Textile and Garment Enterprises Cross-industrial Merger and Acquisition

According to the research and analysis by Standard Group Information Center, since June 2014, the textile and clothing industry is in a downturn and struggling period due to the weak terminal consumption,e-commerce impact and other reasons. The situation of  corporate cross-industrial m&a is heating up. Some enterprises are seeking higher valuation and performance growth through "trans-industrial" m&a.
 
Although the clothing and textile industry is in a tangle, there is still a growth in corporate business performance. According to the financial authoritative data report, the growth rate of 4 companies is estimated to be between 50% and 100%, including Hongda High-tech, Zhonghe corporate, Xunxing and jialinjie.The growth rate of 8 enterprise is 30%-50%, namely BangJie share, the Meisheng culture, the Landing holding, the Jiangsu Kuangda, the Weixing share, Huafu Spinning, Huasi shares and the Semir clothing.
 
In terms of growth momentum, most of the enterprises with more than 20 per cent growth are in cross-industrial m&a. For example, Semir clothing purchased the other company's equity with 100 million yuan and tried to enter the children's education market.The Pathfinder will buy "Wizard network " to create a new outdoor ecosystem of "Muti-brand + outdoor tourism service platform + outdoor vertical e-commerce".These enterprises can analyze the latest trend of the network, adjust the strategy in time, and achieve important development.
 
At the same time, the recovery of the industry is inseparable from state-owned enterprise reform and national policies. The state should actively explore emerging markets.At present, the state has formulated special support policies for the development of xinjiang textile and clothing industry. Changes in xinjiang textile and clothing industry may affect global market textile and clothing industry. Its industrial layout will drive the development of the whole industry chain. playing the role of the "silk road economic belt" core zone and the two economic development zones of Kashgar and Horgos.Industry enterprises should seize the opportunity to build a textile garment export processing and trade center targeting Asia and Europe and open up new export markets.

Source: Standard group (Hong Kong) limited Company, compiled by Johnny Zhang