2017 Luxury Brand Acquisition Force Index Summary

According to the world clothing and shoe net, the luxury industry continued to be favored by the capital in 2017, except for the large scale.

Apart from promoting growth through mergers and acquisitions, foreign capital in many countries and regions has also been invested in this industry.

In 2017, there were many excellent products in the European and American markets.

And assets, high-profile luxury brands, they are sold out of capital for various reasons, resulting in multiple competitions.

With the continuous development of the Internet industry and the strong consumption power of the millennials, high-quality luxury electric providers are favored by capital.

At the same time, Chinese capital has participated in international brand competition many times, and is gradually expanding the world's luxury domain.

Global luxury industry mergers and acquisitions "surging" paction amount of over 100 billion yuan

In 2017, there were 38 mergers and acquisitions in the luxury industry worldwide, and the total paction volume was about $16 billion 955 million.

The acquisition of the brand industry was 21, the jewelry industry acquisition was 4, the watch industry acquisition was 2, the cosmetics industry acquired 5, the accessories purchase was 2, and the online e-commerce platform acquisition was 4.

Among them, the largest single purchase is LVMH's acquisition of all the shares of Christian Dior group's Christian Dior Couture at 6 billion 500 million euros.

According to the amount of paction that has been disclosed in 2017, the customer research institute is calculated in accordance with the US dollar (clearing at the announcement date), and other pactions that are not disclosed are not included.

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Characteristics of global luxury industry mergers and acquisitions

1, the five largest luxury group, only LVMH group active.

In 2017, in the field of luxury goods, LVMH and its private equity fund L Catterton completed 5 mergers and acquisitions, including LVMH's holdings of Italy wool brand Loro Piana 5%, acquisition of the Australian swimsuit brand Maaji, the acquisition of Dior fashion department, acquisition of the Korean eyewear brand Gentle Monster part of the shares, acquisition of Argentina underwear brand Caro Caro.

The group completed a takeover to acquire Italy leather brand Serapian.

Other luxury groups such as Kering group, Hermes group and Swatch group did not appear to invest in mergers and acquisitions.

2, the United States light luxury group merger integration active

In 2017, the us light luxury clothing group was active in the luxury M & a industry. In May 2017, Coach group announced the acquisition of the us light luxury brand Kate Spade for 2 billion 400 million US dollars. Then the us light luxury group Michael Kors bought the British luxury shoe brand Jimmy Choo at 896 million pounds (about 1 billion 200 million US dollars). On the one hand, the low retail market in North America made the brand hope to acquire the market value of Growth Company through merger and acquisition. On the other hand, the company hoped to attract new customers with more diversified product combinations.

3, online business has become a hot spot for investment.

In 2017, many offline retailers chose to invest in online channels. In 2017, 4 cases of luxury electric business investment and acquisition took place. The famous French Department of Lafayette department announced in September the acquisition of French fashion apparel and home business platform La Redoute.

Zheng Zhigang, the head of K11 art shopping center and founder of Hongkong New World Development Group, announced in December that she invested in Moda Operandi, a high-end fashion business in the US, to further enhance its influence on the digital lifestyle brand and platform, and keep pace with the millennial consumers.

4, China's capital is bursts with huge energy.

In 2017, there were 12 mergers and acquisitions involving China's capital participation, including 9 cross-border acquisitions, totaling 863 million yuan, and more and more cross industry acquisitions. Among them, foreign jewellery brands became the hot spot of Chinese capital acquisition.

The acquisition of Buccellati by the gang group became the largest paction amount in China's capital purchase case in 2017.

In addition to the favorable background of the luxury consumer's recovery, Chinese enterprises are also seeking to pform themselves from upstream to downstream, such as Shandong Ruyi group's acquisition of overseas fashion brands. This local textile manufacturer has completed the pformation from the fashion brand operation group, from fabric research and production to downstream value-added links.

This is also reflected in the upgrading of "made in China" to "Chinese brand" in a single enterprise.

China's capital becomes the leading player in global mergers and acquisitions of luxury brands

Shandong Ruyi is China's best brand buying company.

In 2017, a total of 12 investment and acquisition cases involving China's capital participation in the luxury sector amounted to about 6 billion 300 million yuan.

Among them, 2 were jewelry brand acquisition, 5 were garment brand acquisition, 1 were the acquisition of crystal jewelry brand, 3 were Chinese luxury agents, 3 were from overseas luxury electric business.

Among them, the largest single purchase was the acquisition of Buccellati 85% by the gang group, reaching 195 million 500 thousand euros.

In recent years, the merger and acquisition of China's capital and luxury goods industry has been driven by three aspects, including the Chinese government's basic national policy to encourage Chinese enterprises to "go out"; the internal driving force of consumption upgrading drives the demand for industrial upgrading; and enterprises want to expand the market value.

For a long time, the domestic fashion enterprises have started with the mass consumer market. The products have formed a low and middle impression in the minds of Chinese consumers. It is difficult to build high-end brands with their own strength. Therefore, under the encouragement of the basic national policy of "going out", the trend of domestic consumption upgrading will be used to meet the market demand and become an effective way to upgrade the industry.

Through the acquisition of luxury brands, these enterprises can not only make profits through the brand itself, but also harvest the design and R & D capabilities of the world-class luxury enterprises; the distribution network covering the countries in which the target countries are located can gain direct access to the local market; the management mode, quality standards, store maintenance, logistics system and advertising communication experience of the world-class luxury enterprises have been acquired, and the training system of personnel and staff has been obtained.

At the same time, these "going out" enterprises such as Shandong Ruyi, seven wolves and chanting jewellery are almost all listed companies in the main board of China, and overseas mergers and acquisitions are also very beneficial to their market value management.

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Characteristics of China's luxury brand acquisition

1, the acquisition of the target brand is becoming more and more famous.

In the luxury brands of China's capital acquisition in 2017, Karl Lagerfeld, Ya Ge lion and other light luxury brands have appeared, and the international popularity of the brands has been improved compared with the previous two years.

2. Acquisition brands are concentrated in Europe.

China's capital favours European brands. In 2017, the luxury brands of China's capital mergers and acquisitions came from Europe. Among them, Italy and France brands were most favored by Chinese capital.

Under the influence of the European debt crisis, many luxury brands, especially those with relatively weak economic foundation in Italy, have the intention to sell, which is an unprecedented opportunity for Chinese enterprises.

3, jewellery brand is concerned by Chinese capital.

The jewelry brand has become the core project of China's overseas luxury brand acquisition in 2017. The merger cases involved Chanling jewelry's acquisition of Joaillerie LeyseFreres SA 81% stake and the acquisition of Italy jewelry brand Buccellati 85% by the gang group.

In China, consumer jewelry consumption is in the pition from purchasing materials to buying brands and buying designs, while the local jewelry brands in China are aging and slow in design, so it is difficult to meet the rising market demand. China's high-end jewelry market is gradually occupied by some big names such as Cartire and Tiffany. Chinese enterprises hope to complete the market share after the pformation and upgrading of jewelry consumption through acquisitions.

Another reason is that the high-end jewellery brands have a perfect brand matrix in the LVMH group. The brand is too dense, the positioning between the brands is difficult to open up the difference, the target consumer group has a high degree of coincidence, and the internal competition is inevitable. Many jewelry brands of family businesses prefer to look at the emerging capital market like China.

Chinese enterprises' luxury brand acquisition index:

Shandong is the most expensive one.

In order to better analyze Chinese enterprises' luxury acquisition cases, the customer Research Institute released the index of Chinese enterprises' luxury acquisition capability.

The index of Chinese enterprises' luxury purchasing power is a reflection of the performance of Chinese enterprises in the M & a market. It is judged from four aspects: the control of the target, the value of the target, the ability to integrate after the merger, and the influence of the M & a industry.

M & a jurisdiction refers to the proportion of shares held by the M & A enterprises in the underlying enterprises.

The target value includes three aspects: the target purchase price, the market position of the target and the status of the target before the acquisition.

The integration capability after M & A is measured by whether cross domain acquisition, whether to promote buyers' upstream and downstream integration and whether there is professional team operation after M & A.

The influence of M & a industry is measured by the exposure of the acquisition industry and the change of stock price caused by M & A.

Among them, Hongyi capital, Fengyuan capital and Fosun International did not appear in the list due to lack of key data.

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