Ruyi – China’s LVMH – slows acquisition pace after US$4 billion global spree
- Chairman says the group will focus on integrating existing brands in the short to medium term
- Some acquired brands have high recognition but ‘far from ideal’ performance
Ruyi Holding Group, the Chinese apparel firm that is taking over Bally International AG, will slow its deal making after announcing more than US$4 billion of overseas acquisitions in the past three years.
The company would focus on integrating existing brands and ease its mergers and acquisitions pace in the short to medium term, chairman Qiu Yafu said on Monday in Hong Kong. In the future, Ruyi would only consider buying labels that are profitable and have high growth potential, according to Qiu.
“Some of the brands that we bought, although they’re heritage brands and enjoy very high consumer recognition, their business performance was far from ideal,” said Qiu, 60.
“We need to give them time – say five years – to turn those brands profitable.”
The group needed to inject new, trendy elements into underperforming brands and boost their e-commerce offerings, according to Qiu.
