular clothing company, has also mentioned that the emergence of new retail opportunities may be opportunities, such as the cooperation between Tencent and Hai Lan's home.

Physical brand and Internet economy become resources, choose each other and create new models.

Some people choose to actively explore the practice, and Semir will "carefully decide".

For the traditional clothing industry, there are new ways of pformation, integration, development and even exit, all of which are more choices and opportunities, and of course, I hope there will be better results.