Expensive Birds Spend 5 Billion In Three Years, And The Acquisition Is Often Blocked.

According to the world clothing shoes and hats net, recently,

Limited by Share Ltd (hereinafter referred to as "VIP bird") released its third quarter financial report in 2017.

Data show that the company's three quarterly net profit in 2017 was 148 million, down 16.95% from the same period last year.

In the first half of 2017, the company's net profit in the first half of the year dropped by 17.22% compared with the same period last year. This shows that the company's net profit slump has not been fundamentally improved, making it the main pformation strategy of cross industry and diversified expansion for many years.

Question.

Three years to spend 5 billion, recent acquisitions have been repeatedly blocked.

In January 2015, the 240 million yuan RMB curve was invested in huppu sports. In July that year, the two sides jointly set up the sports industry fund in Anhui Province. The total scale was 2 billion yuan and the first phase was 1 billion yuan.

In July 2015, the noble bird group invested 20 million euros in its subsidiaries to invest in Spanish football brokerage company The Best Of You Sports, S.A.

Holding 30.77% of its shares;

In June 2016, the precious bird was controlled by 383 million yuan.

Retailer Hubei Jay's trip, holding 50.01%;

In August 2016, the precious bird invested 382 million 500 thousand yuan to acquire a 51% stake in the Xiamen shoe store.

In December 2016, the noble bird tried again to enter the field of sports insurance. It plans to set up Ankang insurance with 7 companies such as Xinjiang Guanghui Industrial Investment Co., Ltd. and Hong Kong Group.

Among them, the precious bird intends to invest 260 million yuan, accounting for 13% of Ankang's total insurance stock.

In March 2017, the great bird tried to buy 2 billion 700 million of the 100% stake in Wellcome fitness, but the deal ended in early September.

From the above timetable, we can see that in the past three years, the path of pformation has been very wide, and in the case of poor main business, it intends to cross over to more industrial chains in the growth path.

As far as the industry is concerned, there are quite a lot of industry enterprises that are involved in the acquisition. Besides sports industry's whole industry chain, it also involves many fields, such as competitive lottery, paid reading APP, professional football equipment retailers, sports fitness technology applications, electric competition anchors and professional team brokers, and women sportswear brands. The amount involved is nearly 5 billion yuan.

In the past three years, such a large scale of mergers and acquisitions, involving a large number of industries, make the birds in a pformation and upgrading of shoes and clothing industry is very eye-catching, in the past two years, it is known by the industry as "Lust birds", "nine birds".

But the luck of this "Lust bird" does not seem to be as good as expected.

In 2017, during the pformation of the industry in the key years of pformation, the "big deal" pactions of most of the birds were ended in failure.

In January of this year, the company announced that it was going to cancel its 8 month old insurance company.

As for the reasons for the cancellation of the insurance company, the company says that it is a foreign-owned enterprise and has a relatively high share of the shares. It does not meet the requirements of foreign-funded enterprises participating in the insurance business in the mainland.

In order to reduce operating costs, the company decided to cancel Xiang an insurance.

In March of this year, the company changed its name to the "all-around sports Limited by Share Ltd". It is considered to be the general horn for the pformation of the industry to the sports industry.

But one day after the announcement of the renamed announcement, "omnipotent sports" collapsed in the full vote of the board of directors and became an Oolong incident.

In September 5th, the company announced that it was planning to terminate the major asset restructuring plan of the Welsh fitness company.

The reason is that "the two sides can not reach agreement on key terms such as paction consideration and payment method".

In short, the purchase price has not been discussed.

This acquisition, known as the 2017 China sports industry's sky high price paction, ended in failure.

But it seems that these setbacks did not affect the way that the "snake company" bought and bought. Just in the past October, the latest announcement issued by the popular bird showed that the company is currently investing 20 million US dollars to buy the ownership of the brand equity of the famous tennis brand PRINCE in China and South Korea.

In view of the recent trend of this company and whether there will be any change in the development strategy of the birds, the reporter contacted the managing director of the bird and bird office and proposed an interview wish to its chairman, Lin Tianfu.

But as of press release, reporters did not receive any response from the birds.

Diversified mergers and acquisitions, the main business shrinking

In recent years, the retail industry as a whole has been cold. As the upper reaches of the industry, the industry of shoes and clothing enterprises is also having a bad time: a series of industrial problems such as high inventory, closing shop tide and running road pformation often appear, and the pressure of growth is very huge.

Under such a big background, many shoe and clothing enterprises that have enjoyed a high reputation in the industry in the early years have changed the traditional extensive growth mode of "OEM start up to sell domestically, sign ads, smash advertising, build brands, store expansion and listing" in the past 20 years, instead of thinking about how to innovate their own development path.

For listed footwear enterprises, mergers and acquisitions have become a good choice for them.

In the unfinished 2017, 320 million 400 thousand wolves with the "Jinjiang Department" and the Anta have also launched a number of large-scale acquisitions in the industry and the world. After seven wolves, 320 million 400 thousand yuan investment international designer brand Karl Lagerfeld Chinese operating entity, it also wants to buy the Swiss luxury brand valued at 600 million euro Bally; Anta is being spread to the high-end children's clothing brand of 60 million Hong Kong dollars to expand the strategic map to the field of children's clothing.

In the pformation of shoes and clothing enterprises so keen to acquire other brands, there have been industry experts for an analysis of the reasons. Mergers and acquisitions can actually bring two dividends to the listed footwear enterprises: first, mergers and acquisitions can make the market price of enterprises worth upgrading through the management reorganization and financial optimization operation; second, mergers and acquisitions enterprises are also the leaders in the industry or other industries, through mergers and acquisitions can enable enterprises to improve their ecological chain, so that other related businesses of these companies can develop faster and more smoothly.

The acquisition of Anta and the seven wolves is attributable to the above two situations if they are attributable. On the whole, they have not deviated from the fashion and fashion industry, forming a situation that a clothing group includes simultaneous development of many brands, and still belongs to the category of mergers and acquisitions.

Compared with the two countries, the way of acquisition is more extensive.

It mainly presents the development mode of interdisciplinary diversification:

Focus on fitness, lottery, insurance and other industries that are "unable to fight with eight poles" in the main industry, and seek new engines of performance growth.

But this mode will undoubtedly squeeze the volume of the main business of the company.

Data showed that the revenue of the first half of 2017 increased by 55%, mainly due to the capital acquisition in recent years. The business of its brand was only 853 million 174 thousand and 400 yuan in the first half of 2017, a 16.20% decrease compared with the same period last year.

At present, the brand of "noble bird" is still in the process of "closing stores".

In the first half of the year, the birds closed 326 retail terminals, and the number of agents joining the agency was 3997. The number has reached a low level in the past three years.

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Expert

Shoes and clothing brands should return to their original hearts

Why is it that the "Jinjiang Department" shoes and clothing enterprises do not focus on the same industry as Anta and the seven wolves, but choose a variety of M & A roads?

Cheng Weixiong, general manager of Shanghai Liang habitat Brand Management Co., Ltd. analyzed that the choice of the birds in the past period was helpless. The reasons or mainly included two factors: internal factors, Anta birds and seven wolves.

In the short term, only the expansion of the domain can be exchanged for the same growth opportunities as other brands. In terms of external factors, the retail industry has been sluggish in recent years, and the market's confidence in the shoe and clothing industry is in a doldrums. It needs to rely on acquisitions to enhance the value of the enterprise, thereby giving enterprises more room for development and capital.

But at the same time, he also believes that the "bird of honor" will make the acquisition of contacts so epitaxy, reflecting the wobble of the strategic direction, and thus missed the great development opportunities of the two or three line sports shoes and clothing brands brought about by the upgrading of consumption over the past two years.

In recent years, with the improvement of people's living standard, the upgrading of domestic fitness and sports consumption has become a trend, and the sports industry has become a new draught.

According to the "opinions on speeding up the development of sports industry to promote sports consumption" issued by the State Council in October 2014, the average annual growth rate of sports industry output in China is above 20%. By 2025, the total value of sports industry in China will reach 5 trillion yuan.

There is no doubt that the current sports industry is in a golden period of rapid development, and is an indisputable pie.

In Cheng Weixiong's view, in such a huge market opportunity, shoes and clothing enterprises should focus on the main business, rather than in the main industry did not do a good job, blindly spread the net across the border.

Returning to the main business is not just a return to manufacturing, but rather based on the upgrading of consumption market and the "new retail" ecosystem.

Figurative speaking, it is through scientific and technological means to achieve the PC end, mobile terminal, end end docking of the physical end, thoroughly solve the consumer experience and comfort into the brand, product, price, service and other multipolar, truly achieve the retail experience mode of the whole channel.

While doing vertical and depth, and then sink to cover a more low-level market, deep plough long tail demand, perhaps is the true development of shoes and clothing enterprises.

"However, the development mode under the new ecosystem demands higher operational efficiency and higher machine efficiency. The process of pformation is too laborious, so it is easier to take shortcuts and merge, so most of the listed shoe and clothing enterprises choose the way of merger and acquisition."

Cheng Weixiong exclaimed: "so we often say that to do well in the main industry, the current domestic brand must return to the beginning of the heart, this is not a slogan but a necessary practice in the critical period of pformation."

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