The "Chinese-style" overseas expansion sample of Fosun

Fosun invests overseas, areas of concern preferred to upgrade consumer products, such as luxury goods, high-end services, high-end medical care and some pharmaceutical companies Tri Danchen Shanshan continued to accelerate its overseas investment after partnering with the US Baode Financial Group to establish a partnership fund and acquire a 7.1% per cent stake in the Mediterranean club of the French chain resort hotel.　　4th this month, Fosun International (00656.HK) intends to acquire a 9.5% per cent stake in the Greek jewellery retail brand, Folli Follie, by about € 84.588 million. Put to the vote at the end of the merger Liv-Liv Group announced the same day, its board meeting decided to sign a memorandum of understanding with Fosun International, Fosun International will become a share of about 9.5% of the shareholders.　　The investment will be voted on at the extraordinary general meeting on May 26.　　Liv is a Greek fashion brand, the main business includes watches, jewelry, other fashion accessories, as well as coach and other international brands in Greece and other countries exclusive agency, in 25 regions around the world with more than 380 outlets, especially in the world's airport duty-free shops have a large number of sales outlets. Liv Lai entered China in 2002 and currently has 90 or so shops in 27 cities in China. "This expansion is not too fast, and although the city covers a wide range, it is not deep enough," said Tri Hongpo, senior partner at the company's brand consultancy. After Fosun International investment, the biggest advantage is to help its expansion in China.　　"There are similar representations in the announcement." In recent years, with the rapid growth of China's luxury goods market, more and more international fashion brands want to spread their sales network in China. According to McKinsey's March "rising China luxury market", luxury spending in the Chinese market last year reached $12 billion trillion.　　According to Merrill Lynch forecast, by 2023, China will form a 31.8 billion dollar luxury market, accounting for the global share of the 31.6%.　　Share China's economic growth benefits to Fosun International, this investment Uffriet, also just in line with its own strategy.　　Fosun Chairman Guo told the first financial daily reporter that Fosun's overseas investment strategy remains rooted in China's economy, seeking resources from around the world to support China's economic growth and sharing the benefits of China's economic growth with its stakeholders. "Our model of investing overseas is to do to the overseas enterprises with China's development of the platform to link up, so will pay attention to overseas network, brand advantages of enterprises, such as consumer goods, luxury goods, food chain and other fields, and then they with China's urbanization, industrialization, consumption growth linked to achieve a win. "There are not many opportunities for domestic companies to invest in international brands, especially in the luxury goods industry, a deal like Fosun International investment is worth it," Tri Hongpo said. According to our correspondent understands, Fosun Group invests overseas, the area of concern of the first choice upgrades consumer class, for instance luxury goods, high-end service industry, high-End medical and some pharmaceutical companies; second, the resource and energy sectors; In addition, Fosun also hopes to invest overseas in the field of industrial upgrading, such as the introduction of some foreign high-tech and automated assembly lines.　　Fosun Group's investment model is generally not for the purpose of holding, but through equity participation or joint ventures, the introduction of Chinese economic development in line with the needs of the brand, technology, talent, business model. Fosun Group CEO Liang has told our correspondent, Fosun Group chose to invest overseas enterprises, will consider how the enterprise can invest in the Chinese market, that is, can share the momentum of growth in the Chinese market, "the current China from the manufacturing power to the consumption of the major consumer demand, the upgrading of China's manufacturing needs, Continuous urbanization and fast-growing capital markets are the embodiment of ' China power '.　　"Liang said in a speech late last year the renminbi will be in a state of" internal devaluation "for a long time, and the inspiration for Fosun's investment and financing is to acquire a sizeable share of the profits from overseas assets in the Chinese market, including those overseas companies that have a rapid rise in profits in the future Chinese market.　　The thinking of international capital Operation clearly Fosun Group has been moving continuously in international capital operation in recent years. In the September 2009, Fosun International and Carlyle Group jointly injected into the dairy enterprise, thus becoming the third and second largest shareholder.　　The following November, the company listed on the main board of the Hong Kong stock Exchange.　　In the 2010, Carlyle and Fosun jointly created a 100 million dollar fund to invest in the high-growth companies that are associated with China in the business model.　　Last month, Fosun and the US life Insurance company Prudential Financial Group jointly set up the "Fosun-Baode China Opportunity Fund", Fosun, Prudential, respectively, funded 100 million, 500 million U.S. dollars, from Fosun to be the general partner in charge of investment decision-making.　　After acquiring a stake in the club in June last year, Fosun helped Club Med to open a ski resort in northeast China, and plans to set out 5 resorts in China 2015 years ago. The New York Times last month said that China's rapid modernisation and continued growth in the middle class have made China a place for private equity and other investors to chase. World-class big-name companies are allied with local companies such as Fosun.　　The New York Times even thinks Fosun is the Chinese version of Berkshire Hathaway. Fosun, a company that is positioned to invest in industry, has recently been advocating Buffett's model.　　Guo has on several occasions stressed that Fosun's most prized core idea of Buffett's investment is the low cost of funding, and where the money will yield the best returns. Buffett has access to investment insurance companies for low-cost sources of funding. Guo to this reporter that the insurance company's business model is matched with the complex, so Fosun is also interested in investment insurance companies.