In January 22, 2008, Li Rucheng, President and President of Ningbo YOUNGOR group, announced that YOUNGOR had successfully completed the merger of the new Ma clothing group, the core business division of the famous American clothing enterprise Kellwood company, the core business department of the men’s clothing group, the 120 million dollar deal, which was referred to as “the first overseas merger and acquisition of Chinese clothing brand.” Case.
Since that transaction, Chinese garment enterprises have gone through 10 years in the overseas merger and acquisition. During these ten years, many enterprises follow YOUNGOR’s trajectory, expand their product category and enter the upstream of value chain with the help of international mature brand channels and business models to land the land international market and occupy the fashion Highland.
According to statistics, the number of Chinese textile and garment overseas mergers and acquisitions has increased rapidly after 2012. The total amount of the transaction is on the rise, from 2 billion 40 million RMB in 2012 to 8 billion 257 million in 2016, and the scale has increased by three times. In 2016, the number of mergers and acquisitions was 46, with a total transaction value of 23 billion 100 million yuan, with an average transaction volume of about 500 million yuan.
The European and American fashion brands have become the target of the Chinese consortium. On the one hand, because of the upgrading of the domestic consumer market, the consumer demand for high-end brands in Europe and the United States has been driven. On the other hand, China has shifted from capacity output to capital output and technology output. “Not only the acquisition of foreign brands, but also the acquisition of foreign technical assets, the best example is Shandong Ruyi group, not only bought the Swiss luxury brand Bally and so on, but also acquired lyica’s spandex fiber technology.
After 3 years of sales decline, China’s personal luxury consumption rebounded in the third quarter of 2016, and returned to the growth track in 2017. In 2017, the market size was about 142 billion yuan, up 20%.
Cheng Weixiong, founder and general manager of Shanghai Liang Qi Brand Management Co., Ltd., pointed out that the low value, low price, low threshold, low margin, low technology and low technology lead to the lower end of the industrial value chain in the domestic garment enterprises, while the distribution of the brand industry in the European and American markets is balanced in high school and low distribution, so the domestic low end popular brands need to be annexed. The medium and high grade brands give reasonable allocation of resources.
In addition, compared with the European and American garment enterprises, some capitalized Chinese clothing enterprises have a large gap in brand operation, product development and global market development and management. The current local strong brands have bottlenecks in the development of local market, and the merger and acquisition of international brands just complement their own short boards, such as brands, Product research and development, marketing, supply chain, etc. Cheng Weixiong added.