Su Ning Subscription Laox From Foreign Acquisition Of Chinese Home Appliance Yi
6 afternoon of 24 messages Suning Electric announced a private placement of shares subscribed LAOX holds 27.36% stake in the company LAOX become its largest shareholder, with almost eight decades of officially entered the history of Japanese electronics chain. This is the first acquisition of Chinese companies listed in Japan. Suning said it would take this opportunity to establish and Japan Home Appliances Chain collaborative development platform, help national chain business model innovation, development, and promote LAOX the company’s operating improvement. LAOX Inc. (stock code 8202.T) is a Japanese home appliance chain, founded in 1930, the Tokyo Stock Exchange. Because of changing market competition in recent years, the company increasingly severe operating conditions. LAOX has 10 stores currently, the main business of 3C appliances, animation games, Toy Model, musical instruments and other products sold in fiscal 2008 sales of 40.648 billion yen.
LAOX company this year to seek re-operate, an invitation to the Suning Appliance. After initial contact, the depth of communication, third-party due diligence, investment process and a series of consultations after the program officially concluded the acquisition of this investment program. This is the Chinese companies listed on Japan’s first acquisition is the first time the Chinese home appliance chain enterprises involved in foreign markets.
However, many people are not optimistic about this acquisition and to monitor the Japanese Securities and Exchange Commission LAOX companies, the reasons in the July 2 to 3 the period of institutional investors alleged price manipulation. Matter or tired and with Suning Appliance ongoing case of the normal processing of transactions.
The acquisition of Chinese home appliances into the past and if the international, as is full of thorns and rough. The process of entering overseas markets, Chinese enterprises have great confidence, especially in home appliances, that after decades of development, has become a big country with big household appliances, have the ability to expand overseas, the domestic market becomes saturated in the case of large Most businesses are turning abroad. The home appliance industry of China as a “world factory”, has always been foreign capital inflows to China and the brand.
Foreign investors hoping to joint ventures and cooperation with domestic companies access to cheaper production costs and resources, as well as China’s vast market. Chinese companies are hoping to obtain foreign advanced technology and overseas markets possible. China’s household electrical appliance enterprises go out no longer stick to the industry level, in the capital level also began to explore overseas. China’s household electrical appliance enterprises
then why should the acquisition go this route? Cause is low-priced brand appliances competitive strategy, the Chinese household electrical appliance enterprise products, basic products are all categories to follow. Basically there is no value of innovation, or a clear demarcation. Halo effect by leading brands will have the “sales leader”, “advanced technology”, “performance-leading” cognitive edge. Do not believe, you have to ask around your friends, they are the most recognized consumer electronics brand, will answer the vast majority of Japanese and Korean brands. At this time, no matter how hard followers, in Marketing Strategy, will in a weak position. In addition, channel resources to overseas markets, is the leading brand firmly in the control, which is the largest home appliance brand overseas expansion difficulties, the lack of control was the key to intelligence sources: existing mature customer base, reliable vendor relations, sales confidence years of training. Over the years, China Refrigerator Marketing in the United States blocked, still can not enter the camp, a mainstream brand, is the lack of a channel leading brand appeal, from this perspective, the acquisition LAOX Suning Corporation, China’s home appliances for the construction of the foreign channels have great practical significance.
Chinese home appliance needs to reinvent its own high-end brands, and in the present circumstances, to re-create a brand How difficult, so the acquisition of Chinese home appliance hope to get a high-end brand building its image and status. This is the acquisition of Chinese home appliance Whenever I see an opportunity, can not wait for shot one of the reasons.
TCL The most crazy foreign brands purchaser
TCL International Holdings Inc. in September 2002 to 8 million U.S. dollars to buy a bankrupt Germany TV Schneider Electric Machine Factory (SchneiderElectronics), hoping to reach the European market. Purchase price, including Schneider’s factory, chain stores, hypermarkets with the mail order channel network and a brand trademark.
I am an expert from China Computer Parts, usually analyzes all kind of industries situation, such as marine diesel fuel tank , cheap gas locator.
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