New Changes In Industry Complementarity Between China And South Korea

After the implementation of the FTA between China and South Korea, the export costs of China's commodities, such as textiles and clothing, non-ferrous metals, steel and machinery and equipment, will be further reduced to South Korea, while South Korea's machinery and equipment, chemical industry, liquid crystal display and other industries can also better share China's business opportunities.

Since 2005, China has been Korea's largest export market for textiles and clothing.

By 2013, China has become Korea's largest export destination country.

This year, although this situation has changed, but the huge potential of China's market development still attracts Korean textile enterprises.

According to the South Korean industry, South Korean enterprises will get rid of the export mode dominated by textile materials, and expand and expand.

The export market strategy, especially the positive use of Korean dramas, K-pop and other elements of Korean elements to carry out clothing marketing, lay a solid foundation for entering the Chinese garment market.

Although China and Korea

The proportion of clothing trade in total trade is very small.

The trade deficit with China has always existed, but the textile and clothing trade between the two countries is complementary.

From the data point of view, in 2013, South Korea exported $2 billion 730 million to China's textiles and clothing, and imports of textiles and clothing amounted to US $6 billion 320 million, resulting in a deficit of US $3 billion 590 million.

In 2002, after the first deficit of $410 million in textiles and clothing trade between China and South Korea, the deficit trend lasted for 12 years.

The deficit in the trade of textiles and clothing with China has exceeded 2 billion US dollars in the middle of 2000, and increased to 2 billion 630 million, 3 billion 540 million and 3 billion 110 million US dollars from 2010 to 2012 respectively.

In the first 5 months of this year, South Korea's exports to China amounted to US $1 billion 40 million, with an import volume of US $2 billion 470 million and a deficit of US $1 billion 430 million.

The reason for the deficit is that the export volume of Korean chemical fiber and clothing is far lower than that of yarn, cotton products and wool products. This is also due to the different structure of the textile industry between the two countries.

Another important reason is that due to the rapid rise of labor costs in China, Korean garment enterprises have moved their factories in China to Southeast Asia, resulting in a sharp reduction in the export scale of Korean textiles and clothing related materials to China, which has also led to the shrinking of the overall export volume of textiles and clothing.

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This year, the main thread of the clothing capital market is "outward investment, inward integration", that is, investment and merger.

In the situation of A share boom, A share clothing companies often invest more abroad, which is known as "pformation", because the capital market likes to listen to stories, and invest in new technologies, new industries and new concepts to better cater for the capital market.

In the new normal of macroeconomic slowdown and the adjustment of the garment industry, the merger and acquisition of capital in the industry is still an important way to expand the scale of garment enterprises. This is also a common path for the expansion of foreign clothing brand groups.

This involves the issue of brand value. Long term brand planning and merger and acquisition under strategy can promote enterprise value. In the long run, it is more likely to create a high value of listed company, not just a short-term, PR style, hot pursuit of capital means.

La Natsu Bell announced in the evening of May 28th that the company agreed to inject 75 million yuan into Jack Walker, in accordance with the investment agreement signed by the company, Jack Walker, Mr. Liu and Shanghai Cheng Mao, with a capital injection of 11 million 190 thousand yuan to increase Jack Walker's registered capital and the remaining capital injection to increase the capital reserve of Jack cook.

After the injection is completed, the company will directly hold about 69.12% stake in Jack stock.

Jack Walker is a casual menswear brand in Shanghai.

La Natsu Bell can be regarded as a continuation of his multi brand strategy.

La Natsu Bell said that investment shows the continuation of the group's multi brand strategy, and is consistent with the group's strategy of selectively seeking strategic alliances and acquisition opportunities, and "better captures the growth potential of China's men's wear market".

As a company dominated by women's clothing, La Natsu Bell's M & a strategy seems to continue the main line of "complementarity".

In February this year, La Natsu Bell held a total stake of 200 million yuan, and Hangzhou shares a 54.05% stake in Agel Ecommerce Ltd (the main brand is the "seven grid").

For La Natsu Bell, who owns more than 5600 offline shops and is committed to promoting O2O strategy, online channel is the short board, which can make up the short board through mergers and acquisitions.

When the majority of A apparel enterprises are in full swing, story telling and foreign investment capital operation, more industry integration actions come from Hong Kong stock enterprises.

Another important takeover event came from urban beauty. In March, it announced the acquisition of high-end underwear brand Ordifen with 92 million yuan.

The urban beauty who started on the parity route has expanded to the high-end route while planning to expand to the lower market such as North China.

Upward development, downward penetration, through mergers and acquisitions and other means, urban beauty is walking on the road of multi brand expansion.