Frequent Acquisitions Indicate A New Stage Of Competition For Chinese Garment Enterprises

As soon as possible, let their enterprises approach the essence of the industry, create value for customers, and create value for the apparel industry chain.

In this process, Chinese garment enterprises will have more and more difficulty relying on their relatively simple ability to gain competitive advantages.

The fall in the valuation of capital market has opened up the era of China's apparel industry mergers and acquisitions.

Those Chinese garment enterprises with clear strategy and proper management can seize this rare historic opportunity to build an internationally competitive clothing Admiral Company.

After Boeing, YOUNGOR, Shanshan stock and other major tycoons began to buy the plan, in December 19th, Hongkong Lifeng group announced that it plans to buy Hongkong listed Hang Ten Group Holdings Ltd with about HK $2 billion 700 million (US $347 million), and has obtained the consent of the major shareholders of Target Corp.

Near the end of the year, the big influence in China's clothing industry has made great efforts to make acquisitions.

In fact, before 2011, China's garment enterprises began international acquisitions.

More influential Anta has bought HK $600 million for FILA brand in mainland China, Hongkong and Macao.

YOUNGOR invested $120 million to acquire 100% of the new Malaysia company.

China moves to acquire 91% stake in Japan's Phenix and so on.

The increasingly frequent acquisition in China's clothing industry indicates that the competition of Chinese garment enterprises has entered a new stage.

As a latecomer market, in the past decades, the competitive situation of China's clothing market is quite different from that of the mature market.

In the consumer, channel, supply chain and many other aspects, China's clothing market is immature. Many market participants can use various competitive means to get room for survival, for example, successfully hired a spokesperson, designed a hot clothing.

But today, the era of competition has passed, and clothing enterprises have begun to fight hand in hand, especially when the external factors such as the soaring cost of channels have affected the competition of garment enterprises has entered a new stage.

In the next competition, what clothing enterprises need to do is to make their enterprises close to the essence of the industry as soon as possible, create value for customers and create value for the apparel industry chain.

In this process, China's garment enterprises rely on the relatively simple ability to gain competitive advantage. It will become more and more difficult. We must survive in the leading position of brand positioning, cost control and channel control.

In addition to practicing hard work, mergers and acquisitions will be the fastest way.

From the acquisition of handing Group Holdings Limited by Li Feng Group, handing group was founded in 1959, and has been engaged in clothing brands such as "Hon Den", "H&T" and "ArnoldPalmer". Its business is mainly concentrated in Taiwan and Korea, and also has business in Singapore, Malaysia, and Mainland China, Hongkong and Macao.

By the end of March, the company had about 790 retail outlets.

As a giant of apparel supply chain, Li Feng has consolidated its own business by acquiring handing, and on the other hand, it has extended its business to brand retailing.

In 2011, the capital market was miserable and the valuation of enterprises declined sharply.

In this process, the investment value of a good company is prominent.

This is a year of heavy losses for investors, but as a ready industrial investor, this may be a rare historical opportunity to expand its strength through mergers and acquisitions.

It can be said that the fall in the valuation of the capital market has opened the era of China's garment industry mergers and acquisitions.

We have reason to expect that the Chinese garment enterprises with clear strategy and good management can seize this rare historical opportunity, make big and strong, build an internationally competitive garment Admiral Company.