The First Quarter Of The Apparel Industry'S Investment In Mergers And Acquisitions Is Increasing Horsepower, Which Is Expected To Become More Obvious In The Future.

From the first quarter of this year, almost every month, news of garment enterprises investing in mergers and acquisitions has been reported. Many garment enterprises are increasing horsepower and continuing to expand the industry chain horizontally and vertically through mergers and acquisitions.

It can be said that the apparel industry has continued to boom in investment and acquisitions since last year.

And what new trends or trends can we find in the first quarter of the merger and acquisition events in the local garment industry?

In January 8th, Semir clothing announced that the company intends to sign a joint venture contract with Kidiliz Group, and jointly invest in the establishment of joint-venture company, happy chestnut (Shanghai) Co., Ltd., and jointly promote the brand of Kidiliz Group and sell its products and develop related businesses.

The registered capital of the joint venture company is 30 million yuan, and Semir costumes invested 21 million yuan in cash, accounting for 70% of the registered capital. Kidiliz Group invested 9 million yuan in cash and accounted for 30% of the registered capital.

According to the announcement, Kidiliz Group is a leader in the high-end children's clothing industry in Europe. It is located in Paris, France. It has 10 own children's wear brands and 5 authorized business brands, offering products from the middle to the high-end, from the newborn to the young.

The company intends to invest in the joint venture with Kidiliz Group, and jointly promote the brand of Kidiliz Group and sell its products to promote the development of its business in the domestic market.

Semir apparel said that after the completion of the acquisition, the company will become an important participant in the global children's wear industry. It has a brand portfolio of children's clothing from the public to the high-end. It has the ability to enter and operate in the main markets of Europe and Asia as well as other international markets, and has the layout of the whole ball supply chain.

In January 10th, two announcements on the launch of brand names for infant, clothing, cotton and daily necessities were announced. They announced a cooperation agreement with the O8 series of mother and baby brands and the Umee feed series products in Holland. According to the agreement, the blonde is responsible for the brand promotion, sales and matching of after-sales service of the whole series of O8 brand under the O8 brand and the whole series of products under the Umee brand, and become the exclusive authorized producers and distributors of the two brands in China.

The company intends to set up a joint venture with these two brands to inject the brand trademark and patent and intellectual property into the joint venture and expand its sales in China and even in the world.

According to the announcement, the O8 ISRAEL LTD, a brand owned by the Israeli O8 brand, was founded in 2013 and has the technical advantage in the functional R & D of maternal and child care products. It is the first owner of the world's first invention patent holder for the use of Dunaliella salina from Dead Sea.

Right View Limited, a brand owned by Umee brand in Holland, has advantages in the design and development of bottles and nurturing supplies, especially in the development of functional upgrades, such as bottle inflation.

Blonde Rabbi said that the introduction of Israel O8 brand and the company's existing babbrabi infant care brand to form a complementary effect, the introduction of Holland Umee feed series products and the company's existing maternal and child products series to form a complementary effect, will gradually realize brand diversification and internationalization, cooperation widened the company's brand and maternal and child care products line, enriched the company's product category, increase the company's profit growth point.

In January 31st, Invista, the polymer and fiber supplier of America, announced that it had sold the clothing and senior fabric business of one of the four major business segments of the company to a subsidiary of Shandong Ruyi investment holding group.

After the completion of the paction, the new Lycra group will be established as the controlling shareholder.

The Lycra group will operate independently and maintain its unique positioning, vision, development strategy and organizational structure.

Ruyi and Invista's original shareholder, Coriolis industrial group, will continue to work closely together to help and ensure smooth pition and handover after the paction.

Invista is one of the world's largest manufacturers of chemical intermediates, polymers and fibers. Its headquarters is located in Wichita, Kansas, USA. It has more than 50 branches, offices and factories all over the world.

It is famous for R & D of nylon, spandex, polyester fiber and special materials. Its products are widely used in various kinds of daily necessities such as garments, carpets, automobile airbags and so on.

The Invista business involved in this paction includes Invista clothing business related fiber and brand product portfolio, global relevant production plants, R & D centers and sales offices all relevant technology, operation, business and functional personnel.

Invista reserves its nylon, polyester, polyol and technology licensing business and related brands, and continues to undertake licensing technologies related to technology worldwide.

Fuxing Group's fashion platform Yu Garden shares announced recently that it has completed the acquisition of International Gemological Institute of the international gemstone Institute to speed up the deep ploughing and global layout in the diamond industry.

Founded in 1975, IGI is headquartered in Antwerp, Belgium. It is a famous gemstone training and jewelry identification agency. Currently, there are 23 laboratories and gemstone colleges in the world.

Besides identifying and evaluating gemstones and diamond jewelry, IGI is also known for its gemstone Institute.

Gemstone College offers courses such as precision drilling, rough diamonds, colored gemstones, pearls and retail support.

In February 14th, the company's board of directors announced that the motion adopted by the board of directors of the board of directors approved the adoption of the motion on foreign investment and capital increase of Shenzhen Xinyu Baby Clothing Co., Ltd., which agreed that the company will increase its capital by 24 million yuan in cash and Xinyuan baby, and subscribe Xinyu baby to add 2 million 500 thousand yuan in registered capital. After the capital increase is completed, the company will have a 20% stake in Xinyu baby.

Xinyu baby owns sun mouse Sunroo brand business, core personnel, trademark rights, patent rights, domain names and other intangible assets, and independently runs sun mouse Sunroo brand.

According to Ann, this foreign investment is beneficial to nurturing the company's new profit growth point and enhancing the company's market competitiveness and profitability.

Sunshine mouse Sunroo brand has a certain brand awareness and reputation in the baby market, and can cooperate with the company's Ying Xiaotong products.

The brand's endogenous growth is relatively high, so the company will still focus on the brand of the brand. The brand development is considered to be complementary to the company and has a certain reputation to achieve the brand of collaborative development with the company.

In February 15th, the contract signed a cooperation agreement between Kitsune and France to jointly invest in the establishment of a joint-venture company, fox (China) Limited. In the mainland of China, Hongkong and Macao, the business of Maison Kitsun Ye brand and Kitsun e brand clothing, accessories, bags, cosmetics and perfume products will be carried out.

Nine Mu Wang invested 76 million 500 thousand yuan, holding 50% stake in the joint venture company; Kitsune intends to operate in the area including, but not limited to clothing, accessories, bags, except coffee, perfume and cosmetics category of the ownership of the trademark rights, holding 50% stake in the joint venture company.

The company will implement the strategy of "platform, multi brand and all channels" to build a Seiko quality platform, fashion quality platform and personality trend platform around the main garment industry.

The establishment of a joint venture company can enrich the company's fashion quality platform brand matrix, the company will help Kitsun AI brand quickly open the Chinese market.

The logo is a small fox's Kitsun e brand, founded in 2002 in Paris, France. It includes three major series: seasonal Maison Kitsun e, classic Paris style Maison Kitsun Parisien, and ACIDE Maison Kitsun Kitsun of neutral art design.

The Maison Kitsun brand has 17 independent stores and more than 400 retail outlets worldwide, which are sold on the Endclothing, Matches Fashion and Ssense business platforms.

As of March 2018, the revenue of Kitsun e France was 18 million 310 thousand euros, and its net profit was 950 thousand euros.

Among them, the Maison Kitsun clothing series accounted for 90% of the revenue, while the rest were music label and coffee shop Caf e Kitsun.

In March 25th, the Ke Eli Till group issued a notice that it would buy all Keen Reach shares from the Apex Noble Holdings Limited at a price of HK $2 billion 390 million (about 2 billion 50 million yuan), a discount of 10% compared with the overall assessment value given by the assessment agency, of which HK $500 million was paid in cash, the remaining part was paid on the issue of shares of listed companies, the price was HK $9.5 per share, 198 million new shares were issued, accounting for 29.01% of the total share capital expanded.

After the completion of the acquisition, Keen Reach will become a wholly owned Affiliated Companies of Ke Eli Till. Its performance, assets and liabilities will be incorporated into the group account. The Letil Holdings Limited is officially renamed the winner fashion Holdings Limited.

Keen Reach is a limited company incorporated in the British Virgin Islands, mainly engaged in investment holding, through the Warren and domestic operations Affiliated Companies ORENA holds Shenzhen city's Fashion Co., Ltd.

Nals Fashion Co., Ltd. was founded in 1994. It owns 3 private brands, including NAERSI Nals, NAERSILING en Ling and NEXY.Co naikou, aiming at women who are economically strong at the age of 30~45.

Ke Eli Till owns Koradior, La Koradior, Koradior Elsewhere and DE KORA and other private brands, and successfully landed on the Hongkong motherboard in June 2014 to become the first high-end female garment company in Shenzhen.

Ke Eli Till group said that the acquisition is of great significance to the development strategy of group diversification and multi brand matrix. By integrating the strong design and product development capabilities of the two groups and the synergy effect of the appropriate retail management system, the group can save operating costs, enhance profitability and enhance its recognition and popularity in the high-end women's clothing industry in China.

Taking a look at the merger and acquisition events of garment enterprises in the first quarter of 2019, it is easy to see that after several years of pformation and adjustment, the garment industry has come to a revival, and every sub sector has the potential to become a leading enterprise.

And many garment enterprises are increasing horsepower, and constantly expanding the industry chain through horizontal mergers and acquisitions to enhance their competitiveness in the segmented industry.

It can be said that the apparel industry has continued to boom in investment and acquisitions since last year.

Specifically, Shandong Ruyi and Fosun two major fashion groups are still very active, aiming at overseas markets to implement M & A; 9 Mu Wang, Semir costumes and blonde Rabbi are mainly joint ventures with international brands to further expand and enrich their product lines; through the addition of capital to shares of similar brands in China, he has increased the synergy effect of Group brands; the acquisition intention of Ke Letil is obviously expanding the size of the group so as to occupy more market share and enhance the overall competitiveness of the group.

Although these enterprises have different scale of revenue and different subdivision industries, the actions of investment and merger are different, but a common trend is to expand and spread around the main business.

Undoubtedly, the merger and acquisition of brands by clothing enterprises and the construction of multi brand comprehensive groups are the main paths for enterprises to become bigger and stronger.

Compared with the self innovation brand, the brand that matures and has a certain market reputation will be less risky for the company's future expansion. At the same time, it can enrich the company's multi brand camps, widen and enrich the product line, and help the two sides to complement each other in the fields of channel and brand promotion.

This trend can be seen in the first quarter of this year.

However, whether horizontal or vertical mergers and acquisitions in the industry, or the cross-border development of mixed mergers and acquisitions, all need to conform to the development strategy and capital logic of enterprises, and also need to adhere to, optimize and expand the traditional industries of garment enterprises.

With the further promotion of the market reform of mergers and acquisitions, resources can be reorganized and regenerated under the driving force of capital. It is expected that the trend of the integration of garment industry will become more obvious in the future. The merger and reorganization, pattern differentiation and industrial convergence of the listed garment enterprises will become the norm, and the business rule of the stronger and the survival of the fittest will remain irrefutable and become the rule of survival in the industry.