Acquisition of foreign brands intended for the global market

With capital and technology advantages, Quanzhou sports brand goes global. The picture shows the international brand image of a sports brand in the city. Wang Shang Recently, the Chinese shoe giant Belle Group wanted to merge the Hello Kitty (Hello Kitty) and Disney (Disney) news in the industry. The Chinese private enterprise's attention was once again attracted to the term "mergers and acquisitions." Statistics from international authoritative organizations show that in 2010, the total value of global M&A transactions reached 2.27 trillion U.S. dollars, of which M&A transactions in China accounted for 8% of the global share, and M&A transactions rose to US$ 23 billion, becoming the second only to the United States. The second largest M & A trading country.

Mergers and acquisitions are booming In October 2009, Anta spent HK$600 million to acquire the FILA brand in mainland China, Hong Kong and Macau. This is the first case of Quanzhou shoe company M&A. Previously, after Hong Kong's successful listing in 2008, Xtep announced that it would target the acquisition of overseas sportswear brands in recent years. Ding Shuibo, special step president, said at the time that the target of the acquisition was a certain popularity in the apparel industry. It was either not very good in China or had a certain reputation in China, but Xtep was a blank in this area. The Peak in the same city also quietly plans to purchase overseas brands. Peak CEO Xu Zhihua once said that considering the acquisition or cooperation of brands in the same industry, he expects to complement Peak's market positioning.

In fact, in the acquisition of foreign brands, Li Ning can be called big brother. In addition to having a short-term cooperation with KAPPA in 2001, Li Ning currently operates overseas brands such as AIGLE (France) and Le Tour, an Italian sports fashion brand with a two-year exclusive license agreement.

The value of the acquisition channel is big. What is the purpose of the acquisition of foreign brands? How does the brand acquired with huge amounts of money create greater value? Two years ago, the "Pear Cardin acquisition" of the Chinese garment industry had caused widespread controversy. Some experts pointed out that instead of simply acquiring an overseas brand to fight the already burning domestic market, it would be better to enter the global market through acquisition channels.

In this respect, Youngor's and China's trends are exemplary.

After investing US$120 million to acquire 100% of the equity of New Malaysia, Youngor obtained 14 production sites in Sri Lanka, the Philippines, Guangdong, Jilin, and China, and ODM processing for over 20 brands including POLO and Calvin Klein. Business, as well as an excellent team with decades of international brand management and design experience, a sales channel that includes access to hundreds of department stores in the United States, and a strong level of logistics to ensure the smooth flow of these items into the department store. system. China’s move to acquire 91% of Phenix in Japan also includes Phenix’s global ski and outdoor sportswear brand Phenix, snowboarding and sportswear brand X-NIX, and leisure brand Inhabitant, but it’s in line with China’s appetite that it has Kappa's brand ownership and permanent management rights in the Japanese market.

Should consider the later operation However, brand acquisition is not a pure capital operation. The acquisition ability of a company depends not only on the acquisition cost paid, but also on the ability to operate the brand in the later period. If the deal is not good, it will weaken the original advantages of the company in the competition. Adidas once held the top position in the sports brand, but after acquiring the American brand Reebok at a high price, it was due to indigestion and gave competitors a chance. Nike took the opportunity to expand its product line to more sports fields.

It can be seen that although M & A can quickly gain access to multinational operations, not every company can taste the sweetness. According to industry figures, the right to act as an agent for overseas brands in Greater China can be used as a transitional form for the acquisition of international brands. It is understood that at present, the United States "*** *" and the United States "Disney movement", the French "crocodile", the Italian "kangaroo", the British "St. Fry" and the "running rabbit", "Altman" series and other cartoon images Brands have been authorized to produce or sell shoes by Quanzhou shoe companies, involving nearly 20 European and American brands.

In March of last year, following the acquisition of a non-exclusive franchise of the "Disney Sports" brand, Xtep's Vice President Ye Qi stated that Xtep's cooperation with Disney not only has a positive effect on sales, but more importantly it is a good team. Opportunities for training and promotion, “In the international competition, there are many commercial game rules we are not yet familiar with, and Disney’s rich international business experience is worth digesting.”