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70 Million Acquisition Of Kenna &Nbsp; Seven Wolf Zhou Shaoxiong'S Marketing Strategy.

2011/4/22 16:54:00 142

Seven Wolves Marketing Luxury Goods

In March 29th, Beijing, Seven wolves Announced the completion of the purchase of 100% stake in Hangzhou Kenna Garments Co., Ltd. and entered the luxury market with a price of 70 million yuan. This means that the seven wolves, a Chinese garment manufacturer born in the manufacturing industry, is bundled up with the world's top luxury brands. The seven wolves have the right to represent the world's top clothing brands such as Connally, Versace and the famous jewellery brand, Jason George.

But at present, the world's international frontline. Luxury goods All the cards have been reclaimed in China, while the second line is luxurious. brand It also shows the trend of becoming a direct battalion. This means that the time of "bundling" for Kenna by the seven wolves may be only a brief five years. After five years, the international brands of the seven wolves will also be recovered. Zhou Shaoxiong, chairman of the Fujian seven wolves industrial Limited by Share Ltd, who advocated "wolf survival", could not have foreseen such risks.

Knowing that there is risk, Zhou Shaoxiong still dare to spend 70 million yuan to acquire Kenna equity. Obviously, his "heart" is not how many years of luxury he really wants to sell. The acquisition of Kenna, Zhou Shaoxiong is more hope that he has been weak in the department store terminal gains, and through Kenna has an international brand agent channels to boost the seven wolf main brand marketing. After all, for clothing enterprises, every sum of money should be spent on the knife edge.

"High-end" main brand campaign

Hangzhou Kenna, which spent $70 million on the seven wolves, has the agency in China such as Connally, Versace and the famous jewellery brand GeorgJensen George.

As the first attempt by the seven wolves to take part in the large-scale mergers and acquisitions of high-end agent channels, the acquisition of Kenna is in line with the target of 2007 listing and financing of "seven wolves", which is "clothing and clothing oriented enterprises", which is also in line with Zhou Shaoxiong's plan for the development of POLO brand in China.

At present, Hangzhou Kenna has set up 15 Connally brand outlets and 4 Versace outlets throughout the country. Its main business areas are concentrated in the northeast and East China. As of December 31, 2010, in just two or three years, Kenna apparel achieved operating income of 66 million 370 thousand yuan, with a net profit of 7 million 840 thousand yuan.

Zhou Shaoxiong said that after the acquisition of Kenna Hangzhou, the seven wolves will retain Hangzhou Kenna's original international brand agency operation experience team.

Zhang Jianmin, general manager of Hangzhou Kenna, said that this year, Connally's network will expand from 15 to 18, and Versace will rapidly develop from 11 stores to 4 stores.

Zhou Shaoxiong said that the huge consumption potential of China's luxury goods market is an important factor in the acquisition of seven wolves. "At this stage, the two digit growth of luxury consumption is only the BRICs, of which China is growing most rapidly. So the seven wolves are very optimistic about the prospect of acting luxury brand business. The future will not exclude further acquisitions of international brands. "

In fact, apart from the income from agency profits, Zhou Shaoxiong attached great importance to the main brand marketing effect brought by international luxury brand bundling. Nowadays, the geographical boundaries of the domestic and international markets have been gradually broken. Chinese clothing entrepreneurs have realized that if they are not familiar with the trend of the international market and the rules of the international market, their share in the domestic market will be difficult to keep. Therefore, we must first internationalize ourselves before we can better stabilize the domestic market and expand the international market. The acquisition of Hangzhou Kenna is the brand foundation for the seven wolves to move towards the international market.

"Acquisition of Hangzhou Kenna is of great significance. First, strengthen international brand cooperation; two, seven wolves create international luxury brands to enter the Chinese market agent platform, and the three is to offer seven wolves brand access to the international arena to provide opportunities for communication." Zhou Shaoxiong said, "through this cooperation, the seven wolves can provide more opportunities for Chinese consumers to contact with international luxury brands, and the seven wolves will also provide services for more international clothing brands to enter the Chinese market by virtue of their own capital advantages, channel advantages, resource advantages and management experience."

Channel marketing in China

The acquisition of Hangzhou Kenna not only brought lucrative luxury agency revenue to the seven wolves, but also opened up the strategic space for the seven wolves to sell their products.

What Zhou Shaoxiong values is that the international brand represented by Kenna Hangzhou has a strong initiative in access to high-end department stores. This intangible resource is undoubtedly a great help for high-end wolves to build high-end brands. The Hangzhou Kenna revenue capsule provides a feasible channel for the implementation of the high-end strategy of the seven wolves.

Prior to that, Zhou Shaoxiong had been looking for opportunities to enter the international brand agency business since the listing of the seven wolves in 2004.

Since last year, the seven wolves completed the inventory expansion, and the expansion rate was quite fast. "But the expansion is still concentrated in franchised stores. The pressure in the department stores is relatively large, because the department stores have their own business decisions, or the brands that they want to enter are more from the first line brand. Therefore, entering the department stores is a challenge for national brands. Insiders said.

Channel is king's principle of clothing industry. Even seven wolves, Zhou Shaoxiong still felt pain for department stores. "A new brand wants to enter the shopping mall, so it's no use trying to find out how many people are looking for." Faced with the endless competition of brands, the brands such as the seven wolves also began to show the problem of aging and low added value. Some foreign brands began to drive Chinese low-end brands out of large department stores.

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