Why Does IRO Buy International Brands?

M & A has always been an extremely convenient way to expand.

Now,

Various acquisitions have springing up all over the world and become a beautiful scenic spot in the tide of mergers and acquisitions in Chinese enterprises.

Shenzhen is famous in June 29th

The announcement said that the company is negotiating the European fashion brand acquisition matters. Therefore, since the 6 month of 30 months, the company's stock will continue to be suspended, and it will be announced separately after the Shanghai stock exchange's examination results are obtained.

At the same time, he also announced a major asset restructuring plan, saying that the company intends to acquire 16% stake in Fuxing long song, one of the shareholders of Shanglin, a shareholding company in Qianhai, so as to control Qianhai Shanglin and then hold a 57% stake in Qianhai IRO SAS company through Shanglin.

If the deal is successful, it will invest a total of 51 million 150 thousand euros (about 370 million yuan) to acquire the French fashion brand IRO.

Earlier, it was reported that Fosun international will acquire the French fashion brand IRO, of which the brand founder LaurentBitton and ArikBitton brothers will retain 40% of the shares. Fosun international will acquire the remaining shares and the 25% stake of the Guess Group founder Marciano family to become the largest shareholder.

It is reported that IRO was founded in 2004 by Laurent and Arik Bitton brothers from Paris. The annual sales revenue of the brand is roughly 60 million euros, and shops are spread over many capital cities including Paris, New York, London, Rome and so on. At the same time, IRO also has more than 40 counters in high-end department stores. Among them, the United States is the largest market and accounts for 50% of sales revenue.

What are the takeover cases?

It is reported that in addition to being in talks with IRO, Carina Lau has acquired the international light luxury brand Ed Hardy, the European high-end women's clothing brand Laur L, owned by the holding company.

In fact, in addition to the strategic idea of creating a "high fashion group" through the acquisition of differentiated high-end personalized brands, many domestic clothing and footwear enterprises are also stepping up their efforts to acquire international brands.

Including Shandong Ruyi group's acquisition of Sandro, Maje and Claudie Pierlot brand parent company SMCP group and domestic listed company Boulevard (original card slave Road) to buy 51% of the shares of Italy fashion brand DirkBikkembergs parent company; the Cao Qifeng family bought the American fashion brand Thakoon; Hongkong Lifeng group bought 540 million of the French senior men's wear brand Cerruti 1881, the Lida brand acquisition PS Brands, Lining bought Italy sports brand music map, the Anta Group acquired Wanli Wei in the Dahua regional ownership, Anta acquisition of 1881 and so on.

The above mentioned Fosun international also invested in several foreign brands, including the German fashion brand Tom Tailor Holding AG (TTI.DE) (25%-30%), Italy Top Men's wear manufacturer Caruso SpA (35%), Greek Jewelry Group Folli Follie and the United States high-end women's wear brand St. St..

It is easy to see that from the perspective of the countries where the brands are purchased, they are mainly in Europe and America, and most of them are France, the United States and Italy.

With the continuous fever of China's overseas M & a tide, clothing and other enterprises also accelerate their overseas expansion.

Why are we keen on acquisitions?

Why are Chinese enterprises keen on overseas acquisitions of other brands? As far as apparel enterprises are concerned, with the downward trend of the economy, the competition pressure of the retail industry is increasing. How to enhance their competitiveness has become the topic that many listed and non listed companies have to think about, while acquiring famous brands from other countries can increase their brand awareness on the one hand, and enrich their own brand types on the other hand.

Taking guris, Yang Dayun, an investment expert in the famous fashion brand, said in a magazine interview that the company's indirect acquisition of a company like IRO is bound to come from its strategic planning final consideration. After all, compared with the previous acquisition of Laur l l and the US tidal brand EdHardy, the French IRO brand is slightly weaker. Therefore, what kind of benefits the brand can bring to the singer will need further attention.

It has also indicated that M & A is one of the effective means to improve and maintain competitiveness of Chinese fashion brands. After careful consideration and analysis, capital behavior can help enterprises break through the existing brand predicament and develop bottlenecks, open and expand other categories with the lowest risk and cost, make the brand and product advantages complement each other, and truly achieve the effect of 1+1 greater than 2.

In addition, looking at the history of Chinese clothing enterprises, we can find that most enterprises start in processing, brand agency and so on.

In terms of export mode, OEM is still the main brand, and there are not many independent brands.

And China's clothing industry has such characteristics, "big but not strong, real but not name, not follow, but not wide".

With the accelerated pace of internationalization of Chinese enterprises, more and more clothing brand enterprises begin to go abroad. In order to increase international influence, brand internationalization is a great task.

Through mergers and acquisitions of well-known foreign brands, let domestic enterprises realize the long cherished wish of brand internationalization.

At the same time, we can gain international brand awareness and cultural background, brand R & D team related technology support, and foreign market channels and networks.

Insiders believe that the development of Chinese enterprises has entered a bottleneck period. "Sweeping overseas" will become a new trend for the development of Chinese garment enterprises.

Of course, some enterprises are trying to expand their global business territory and boost their performance. Moreover, China is also a huge consumer market.

From the perspective of capital, mergers and acquisitions make capital a better place to go.

And the capital can be upgraded.

Therefore, under the driving force of consumption upgrading, capital expansion and industrial pformation, overseas mergers and acquisitions of garment industry will accelerate.

With the accelerated pace of mergers and acquisitions, China's enterprises will emerge more globally competitive brand groups, and will also cultivate a number of competitive brand clusters.

However, mergers and acquisitions have certain risks. One is that they do not know much about overseas markets. They often fail to make M & A because of some details. They encounter various resistance in merger and acquisition process. The second is foreign political, legal, economic and other social environments, which are different from those in the country, and there will also be some risks.