Will Puma Be Purchased By Anta?

According to the world clothing shoes and hats net, sports industry is a node every 10 years.

Closing the contract

The next step will be new challenges.

It is now less than two months before the contract expires from the German sports brand Puma and Rihanna, and the news of the sale of the brand by the Kai Yun group has been rife again.

According to the latest news from foreign media FashionNetwork, recently, a number of major banks and investment advisers have pointed out in the report that Kai Yun group will officially announce the sale of its sports brand Puma next year.

In April of this year, Franois-Henri Pinault, chief executive of Kai Yun group, announced its withdrawal from the Puma board of directors.

Flexibility in business.

The news came to light and prompted the industry to speculate whether the group will have a plan to sell Puma, and Puma shares rose 9% to 340 euros per day.

In April 2007, Kai Yun Group acquired Puma 27% stake and increased its holdings to 62% in July of the same year. At present, Kai Yun group owns Puma 86% shares and is Puma's largest shareholder.

Up to now, Puma and Kai Yun group have not responded to this news. Puma shares rose 1.74% today to 338.8 euros per share, and its share price has risen 11% in the past 6 months, and its market value is about 5 billion euros.

In fact, the rumors of Kai Yun group's selling Puma have been going on for many years, and its work on selling Puma has probably been carried out.

According to the report, the latest valuation of Puma has been restored to 5 billion euros, close to the 5 billion 300 million euros paid by Kai Yun group to acquire its stake. Perhaps next year is the best time for Puma to sell.

Citibank analyst Thomas Chauvet said that the rapid growth of Puma's performance in recent years will be the biggest advantage of attracting buyers.

However, analysts pointed out that although the group plans to sell, few buyers can afford such a high valuation, because Puma's profitability is still quite different from that of Nike and Adidas.

The latest data show that Puma sales rose 16% to 968 million euros in the second quarter of this year, and EBIT reached 43 million 400 thousand euros.

At the same time, the news that Adidas will sell its brand Reebok is also widely heard in the industry, so the sale of Puma may also be blocked.

Reuters believes that for Puma, there are many ways to deal with Kai Yun group. Apart from selling Puma publicly, it can also choose to disperse brand equity to introduce new funds.

Franois-Henri Pinault conceded that Kai Yun group will continue to expand its brand portfolio and plan to buy jewelry brands first.

After the opening of the group, Puma's performance has been struggling. Until December 2014, Rihanna began to serve as the brand creative director. Its performance under the Fenty by Puma series product finally got a new breakthrough last year. Net profit rose 68% to 62 million 400 thousand euros, and sales increased 7% to 3 billion 627 million euros, but the profit margin of Puma was only 3.5%. CEO Bjrn Gulden admits that it is not satisfied with the figure.

The addition of Rihanna to Puma brings out the fashion beyond the high media exposure, and enough to make the brand performance turn the tables.

It is undeniable that the profits created by Rihanna for Puma over the past two years can not be quantified.

Driven by Rihanna, Fenty by Puma has become the focus of attention in fashion week, and she has successfully defeated Kanye West as the most talked about designer in fashion week.

Its design FENTY PUMA Creeper has won the title of "2016 best sneakers" in the 2016 best basketball shoes list released by Footwear News last year, defeating Stan Smith, Air Jordan and YEEZY BOOST YEEZY.

Rihanna is responsible for the latest Fenty by Puma Series in September in New York fashion week officially released, once again become a hot topic in social media.

According to the report of data analysis institution ListenFirst, during the 2018 spring and summer fashion week in New York, Rihanna's Fenty by Puma was mentioned 1 million 806 thousand times in social media platform, and even exceeded the topic of Tom Ford, Alexander Wang and Marc Jacobs.

{page_break}

However, for the rebirth of Puma after joining Rihanna, there is an analysis commentary that besides the strong social influence of Rihanna itself, the core competitiveness of the brand is ultimately the product itself.

Rihanna's design full of creativity and innovation is the foundation for Fenty by Puma to win the favor of the Millennials.

At present, the three year contract between Rihanna and Puma is about to expire. Whether the two sides will renew the contract remains unknown.

According to industry speculation, Puma's newly hired young singer Selena Gomez with 120 million Instagram fans may be the best candidate for Rihanna successor.

It is learnt that Selena Gomez will cooperate with brands to design new products in addition to shooting product advertisements for Puma.

Her singer boyfriend The Weeknd is also one of Puma's brand ambassadors.

The first sports shoes designed by Puma and The Weeknd were officially launched in August, and the apparel series will be introduced in the future.

According to a recent survey published by Forbes magazine, the influence of celebrity endorsement on the millennial generation is growing. More than 33% of respondents said that they had been influenced by well-known fashion bloggers and stars before buying merchandise.

Social media is changing the fashion industry step by step, breaking the traditional way of product marketing.

In addition to adopting a radical star strategy, Puma also has many new moves in marketing and marketing in the Chinese market this year.

From April 7th to May 7th, Puma and BLACKBIRD western restaurant jointly held a cafe in Shanghai for PUMA SNEAKER CAFE. Its afternoon tea packed in the shoebox attracted many consumers to participate.

Puma also joined hands with LONGJING in cross-border cooperation to open a "Puma teahouse" at the Beijing workers' Stadium in from July 1st to 9th, releasing two new shoes, TSUGI SHINSEI and TUSGI BLAZE, and re interpreted the brand attitude of "street to you".

In the report issued by analysts, no convincing potential buyers were listed, except that they could be investment funds from Asia.

Among them, the Chinese sports giant Anta group was once considered the most potential buyer, and its market value is about HK $90 billion.

More interesting reports, please pay attention to the world clothing shoes and hats net.