Heji Bought Holland High-End Jeans Brand Clothing Industry Rising Capital Mergers And Acquisitions Tide

Driven by the upgrading of consumption and capital, garment enterprises have promoted the horizontal and vertical expansion of the industrial chain through mergers and acquisitions, accelerating the pformation and upgrading of the main business, and seeking new profit growth points.

Moreover, under the infiltration and catalysis of capital, the combination of industry and capital is becoming more and more closely. Chinese garment enterprises frequently invest in famous foreign fashion brands.

A few days ago, the Limited by Share Ltd of hash's parent company hitkey (China) group bought the internationally famous cowboy brand and made another brand for its multi brand fashion business.

Heji group formally signed the equity purchase agreement in January 17, 2019, and intends to hold the acquisition of high-end Cowboy brand group Denham Group B.V..

According to the agreement, HKEE group will acquire all holdings of Amlon Capital B.V. in Denham Group B.V.. Jason Denham, the brand founder, will still hold shares and will continue to be the chief creative officer of the brand. Chen Jinyu, senior vice president of Hechi group, will serve as Denham's new chief executive officer.

Obviously, the controlling takeover is another important global strategic deployment of hkei group following the acquisition of Italy fashion cowboy brand MISS SIXTY. After the paction is completed, the group's international retail network will extend to more than 20 countries in the world, including Amsterdam, Antwerp, Hamburg, Tokyo, Osaka and Sydney. It has strengthened the global layout of the group in the high-end denim fashion area, and has created more possibilities for HKEE international business expansion.

Founded in 1999, Heji group has launched its own Five brand Plus in 2009, and has launched the fashion menswear brand TRENDIANO a year later.

In 2012, Heji group and LVMH L, a private equity fund of the world's largest luxury group, completed its strategic investment cooperation. The scale of investment was about $200 million, which was the largest investment by foreign companies in China at that time.

After obtaining L Capital investment, Heji group subsequently established a joint venture with Italy fashion company Sixty Group to acquire and take over MISS SIXTY, Killah and Energie business in the Asia Pacific region.

The development of multi brand has brought more influence to HQ group.

In order to enhance the differentiation characteristics of brands and avoid the over convergence of brand styles, all the brands of Heji group have set up an independent product development team.

Taking MISS SIXTY as an example, with the help of Hechi group, the brand opened a new flagship store in Milan, Italy in 2018. HKEG invited the famous architectural designers to create the concept of "retail theater", so that the store could quickly and visually store new vision in a short time according to different needs, and bring consumers more direct and innovative shopping experience.

Today, through internal hatching, extension mergers and acquisitions and joint venture operations, Heji group has pformed from a single brand to a multi brand business mode. Its business has expanded to many fields, including fashion, leisure, urban, cowboy, light luxury, and so on, and has completed the layout of more than 3000 shops in 290 cities.

Through investment mergers and acquisitions to accelerate pformation and upgrading, looking for new business breakthroughs and new profit growth points, is becoming the same choice for many garment enterprises.

However, it should be noted that although merger and acquisition is one of the main ways to make the garment enterprises bigger and stronger, but at the same time of capital operation, garment enterprises should pay attention to finding suitable strategies for their own development, do a good job in the optimization and upgrading of the main business, and avoid being too big but not strong enough to ensure that the enterprises run continuously on the healthy track.

In this regard, the multi brand strategy of the high end women's clothing line has achieved initial success.

In January 19th, Shenzhen's Limited by Share Ltd announced that it would buy 1 million 960 thousand and 200 shares of 172 thousand and 300 shares.

This is not the first time that song has bought a buyback. From the point of view of history, as of December 3, 2018, it accumulated a total of 18 million 210 thousand yuan of funds to buy 1 million 129 thousand and 900 shares, with an average price of 16.12 yuan / share.

Some analysts said that the overall growth of the company's overall clothing business was driven by the new brand of mergers and acquisitions.

According to publicly available data, the company has 6 brands including the main brand ELLASSAY.

Since 2014, he has adopted a multi brand strategy to constantly merge and introduce new brands and reduce dependence on the main brands.

The rapid growth of sub brands has injected new impetus to the development of the song, especially its brand market.

In 2017, the acquisition of brand IRO accounted for 19% of the revenue. EdHardy accounted for 21% of the revenue, accounting for 79% of the annual sales growth, and Laurel sales increased 230%.

Driven by the new brand, the overall revenue of the overall garment business has been 76% higher than that of the last 5 years.

In 2018, the income of the two sub brands of IRO and EdHardy exceeded that of the main brand ELLESSAY, and the proportion of income increased continuously.

In the first three quarters of 2018, EdHardy's total revenue reached 379 million yuan. Under the sales of high base, brand income continued to maintain double-digit growth, becoming a new performance engine of grace.

With the further development of channels and marketing activities, the proportion of new brand revenue will further increase, promote the healthy development of the interior, and become the new performance support of the song.

It can be said that the investment merger and acquisition of garment enterprises is not a simple buy and buy, but how to maintain healthy development and make new brand and private brand complement each other is a comprehensive test for a garment enterprise.

A healthy investment and merger can not only provide channel expansion for enterprises, but also nurture their own brands to enhance the value of enterprises.

Taking a look at the overseas investment behavior of garment enterprises in the past year, although diversified, they are basically mergers and acquisitions, and are closer to their main businesses.

For example, Shandong Ruyi Group acquired the controlling power of Swiss luxury leather brand Bally; Fosun international and its subsidiaries announced the acquisition of Lanvin, the French fashion brand; La Natsu Bell bought the French brand Naf Naf; Semir apparel purchased high-end French children's clothing enterprises Kidiliz; Shanghai Wo fashion industry group Co., Ltd. acquired the French high fashion brand Carven, and Anta headed the consortium to purchase Finland sporting goods giant Amafen.

Behind the overseas brand investment, which is close to the main business, naturally leads to a common investment logic and purpose. That is to expand multi brand and multi category through international brand acquisition.

For Ruyi group, the acquisition of overseas brands is to enrich the brand matrix and become China's "LVMH"; the clothing companies like Semir are buying for expanding product lines, avoiding risks and expanding the international business layout; La Natsu Bell's acquisition of Naf Naf can further expand the market share of the group and satisfy the needs of different types of consumers through differentiated brands.

It is worth mentioning that most of these enterprises involved in overseas mergers and acquisitions are listed companies, because only strong capital support can afford to buy overseas brands and promote multi brand strategy.

Domestic enterprises are keen to acquire overseas brands, not only to expand the domestic market, expand consumer groups, but also look at the international market influence, channel resources and talent pool of overseas brands.

It can be said that mergers and acquisitions can further deepen the layout of international channels of domestic enterprises, and even enable enterprises to benefit from supply chain, brand design and retail capabilities.

Therefore, for a certain size of clothing group, acquisition is an important means to expand the business layout. The pformation of single focus, multi brand and all channels is also in line with the market trend.

Any clothing company that wants to refer directly to the international market is hard to get by simply relying on endogenous brand growth. This is also one of the reasons why domestic clothing brands are extraordinarily active in cross-border mergers and acquisitions in recent years.

Of course, in addition to entering the global consumer market, the "international brand" merger and acquisition investment is also for the expansion of the domestic market. This is a natural choice for garment enterprises in the process of channel expansion and market expansion under the trend of consumption upgrading, channel upgrading, the fashion consumer market sinking and the revival of garment industry recovery. I believe more clothing companies will join in this year.