YGM wins Jaeger Lion production line and will leave China

On the 8th of this month, YGM signed an agreement with Jager Lion to acquire Asian intellectual property at a cost of 13.7 million pounds (approximately HK$174 million). Upon completion, the YGM Group will acquire all rights, title and interest in Jaeger Lions Asia Intellectual Property, as well as the goodwill (including the rights, privileges, and benefits of goodwill) in the use and use of Asian Intellectual Property-related businesses.

At the same time, YGM also obtained the exclusive right to manufacture, wholesale and promote Jacob Garments in Greater China, Singapore, Malaysia and Thailand.

On the same day news from the same day, Chairman of the British Fashion Association, retail entrepreneur Harold Tillman, and Belinda Earl, CEO of the Jaeger Group, obtained control of Jacob's brand from Japan's Renown. right. They started negotiations on the acquisition issue from June this year.

Thus, Jaeger Dan, a 158-year-old British luxury brand known for its raincoat manufacturing, returned to the hands of Britons and was jokingly called "go home."

When foreign high-end brands have set up production lines in China, the return of Jacob Lion Dan is no doubt a choice that caters to the needs of social and economic development. But it was a big surprise that the brand actually chose to “run away from China” on the occasion of “going home”.

“We will transfer our production in China to European countries.” A few days ago, Deputy Director and General Manager of YGM Trading (00375, HK) Fu Chengyin told the “Daily Economic News” that the company had just acquired the British premium apparel brand Aquascutum (Ya (Geshi Dan) production will be moved from China to European countries.

For the relocation of the production line to the west, Fu Chengyin believes that "European-made" products are more likely to win the favor of Chinese consumers. "Despite the fact that Chinese manufacturing is excellent in quality," it is reported that before the acquisition, Jacoby Lion has about 20% The product was produced in China.

However, due to serious losses in the European market such as the UK, Yage Shidan did not acquire Yage Dandan's brand operations in Europe and focused on the Asian market.

In Fu's view, even if the cost of Europe is higher than China, he will choose to produce in Europe because of the consumers' psychological feelings.