The Depreciation Of The Euro Encourages Chinese Enterprises To Copy The European Brands.

AOKANG has lower prices for Wanli Greater China Trademark and patent.

Lee sun Wan

AOKANG group has also made a good deal to acquire the trademark and patent rights of the Greater China brand of "Italy brand" Wanli Wade under the price of less than US $22 million, after which AOKANG has taken the latter 10 years' brand operation right in the Asia Pacific region with us $22 million.

And in June this year, there will be more than a dozen Wenzhou enterprises going to Marche, Italy to seek the possibility of acquiring or joining Italy enterprises.

"After several months of negotiations, the price was finally cut, and the paction price was lower than we expected.

The purchase price is lower than that of Wanli wade in 2008.

Luo Xianzhong, director of AOKANG's legal affairs department, told the first Financial Daily yesterday that he was involved in the entire acquisition process. The two sides had once been deadlocked in terms of intellectual property rights and prices.

Founded in 1969, wanwade mainly produces "breathing type" functional shoes. It is Italy's "time-honored brand" footwear enterprise. It has more than 2300 stores in the world, and its ownership in Greater China involves mainland China, Taiwan, Hongkong Special Administrative Region and so on.

AOKANG group once worked for Wanli Wade, and in January 2008, AOKANG signed a global strategic cooperation agreement with Wanli Wade, winning the 10 year Asian brand operation right with us $22 million.

Wanwade provides product R & D resources, technology and legal support, and its brand marketing and product manufacturing in the Asia Pacific region are operated by AOKANG.

Subsequently, AOKANG implemented a series of innovations on Wanli Wei's brand positioning, marketing channels and product research and development.

Luo Xianzhong said that previous cooperation has played a key role in the acquisition. Wanwade originally intended to sell its global business as a whole. But taking into account market risks, AOKANG first acquired the trademark and patent rights of Wanli wade in Greater China, and if the test is successful, it is likely to gradually expand to the global level.

AOKANG group now has many independent brands, and there are more than 3000 stores in the country.

AOKANG group said the acquisition is intended to compete for the high-end footwear market in the Greater China region.

Wang Zhentao, chairman of AOKANG group, said AOKANG plans to invest 500 million ~6 billion yuan in the future to enable wanwade to enter more than 300 domestic high-end shopping malls. In three years, it will make wanwade become a competitive high-end brand in the Asia Pacific region.

In fact, more than one AOKANG company is interested in buying European brands.

In June this year, a number of Wenzhou enterprises will go to Italy to participate in the international clothing brand cooperation and exchange meeting held in Marche, looking for the acquisition of "time-honored brand" or injection of shares into Italian company.

Marche is the headquarters of Armani, Ferre, D&G and so on. The manufacturing industry in this area is well known all over the world.

Wang Hailong, a spokesman for AOKANG group, told reporters yesterday that AOKANG did not take part in the acquisition of the Wenzhou group. However, when the European economy was on the decline, many European traditional enterprises hoped to cooperate or even be bought, which provided an opportunity for Chinese enterprises to copy the bottom.

Bao Huihong, general manager of Ningbo Jiahong import and export company, is also on the sidelines. In an interview with our reporter, she said that if Europe had the right price to sell the brand, she intended to take over.

Mr. Bao Huihong is a Frenchman who founded the clothing brand DADA in Italy, while Bao Huihong hopes to acquire new brand to further expand the domestic market of China.

During the devaluation of the euro, Bao Huihong's business was greatly affected, because most of its customers were mainly in Europe, and she also had companies in Europe. The company's 50% clothing orders were settled in euros.

The euro is expected to depreciate. Bao Huihong has taken some measures to strengthen the design of middle and high-end lines and eliminate low value-added orders. Although so far, orders for losses have not yet been received, profits have been eroded less and less. If the euro continues to depreciate, the pressure of export business will grow.

However, her import business from Europe has gained a good profit margin because of the depreciation of the euro.

Bao Huihong bought out a European brand in China a few years ago, and has established a certain sales channel in China.

Unlike Bao Huihong's point of view, the director of Hongkong's biggest child shoe company, Annan fairytale world (Hongkong) Co., Ltd., said that there is no such plan for the time being. The European children's shoes are different from the Chinese market in terms of size, color, price and so on.

For some Chinese companies eager to go to Europe to buy clothes, shoes and other brands, Ma Xuezheng, managing director of TPG, suggested that we should not just go to the price, take into account market risks and whether enterprises are ready to integrate international brands.