The Apparel Industry Has Very Rich Cash Reserves.

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INDOCHINO, a leading men's clothing company, announced that it had won the investment of 4200 million yuan (about 200 million yuan) from Dayang creation group, a Chinese garment maker.

In addition to investment, INDOCHINO also signed a five year cooperation agreement with Dayang creation group.

China Apparel Association has recently said that the Chinese garment industry has entered the era of "big brands' survival of the fittest". During the "13th Five-Year" period, China must support genuine big brands if it wants to pform from "big clothing country" to "strong clothing country".

Some enterprises through mergers and acquisitions is an example of brand internationalization strategy, and also to China.

Diversified development provides new ideas.

In the long run, the merger and reorganization and pformation of the garment industry will usher in a new peak.

INDOCHINO, a man who made the start from the Internet, announced that it had won the investment of 4200 million yuan (about 200 million yuan) from Dayang creation group, a Chinese garment maker.

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Besides, INDOCHINO also signed a five year cooperation agreement with Dayang creation group.

The agreement allows INDOCHINO to sell 3 new suits at the same time online and offline, adding two times the fabric of suits and shirts, and increasing the number of customized options for suits three times.

The industry believes that the cooperation between Da Yang and INDOCHINO is based on a common concept of customization, and also symbolizes the opening of the strategy of Dayang's customization.

In addition, it was obvious that Dayang created the US market and chose the brand investment in North America.

For Da Yang's creation, this paction can undoubtedly expand its visibility in the North American market and face the North American consumers more directly.

Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., said that since the beginning of 2016, there have been several major news events in the garment industry almost every week.

And many garment enterprises are increasing horsepower, and constantly through mergers and acquisitions to expand horizontally and vertically, the apparel industry mergers and acquisitions integration into the fast lane and become increasingly fierce.

Cheng Weixiong believes that after several years of pformation and adjustment, the garment industry has come to a resurgence of meteorology. Every sub sector of the industry has the potential to develop the leading industry, and the trend of industry differentiation is getting more and more obvious.

In Cheng Weixiong's view, compared with the self innovation brand, M & A is already mature and has a certain market reputation, which is less risky for the company's future expansion, and can also enrich the company's multi brand camps, which is beneficial for the two sides to achieve complementary advantages in the channels and brand promotion.

The trend of clothing enterprises in the capital market in the first 3 months of this year can be seen.

However, Cheng Weixiong also bluntly said that both horizontal and vertical mergers and acquisitions in the industry and industrial integration, or the cross-border development of hybrid 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 reform of the market reform of mergers and acquisitions, the reorganization and regeneration of resources under the driving force of capital can predict the merger and reorganization of listed garment enterprises in the future. The phenomenon of mode differentiation and industrial convergence will become the norm.