The Depreciation Of RMB Has Led To The Upsurge Of Domestic Fashion Enterprises' Overseas Acquisitions.

In the past year, the yuan began to depreciate. During this period, domestic fashion enterprises began to buy overseas, and they could also avoid the interest of the US dollar by increasing their brands.

Behind the overseas acquisitions: including

In the second half of last year, domestic enterprises, including domestic enterprises, began replacing the US dollar debt into Renminbi debt and increasing US dollar deposits, which could avoid paying higher interest rates and betting on devaluation of the renminbi.

In early April, Shandong Ruyi group, a Chinese textile enterprise, formally announced the acquisition of SMCP group, the parent company of Sandro and Maje brand. The paction involved about 1 billion 300 million euros. This is the latest overseas purchase by Chinese local fashion companies since the RMB devaluation trend and expectations began last year.

Citigroup, the world's largest foreign exchange dealer, predicts that the yuan will depreciate by 7% by the end of 2017.

The above prediction highlights the potential cost of procrastination rather than immediate paction, and Chinese enterprises are starting to attack.

According to Peng Bo's aggregate data, the amount of overseas acquisitions of Chinese enterprises reached 97 billion 400 million US dollars this year, which is 80% of the record purchase amount in 2015. According to Thomson Reuters data, the scale of overseas mergers and acquisitions of Chinese enterprises has accounted for 47% of the global cross-border M & A this year.

Similarly, in the domestic fashion industry, there has also been an upsurge in overseas brand mergers and acquisitions. Some potential acquisitions of foreign luxury and fashion brands have seen Chinese enterprises.

April 2016 Hangzhou 1

The company acquired Desseilles Laces SAS, a French lace producer.

The luxury brand Balmain was bought in April 2016, including buyers of Valentino and Chinese investors.

In March 2016, Samsonite will buy its competitor Tumi for $2 billion.

In January 2016, Shenzhen women's clothing, after the acquisition of the German dress brand Laur L, then bought the US tidal brand Ed Hardy with 240 million yuan.

In December 2015, the fashion tycoon Cao Qifeng family has acquired the fashion brand Thakoon. Next, Jason Wu and Alexander Wang are all their acquisition targets.

In November 2015, Chinese buyers successfully acquired Vertu, a luxury mobile phone manufacturer in the UK.

In July 2015, Guangzhou's card slave road purchased Italy fashion brand Dirk Bikkembergs 51%.

Samson Lo, head of Asian mergers and acquisitions in UBS, said: "the trend of the renminbi is a driving force for overseas acquisitions of Chinese enterprises, because they are worried about the longer-term prospects".

Since 2015, Chinese fashion companies and capital have acquired far more than billions of dollars in overseas fashion brands, and the paction volume is the highest in recent years.

Last year, domestic capital overseas mergers and acquisitions also included CITIC Capital's acquisition of Japan's clothing brand MARK STYLER and shoe brand Akakura; Hongkong Li Biao brand Co., Ltd. bought us socks PS Brands for 130 million US dollars.

In recent years, more and more domestic clothing companies have been listed for financing, and capital strength has also increased the conditions for overseas mergers and acquisitions.

Some analysts say that as the RMB continues to depreciate, more Chinese enterprises will use the leverage of financing to accelerate the acquisition of overseas high-quality assets, and buy assets in long-term appreciation currencies, so as to allow enterprises to appreciate their assets to reduce their debts.

Xia Guoxin, chairman of Shenzhen women's wear, said in an interview that the acquisition of overseas well-known brands will help the company to open up international fame. The plan of the company is to pform product competition into brand competition and create a multi brand fashion group through multi brand operation mode.

Some analysts say that the global economy is slowing down, and foreign luxury and fashion brands are facing unprecedented pressure on performance. In addition, the devaluation of the renminbi and the strength of the US dollar are stirring up the profits of the global luxury and fashion companies. The performance of some companies has declined sharply, which has created new opportunities for mergers and acquisitions in China and some emerging market enterprises.

Last August, the king of fashion, Paul Poiret, a highly customized founder, was formally acquired by Korea Companies, an emerging market.

In 2012, Valentino was successfully bought by the Qatar royal family for 700 million euros. This is a typical case of European luxury brands being bought by emerging market investors. This also makes Chinese local fashion enterprises see the trend of fashion finance. In 2014, Shenzhen brand brand bought Krizia brand Krizia with a market value of US $500 million.

In February of this year, the Shenzhen women's clothing company started to set up a fashion industry fund with a joint venture fund of not less than 600 million yuan, focusing on investing in the fashion industry and actively exploring important investment projects.

Just last week, Fosun capital signed an agreement with the shareholder of AHAVA, Dead Sea mineral and skincare brand, to acquire 100% stake in AHAVA company with 496 million yuan.

For domestic fashion enterprises to raise overseas acquisitions, there are analysts who say whether the acquisition of foreign enterprises or brands is really valuable, and many foreign brands are left behind.

It's a trap.

In addition, it is necessary to see the future and trend of industrial development. Without a business mind, it is impossible to succeed in mergers and acquisitions.