What is the purpose of investing Karl Lagerfeld with the investment of 320 million yuan for seven wolves?

As of December 11th, Septwolves had completed 70% of the purchase price of foreign direct investment fund remittance procedures and paid the money to the bank account designated by the transferor, and the other 30% of the purchase price was processing foreign direct investment funds remittance procedures and Supervise account opening procedures. After negotiation, the parties to the transaction no longer use 30% of the purchase price as the precondition for settlement. The remaining 30% of the purchase price will be paid by the company's wholly-owned subsidiary to the supervisory account within the agreed time limit or the next 3 On each anniversary of the year, the corresponding amount is paid directly to the transferor. (First Textile Network)

Karl Lagerfeld, a difficult investment

Karl Lagerfeld is a light luxury brand from Paris, France. The creative design of all products of the brand is managed and controlled by Karl Lagerfeld, an influential and authoritative designer in the world. Her position in the industry is outstanding, and she is still an internationally renowned luxury brand. Chanel and Fendi’s chief designer are considered by the global fashion community as masters in the fashion world and are reputed “Lafayette” in China. Its Chinese stores were opened in Shanghai Jing An Kerry Centre and Beijing Zhuo Zhan Shopping Center in August 2013.

Although the brand's creative design was managed and controlled by Karl Lagerfeld himself, his brand of the same name has been gloomy. Once in the spring of 2006, it withdrew from the US market. In 2015, Kral Lagerfeld CEO Pier Paolo Righi once again brought the brand back to North America through the opportunity to establish a joint venture with the American Garment Group G-III.

For Greater China, Karl Lagerfeld started later. After entering China in 2013, the brand now operates 6 direct retail stores and 1 outlet store in Beijing, Shanghai and some first-tier cities. However, the business in China and Greater China is still in a state of serious losses. In 2016, the revenue was 275.6 million yuan, with a loss of 24,25 million yuan. At the same time, Karl Lagerfeld, who is positioned as a luxury brand, has a low awareness among Chinese consumers. Therefore, Karl Lagerfeld is a difficult investment for a local brand of seven wolves.

Seven wolves in 2017 financial statements

On October 25, 2017, Septwolves released three quarterly reports. In the first three quarters, it achieved a total operating revenue of 2.055 billion yuan, a year-on-year increase of 14.81%; a net profit of 195 million yuan, a year-on-year increase of 15.38%; of which, the third quarter of 2017 achieved an operating revenue of 773 million yuan. Yuan, a year-on-year increase of 19.69%; net profit of 73 million yuan, a year-on-year increase of 14.44%; based on these data, it can be seen that Septwolves’ own main business performance continues to recover, profits maintain double-digit growth, performance is steadily growing, and demand for men’s clothing begins Increase warmer.

Seven wolf through this investment, have received what positive effect?

1. Improve and complement the company's brand portfolio, create multi-brand fashion maps, expand consumer groups, and enhance corporate brand image

As one of the strongest IP in the fashion industry, the Karl Lagerfeld brand is positioned in the fashion and luxury market with a complete product line and good brand extensibility. Seven wolves participating in the business model and business model of fashion light luxury brands through this transaction will help improve and complement the company's brand portfolio, expand target consumer groups, and provide consumers with more diversified, personalized products and services. The multi-brand fashion map enhances the company's brand image and status and consolidates its overall competitiveness.

2. Open the way to more international fashion brands

At home, Karl Lagerfeld already has a sophisticated retail store management system and an experienced operating team. The addition of an international team of professional experience in the operation of luxury goods will also play an important role in improving the operating capabilities of Seven Plus Wolf and the efficiency of management and management, thereby speeding up the transformation of the seven-wolf retail model. If seven wolves can successfully run Karl Lagerfeld, not only will it have a positive effect on the company's performance, but it will also open the way to more and more successful internationally renowned fashion brands.

3. This investment is also a preliminary layout of the seven wolves for their “going to sea”.

Karl Lagerfeld is currently in a period of golden expansion overseas, and the retail and licensing business is growing rapidly. Seven wolves hope to promote the better integration of "Europe Design" and "China Market" through this brand name acquisition. Zhou Shaoxiong, Chairman of Seven Wolf, also stated at the International Cooperation Forum for Private Enterprises in 2017 that if Chinese brands need to get involved in fashion discourse rights and fashion guidance more quickly, they need to be promoted internationally through exclusive acquisitions of international cooperation. The right to speak.

Because Karl Lagerfeld has a unique position in the fashion industry, leading the trend, this cooperation can reduce a lot of costs. First, it saves the cost of creating popularity in the early stage, and secondly, directly connects the right of the fashion trend release. At the same time, relying on. The Karl Lagerfeld brand now opens up space for international cooperation. Therefore, this acquisition is also a preliminary layout for the seven wolves to "go to the sea."