Fosun Or Will Fully Control German Clothing Retailer Tom Tailor

According to fashion media Fashion United, Fosun International Group will fully control German apparel retailer Tom Tailor. At present, Fosun holds about 29% of the retail business.

Fosun has yet to respond to this message.

Fashion United reported in the report that before that, Fosun made a statement to the European Commission on 21 December 2018, saying that because the attendance rate of Tom Tailor shareholders' meeting is getting lower and lower, Fosun may be passively obtained the actual control of Tom Tailor.

Recently, the European Commission has passed the application of "separate control" of Fosun.

The Tom Tailor group was founded in 1962 by Hans-Heinrich P njer, and has two brands Tom Tailor and Bonita, all of which are fast fashion brands.

Compared with Zara, H&M and other brands, popularity is not high.

At present, the Group operates more than 1200 stores in 31 countries, and the latest report is the third quarter of 2018, with a net loss of 300 thousand euros in the quarter.

Fosun bought 23.16% of Tom Tailor group in 2014, and helped expand its market in China.

At that time, it was the third attempt of the group to enter China.

Tom Tailor group's first Chinese market journey was in 2003. At that time, China's fast fashion market was almost blank, and strong competitors such as Zara and H&M had not yet opened up China's war situation.

Tom Tailor group opened counters in department stores through the form of agents.

But because Chinese consumers lack the concept of fast fashion, and Tom Tailor group lacks market promotion, it is difficult to compete with local brands in department stores.

At the end of 2006, China chose to withdraw from the Chinese market due to poor performance.

Later, Zara, H&M, UNIQLO and other fast fashion brands entered China one after another, and the first and second tier cities were rapidly distributed. Fast fashion began to become an important part of China's clothing market.

Tom Tailor group again tried to enter the Chinese market through agents in 2012, and opened a flagship store in Xidan, Beijing.

But at that time, there was no clear shop plan, and the store was closed.

It was not until 2014 that Fosun's entry was reversed that the Tom Tailor group finally stabilized in the Chinese market.

In December 2015, the first Chinese flagship store in Tom Tailor was officially opened in Shanghai.

Tom Tailor CEO Dieter Holzer said at the time that she had no intention of breaking the competition in the Chinese market. The task at this stage is to understand the market and to adjust the strategy of opening up according to the market feedback.

This strategy is very cautious compared with other ambitious European fashion trends.

This may still be related to the efficiency and planning of the brand itself.

On the one hand, the new speed of Tom Tailor is at a low level in fast fashion, about 400 times a month.

On the other hand, Tom Tailor is more likely to find franchisees, and the proportion of franchisees and self run stores is kept at 7:3.

Holzer said: "there is no difference between the two in support and operation systems, and no reduction in market reaction."

However, in the current market awareness, the existence of Tom Tailor is still weak.

After the turmoil in Germany's clothing industry over the past year, Tom Tailor's share price fell to its lowest level in January 29th, at 2.42 euros per share, down nearly 80% from a year ago.

This may be a good time for investors who want to get in.

But whether the Tom Tailor group can maintain sustainable development in China's fast fashion market, investors need to be cautious in judging.

Lanvin

Fosheng, a frequent international takeover, now has many overseas brands.

France luxury brand Lanvin, Austria high-end underwear brand Wolford, Italy men's wear Caruso, Israel cosmetics company Ahava, American women's wear brand St. John and Greek fashion group Folli Follie.

But these brands did not develop smoothly. Folli Follie fell into a financial fraud crisis last year. The position of Lanvin creative director has been unstable in four years. It was not until January 21st of this year that the new candidate was identified as Bruno Sialelli, director of Loewe menswear design.