Quanzhou shoe clothing brand acquisition to seize the high-end market

In the second half of last year, casual wear “FUN”, which was listed for sale, has already found a buyer. The reporter recently learned from the industry that FUN was eventually acquired by a Quanzhou company, but it was out of business plan, etc. Considering that the new owner has been secretive about the acquisition. It is understood that the Quanzhou company that acquires Fen (FUN) is a clothing company to be listed. The company is prepared for the future growth and preparation for listing. It has been willing to expand through acquisitions. As for the details of the acquisition of funds, the company’s staff did not respond to the reporter.

Fenyi Sanyi

Counting this acquisition by Quanzhou, Fenyi is already the owner of Sanyi.

In the second half of last year, the domestic pioneering “FUN” brand of casual wear was sold by the brand owner Xiamen Fanpai Garments Co., Ltd. at a price of 7.8 million yuan in Shanghai’s joint property rights transaction, and transferred its trademark.

Prior to Xiamen Fanpai Garments Co., Ltd., Fen was the owner of Fenfa International Holdings Limited, a wholly-owned subsidiary of Xiamen Fenfa Enterprise Co., Ltd. Runfa International Holdings Limited is a company listed in Hong Kong and Singapore at the same time. Its subsidiaries include Xiamen Fenfa Enterprise Co., Ltd. and Hong Kong Beniton Holdings Co., Ltd. Xiamen Fenfa Enterprise Co., Ltd. also owns garment factories, knitting factories, bleaching and dyeing plants, washing plants and Anxi Fenfa Enterprise Co., Ltd. and other branches.

In 1985, a Singapore businessman established Xiamen Fenfa Enterprise Co., Ltd. in Xiamen Dianqian and successfully imported the famous American brand FUN casual wear into the Chinese market. The main products were FUN's denim clothing and casual wear. Jeans, sweaters, shirts, pants, T-shirts, sports shoes, socks, caps, bags, belts, glasses, etc. As the first casual apparel brand to land in China in the form of retail monopoly, the birth of FUN has begun to familiarize the Chinese with the monopoly retail model. At the beginning of the reform and opening up, Western pop culture has a rapid spread in China. With the help of this wind, FUN has attracted a large number of urban young people.

Since 1995, international apparel brands have entered the Chinese market, stimulating the rapid development of domestic brands. Since 2000, FUN has become a leader in mass-market brands in order to adapt to competition, expand product areas, lower prices, and participate in second- and third-tier market sales competitions. After 2005, in the face of a flood of foreign brands, FUN began to decline.
At the time of the rapid rise of competitors, in the face of the risk of a sudden increase in domestic retail prices in the fashion retail market, the FUN owner chose to sell the company’s main fashion brand “FUN” and outsource all production orders to the group. The company’s manufacturers took the lead in the production and franchising of small-scale operation FUN stores from Bao. In addition, the insufficiency of cash flow from Energo International Holdings Co., Ltd. also made it impossible for them to “strengthen”. The two annual financial reports issued by Advantech International in 2006 and 2007 showed that the company had losses of HK$5.1 million and HK$38.70 million respectively in the two financial years. According to the announcement at the time, Energo operates 264 F&F stores in China.

In May 2008, Energent International Holdings Limited issued an announcement saying: “A wholly-owned subsidiary—Xiamen Fenfa Enterprise Co., Ltd. transferred the FUN trademark to Xiamen Fanpai Garments Co., Ltd. for a price of RMB 20 million. Apart from spending 20 million yuan to purchase trademark ownership, the company also purchased FUN stores, goods, and sales channels, etc. If only sold at the reserve price, Xiamen Fanpai Fashion Co., Ltd. holds the FUN trademark for only 14 months. Dramatically shrank 12.2 million yuan.

In the second half of last year, Xiamen Fanpai Garments Co., Ltd. was sold on the Shanghai United Assets and Equity Exchange.

【background】

M & A waves surging

The reshuffle of the industry brought about by the changes in the international economic environment and the rapid increase in the status of the Chinese shoe and clothing brand in the international market have made Quanzhou overseas acquisition a trend.

As early as 2007, Anta listed, the company announced plans to acquire well-known foreign brands. In 2009, Anta received FILA China business from Belle for more than 300 million yuan.

Ding Shuibo, president of Xtep (China) Co., Ltd., revealed in an interview with the media plans to acquire foreign brands, and the target brand acquired may come from Europe. The industry speculated that the European brands that Xtep will acquire in the future may be UMBRO, DIADORA, or some other well-known outdoor brands. There are also rumors that another well-known European and American brand Avia (AIVA) is also becoming the goal of the Quanzhou sports brand acquisition.

Lin Mingying, chairman of Jiumu Wang (China) Co., Ltd., also stated that he would like to take a joint venture or acquisition and cooperate with three international brand companies in Europe.

In fact, the idea of ​​mergers and acquisitions by Quanzhou companies is not just the above few examples. Zhao Jianhe, chairman of Fujian Green Group Co., Ltd., took the opportunity to express the opinions of most Quanzhou entrepreneurs: “Now is a better period for corporate mergers and acquisitions. Enterprises that buy certain brands should not be confined to domestic brands, but can also consider foreign brands. If the conditions are ripe, we also consider working with foreign brands to help them expand the domestic market, and we use our marketing network to compete abroad."