Fashion And Luxury Industries Are Struggling To Invest.

Recently, the private equity giant KKR has confirmed that it is evaluating how to deal with the strategic option of SMCP, the French fashion group, which is the three largest luxury clothing brand parent company of Sandro, Maje and Claudie Perlot.

KKR's acquisition of SMCP 2/3 in 2013 will be sold in just 2 years, which is a rapid change in investment.

However, judging from the SMCP's sales surging by 32% in the first half of this year, KKR's investment strategy is indeed astute.

With the holidays approaching, the industry's trading match seems to be slowing down, but in fact, this time is the most frequent investor action this year. There are only two acquisitions this month: American Eagle Outfitters's acquisition of Todd Snyder; private equity fund Brentwood Associates's acquisition of J. McLaughlin.

Last June, Castanea Partners became a new investor in Proenza Schouler; in August, InterLuxe bought A.L.C.

Other opportunities to seek external investment include women's wear designer brand Prabal Gurung and high-end furniture designer brand Christian Liaigre.

The reason behind this series of frequent acquisitions may lie in the difficult market environment of fashion and luxury goods industry.

"From the main economic indicators of the market, the consumption situation in the United States is very optimistic," said Blake Nordstrom, Nordstrom joint CEO of high-end retail department store.

But our performance in the third quarter has slowed down. "

Obviously, the slow down of high-end department stores such as Nordstrom is not good news for any designer brand.

The total value of the global paction capital is US $4 trillion and 500 billion, but only a small proportion of it is invested in the fashion industry. It is indeed a challenge for investors who are not familiar with the fashion industry.

The three brands are the most famous, and this summer was once considered to be an agreement with external investors.

However, many sources pointed out that the brand hopes to maintain the nature of its family business to a large extent.

It is reported that the annual sales of Alexander Wang brand is around 100 million dollars, and there are about 25 stores in the world.

When he left Balenciaga this autumn, the designer also reiterated that he would focus on the development of the brand of the same name.

Alexander Wang (Wang Daren) said in an interview this April: "there is no doubt about that.

Expansion, supply chain upgrading and resource integration are very important for our future development, and all these need capital and need a partner. "

If the conversation with General Atlantic can not be restarted, he can only pursue further expansion of the brand by seeking other sources of capital.

Relatively speaking,

Business is smaller.

Rumors that its major shareholder Cross Company or will sell 2/3 equity (acquisition in 2009), but there is news that Cross Company carefully weighed after the recent no intention to sell shares.

Thom Browne has sales of nearly US $60 million, and many investors have expressed their intention to invest in the brand, including Sandbridge Capital, a private equity fund under Tommy Hilfiger.

Sandbridge currently owns Derek Lam, Tamara Mellon and Karl Lagerfeld shares.

Fashion brands often need more financial support because of their own development needs, and they will actively seek outside investors.

However, before the success of the paction, the road to match is quite long, usually not smooth sailing, but more like a "stop and go" game.

Recently, Alexander Wang, Thom Browne and Cushnie et Ochs three designer brands have become the protagonists of this game.

It is alleged that the contact between Alexander Wang and potential investors and private equity General Atlantic has been suspended. Japanese investment partners of Thom Browne are seeking to sell their shares; Cushnie et Ochs has been basically finalized with an undisclosed investor.

Another example is the recent news that the IPO plan of Italy luxury brand Versace, which is holding 20% of Blackstone Group, is on the agenda again.

Although IPO has not been determined for the time being, Versace's CEO Gian Giacomo Ferraris said "hope as soon as possible".