How Can Garment Enterprises Win In Capital Operation In 2018?

In 2018, the merger and acquisition market of garment industry seems to have entered a situation of aggravating differentiation. Large enterprises are increasingly keen on acquisitions, and want to take advantage of the strong rise of takeovers.

Under the influence of the new consumer market, the new wave of acquisition of state assets is also facing new challenges. How to develop it will become a new consideration after solving the problem of how to live.

In the game of policy and market, brand enterprises will deduce another new cycle.

In the case of garment enterprises' acquisition in 2018, we can see that local enterprises tend to be overseas brands. Both in pition and external pressure, they want to open up the international market by acquiring international brands, and pform to multi brands to resist the elimination of the market.

The most typical case is Shandong Ruyi, a textile textile manufacturer, who spent $4 billion to buy luxury fashion groups such as SMCP, Bally and Lycra. It is called "China LVMH" by merging its own brand matrix through M & a mode.

Some analysts believe that 2018 is a year of change for mergers and refinancing.

In the depressed market conditions, the scale of refinancing has fallen to a new low, and there are many opportunities for bottom up in the M & a market.

SkyDrive, a Chinese clothing company, took a look at the case of garment enterprises in 2018 to see how they win in the consumer led capital operation.

Shandong Ruyi

Shandong Ruyi has always followed the acquisition strategy of brand and industrial chain in the process of acquisition, and has expanded the channel layout in the international market by directly acquiring brands.

In February 9, 2018, Shandong bought the Swiss luxury brand Bally from JAB, a European investment giant, and learned that the price was as high as 700 million dollars.

It is understood that the luxury brand Bally was officially launched by the original owner JAB, and many buyers joined the takeover. For example, Japan's Itochu Corp. (8001.T) Itochu Commercial Corporation, Renaissance international, seven wolves, Herme group and other groups joined in the bidding. Shandong Ruyi as the latest bidder finally became the new owner of Bally.

Shandong Ruyi said in its acquisition of Bally that it will maintain the traditional and unique characteristics of Bally, retain its headquarters in Castellano, Switzerland, and operate its marketing, design and sales team through the display platform of the brand located in Milan, Italy, to help the brand expand its global balance more evenly.

According to statistics released in April this year, Bally's profit last year has reached a new high of nearly 10 years, and its chief executive, Frederic de Narp, predicts that sales of Bally will increase by more than 20% in the US in 2018, much higher than 14% last year.

Xu is the effect of Bally's younger strategy in recent years, which has made the brand's performance rise all the way, and has made clear the self positioning in the process of development, and will further expand the new growth point.

According to industry insiders, Bally brand is becoming the lucrative brand of Ruyi group.

Renaissance International

Renaissance international, a diversified enterprise in China, is showing a revival in the global luxury fashion industry. It has begun to show great ambition in this field and began to increase its investment in the luxury fashion industry.

In February 22, 2018, Fuxing international successfully purchased the French luxury brand Lanvin with 120 million euros. After the completion of the paction, Fuxing international became the controlling shareholder of Lanvin, and the former major shareholder Wang Xiao Lan's share reduced from 75% to 20% and gave up the control of the brand. Other existing shareholders would retain a minority stake in the company.

According to the news, Fuxing international has injected 100 million euros into Lanvin to restructure to save the situation that is on the verge of bankruptcy.

In May 4, 2018, Renaissance international formally acquired 51% stake in Austria stockings brand Wolford, with a paction price of 55 million euros (about 430 million yuan).

Wolford, which has been losing money for many years, wants to restore its past achievements with the help of the revival of global resources, so that the brand can be returned to the consumers to a greater extent.

Fuxing international is accelerating its investment in the international fashion circle. It has invested in the Greek luxury brand Folli Follie, Italy men's wear Caruso, Israel cosmetics company Ahava, Germany fast fashion group Tom Tailor, American women's wear St.John and other brands, expanding its resources in the international fashion sector, and improving its competitive position in the international luxury fashion industry.

This year, the French luxury brand Lanvin and Austria stockings brand Wolford have been acquired. Besides creating a diversified brand matrix, they have also focused on opening up the high-end and underwear market in China, and excavating the potential fashion market.

According to statistics, Lanvin and Wolford have been in a state of deficit before the revival of international acquisitions.

Lanvin began to plummet after its former director of art Alber Elbaz left office. Sales in 2016 and 2017 recorded a decline of 23% and 30% respectively, while net loss expanded from 18 million 300 thousand euros to 30 million euros.

Wolford brand sales fell 3% from May 2017 to April 2018, and net profit losses narrowed to 9 million 220 thousand from 15 million 720 thousand euros in the previous fiscal year.

In the wake of the revival of the international takeover and restructuring, the deficit remained unchanged, with sales in the first half of 2018 sliding 11% year-on-year.

The acquisition of Fuxing international is undoubtedly a lifeline for these two brands. With the help of reviving the international fashion and market resources, it will enhance the brand's business capability and open up new sources of performance growth.

La Natsu Bell

La Natsu Bell, who returned to the A share market in September 2017, still performed unsatisfactory. In the first three quarters of 2018, net profit fell by 29.58%.

So La Natsu Bell turned his attention to the international clothing market to expand international business and create new growth points.

In November 26, 2018, La Natsu Bell announced that it would invest 35 million 340 thousand euros (about 278 million yuan) to acquire LaCha Apparel II S rl60% rl60% equity, thereby indirectly acquiring Naf Naf SAS 60% stake.

After the paction is completed, La Natsu Bell will hold Naf Naf SAS100% stake.

According to public information, Naf Naf SAS is one of the most popular brands in France. It has a wider sales market, covering 488 retail outlets in France, Spain, Belgium and Italy.

After completing the acquisition of AF Naf SAS, La Natsu Bell will share resources such as commodity planning, fashion design, blockbuster photography, marketing, global supply chain management and terminal channels, so as to achieve mutual complementarity and synergy among brands, carry out the brand multi brand strategy and further enhance Chapel's penetration and influence in the international fashion market.

La Natsu Bell's performance has been weak in recent years, and only increased profits.

In 2016 and 2017, La Natsu Bell net profit fell by 13.5% and 6% respectively, and net profit fell 29.58% in the first three quarters of 2018.

How to stop the loss has become the top priority of La Natsu Bell. The international clothing market is also being opened step by step in expanding the store construction and upgrading.

And the acquisition of Naf Naf SAS, La Natsu Bell with the brand status in the market to open the European market, the development of new sources of income, to save the continued decline in performance.

Semir

It should be said that in 2018, the black horse market in the clothing market was not Semir. In one year, it bought three brand names.

In May 2, 2018, Semir announced that it would adopt the wholly owned subsidiary Semir International Group (Hongkong) Limited, with its own capital of about 110 million euros (about 844 million yuan) to acquire SofizaSAS100% equity and creditor's rights, so as to achieve the purpose of acquiring all assets of Kidiliz group, and the two sides completed the paction in October 1st.

In the children's wear industry, Semir has continued to maintain a high growth in the field of children's clothing to take another city.

In May 27, 2018, Semir signed a cooperation framework agreement with all parties of Wenzhou jaino Garments Co., Ltd., and jointly invested in the establishment of joint venture Zhejiang Sen Le dress limited company, of which Semir invested 22 million 950 thousand yuan in cash, accounting for 51% of the registered capital.

After the establishment of the joint venture, Semir will purchase the registered trademark and some equipment of the "COCOTREE" brand held by Wenzhou Jen, to force the youth clothing market.

In September 13, 2018, Semir announced the signing of the subscription agreement with the US Chinese designer Jason Wu (Wu Jigang) parent company JWU and LLC., to subscribe for JWU at $0.70 per share, and 7104140.37 shares of the new LLC. issue, totaling 5 million US dollars (about 34 million 273 thousand yuan).

After the paction is completed, Semir will hold a JWU, LLC.11% stake.

Whether it is children's clothing brand or adult brand, Morima Jungshiaki shows ambition in the market of clothing segmentation, promoting the diversification process and deepening the field of children's clothing.

Grace

In August 31, 2018, the company invested 8 million yuan in partnership with Belgian designer Jean-Paul Knott to set up a joint venture, and managed Belgian designer JeanPaulKnott in Greater China (mainland, Hong Kong, Macao and Taiwan). After the paction is completed, it will hold 80% of the joint venture.

In November 8, 2018, he completed the acquisition of 10% stake in Hongkong Tang Li International Holdings Limited (referred to as "Tang Li International") through a wholly owned subsidiary, and the paction amount was HK $154 million.

The announcement indicates that after the completion of the paction, he will hold a 90% stake in Tang Li International, and China International Holding 10% stake in Tang Li International.

Vivian, who is committed to overseas acquisitions, has acquired the German brand Laur L, the American tide brand EdHardy, the French brand IRO and the tan tan. In 2018, the Belgian designer brand JeanPaulKnott and Tang Li International were added to further enhance the coverage of the international brand, and gradually expand the share of the brand in the clothing market, and enhance the market competitiveness of the brand.

For the acquisition of Tang Li International, he expressed his attention to its scale and brand effect in the Chinese market, and the good performance of Tang Li International in recent years can provide some benefits for the growth of the company.

The Belgian designer brand JeanPaulKnott can expand its brand lineup and its share in the high-end international fashion market.

According to the data, in 2018, the three quarter of the year reached 1 billion 736 million yuan, an increase of 25.87% compared with the same period last year. Net profit was 268 million yuan, an increase of 32.58% over the same period last year.

From the acquisition point of view, the growth of the majority of its growth comes from new brands, whose revenue accounts for more than 50%, and has gradually become a new growth point for the group.

However, the acquisition of overseas brands by this way will also have a certain impact on the main brand, and will weaken the competitiveness of the main brand in the market.

Wo Wo Group

In October 12, 2018, Shanghai hahe fashion industry group Limited (Group) announced the acquisition of Carven, a French fashion brand, with an estimated paction volume of millions of euros.

Carven declared bankruptcy protection in May 2018, and faced bankruptcy and liquidation in September. Axara, Lee Cooper, Cashtex, PhilippeM e tivier, Market Maker and Red Luxury put forward a pre tender offer to the brand, and eventually the Chinese women's wear brand parent company - Wo Group became the new owner of the brand.

Carven, which was founded in 1945, has suffered a sharp decline in its performance in 2017. Its sales volume is only 21 million 500 thousand euros, half of 2014. In addition, Carven has a debt of up to 40 million euros. In 2018, Carven fell into financial difficulties and had to file bankruptcy applications.

The group said it chose to buy the French brand Carven, on the one hand, can take the power of Carven to take the international stage, speed up the expansion of the brand overseas market, on the other hand, it can help the Wo Group explore more product lines.

The Wo Group has publicly stated that it will help Carven revive in France, China and the international market. Carven will continue to post its brand strategy and design independence after takeover.

In addition, in the next three years, 33 Carven entities will be opened in China, and 8 million euros (63 million 210 thousand yuan) will be injected to help brand development.

ANTA Sports Products Limited

In December 7, 2018, the founder of Anta released an open letter to formally identify a consortium led by the Anta Sports Products in China to acquire Finland sports brand Amer Sports (4 billion 600 million) (about 36 billion RMB) in the form of Sports Sports.

After the completion of this paction, it will become the largest investment in China's apparel industry in the European market.

Since the announcement of Anta's acquisition of Amer Sports in September, many investors want to take part in the paction, including FountainVest, a private equity group based in Hongkong (FountainVest), Chip Wilson, and Tencent (Tencent) behind the Yoga brand Lululemon.

With the strong performance of the sports market, the ambitions of Anta sports and the ambitions of high-end development have been further strengthened under the rapid growth of FILA brand.

With the success of the acquisition of FILA brand, Anta now hopes to complement the Anta brand by acquiring the international sports brand that matches Anta positioning, so as to realize the common internationalization strategy of the brand and group, and hope to meet different consumer needs and synergy through multi brand strategy.

The famous outdoor businesses such as the Salomon and other famous outdoor businesses are the most valued resources of Anta's acquisition. In addition, the performance of Amer Sports has been showing continuous growth. According to the results, Amer Sports revenue in 2017 reached 2 billion 685 million euros, an increase of 2.4% compared with the same period last year, while the Asian market revenue reached 398 million euros, an increase of 8% over the same period last year.

In the face of such growth, Anta sports is more reluctant to miss the acquisition of Amer Sports.