Heji Group Buys Cowboy Brand Denham To Expand International Layout

In the past year, Chinese investors have bought foreign luxury fashion brands, but in 2019, they first launched the clothing brand ochirly Heji group.

According to the latest news of fashion business express, Hechi (China) group Limited by Share Ltd (hereinafter referred to as "Heji group") formally signed the equity purchase agreement in January 17, 2019, and intends to hold the acquisition of high-end Cowboy brand group Denham Group B.V..

According to the agreement, HKEE group will acquire all holdings of Amlon Capital B.V. in Denham Group B.V., and its founder Jason Denham will still hold shares, and will continue to be the chief creative officer of the brand. Chen Jinyu Andre Chen, senior vice president of Hechi group, will serve as the new chief executive officer of the new Denham.

For the takeover paction, Denham Ludo Onnink, the original chief executive, is the most important step in Denham's growth over the past ten years, and is also a cushion for growth in the next ten years.

In addition, HKEE's insistence and attention on store experience coincides with Denham's idea of creating a lifestyle Cowboy brand.

Andre Chen said in its latest statement that the group has confidence in the market prospects of Denham, with the aim of becoming the most influential leader in the jeans industry.

Denham was founded by British designer Jason Denham in Amsterdam, Holland in 2008, mainly engaged in men's and women's wear and children's jeans.

Denham adheres to the idea of "The Truth is in the Details", which has the ultimate pursuit in the design and production details. It is known as the "palace class" Cowboy brand and has been sought after by consumers.

Like many British designers, Jason Denham is very obsessed with the art of tailoring jeans, so she chooses scissors as brand LOGO.

In an interview, he revealed that his personal collection of jeans was 550 thousand, and more than 2000 tailoring scissors were collected.

Jason Denham also put forward the concept of "respecting tradition and breaking rules", aiming at inheriting traditional cowboy craft and integrating modern design and innovation to form its own characteristics.

In order to break the stereotype of traditional jeans that are not comfortable enough, Denham has made long-term cooperation with Candiani, a Italy fabric manufacturer.

Founded in 1938 in Milan, Candiani is one of the most environmentally-friendly textile enterprises in the world. The denim fabric is also recognized as the top product in the industry, and is a supplier of Acne Studios, Off-White and YSL brands.

It is reported that Candiani has specifically awarded Denham the world's only gold rivet honors to represent the top cowboy manufacturing process. It also allows Denham to combine this highest honor with brand jeans.

In addition, Denham is also influenced by Japanese cowboy culture in the details of creation.

Japanese cowboys are known to consumers for their harsh craft standards and extreme details. Japanese cowboy artisans will choose cloth, weaving, pound, suture, water washing, abrasion and other details as an art.

Denham has chosen to cooperate with Japan's most high-end washing jeans factory to spare no effort to produce the most perfect retro washed jeans.

It is noteworthy that Denham is a rare Cowboy brand that is the main way of life.

As experience has increasingly become a key factor affecting consumers' shopping decisions, Denham has built a physical shop into a cowboy cultural experience Museum. Not only does it display different jeans in different areas, it also integrates local characteristics in the decoration according to the different urban culture of the store.

In the Chengdu store, Denham introduced a coffee shop to follow the example of the Holland head office. The coffee brand was perfectly integrated into the store. The brand spent 350 thousand yuan to knock out the side glass on the right side of the store.

Unlike other competitors, Denham provides life-long maintenance for every cowboy product, including trimming trouser legs, hand washing, rivet and button reassembly and detail stitching.

To this end, the brand also moved the jeans washing platform and repair platform to the store, and invited experienced cowboy artisans to provide professional services at the scene.

Some analysts point out that Denham has become a popular brand among cowboy fans in just ten years. It is inseparable from the founders' love for cowboy culture and the insistence on technological details.

The Hertz group chose to take full control of the high-end Cowboy brand at this time, and has its own consideration behind it.

In fact, hkei group and Denham Group B.V. have reached an agreement in April 2017 as a joint venture in China, which is responsible for managing and operating Denham's brand business in Greater China.

At present, Denham has opened 13 retail boutiques in key cities such as Shanghai and Beijing, and has official flagship stores on Tmall and other electronic business platforms.

After two years, Denham has laid a solid foundation in China, and with the revival of cowboy fashion, this category has great potential in the global market.

According to the latest just-style.com report, sales of the global jeans retail market in 2018 will be about $57 billion 300 million and will reach 60 billion 90 million US dollars by 2023, mainly due to the strong growth of consumer demand in developing countries.

The report also predicts that the United States will continue to be the world's largest market for jeans, while China will be the second largest.

Obviously, the controlling takeover is another important global strategic deployment of hkei group following the acquisition of Italy fashion cowboy brand MISS SIXTY. After the paction is completed, the group's international retail network will extend to more than 20 countries in the world, including Amsterdam, Antwerp, Hamburg, Tokyo, Osaka and Sydney. It strengthens the global layout of the high-end denim fashion area and creates more possibilities for HKEE international business expansion.

Heji group has always been low-key, but its fashion brand ochirly is loved by consumers.

The group was founded by Xu Yu and his wife Li Shanhu in 1999.

As early as the early days of creation, Xu Yu and his founding team have been conscious of building their own brand management system, and visionary in the middle and upper level consumer market, which has both the pursuit of design and quality.

In 2009, HKEE group launched the Five Plus brand. After a year, it launched the fashion menswear brand TRENDIANO to meet the changing needs of consumers.

In 2012, Heji group and LVMH L, a private equity fund of the world's largest luxury group, completed its strategic investment cooperation with an investment scale of about 200 million US dollars, which was the largest investment by foreign companies in China at that time.

After obtaining L Capital investment, Xu Yu then established a joint venture with Italy fashion company Sixty Group to acquire and take over MISS SIXTY, Killah and Energie Asia Pacific business.

Through internal incubation, extension mergers and acquisitions and joint venture operations, Heji group has rapidly pformed from a single brand to a multi brand business mode, and its business has expanded to many fields such as fashion, leisure, city, cowboy, light luxury and so on.

However, the development of multi brand has brought wider influence and higher requirements for HKEE's management.

In order to enhance the differentiation characteristics of brands and avoid the over convergence of brand styles, all the brands of Heji group have set up an independent product development team.

Taking MISS SIXTY as an example, with the help of Hechi group, the brand opened a new flagship store in Milan, Italy last year. HKEG specially invited top architectural designers to create the concept of "retail theater", so that the store could quickly and visually store new vision in a short time according to different needs, and bring consumers more intuitive and novel shopping experience.

Thanks to the hard operation of Superdry, the latter has doubled its growth in the Chinese market in the first half of last October 27th, and plans to expand more stores in China.

At the same time, Heji group has never taken lightly for its own brand.

According to the data, in 2017, its business income increased 2.3% to 6 billion 600 million yuan, and the gross profit margin of main business in the past three years showed an upward trend. In 2017, it recorded 70.54%, which has surpassed that of Taiping, an Zheng fashion, Japan fashion and Vigna S.

With the continuous improvement of the scale and proportion of the group's e-commerce business, hkei said it will further strengthen its business, introduce relevant talents and increase communication with consumers through social media so as to enhance the profitability of the group.

In the face of the increasingly complex retail environment and consumers who love to change, every clothing retailer is looking for new breakthroughs. Last year, there were 100 mergers and acquisitions in the fashion industry.

The hkei group, which is unwilling to play cards by reason, has greater ambitions, and its acquisition of Denham may be a new start.