Is Takeover A Way To Win? Looking At The Merger And Acquisition Events Of Garment Enterprises In The First Half Of The Year

The development of clothing is no longer just a cover up, but a fashion aesthetics for people to express themselves and show their status. As a result, the market has been born with different styles, designs and varieties, which also aggravate the competitive development of the garment industry at the same time.

Affected by the economic environment, clothing consumption began to decline. According to the National Bureau of statistics, the consumption of clothing, shoes and hats and needle textiles decreased by 1.1% compared with the same period in April, the first decline in recent years. In fact, the consumption of clothing industry has shown a slow development trend in recent years, and the growth rate of clothing consumption has dropped from a high level in the first quarter of last year.

In the increasingly fiercely competitive market, garment enterprises also use all kinds of means to expand the growth space of the market, and enhance their competitiveness and risk resistance ability by refining the market, expanding channels, improving technological R & D capability and cross-border upgrading. From the first half of 2019, garment enterprises realized more upgrading and development from M & A and acquisition.

The children's wear market is showing a trend of high speed. Many garment enterprises have great potential in the market of children's wear, and as a leading enterprise in the domestic children's wear market, Semir apparel continues to strengthen the development of children's wear industry and enter the high-end children's wear market.

In January 9th, Semir clothing announced that it would sign a joint venture contract with KIDILIZGROUP and jointly invest in the establishment of joint-venture company, happy chestnut (Shanghai) Co., Ltd., and jointly promote KIDILIZGROUP's brand and sell its products and develop related businesses.

KIDILIZ group is the European high-end children's clothing company purchased by Semir fashion in 2018. It includes many brands from newborn to teenager. The acquisition of KIDILIZ group promotes Semir's clothing in the middle and high-end children's wear market while helping Semir dress to open the international market.

Even though children's clothing business has brought rapid growth for Semir's clothing, Semir's clothing is more than that. In the market of children's clothing with great potential, Semir's clothing should continue to plough the fertile field, make efforts to high-end market, and enhance the influence of enterprises in the industry.

And continue to refine children's clothing market and ANN.

In February 14th, he announced that the Shenzhen capital Xinyu Baby Clothing Co., Ltd. (hereinafter referred to as Xinyu Ying Tong) was proposed to increase capital. The new registered capital of Xin Yu Ying Tong was subscribed for 2 million 500 thousand yuan. After the completion of the capital increase, he will have a 20% stake in Xinyu baby, with an additional capital of 24 million yuan.

In the middle and high - end children's clothing market, ener has been growing in recent years and has become another bright star in the Chinese children's wear market. Under the condition of many adult brands entering children's wear, the market competition for children's wear has also been expanding, and the company has further refined the layout of children's clothing, strengthened the development of children's clothing products, enriched the product line, and met the diversified needs of consumers.

The garment enterprises that open up a diversified pattern in China are the strongest in Shandong. They are determined to build the first domestic luxury stock and continue to expand their influence in the luxury industry through acquisitions. In mid June, Shandong Ruyi again threw out a bomb, intended to indirectly control shareholders Beijing Ruyi fashion Klc Holdings Ltd to buy its control of Gieves&Hawkes, Kent&Curwen, Cerruti 1881, D 'URBAN and the other high-end clothing brands favored by consumers, the transaction price of not less than 4 billion yuan.

Shandong Ruyi, which rises from woolen mill, is showing its ambition in the fashion sector. Over the past three years, Shandong has spent $4 billion to buy luxury fashion groups such as SMCP, Bally and Lycra, and set up multi brand matrix to enter the field of luxury fashion.

At the end of last year, after the suspension of the takeover, it took six months to make a big move. Shandong Ruyi accelerated the layout of the luxury fashion industry. The acquisition, Shandong Ruyi expresses its full play to the brand pulling effect, and makes the company into an international light luxury fashion brand operation platform.

Xu is the success of Anta's acquisition of FILA, giving the confidence of many domestic sports brands to enter the international market. Sports brands have followed Anta's acquisition of international brands to layout the international market.

In May 2nd, XTEP International announced that it would acquire the ownership of the three major brands of K-Swiss, Palladium and Supra with us $260 million (HK $1 billion 749 million) acquisition of E.Land World Ltd. clothing and love group E-Land Footwear USA Holdings Inc..

XTEP, who has suffered setbacks on the road of transformation and upgrading, is exploring its own way of walking step by step to further expand its brand. This time, the choice of buying guise Wei to enter the international market is quite similar to Anta's acquisition of FILA. But the performance of XTEP's acquisition of FILA is amazing. It still needs to wait for market verification.

Mergers and acquisitions seem to be the necessary channels for garment companies to expand their markets and the fastest way to inject new elements into clothing companies. In the original brand structure, performance growth has encountered certain bottlenecks, and enterprises can only explore new areas to find new breakthroughs.

But will acquisition and merger become the best channel for the growth of garment enterprises? Anta's acquisition of FILA has achieved a breakthrough in its performance, but the case is not all. It is one of the strategies of capital operation to expand the domain and category by means of acquisition. In the consumer oriented consumer market, only products and services around consumers are the ultimate way to win.