Service Enterprises To Increase The High-End Segment Market: Anta Acquisition Of Amamin Jiangnan Buyi Push SAMO

Clothing enterprises in pursuit of brand "younger" at the same time, also reflects another trend, that is, "high-end brand", through investment and mergers and acquisitions and other means to overweight high-end segment market.

The last few

The trend of M & A investment or capital operation reflects this trend.

Semir Costumes: to invest $5 million to subscribe to JASON WU, a women's clothing brand.

In September 13th, Semir clothing announced that the company intends to sign the subscription agreement with JWU and LLC.. According to the agreement, the company intends to subscribe to JWU at $0.70 per share and 7104140.37 shares in the new issue of LLC., totaling 5 million yuan, or 34 million 273 thousand yuan.

After the capital increase is completed, the company will hold JWU, LLC. 11.00% stake.

The announcement also announced that Semir apparel is going to enter into a joint venture contract with JWU and LLC., and jointly invest in the establishment of joint venture Jason Wu (Shanghai) Garments Co., Ltd., and jointly develop and operate related businesses in the China, Hongkong Special Administrative Region and Macao Special Administrative Region, including the promotion of JASON WU, GREY JASON WU and JWU, LLC. related brands developed in the future, and the design, production and sale of the series of brand products and business other than perfume products.

The registered capital of the joint venture is RMB 60 million yuan.

Among them, Semir

45 million yuan was invested in cash, accounting for 75% of the registered capital. JWU, LLC. invested 15 million yuan in intangible assets, accounting for 25% of the registered capital.

According to the announcement, JWU, LLC. was founded by the young Chinese fashion designer Wu Jigang in the United States, and Wu Jigang is also the founder of the "JASON WU" high fashion brand.

The JASON WU brand was founded in 2007, and is located in high-end clothing for women's high-end garments. The products are mainly aimed at 25-40 years old.

Women with economic foundation.

At present, JASON WU brand is mainly sold in high-end shopping malls and boutiques.

According to the accounting standards of the United States, JWU, LLC. 2017 annual financial report shows that in 2017, the total assets of the company amounted to $22 million 786 thousand and 300, the total liabilities amounted to $3 million 936 thousand, operating income was $9 million 811 thousand, and net profit was 5 million 557 thousand and 700 dollars.

Semir apparel said that this external investment can enrich the company's brand matrix, promote the construction of high-end international brand, expand the international brand layout of the company, and promote the development of business in the domestic market.

Pathfinder: to increase investment by 250 million yuan and increase 500 Discovery Expedition shops

In September 12th, the Pathfinder issued a notice to change the use of part of the fixed increase funds, and to invest 250 million yuan in fixed investment to invest in new projects. The new project is entitled "DISCOVERY EXPEDITION brand marketing network construction project", and plans to open 236 direct outlets and 300 franchised stores nationwide.

Prior to the company has terminated the green field outdoor travel O2O project, outdoor goods vertical electricity supplier project, outdoor safety assurance service platform three projects.

Statistics show that the Discovery Expedition brand was founded in 1985 by Discovery Enterprises International (DEI), which is under the Discovery Communications of the US Discovery, and is currently located in "outdoor artists".

Notice that the Discovery Expedition brand is positioned in the high-end high-end outdoor fashion brand, has been in the country for nearly 5 years of development, based on domestic outdoor products

In the future, the gradual recovery and the next round of growth is about to open and consumer preferences are gradually broken down. The company plans to invest more resources in this brand.

Pathfinder said that since the Discovery Expedition brand started operation in China in 2013, its sales revenue is mainly achieved through online platforms, while the scale of offline outlets is relatively small.

As of June 30, 2018, the total number of wired shops in the whole country was 1439, among which the total number of shops under the TOREAD line was 1253, the total number of shops under the Discovery Expedition line was 171, and the total number of shops under the TOREAD KIDS line of the Pathfinder children's clothing store was 15.

Pathfinder plans to invest 250 million funds in 3 years to open 536 stores under the Discovery Expedition line.

Plans to set up 236 outlets, including Shopping Mall, 84, 25 outlets, 126 stores, 1 airport stores, and seven key cities such as Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Qingdao and Tianjin.

Fujian, Gansu, Guizhou, Ningxia, Shaanxi, Jiangsu, Zhejiang and other eight provinces / autonomous regions, plans to open 300 stores, of which Shopping Mall has 60 outlets, outlets set up 80, shopping malls and Sports City 150, 10 Street shops, and open up other cities in one or two and three cities across the country.

Anta Sports: 4 billion 700 million euros to buy high-end sports outdoor brand group Amer Sports

In September 12th, Anta sports announced that the board confirmed that the company, together with the private equity investment fund, has issued a preliminary intention of non binding to Amer Sports, a sporting goods company in Finland. The total share of Amer Sports will be acquired in cash by the price of 40 euros per share.

Notice that the company has not yet signed any final agreement, nor can it guarantee that any paction will be completed or completed.

Amer Sports also confirmed that it had received 4 billion 700 million euros (about $5 billion 500 million) acquisition proposal from Anta sports company and Asian private equity investors, but has yet to make any decisions.

Statistics show that Amer Sports was founded in 1950, and has many well-known and high-end sports subdivision brands, including outdoor products, Arc, teryx, ski equipment brand, altmic Atomic, climbing shoes brand Salomon Salomon, sports watch brand, "Tuo Tuo Suunto" and tennis racket brand Wilson Wilson.

Anta sports said in its mid 2018 report that the company noted consumers' "sports and leisure".

And the demand for "functional", "differentiated" and "high-end" products.

High end consumers tend to pay attention to details and enjoy personalized products.

Anta sports said that the brand FILA and DESCENTE of the company were located at the top end respectively.

And the professional sporting goods market, FILA KIDS is targeting high-end children's market.

The shops of DESCENTE, FILA and FILA KIDS are mainly in the first and second tier cities, mainly in shopping centers and department stores.

By the end of 2018, the total number of FILA stores in China, Hongkong, Macao and Singapore, including FILA KIDS and FILA FUSION independent stores, will reach 1400 to 1500.

The number of DESCENTE stores in China is expected to reach 100 to 110. KINGKOW is expected to have 60 to 70 stores, and SPRANDI expects to have more than 100 shops, while KOLON SPORT expects 200 to 210 stores.

Anta sports said that the company will continue to implement the strategy of "single focus, multi brand and all channels", and enter the market from professional to sports and leisure sports goods, from high-end to mass market, and from the popular sports such as running, comprehensive training, basketball, skiing and outdoor to achieve the "full coverage" of consumers.

The company will continue to identify opportunities for acquisitions and cooperation of international sporting goods brands.

Jiangnan cloth clothing: the introduction of men's clothing designer clothing brand "SAMO" and fashion environmental protection brand "REVERB".

In June 19th, Jiangnan cloth dress announced that the group launched a fashion environmental brand "REVERB" in China to cooperate with the strategy of multi brand expansion, and diversify its business through diversification of brand and category combination.

REVERB takes the Circular fashion as the brand philosophy, and the design concept is "Athleisure, no gender, regeneration and flexibility".

This is the second subdivision brand launched by Jiangnan Buyi this year.

In April 20th, the company announced that the group launched a new fashion designer clothing brand "SAMO" in China.

SAMO regards "simple, but better (Simplified, but better)" as the brand philosophy. Its target customers are pioneers professional men, with the design concept of "elegance (Elegant), simplicity (Simplified), fun (Charming), and utility (Versatile)".

Jiangnan Buyi believes that the introduction of the above two new brands is the implementation of the multi brand business operation strategy and the horizontal expansion of the sportychic market and the subdivision of men's clothing market. It will add vitality and synergy to the diversified brand portfolio and the overall business of the group.

In the recently released 2017 to 2018 financial year's annual report, Jiangnan Buyi said that the company's products were aimed at middle and top income customers. During the period from 2005 to 2011, the company expanded its brand portfolio to include CROQUIS (sketch), JNBY by JNBY and less. During 2016 to 2018, it launched more brands, including juvenile designer brand Pomme de terre (Peng MA), designer home brand JNBYHOME, and the designer dress brand SAMO mentioned above and the fashion environmental brand REVERB mentioned above, making the company's brand and category combination more diversified.

City Beauty: cooperate with China to develop men's body clothing and women's sports underwear.

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.

According to the announcement, the Tianjin metropolitan beauty and Affiliated Companies of China, a wholly owned Affiliated Companies of the metropolis, entered into a shareholder agreement with a wholly owned Affiliated Companies, kappa, and established a joint venture company, mainly engaged in design, research, development, production, procurement, marketing and sale of men's personal clothing products and women's sports underwear in China.

Among them, Tianjin urban beauty invested 15 million, held 75%, and Shanghai kappa contributed 5 million, accounting for 25% of the shares.

Tianjin city beauty is responsible for management and operation. Shanghai kappa is not involved in the work.

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.

This can be seen as the action of urban beauty to develop underwear market segments.

The garment enterprises that cooperate with urban beauty are not only a company in China.

Recently, the city beauty announced that the Guangdong Affiliated Companies Beauty Group entered into a framework cooperation agreement with the kin Sheng group in September 7, 2018. Accordingly, the contractors intend to use their respective advantages to produce and distribute cotton socks and other products.

Kin Sheng group invites Guangdong city beauty to invest in 20% of its new production plant, while Guangdong city beauty has agreed to invest.

Guangdong city beauty will set up a sales company to purchase and sell the cotton socks products produced by the production plant, and invites Jian Sheng group to invest 20% of the sales company, and the group has agreed to make investments.

The "motivation" behind the high-end segment market

Looking at the trend of brand operation in garment enterprises over the past two years, there are basically two "trends". One is to be younger, to introduce a younger, styled sub line brand, or to merge the brand of "light luxury" concept, to move closer to the younger group; the two is high-end, mergers and acquisitions or the introduction of high-end subdivision, niche professional brand.

The recent events of M & A investment or capital operation reflect the latter trend.

Semir clothing and Anta sports as popular clothing brands, are interested in the acquisition of foreign high-end brands.

The Pathfinder "return to the main industry", plans to invest more in the high-end outdoor brands, and open more physical shops.

The reason behind this is, of course, the changes in the consumer market.

Under the background of the upgrading of consumption, clothing brands are facing younger consumers and face more powerful consumers. As a whole, clothing companies are facing a more deep and thick consumer market.

But for a consumer brand, competition is also upgrading at the same time.

A brand competitor is not a consumer, but a brand.

Whether the brand is younger or the high-end brand is part of the multi brand operation, it is the embodiment of "attack" and "Shou" in the market, guarding its own base, opening up more markets and occupying more resources.

For example, it can be considered that the high-end quality channels are scarce, and the high-end segmentation brands can increase the "chips" for enterprises to enter higher quality channels.

For example, pushing young brands is also viewed as a "defensive trend" in some ways. Consumers may think that the main brand of an enterprise is "aging" and needs new tonal.

This is particularly evident in some men's clothing enterprises.

Generally speaking, the high-end market segmentation of garment enterprises is a reflection of the upgrading of the clothing brand behind the upgrading of the consumer market, and a reflection of the further improvement of the market concentration of the garment industry.

Just as many clothing enterprises emphasize in the investment reason, how the new brand can better integrate with the development strategy of enterprises and produce the "synergy effect" determines the success or failure of the new brand operation to a large extent.