There are some commonalities behind the clothing companies going overseas to “buy hands”
Behind the investment and acquisition of overseas brands that are “close” to the main business is the hope to expand multiple brands and categories through the acquisition of international brands.
Looking at the overseas M&A investment actions of apparel companies since the beginning of this year, they have basically continued the momentum of last year and presented diversified investment methods and actions. There are Shandong Ruyi Group who continue to “buy, buy, buy” overseas brands, which is determined by the corporate development strategy; there are also those who jointly acquire overseas brands, such as La Chapelle; and there are those who acquire the domestic brand channels of overseas brands, such as Jiumuwang; There are also companies that cooperate with overseas brands to expand the domestic market, such as Semir Clothing; and there are companies that have established joint ventures with companies with foreign brand resources to prepare to introduce foreign brands, such as Anzheng Fashion.
However, there are some commonalities behind the diversified investment methods.
For example, these overseas acquisition cases so far this year are basically mergers and acquisitions from the same industry, and they are closer to their own main businesses. Jiumuwang acquired a men’s clothing brand, La Chapelle acquired a women’s clothing brand, Semir Clothing cooperated with overseas children’s clothing channel brands, Anzheng Fashion said it planned to strategically cooperate with foreign luxury brands, and so on.
Behind the investment and acquisition of overseas brands that are “close to” the main business, there is naturally a common investment logic and purpose, which is to expand multi-brand and multi-category through the acquisition of international brands. This is reflected in the announcement documents of the above-mentioned clothing companies. It was mentioned that mergers and acquisitions can enrich the company’s brand categories and further enhance channel resources, and can even benefit in aspects such as supply chain, brand design, and retail capabilities.
All in all, behind the merger and acquisition investment of “international brands” is more for the expansion of the domestic market. Under the trends of consumption upgrading, channel upgrading, the continued sinking of the fashion consumer market and the recovery of the clothing industry, clothing companies are expanding in channels. , a natural choice in the process of market expansion, I believe that more clothing will join the ranks of “same main business” investment and acquisition of international brands.
Case 1: Jiumuwang acquired the domestic operating rights of Korean men’s clothing brands “ZIOZIA” and “ANDZ”
On April 19, Jiumuwang issued an announcement stating that Jiusheng Investment, the company’s wholly-owned subsidiary, will increase capital in Shanghai Xinxing Trading in cash, with the capital increase amounting to RMB 110 million. Xinxing Trading Group and/or KANAANCO., Ltd. exchanged U.S. dollars equivalent to RMB 12 million in cash and the “ZIOZIA” and “ANDZ” trademarks registered and legally held by Xinxing Trading Group in China (including Hong Kong, Macau, and Taiwan) The right (valued at RMB 20 million) to increase capital in Shanghai Xinxing Trading. After the capital increase is completed, Jiusheng Investment holds 70% of the equity of Shanghai Xinxing Trading, and Xinxing Trading Group and KANAANCO., Ltd. hold 30% of the equity of Shanghai Xinxing Trading.
According to information, Shinsei Trading Group is a company listed on the main board of Korea, and KANAANCO., Ltd. is the largest shareholder of Shinsing Trading Group. The ZIOZIA brand was founded in August 1995. Its main target customer group is young male consumers aged 20-30. The product style is high-quality formal wear. The main products include suits and shirts. In January 2013, Xinxing Trading Group and its related party KANAANCO., Ltd. established Shanghai Xinxing Trading in Shanghai to operate ZIOZIA, OLZEN, ANDZ and other brands. As of March 2018, Shanghai Xinxing Commerce has a total of 140 terminals in Jilin, Guangdong, Sichuan and other regions, and began operating the ZIOZIA brand online sales business on Tmall in 2014.
Jiumu Wang said that the company has obtained the operating rights of “ZIOZIA” and “ANDZ” brands in China through the capital increase this time, enriching the company’s brand matrix and helping to meet the diversified and personalized consumption needs of consumers. The company will use marketing channels to existing resources to expand the share of the “ZIOZIA” brand in the Chinese market, and said that the company’s existing brands and the “ZIOZIA” brand will have a synergistic effect in the supply chain, and will also provide opportunities for the company in the future through mergers and acquisitions, investments, joint ventures, cooperation, and agency. and other methods to lay the foundation for introducing other brands that meet the needs of target consumers.
Case 2: La Chapelle jointly acquired French women’s clothing brand NafNaf
On April 11, La Chabel announced that its wholly-owned subsidiary LaChaFashionILimited planned to invest 20.8 million euros to acquire the 40% stake in NafNaf SAS held by VIVARTESAS. Information shows that NafNafSAS was founded in France in 1973 and is mainly engaged in the sales of women’s clothing products and accessories. The company has a total of 494 stores in France, Spain, Belgium and Italy, including 216 in France and 278 overseas.
Lachapelle said that by investing in international clothing brands, it will enrich the company’s brand portfolio and implement the company’s multi-brand strategy, which will help the company share product planning, fashion design, supply chain management, terminal channels and other resources with international brands, and enhance NafNafSAS The feasibility of expanding the Chinese market.
La Chapelle stated in its 2017 annual report that the company will enter overseas markets through investment, mergers and acquisitions, while introducing high-end foreign products and brands into the country, and create a diversified multi-brand operation system through a multi-brand differentiation strategy. In 2018, the company will enrich its product line and expand market coverage by acquiring excellent domestic and foreign brands and companies.
Case 3: Semir Clothing “joins forces” with BeijingBEAUTY THECHILDREN’SPLACE
On March 20, Semir Clothing announced that the company reached a strategic cooperation with THECHILDREN’SPLACE INTERNATIONAL, LLC on March 19, 2018. The company will develop and operate THECHILDREN’SPLACE business directly and through retailers in China, including Hong Kong, Macau and Taiwan. According to the agreement, the two parties reached a long-term strategic cooperation agreement.
The term of the agreement is divided into three stages: the first stage is 5 years, the second stage is 5 years, and the third stage is 10 years. During the agreement period, THECHILDREN’SPLACE authorizes Semir Clothing to use its trademarks, other intellectual property rights and proprietary technologies in China. Semir Clothing will purchase products from THECHILDREN’SPLACE and, in order to meet the needs of the Chinese market, will carry out independent design, development, production and sales. , and conduct business through direct sales, retailers and e-commerce omni-channel methods.
It is understood that THECHILDREN’SPLACE is the largest professional children’s clothing retailer of all ages in North America. It operates 1,200 directly operated and franchised distribution points in 22 countries including the United States, with annual revenue exceeding 12 billion yuan (US$1.9 billion). Semir Clothing said that “TheChildren’sPlace” brand under THECHILDREN’SPLACE and the “Barabala” brand under the company are the largest professional children’s clothing brands for all ages in North America and China respectively. The company’s cooperation with THECHILDREN’SPLACE will expand the company’s children’s business through collaboration and cooperation between the two parties in terms of products, design, supply chain, channels, retail, etc., and will promote the implementation and development of the company’s multi-brand strategy and promote the company’s children’s business. The construction of industrial clusters and enriching children’s industry brands.
Case 4: Anzheng Fashion established a joint venture subsidiary to operate foreign clothing brands
On February 12, Anzheng Fashion announced that the company and Runxiang (Macau) Co., Ltd. planned to establish Jinrun International Clothing (Zhuhai) Co., Ltd. Jinrun International has a registered capital of RMB 20 million. Anzheng Fashion invested RMB 11 million with its own funds, accounting for 55% of the registered capital of Jinrun International. Runxiang Company invested RMB 9 million or equivalent foreign currency with its own funds, accounting for 55% of the registered capital of Jinrun International. 45% of the registered capital of Run International.
Anzheng Fashion stated that the joint venture to establish a holding subsidiary is to leverage the partner’s long-term ability and resources to operate foreign brands, to jointly operate the development and marketing of foreign clothing brands in China, and to expand the collection of famous brand stores.
Anzheng Fashion stated in its 2017 annual report that 2018 is a year for investment in strategic directions. Improving the company’s brand matrix and making up for the lack of categories are the main directions of the company’s investment, especially as the country opens up to the “Second Age”. Under the premise that the children’s clothing market prospects are promising due to the “pregnancy” policy, the company’s main investment direction in 2018 will be children’s clothing. At the same time, it will continue to increase its attention to fashion brands, online brands, high-end brands, etc., and at the same time seek cooperation with foreign affordable luxury brands. strategic cooperation.
Case 5: Shandong Ruyi Holdings acquires Swiss luxury brand Bally
On February 9, the management teams of Shandong Ruyi Investment Holdings, JAB Holding Co. and Bally International, a footwear and footwear accessories company in Switzerland, announced the signing of a final agreement for Shandong Ruyi Group to acquire Bally’s controlling stake. Bally’s management team will reinvest in Bally as a minority shareholder, while JAB will retain a portion of the minority stake.
According to reports, Bally was founded in Schonenwerd, Switzerland in 1851. It mainly produces and sells luxury leather shoes (loafers, winter boots, etc.) and men’s and women’s clothing and accessories (including belts, handbags and wallets). The company was previously held by American private equity fund TPG and was acquired by JAB for US$650 million in 2008.
Ruyi Holdings said that after the acquisition, it will maintain Bally’s tradition and unique characteristics, maintain its headquarters in Caslano, Switzerland, and continue to operate its marketing, design and sales teams through its display platform in Milan, Italy. (Title: There are some commonalities behind the trend of clothing companies going overseas to “buy hands”)
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
