Chinese local apparel companies accelerate their pace of entering the international market

Since the beginning of this year, the overseas M&A boom has continued, and heavy news has been one by one. Many local apparel companies have accelerated their strategic steps to enter the international market.

 

At the same time that international brands have entered China to compete for market seizures, a large number of local apparel companies have also lifted the sails and opened the journey of overseas mergers and acquisitions. Since the beginning of this year, China’s capital boom in mergers and acquisitions has continued, and heavy news has been one by one.

 

Alibaba hand in hand YNAP

 

On October 26th, Alibaba Group announced the establishment of a joint venture with Yoox Net-a-Porte, the world's largest luxury e-commerce company, but did not disclose the specific joint venture ratio and amount. The joint venture will serve women and male consumers in the Chinese market through Net-A-Porter and Mr Porter respectively. Alibaba will provide the joint venture with basic services such as technology, payment, logistics, data selection, consumer insight and many other services and assistance. At the same time, Net-A-Porter and Mr Porter will also be located in the Luxury Pavilion of the Tmall luxury exclusive platform.

 

Yoox Net-a-Porter, originally two luxury e-commerce companies, Yoox and Net-a-Porter. Yoox was founded in 2000 and listed in Milan at the end of 2009. It was mainly based on the sale of discounted luxury goods. In addition, the business includes the construction of luxury brands and the operation of official websites. Also founded in 2000, Net-a-Porter sells goods at full price, and was acquired by Swiss Richemont Group in 2010. In March 2015, Yoox acquired Net-a-Porter from the Swiss Richemont Group by way of a share swap, and the merged company changed its name to Yoox Net-a-Porter.

 

YNAP is currently the world's largest luxury e-commerce provider, encompassing nearly 1,000 luxury brands, designer brands and beauty brands. YNAP has both Net-a-Porter and Mr Porter, as well as Yoox and THE OUTNET, which sell seasonal products. At the same time, it also provides e-commerce operation services for luxury brands. According to the latest data, Yoox Net-a-Porter sales in fiscal 2017 were 2.1 billion euros, up 11.8% year-on-year.

 

Zhihe Group won Carven

 

On October 12, Shanghai Wohe Group announced that it has confirmed the acquisition of French luxury brand Carven. The estimated transaction amount has not been disclosed. However, it is reported that the Wohe Group will purchase an additional investment of 8 million euros (about 63.33 million yuan) for Carven's recovery, in addition to buying the brand at 6.5 million euros (about 51.45 million yuan). He said that the acquisition of CARVEN will help its revitalization in France, China and the international market. After the transaction is completed, Carven will continue to be independent in brand strategy and design.

 

Carven was founded in 1945 and was acquired by Société Béranger in 2008. At that time, it developed rapidly in a short time. In 2012, Hong Kong-based fashion brand agent Bluebell Group became the agent of Carven China and introduced the brand to the mainland the following year. In May 2016, the group purchased a two-thirds stake in Carven. In 2017, Carven's performance began to decline, with a sales amount of 21.5 million euros, while carrying a debt of up to 40 million euros. Due to financial difficulties, Carven filed for bankruptcy protection in Paris in May this year.

 

Founded in 1997, Ichie is the core brand of the Wohe Group. In 2017, the Group's retail sales totaled 1.63 billion yuan, a year-on-year increase of 23%. There are more than 250 stores in China with franchise stores. In 2013, the Wohe Group established a French subsidiary and a Paris Design Center in Paris. The acquisition of Carven undoubtedly demonstrates the strategic intent of the group's internationalization.

 

Senma clothing into Kidiliz

 

On October 8th, Senma Apparel announced the completion of the delivery with the French high-end children's wear company Kidiliz Group. Through this acquisition and merger, Senma Apparel will become the second largest children's wear company in the world (the combined annual sales of the two companies total approximately 2 billion euros). After the completion of the acquisition, the core management of the Kidiliz Group remains unchanged, and its organization and development direction complement each other. Senma apparel specializes in China and Asia, and the Kidiliz Group focuses on the high-end international children's wear market.

 

As early as May 2 this year, Senma apparel announced that the company intends to acquire 100% equity and creditor rights of Sofiza SAS with its own funds of approximately 110 million euros (about RMB 870 million), thereby acquiring the entire assets of the Kidiliz Group. the goal of. The Kidiliz Group was founded in France in 1962. After more than 50 years of development, the Kidiliz Group has gradually developed into a leading company in the high-end children's wear industry in Europe. It has 8 subsidiaries worldwide, 11,000 sales outlets and 830 stores, with annual sales of 4,000. Ten thousand pieces. The Kidiliz Group has 15 brands, including 10 self-owned children's wear brands such as Z, Absorba, Catmini, Kidiliz, and 5 authorized business brands such as Kenzo Kids, Levis Kids, and Paul Smith Junior, providing mid-range to high-end positioning from newborns. To teenagers, product selection for different age groups.

 

Anta acquires Amer Sports

 

The highly regarded Anta acquisition of Amer Sports has now made new progress. On September 12 this year, ANTA Sports announced that the company confirmed that it together with Chinese private equity fund Fangyuan Capital proposed a purchase of 4.7 billion euros to Finnish sporting goods company Amer Sports. On October 11th, ANTA Sports announced its announcement of the acquisition of Amer Sports. The board of directors of the listed company confirmed that it has discussed with Amer Sports, Fangyuan Capital and their respective consultants to discuss whether there is a basis for a formal process. If the progress is smooth, the acquisition will be completed as soon as the end of 2018. This transaction, which is about RMB 37.1 billion, will become the largest foreign acquisition in China's garment industry once it is implemented.

 

Amer Sports was founded in Finland in 1950. It was originally based on tobacco trade and later developed into a sports goods production and marketing company. In 1977, Amer Sports was listed on the Nasdaq Nordic Market and now has more than 8,000 employees. Amer Sports' business is divided into three categories, namely outdoor business, ball business and fitness business. According to sales revenue, the outdoor business accounted for 62.22%, the ball business accounted for 24.33%, and the fitness business was 13.45%. Amer Sports owns a number of outdoor, extreme sportswear, footwear and accessories brands such as Salomon Salomon, Arcteryx Archaeopteryx, Atomic Atomiker, Suunto, and Sport Tracker, a sports tracking technology company. According to the 2017 financial report, Amer Sports' revenue was 2.685 billion euros, a year-on-year increase of 2.4%. The Asian market revenue was 389 million euros, an increase of 8% year-on-year, which is the fastest growing market for Amer Sports.

 

Senma acquires 11% stake in JWU

 

On September 13, Senma apparel announced that it plans to acquire a stake of JWU, LLC., a parent company of Chinese American designer Jason Wu (Wu Jigang) for US$5 million, and jointly establish a joint venture with JWU and LLC. Sen Wu (Shanghai) Clothing Co., Ltd. is responsible for the development and operation of related businesses in China, Hong Kong Special Administrative Region and Macao Special Administrative Region, including promotion of JASON WU, GREY JASON WU and JWU, LLC. Brand, as well as design, production, sales and operation of JWU series brand products and business in addition to perfume products. JWU, LLC. is a company founded by the famous Chinese designer Jason Wu in the United States.

 

The Jason Wu brand was founded in 2007 and is targeted at mid- to high-end women's high-end ready-to-wear garments. Currently, it is mainly sold in mid- to high-end shopping malls and boutiques. Senma Apparel said that the investment in JWU and LLC. is in line with the implementation and development of the company's multi-brand strategy. It is hoped that this cooperation will promote the construction of the high-end international brand camp of Senma apparel and promote the development of the business in the domestic market.

 

Ge Lisi wins Jean Paul Knott

 

Gloria won the Belgian designer brand Jean Paul Knott to further the Group's multi-brand strategy. On August 31, Gloria announced that it will jointly establish a joint venture with Belgian designer Jean Paul Knott to manage the Belgian designer brand Jean Paul in Greater China (China, Hong Kong, Macao and Taiwan). Knott. According to the announcement, Gloria invested RMB 8 million and held 80% of the equity of the joint venture company; Jean Paul Knott invested RMB 2 million in intellectual property and held 20% of the equity of the joint venture. After the establishment of the joint venture, the Belgian designer brand Jean Paul Knott will be operated and managed in Greater China (China, Hong Kong, Macao and Taiwan).

 

After the investment is completed, the company will acquire the ownership of the Belgian designer brand Jean Paul Knott in Greater China (China, Hong Kong, Macao and Taiwan) through the holding of the joint venture and continue to expand the company's brand lineup and The market share of the high-end international fashion market further promotes the company to become an internationally competitive high fashion brand group.

 

Overseas M&A boom

 

At the same time that international brands have entered China to compete for market seizures, a large number of local apparel companies have also lifted the sails and opened the journey of overseas mergers and acquisitions. Since the beginning of this year, the action of local apparel groups to acquire overseas fashion brands can be said to be quite frequent. Shandong Ruyi acquired Swiss luxury brand Bally, Fosun acquired French fashion brand Lanvin, La Chapelle acquired French brand Naf Naf, Peak won Swiss outdoor sports brand OZARK, and recently Senma apparel acquired 11% stake in high-end children's enterprise Kidiliz and JWU Anta acquired Amer Sports, Wohe Group won the French luxury brand Carven, Alibaba hand in hand YNAP... Such intensive overseas investment mergers and acquisitions strongly prove that Chinese companies have a strong interest in international fashion brands and fashion companies, trying to reach global value The desire for the upstream of the chain is very eager. Many local apparel companies are ambitious and have obvious intentions for overseas expansion. I believe that there will be more good dramas in cross-border mergers and acquisitions in the next few months.

 

Mergers and acquisitions have always been the main theme of the capital market. In fact, the fiery situation of Chinese capital acquisition has been going on for a long time. From 2017 to this year, the overseas M&A boom has continued, and heavy news has been one by one. Many apparel companies have increased their horsepower and accelerated the strategic pace of entering the international market. Undoubtedly, the integration of mergers and acquisitions of brands by brands and the construction of multi-brand comprehensive groups are the main path for enterprises to become stronger and stronger. Chinese manufacturers are climbing up the value chain by acquiring internationally renowned brands, and extending to the whole industry through restructuring and mergers and acquisitions. Chain, accelerate the cultivation of clothing brands and the construction of retail networks, with a view to making the textile and garment industry bigger and stronger.