Nine Herding King: Acquisition Can Not Meet The Integration Capability Or Key.

< p > recently, it was reported that < a href= "//www.sjfzxm.com/news/index_c.asp" > menswear < /a > brand nine herd Wang (601566, SH) is planning mergers and acquisitions.

According to reports, there are < a href= "http://pop.sjfzxm.com/popimg/xm/index.aspx" > nine herd Wang < /a > insiders say that the company intends to buy high-end men's clothing business, and the acquisition volume is lower than that of Semir's clothing for GXG.

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Wu Huirong P told reporters that from the industry point of view, the integration of clothing brands is a long-term trend, and the company has plenty of capital and can carry out multi brand development strategy.

However, the current target audience is not specific.

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< p > < strong > 9 Mu Wang: acquisition can not be met < /strong > < /p >.

< p > allegedly, the acquisition of the nine Mu Wang is mainly considered in three aspects.

First, channel integration, the acquired brand can smoothly enter the relevant domestic channels.

Second, mergers and acquisitions are limited to men's clothing business. The market positioning of products is higher than that of the nine brands. The target of acquisition is not limited to overseas brands, but also domestic brands.

Third, the volume of mergers and acquisitions will not be too large, the company has a clear limit on the upper limit of mergers and acquisitions.

However, at present, the company has not yet found a suitable acquisition target.

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< p > the above news also indicates that the main direction of the acquisition is the overseas high-end men's clothing brand that has successfully entered the domestic shopping mall but has yet to spread its business in China.

The direction itself means that the acquisition is based on the long-term layout of the company's business, and the short term market performance is difficult to show "beautiful".

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Wu Huirong P confirmed the plan of merger and acquisition to reporters, but he stressed that from the industry point of view, < a href= "//www.sjfzxm.com/news/index_cj.asp" > clothing brand < /a > integration is a long-term trend.

"We also have so much cash flow, how to raise funds to invest is to take the strategy of multi brand development, but such opportunities can not be met."

Wu Huirong said that the king had strong profitability and had the ability to expand the territory.

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< p > in the aspect of nine herd Wang, the future purchase object is dedicated to men's clothing, and the target audience is not specific.

In positioning, the same or more high-end brands can be used because of the complementarity effect.

"In the layout of shopping malls, the brand of nine herd Wang has done well, and shoppingmall is a new channel mode."

Wu Huirong said that the development of shoppingmall channels will be emphasized in the future. If there is a suitable brand, it will also be considered, but it is only one direction.

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< p > at present, there are many brands under the banner of King Mu.

In addition to its main brand, nine herdsmen, before its listing, it acquired the right to use the permanent trademark of Greater China in Italy's high-end trousers brand VIGANO; in 2011, nine Mu Wang bought the "FUN" clothing that once was popular in Fujian and even in the whole country.

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< p > < strong > integration ability or key < /strong > < /p >

< p > prior to that, Ma Gang, an independent critic of shoe and clothing industry, told reporters that due to the continuing recession, men's clothing brand will have the same situation as sports brand next, namely, the self purification and elimination of the industry, and the current situation will continue to deteriorate after adjustment.

More point of view, domestic men's clothing has been deeply involved in the "midlife crisis".

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< p > as the road passes, closing shop is a curse that can not escape.

It is reported that in the first 4 months of this year, there were dozens of nine closure shops.

Yao Wenqi, a securities analyst in the Great Wall, pointed out in his research report that the reasons for the closure of the nine Mu Wang shop include the adjustment of the location of the shopping mall and the increase of the rental cost.

"The company originally planned to open 60 stores to 100 stores this year. Judging from the current progress, we expect that this year will be difficult to complete."

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< p > under such circumstances, finding new opportunities for development is the key.

It is reported that at the beginning of the listing, nine Mu Wang was willing to undertake mergers and acquisitions to enrich the product and brand series. Under the current economic environment, the number of merchants willing to sell the brand increased, and the corresponding brand valuation was not high. In the view of the industry, it was a good opportunity for the acquisition agent.

The king will also selectively purchase and represent the brand that is suitable for the development of the company.

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< p > Ma Gang said that the main brand category of "nine herd king" is too simple. Apart from the advantages of trousers, other categories are not strong.

The development of single brand has met the bottleneck of growth. One of the ways to increase the performance is to expand the number of its own brands.

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< p > "expansion can ensure that the number of brands has increased and the scope has been broadened, but the depth is not enough."

For brand mergers and acquisitions, Ma Gang pointed out advantages and disadvantages, "eating is not necessarily digestible".

In his view, the pace of domestic enterprises "bigger", but the effect is not ideal, in recent years, there are many brand acquisitions, done very few.

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