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Gester Instruments | Professional Textile Testing Equipment Manufacturers Since 1997


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Cross-border mergers and acquisitions of textile and apparel companies are heating up

According to the research and analysis of the Information Center of Standard Group, since June 2014, due to the lack of terminal consumption, the impact of e-commerce, etc., the textile and apparel industry has been in a downturn and entanglement period, and the phenomenon of many companies' cross-border mergers and acquisitions has been on the rise. Some companies seek to obtain higher valuations and performance growth through 'cross-border' mergers and acquisitions.   Although the clothing and textile industry is in a tangled period, there are still companies that have increased their performance. According to financial authoritative data reports, there are 4 companies whose performance is expected to increase by 50%-100%, namely Hongda High-Tech, Zhonghe, Xunxing and Jialinjie. There are 8 companies with an increase of 30%-50%, namely: Bangjie, Meisheng Culture, Landing Holdings, Jiangsu Kuangda, Weixing Shares, Huafu Mélange, Huasi Shares and Semir Apparel.   From the perspective of growth momentum, most of the companies with an increase of more than 20% are transformational mergers and acquisitions. For example, Semir apparel purchased shares of related companies for 100 million yuan in an attempt to enter the children's education market. Pathfinder acquired 'Lvye.com' and plans to create a new outdoor ecological system of 'multi-brand + outdoor travel service platform + outdoor vertical e-commerce'. These companies can analyze the latest trends in the network, adjust their strategies in time, and have made important developments.   At the same time, the recovery of the industry is inseparable from the reform of state-owned enterprises and national policies, and the country should actively explore emerging markets. At present, the state has formulated special support policies for the development of Xinjiang's textile and garment industry. The transformation of Xinjiang's textile and garment industry may affect the global market. Its industrial layout will drive the development of the entire industrial chain and will give full play to the core area of u200bu200bthe 'Silk Road Economic Belt'. With the role of the two economic development zones in Kashgar and Horgos, industry enterprises should seize the opportunity to build textile and apparel export processing and trade centers for Asia and Europe, and open up new export markets.   Article source: Standard Group (Hong Kong) Co., Ltd.

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