The Capital Market Is Heating Up. Many Domestic And International Well-Known Brands Of M & A Show Several Major Trends.

Entering the 2018, we can see that under the drive of consumption and capital upgrading, garment enterprises have promoted the horizontal and vertical expansion of the industrial chain through mergers and acquisitions, accelerated the spanformation and upgrading of the main business, and sought new profit growth points. Moreover, under the infiltration and catalysis of capital, the combination of industry and capital is becoming more and more closely. Garment enterprises will also develop and compete at more yuan and more complex levels.

Speed up the layout of high-end fashion

With the upgrading of consumption, the pursuit of personality and quality of Chinese consumers is increasing. More and more Chinese enterprises have shown great interest in becoming the owner and operator of high-end apparel LOGO. Just in the past two years, Bally, Wolford, Mr Mrs & Italy, Karl Lagerfeld, or these high-end brands with reputation outside or relatively small, are showing the image of Chinese capital.

Among them are Jingdong giants such as electronic giants, equity investment funds such as Hongyi capital and seven wolves, which are traditional costumes. At the end of 2016, Jingdong invested $397 million in the world's leading fashion boutique shopping platform Farfetch and became one of its largest shareholders. Jingdong's investment in Farfetch has increased by more than 3 times that of Farfetch2017. In August 2017, the seven wolves went to the next city to get the 80.1% stake of Chanel designer, Karl Lagerfeld, with the price of 320 million yuan. In October of the same year, Hongyi capital signed an agreement with Italy Magnolia holding company to acquire the 30% stake in Italy's high-end Parker coat brand Mr & Mrs Italy.

Until February 9, 2018, nearly a year after the sale of the autobiography, Switzerland's 100 year luxury brand Bally fell to Shandong, and the determination and action of Chinese enterprises to acquire their own brand matrix by the acquisition of international luxury goods giants has already been put in front of the whole world. It is reported that in addition to Japan's Itochu trading company, previously appeared on the list of Bally bidders on the list of enterprises, including Fosun international, seven wolves, Herme group, such a neat Chinese legion, so that the sale of Bally has become one of the most competitive luxury brands in recent years.

In May 17th, the core management positions of Hongkong Trinity Ltd. Bang Bang Holdings Limited were formally taken over by Shandong Ruyi group. As far as Shandong is concerned, its acquisition path has gone through, from 2011 to 2013, it focused on the upstream of the industrial chain, and then significantly increased investment in the brand. The current purchase target runs through the entire industrial chain, involving upstream raw materials, manufacturing enterprises and brand clothing. Qiu Yafu, chairman of the board of directors, said at the 45th anniversary celebration of Ruyi science and technology, "Ruyi has invested 36 billion yuan in the world". This figure has not yet included the latest two acquisitions, including Bally.

Although these enterprises have their original intentions and tactics when purchasing brands, the common layout is China's fast growing high-end consumer market.

Horizontal and vertical expansion of industrial chain

Since this year, the pace of Semir's investment in mergers and acquisitions has accelerated, and a series of investment and acquisition actions for children's clothing business have been launched successively. The most recent merger action was that Semir clothing announced in May 28th that the company signed a cooperation framework agreement with all parties of Wenzhou jaino Garments Co., Ltd., with a registered capital of 45 million yuan and jointly invested in the establishment of a joint venture Zhejiang Sen Le dress limited company. After the establishment of the joint venture company, Sen Le dress will buy the registered trademark and some equipment of Wenzhou's brand "COCOTREE", so as to speed up its operation.

Data show that the "COCOTREE" brand was founded in 2002, is a domestic research and development of juvenile brand, product positioning in the 7 - 16 years old, as of now, has 143 stores. Semir said that this external investment and purchase assets conform to the implementation and development of the multi brand strategy of the company, expand the juvenile clothing market, enrich the company's brand matrix, and help build a big platform for Semir development through implementing the partnership mechanism.

Recently, Hai Lan's home purchase and acquisition of Shanghai Hanyin officially settled and became the largest shareholder of Hanyin with the absolute advantage of 64.1623% shares. It is estimated that the cost of Shanghai Hanyin 64% shares has exceeded 500 million yuan.

Statistics show that Shanghai Hanyin Information Technology Co., Ltd. was founded in 2006, committed to the development of mobile e-commerce and mobile payment, providing solutions for banks, financial companies, telecom operators and e-commerce enterprises. According to the analysis of the insiders, although Hai Lan's home operates an electronic commerce website of Hai Lan's home, it is basically self operated. Unlike vip.com, Jingdong, and so on, there are third party sellers who have settled in the electricity supplier. The demand for payment compliance is not so strong, unless they are preparing for the later expansion of website merchandise and businesses.

In June 13th, Hai Lan's home announced that it was approved by the SFC to issue 3 billion yuan of Switching Company bonds. With this financing, Hai Lan's home is expected to have more investment, acquisitions and expansion actions.

It has also announced recently that the company has entered into a joint sale and purchase agreement with Nanjing Xinjiekou and Target Corp House of Fraser Group Limited. It intends to spend HK $754 million (about 612 million yuan) to purchase the shares of Target Corp House of Fraser House 34%, which owns and operates the old brand store brand House of Fraser in Nanjing, Xinjiekou, and to subscribe for HK $747 million for new shares. House of Fraser Group Limited provides men, women, children's clothing, footwear, accessories, etc. for the Department Store Group in Britain and Ireland. According to the announcement, the acquisition will further strengthen the influence of the company in the Chinese retail market, and promote the company to lay a good foundation for the blueprint of the new overseas brand and retail development.

"Pan sports" investment warming

In recent years, the investment and acquisition of garment enterprises in sports market has been warming up. Investment targets include diving swimming, sports culture IP, professional outdoor sports, fashion sports products, sports underwear, parent-child sports and other fields, and are increasingly widely and subdivided.

In June 5th, the Sino submarine shares specializing in the production of ocean diving equipment announced that the company intends to sign a framework agreement on the acquisition of shares with the new three board swimming products enterprises blue blue sports shareholders, and intends to acquire shares of azure sports not less than 55.33%. In the case of successful acquisition, the company will improve the company's industrial chain and enrich its product line, which is conducive to giving full play to the resources and advantages of the company in the field of diving equipment.

In May 30th, the company announced that the company signed the "Internet + pan fashion sports industry" on the same day with Xinhua network Limited by Share Ltd and Ali Sports Co., Ltd., traced to China's 4 flexible intelligent manufacturing and big data new retail cooperation agreement. The three parties jointly promote and create the Internet + pan fashion sports industry, which traced to China's 4 flexible intelligent manufacturing and big data system. The signing of the agreement can broaden the scope of the company's design services, and design innovative products through the application of industrial big data to meet the user's personalized needs, he said.

In May 28th, PEAK sports CEO Xu Zhihua announced in a letter to all PEAK colleagues that PEAK sports will acquire OZARK, an outdoor sports brand. Data introduction, OZARK is a Swiss outdoor sports enthusiast HansShallenberger founded in 1996 brand, is a partner of the Chinese mountaineering team, in Hongkong, Shenzhen, Beijing, Shanghai and Hubei and other places of operation and production base. Xu Zhihua said that PEAK, which has always regarded "specialization" as its brand strategy, began with basketball. After decades of development, it has made further extensions in running, comprehensive training, campus, children and football. The acquisition of OZARK means PEAK's march into the field of outdoor sports.

In May 16th, business win global announced that global holdings of listed companies holding 95.45% stake in global star, through the global starlight's wholly owned subsidiary of APS's wholly owned subsidiary ActiveHoldings, LLC bought ASLUSA and ARS operating assets package for $7 million, the asset pack's self run brand is Active of the US Trend Sports brand. Shang win universal said that in 2018, the company will continue to invest in sports industry and cultural and educational projects. Through the introduction of related customer traffic in the gym and fitness mobile APP project, we will increase the sales revenue of the global star brand sports clothing and sports wear products, and support and promote the development of the main business of the company.

In March 30th, Sanfo announced that the company had earned 34 million of its own capital and gained 31.1927% of the equity interest in Shanghai's Culture Development Co., Ltd. After investment, the company will become the second largest shareholder of Shanghai music. According to the information, Shanghai smart Culture Development Co., Ltd. is a outdoor park operation and camp education and training company with the characteristics of outdoor, ecological, entertainment, education, parent-child and so on.

In the evening of March 21st, city beauty announced that the company set up a joint venture with China to jointly design, research, develop, produce, purchase, market and sell personal clothes at home. The registered capital of the joint venture company is 20 million yuan and shall be jointly funded by both parties. City beauty announced in the announcement that the company intends to further expand its revenue source and explore any synergy investment opportunities. The group hopes to cooperate with Shanghai kappa to jointly develop men's body clothing and women's sports underwear business.

The above enterprises can be divided into two categories, one is the clothing enterprises that belong to the sports field themselves, such as Sino Japanese shares, PEAK sports and Sanfo outdoor. Their investment and merger actions are mainly to expand the sports industry chain. The other is clothing enterprises in the non sports field. Their investment moves begin to "engage" sports market, such as the Bo Bao dragon, the Shang win world and the urban beauty. But no matter what kind of enterprises they invest in sports and sports fields, they are more extensive and more subdivided. This reflects that the sports culture market is gradually warming up under the background of the upgrading of consumption.

Promoting spanformation and upgrading of main business

Unlike the sustained development in the main industry, YOUNGOR said it would continue to focus on big consumption, big finance and big health in the field of investment and mergers and acquisitions, and promote investment business to spanform from horizontal diversified financial investment to vertical specialization strategic investment, thus forming an investment system with strategic investment, financial investment and industrial investment as the direction. The latest move is that the company announced in May 24th that in order to promote the spanformation of real estate business to health, pension and healthy towns, the wholly owned subsidiary of YOUNGOR real estate holdings limited won the right to use state-owned construction land in the CX06-05-02g plot of Ji Shi Gang Town, Haishu District, Ningbo, at a price of 75 million 96 thousand and 400 yuan. The plot is used for medical and health land. The total investment of the project is not less than 1 billion 700 million yuan.

Hinur is also accelerating the layout of tourism business. In June 6th, he issued a notice that the Limited by Share Ltd is planning a major asset reorganization and intends to acquire 100% stake in Lijiang ERON Garden Investment Limited and Lijiang Huilong Tourism Development Co., Ltd. through issuing shares or paying cash. The two sides signed the letter of intent for the spanfer of shares in June 4th. Located in Yunnan, Lijiang ERON Garden Investment Co., Ltd. and Lijiang Huilong Tourism Development Co., Ltd. are 100% holding shares of Guangzhou Xingxing Media Co., Ltd., Guangzhou Xingxing is wholly owned by Jun Hua Group Co., Ltd., and cedar holdings is a legal person and a major shareholder of Jun Hua group holding 71.5%.

Obviously, he is increasing the layout of cultural tourism industry and seeking new profit growth points. In March of this year, he issued a notice that the company intends to acquire 100% stake in Shangri-La Renhua Real Estate Co., Ltd. and 90% equity interest in Xi'an Tian Nan Cultural Tourism Development Co., Ltd., and the purchase price is 50 million yuan and 90 million yuan respectively. Hinur said that the acquisition of mature tourism projects is conducive to integrating existing tourism resources and business elements, and is a more efficient way for the company to cut into the tourism and leisure industry quickly. The acquisition will help to speed up the layout of the company's tourism business and meet the long-term strategic development of the company.

It is not hard to predict that with the release of policy dividends and capital. market It will accelerate the spanformation and upgrading through investment and acquisitions, seek new business breakthroughs, and seek new profit growth points. clothing Enterprise's choice. However, it should be noted that although merger and acquisition integration is the main way for most garment enterprises to become bigger and stronger, but at the same time of capital operation, garment enterprises also need to pay attention to finding suitable strategies for their own development, do well in the optimization and improvement of the main business, and avoid being big but not strong.