Since 2016, domestic household enterprises have started the action of acquiring domestic and foreign brand companies. In order to expand the influence of the industry, a merger and acquisition tide is taking shape.
The original brand, channel and team of the acquired overseas brand enterprises remain unchanged, and the holding company injects management and cultural concepts. This kind of merger and acquisition method is becoming a fast channel for the home furnishing layout.
In the next few years, the domestic furniture market will form a new competitive situation.
1, furniture companies mergers and acquisitions frequently
In November 2016, Minhua Holdings acquired Home Group, the parent company of “Fleming Nordic Livableâ€, with a total consideration of no more than HK$420 million, accounting for 50% of the shares. Before the 32nd Shenzhen International Furniture Fair debuted, Fleming Nordic Habitat has received 30 or 40 signing intentions and plans to deploy 100-120 stores in China within one year.
On November 30, 2017, Xilinmen Company signed an “Equity Transfer Agreement†with SOFALAND SRL (a company registered as an overseas company in Italy, hereinafter referred to as “SOFALANDâ€). The company purchased Jiaxing held by SOFALAND for US$44.078 million. 51% equity of Milan Image Furniture Co., Ltd. (hereinafter referred to as "Milan Image").
On January 8, 2018, Meike Home announced that its wholly-owned subsidiary, Meike International Business & Trade Co., Ltd., purchased a 60% stake in MUST Holdings Limited Furniture Company (hereinafter referred to as “MUST Companyâ€) for US$4.92 million in cash, company and company. VIVET INC., a wholly-owned subsidiary of Meike International, intends to acquire 100% of the shares of Rowe Fine Furniture Holding Corp. (hereinafter referred to as “Rowe Companyâ€). The total amount of the two acquired assets transactions is US$29.92 million, equivalent to approximately RMB 195 million. .
On January 10, 2018, Gujiajiao announced that it has established a joint venture with Natuzzi, Natuzi Trading (Shanghai) Co., Ltd., which will implement the retail of Natuzzi Italia and Natuzzi Editions in Greater China in the future. With the development and operation of the network, Gujia Home invested 65 million Euros with its own funds and held 51% of the equity of the joint venture company.
Mergers and acquisitions have never been a fresh vocabulary in the home furnishing industry. In recent years, in the reports released by major media, “M&A†is often seen. The above cases are just a few examples of the surge in mergers and acquisitions in the home industry.
It is worth noting that the above listed companies have been the industry giants before acquiring overseas brands. What kind of chess game is hidden behind these mergers and acquisitions?
2. The competitiveness of the acquirer has increased greatly
The purpose of Gujiajiao and Meike Home Furnishing to acquire overseas home furnishing brands is not to expand the influence of overseas markets, but to enhance their competitiveness in the domestic market. In order to make the M&A brand easy to integrate and develop, flexible export M&A is a popular practice at present - retaining the original brand and its core structure and core personnel, and outputting internal forces to the M&A enterprise to pursue synergy.
Gujia is a Sofa brand manufacturer. The acquisition of Lazboy is the absolute first in the United States, while Natuzzi is the Italian "national treasure" sofa brand. The eyes behind this big hand are obviously aimed at the country.
Xilinmen is well-known for its mature experience in sofa production, and the main product of the Milan image acquired by Xilinmen is the sofa. In this way, Xilinmen can further extend the sofa with its own mature production experience and production capacity advantages and channel advantages of listed companies. Domestic business promotes the growth of listed companies' performance in the highly competitive sofa market.
Domestic furniture brand companies are not only lack of high-end products, but domestic high-end luxury brands are relatively few. M&A can enrich and broaden the types of high-end luxury furniture brands and increase the company's own industry competitiveness and reputation.
3, "multi-brand" matrix mutual leverage
The acquisition of overseas brand enterprises, in addition to relying on their own mature production experience and marketing channels to enhance competitiveness, can also enrich the brand category of their products on the basis of the original listed companies, and enhance their own industry by creating a “multi-brand†matrix. The influence. For example, Minhua, because Minhua has been focusing on the development and promotion of functional sofas, missed the best window for the development of leisure sofas. It has become a giant in the industry with its functional sofas. However, its leisure sofas are not as good as other companies, such as Gujia Home, Ai Ruisi and other brands have been in the forefront of the leisure sofa field. Minhua acquired “Fleming Nordic Livable†and hopes to make the pure Nordic design a place for itself in the field of leisure sofas, thus making up for the blank of the leisure sofa.
4, enter the big home
Behind the huge capital mergers and acquisitions, it is the industry trend of home brands competing to lay out big homes after capital blessing. Taking Minhua as an example, Minhua Holdings acquired the Nordic livable. While filling the blank of the leisure sofa, Minhua Holdings also worked hard on the mattress to launch the new Shihua Shi smart bed series to build a “scientific intelligent sleep systemâ€. This is the second time that Minhua Holdings has made a force on mattresses after the official announcement of the original “Emmen Mattress†brand in March 2016 to “Zihua Shiwu Five-Star Mattressâ€.
In addition, Del Holding Ber, on the basis of strengthening and composite flooring, seized the commanding height of solid wood floor heating; Emperor Sanitary Ware acquired Ou Shennuo, and jumped into the ceramic tile field from the sanitary field; Sophia acquired Huahe, forming the Sophia wardrobe and division The large home layout of the rice cabinets and Huahe doors and windows.
The big home design means one-stop shopping, which means that several industry giants covering the whole family category will rise rapidly, which means that a large number of home brands may be out of the game.
Large-scale furniture enterprises have taken advantage of their capital and through frequent acquisitions, the market squeeze on small and medium-sized furniture companies has become stronger and stronger.
The furniture industry in 2018 will present a different competitive landscape.
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