China'S Home Textile Industry Mergers And Acquisitions "Spring Thunder"

In March 9th, on the opening day of the Chinese Acupuncture Association, the Zhejiang rokraft merger and acquisition of Shanghai Hui Yi news conference was held in great numbers.

This is not a simple brand alliance or reorganization. For the industry, it has the meaning of "spring thunder" and marks China.

The evolution of any industry can not go beyond three levels: product operation, brand competition and capital integration. Only the rapid progress of China's home textile industry has shortened the distance between them. For some home textile operators, capital acquisition is still a bit sudden. They even suspect that the Chinese textile has reached the level of capital operation.

Remember, 3 years ago, a domestic textile capital operator was another one.

The strength of capital alligator

People who know about rokoff may be familiar with their profound corporate background. Roccaff is a wholly owned subsidiary of the wedding leader brand, a good news bird, and the news bird is a A share group. It has the advantage of financing and strong brand radiation.

Wu Zhensheng, chairman of Roccaff Home Textiles Co., Ltd., vice chairman of China News bird group, enjoys a high reputation in the domestic menswear industry. In 2005, it entered the home textile industry and made Roccaff brand quickly seize the high-end market of home textiles.

Hui Yi Home Textiles should be regarded as the symbol of "Shanghai famous brand". It has 16 years of operation history and more than 200 terminal outlets. It is an influential brand in China's home textile industry.

Regarding mergers and acquisitions, Jiang Xiaomin, assistant general manager of Hui Yi company, declared that this is a strategic consideration of the company, in order to enhance competitiveness, expand scale efficiency and improve operational efficiency.

At the press conference, Wu Zhensheng, chairman of rokraft company, said that after the implementation of the merger, rokraft company will implement the principle of "independent development" in the strategic development of the two major brands. The two brands of Roccaff and Hui Yi will be operated and managed by an independent team.

Rokraft will adhere to the consistent international style, always adhere to the highest requirements from design to quality, and deduce the European noble style of Italy; while Hui Yi will continue to inherit the brand style of "new Shanghai exquisite life" and bring the new Shanghai style to Chinese urban families.

Xia Peizhao, general manager of the company, also said that the company will make new plans for the brand of Roccaff and Hui Yi, including the design, research and development, production and terminal operation management, etc. to graft, integrate and upgrade more advantageous resources, and promote the two brands to gain sustained competitiveness and consumers' favor in high-end and high-end home textile brands.

With the precise positioning, unique style, strong strength and super speed, Roccaff quickly grabbed the high-end home textile market.

In just a few years, rokoff has been very popular. Its exquisite design, exquisite workmanship, modern Royal terminal image and win-win cooperation have set a new example for the home textile industry.

At present, rokoff has set up hundreds of stores in the high-end department stores in one of the cities of the country, from Shanghai's Jiu Guang Department store, Meishan town to Hangzhou Tower, from Nanjing Golden Eagle to Wuxi's eight hundred friends, or from Dalian Maikele to Shenzhen the Mixc. In these famous high-end department stores, Roccaff has been taking the first place in consecutive months of sales and ranking the top.

Enlightenment beyond mergers and acquisitions

Wu Zhensheng told reporters that the retention of dual brands is the hope that the two brands will continue to maintain healthy competition, and there are multiple meanings at the operational level.

First of all, after the integration of resources, Roccaff and Hui Yi still operate independently so that they can be misplaced through the corporate image, marketing mode and product differentiation.

Secondly, the company will highlight the dual brand strategy through structural adjustment.

On the organizational structure,

Once again, after the operation of the dual brands, the company will optimize the store with a more close address, and may close some poorly managed stores, but there will be more opportunities to open stores.

Rokoff delineated the future in his own way, because there is no visible footprint in front of it, and it can only lead in exploration.

After all, for the waiters, Roccaff has taken the first step in a solid sense, which is in line with the operation rules of the home textile economy and represents the direction for the industry to move forward.

Perhaps, rokoff's acquisition of Hui Yi is just a prelude to a series of mergers and acquisitions. In the future, home textile producers will continue to increase industrial concentration through mergers and acquisitions, and further strengthen their "channel hegemony".

In the era of market channel and agent monopoly, enterprises pursue the competition pattern of brand monopolization, and maintain the relative stability of profits and innovation power of the whole industry through mutual restraint.

But the rapid expansion of home textile agents and the advent of the channel are breaking the original equilibrium pattern, and the profit margins of home textile brands have been continuously compressed.

As one of the most competitive industries in China's market, home textile industry has remained in a general predicament of high volatility and high risk after more than 20 years of competition.

In the new economic era, the re interpretation of "scale economy" requires that the degree of concentration of enterprises should be upgraded to a new level. The aggregation of mergers and acquisitions among producers is an unavoidable battle for home textile enterprises.

The trend of the M & A is just beginning and will be more turbulent in the next few years.