Home furnishing companies overseas mergers and acquisitions companies need to pay attention to products and services

In 2018, news of mergers and acquisitions of overseas giants by several home furnishing companies has caused waves in the industry, including Mei Ke Home, Gu Jia Home, Qu Mei Home, Nature and other famous enterprises. In the list of acquisitions, there are also some domestic Consumers are regarded as the foreign big names of the symbol of taste.

From the perspective of the market as a whole, overseas mergers and acquisitions of Chinese companies in various fields have shown a strong growth trend in recent years, especially after 2016. The developed markets in Europe and the United States have brought opportunities to Chinese enterprises after the economic crisis.

Home business overseas mergers and acquisitions boom

Compared with the purchase of foreign aid by sports clubs, the acquisition of foreign big-name home brands by home furnishing companies is more like direct naturalization. In this year's overseas mergers and acquisitions case, the performance of domestic home furnishing enterprises is relatively strong --

On January 8th, Meike Home announced the announcement of two recent mergers and acquisitions. The company's wholly-owned subsidiary, Meike International Business Trading Co., Ltd. purchased 60% of the shares of MUSTHoldings Limited Furniture Co., Ltd. for US$4.92 million; the company's wholly-owned subsidiary, Meike VIVETINC, a subsidiary of the international business, plans to acquire a 100% stake in Roweé„„FineFurnitureHoldingCorp., with a purchase price of US$25 million.

On January 10, Gujiajiao announced that it had established a joint venture with NATUZZI, Natuzi Trading (Shanghai) Co., Ltd. In the future, the company will implement the development and operation of Gujiajiao and Natuzzi's retail network in Natuzzi Italia and Natuzzi Editions in Greater China. Gujiajiao will invest 65 million euros in its own funds and hold 51% of the joint venture company.

On March 1, Gu Jia announced that its wholly-owned subsidiary signed the “Equity Transfer Agreement” with LoComGmbH&Co.KG on February 28. Of course, it is more well-known that RolfBenzf, the high-end brand that claims to be "home-running Mercedes-Benz", is included in the family.

Qumei Home announced on the evening of May 23 that Qumei Home intends to cooperate with Huatai Zijin to issue a cash offer to all shareholders of the Norwegian listed company EkornesASA, intending to acquire at least 55.57% of the issued shares of the target company, at most for its entire shares. Assuming all shareholders accept the offer, the transaction price is NOK 5.128 billion, totaling 4.063 billion yuan, and the company has to pay a consideration of about 3.677 billion yuan. In addition, the company plans to raise more than RMB 2.5 billion for the above-mentioned tender offer. It is understood that EkornesASA was founded in 1934. It is a large-scale furniture manufacturer in the Nordic region. Its products include mattresses, sofas, sofas and so on. It has EkornesCollection, Stressless, Svane, etc. Sub-brand.

Test the water, layout, and upgrade the same way

According to industry analysts, compared with the domestic M&A case, the main purpose of major listed companies to acquire overseas famous brands includes three points: First, high-end overseas brands with certain popularity in China, through mergers and acquisitions similar to “the most comfortable sofa” and “home” The Mercedes-Benz in this way has taken a different approach and made a reassurance for the market strategy of testing the high-end market. Second, it has laid a solid foundation for the layout of the large-scale home business by introducing its excellent products outside the main business; Through brand integration and technology marriage, we will further enhance our competitiveness.

However, some insiders have suggested that behind the vigorous mergers and acquisitions, the ambitions of the first-tier enterprises to “staking the horses” are mapped out. The main risk of acquiring overseas brands is whether these overseas brands are “following the local customs” or “not accepting the soil”. This requires the company to think rationally and acquire overseas brands. In the final analysis, it is integration rather than trade-off.

Product and service are just as important

After many overseas mergers and acquisitions, the reporter also interviewed the old users of several brand companies and the potential customers in the store. In the minds of consumers, although they are not fully acquainted with these high-end foreign brands, the brand reputation of local first-tier companies has been the basis of their trust. Under this brand endorsement, the introduction of foreign brands is trusted by most consumers. accept.

According to statistics, about 60% of the respondents are positive about overseas brand acquisitions, and look forward to enjoying the quality and service of homes from European and American countries. About 40% of consumers mentioned the price of foreign brands after they were introduced into China. Actual problems such as after sales. At the same time, it is worth noting that due to the particularity of the home market, about 60% of consumers are not completely familiar with the few foreign big names mentioned by the reporter.