Recently, due to the weakness in consumer demand caused by the financial crisis, as well as lack of experience in the domestic market development, international sportswear brand jewelry, Chinese shoe giant Belle International sold its sports brand Fila , buyers are Chinese supplier of sports shoes and apparel sales Anta. Anta Sporting Goods Co., Ltd. announced that it has signed an acquisition agreement with Belle. Anta, a wholly-owned subsidiary of Anta, will acquire 85% of Full Prospect held by Belle International Holdings Limited and its entire equity interest in Fila Marketing for a total consideration of not more than HK $ 600 million, To obtain Belle's sports brand Fila ownership, operating rights and related marketing network.
Zhang Tao, vice president of Anta, said the acquisition of Filai ANTA is mainly to achieve complementary advantages, which mainly take the high-end brand line, in the international brand, technology research and development have obvious advantages. The main advantages of Anta are concentrated in supply chain management and terminal sales. The acquisition of Filai by ANTA will help them to enhance their competitiveness and enter the high-end sporting goods market in China. "Now just reached an agreement, not yet completed the transaction process.With the transaction, the company will disclose a more detailed situation." Zhang Tao said.
Anta acquisition is expected
Before the announcement of the acquisition, there were many rumors about this issue. It is revealed that the purchaser is a listed company in Jinjiang. So everyone will be targeted for Anta, 361 °, Xtep and other key enterprises. 361 ° responsible person made it clear that the company has no recent acquisition of the intention. Therefore, Anta's acquisition may be the largest. This time the news released, but also confirmed everyone's expectations.
After Antaima sold its Shanghai front last year, its original investment in the business changed its use. In the first half of 2008, Anta said it would use the funds to acquire or operate international sportswear brands. And there is news that Anta has previously had some good technical content, brand influence foreign sports clothing brand contact. These brands have considerable market share in international or professional markets, but their performance in general is rather limited due to their lack of experience in the domestic market. Cooperating with such enterprises undoubtedly provides ANTA with a great opportunity to explore the high-end market and increase its market share.
Li Peng, secretary general of Asian Footwear Association, said Fila brand in the international arena is more well-known brand, Belle acquired Fila after the expansion in the domestic market was unsuccessful, because Belle's channel advantage mainly in women's shoes, sports shoes Is more vulnerable. Belle move is more conducive to the development of Fila. Anta market advantage mainly in the low-cost sports shoes, and now join the international brand, the formation of multi-brand operation will be more conducive to enhancing Anta's market share. Now the footwear giant in the competition for the Chinese market are more inclined to adopt multi-brand strategy.
Acquisition is expected to enrich the ANTA product line
Fila brand in 1911 by the FILA brothers founded in Italy BIELLA, has been nearly a hundred years of history. In the 70s of the last century, FILA cooperated with diversified strategies to develop sports clothing business and successively developed series of golf, tennis, fitness, yoga, running and skiing, finally laying the foundation of the world famous sports brand. In the second half of 2007, Belle Group acquired Filai Business through the establishment of Full Prospect. However, after practice, it has been found that the specific technologies and experience required to develop international sportswear brands in China differ from the group's experience in developing footwear brands and managing sportswear distribution networks in China. Relevant financial data show that as of the end of 2008, the business not only failed to achieve profitability, but a loss of 32.18 million Hong Kong dollars. The short-term hard-to- reach initial goals and the recent economic downturn have led Belle to decide to sell the Fila business in order to focus its efforts on developing and strengthening the Group's own footwear business.
For Anta, which has long dominated the sports brand business, taking over Fila is more advantageous than Belle. Anta believes that there is potential for growth in the Chinese sportswear market, while Fila brand is a globally recognized sportswear brand with a primary focus on the high-end segment. The Anta board hopes to use the acquisition of the Full Prospect Group to purchase Fila China trademarks in Hong Kong, Macau and the Mainland, providing the Group with a good opportunity to expand its high-end market in China. After the confirmation of the acquisition, the market responded well to both Belle and Anta Stocks.
There are different opinions about the pros and cons of acquisitions
Under the financial crisis, many international brands have experienced operational difficulties. For those who succeed in capital operations, holding a lot of cash, it is a good time to buy low-cost mergers and acquisitions of international brands. The acquisition of international brands, into the international market, for domestic companies are promoting internationalization, can be described as the fastest, lowest cost of a mode of operation. This time ANTA acquisition of Fila success, will have a tremendous response in the industry, the domestic sporting goods industry in turn will face a new shuffle.
However, there are different opinions in the industry regarding the pros and cons of acquiring international brands. Although FLE has many ready-made international resources, it is extremely beneficial to Anta to perfect its own supply chain, realize its international strategy and strengthen its brand strength. However, this time ANTA acquisition only focused on Fila China use of trademark rights, such a partial acquisition of eager to establish an international brand image Anta, is of little significance.
Derrick Huang (China) Sporting Goods brand director Huang Zhongfei that the simple acquisition of Fila China trademark ownership does not make much sense. If you try to start a global acquisition of precedent, it will be an important step in the internationalization of enterprises, it can be regarded as "a small step for the enterprise, a big step for the domestic sporting goods industry."
XU Le, brand director of Xtep (China) Co., Ltd. said that each brand should be expanded, which is an inevitable trend of Chinese brand development. But whether horizontal or vertical acquisition, the price is the fundamental, especially for the acquisition of intangible assets of international brands, the advantages and disadvantages, the most important thing is to measure the price. At present, Anta has not disclosed the business strategy of acquiring Fila after its acquisition, and whether Fila will become the next kappa remains to be seen.