Domestic shoes and apparel companies frequently acquire overseas brands

In the middle of this month, Zhejiang Aokang Footwear Co., Ltd., a well-known private shoe company, signed an agreement in Shanghai with Italy's famous shoe brand Manleyweed to acquire the latter's ownership in Greater China. This is Aokang's first acquisition of overseas brands. Not long ago, Daphne, another well-known shoe company in China, announced that it had reached an agreement with Full Pearl to acquire a 60% stake in the latter for 195 million Hong Kong dollars, thus increasing its high-end brand from 2 to 6. There are indications that: Following the successful acquisition of Fila's Chinese trademark in 2009, Anta is ready to go out again in 10 years; Xtep is also planning to acquire an overseas brand within this year...

In retrospect, we have already seen the footprints of too many pioneers, the vigorous purchase of Pierre Cardin, and the 120 million Youngor (600177) acquisition of the Hong Kong Xinma Group Inc. of the KELLWOOD company in the United States. Li Ning has acquired the LOTTO brand in China for 20 years. Brand agency rights... Intensified acquisition frenzy has revealed the ambition of local brands to rapidly grow and seize the high-end market. However, many experts have warned that the acquisition is another starting point. Realizing the localization of overseas brands will require at least five years of painful period.

phenomenon

Frequent acquisitions intended to seize high end

Why did domestic domestic brands have their sights on overseas brands when they developed to a certain scale? Many industry experts believe that the most important reason is that the lack of domestic high-end brands has made it hard for companies to seize the high-end market. Leveraging overseas brands is a last resort.

Chen Xiaomin, secretary general of the Guangzhou Footwear Chamber of Commerce, believes that the cultural value of high-end brands comes from their historical values, traditional culture, and inclusive social concepts. European and American brands tend to have a longer historical value, and they are easy to create high quality and noble in the hearts of consumers. Image; and domestic shoe brand history is short, cultural accumulation is thin, difficult to assume high-end tasks, "do not spend the 'build' a high-end brand, it is better to directly 'buy' one."

Daphne, for example, has persisted in the mass market for many years and regards street broth as the main sales channel. However, it has little effect in the high-end market, and it is difficult to compete with brands such as Belle and Saturday (002291). The company, which was acquired this year by Full Pearl, is a BVI company that indirectly controls Aiyi Boutique Shoes (Shanghai) Co., Ltd., which mainly engages in the retail business of mid-to-premium women's shoes. It operates “AEE” and “Love Charm”. "Ameda)", ALDO and Jessica Simpson 4 brands. These brands will represent Daphne in the department store and Belle, Saturday's series of high-end brands "sports on the same stage."

After O'Connell Footwear made a high-profile acquisition of Wanliweed’s ownership in Greater China, the company’s chairman Wang Zhenbiao also publicly stated that Aokang will form an international team to carry out packaging planning and product development, focusing on the high-end market; plans to invest 500 million yuan ~6 billion yuan, within 3 years, the most competitive high-end brand in China and even in the Asia-Pacific region, stationed in more than 300 domestic high-end shopping malls. It can thus be seen that the acquisition of overseas mature brands can not only help Chinese companies enter the international high-end market in the future, but also help enterprises to snatch domestic high-end share in the short term.
analysis

Successful acquisition is the beginning of another break-in period

Many business operators know that the acquisition itself takes a long time to prepare for communication and must go through the so-called “love” run-in period, and after the acquisition, issues such as how to localize overseas brands and realize the internationalization of management teams emerge gradually. At the beginning of another break-in period, "this process will take at least five years or so. In the trial period of these years, it will face an inevitable period of pain."

Wang Hailong, director of the Propaganda Department of Aokang Shoes Administrative Center, believes that after a successful acquisition, local companies should address the following two issues: First, how to form an independent team to operate overseas brands, and some companies still treat them as managing local brands. Eventually it caused foreigners to disobey. Wang Hailong revealed to reporters that after O'Connell’s acquisition of Wanliweed, it will establish a team with international management concepts and solve the problem of “people” to solve the problem of the concept. Then use the existing sales channels to open the market, focusing on first-tier cities in high-end department stores "shop-in-shop" model expansion.

Secondly, after the acquisition, how to maintain the original style and quality of overseas brand products, we must pay attention to absorbing the brand's core technology and cultural connotations. Li Ning (a quote, information, commentary) company has done a good demonstration in this regard. Recently, in order to develop the badminton market, Li Ning Company acquired the entire equity interest of Kason Sports, and took full advantage of the respective advantages of the two brands to quickly increase the company's market share in the badminton category.

Expert reminds

Overseas Acquisitions Beware of "Children Raising for Others"

Chen Xiaomin, secretary general of the Guangzhou Footwear Chamber of Commerce, believes that Chinese companies are going overseas; this is the trend of the times; overseas brands have been acquired, reflecting the rapid rise in the status of the brand reshuffling brought by the international economic environment and the Chinese shoe brand in the international market. . However, in the process of acquisition, it needs rationality, opportunities and risks coexist. If companies only acquire the right to operate overseas brands in China, it is very likely to “get support for children” and come to the basket to empty the water; if the design, All aspects of production and sales are fully received, and Chinese enterprises that were originally meticulous in manufacturing will have to make arduous efforts in the management of complex enterprises. The effectiveness still needs to be tested in the market.

Wang Hailong, director of the Propaganda Department of Aokang Shoes Administrative Center, also stressed that he should not blindly make acquisitions with blindness. He must analyze the basic problems of overseas brands such as market positioning, product features, and operating models. At this point, the acquisition of Pierre Cardin is just a lesson from the past. Its authorized operating model has been involved in many areas in the Chinese market, and has been arbitrarily branched and criticized in the industry. Even if local brands re-plan their operations in the future, the brand's long-lasting model will consume a lot of inertia.