Analysis Of The Motivation And Performance Of M&A In Traditional Clothing Industry Under The Background Of "internet +"

In recent years,due to factors such as rising labor costs,rising rents,and overcapacity,the traditional retail industry has experienced a decline in performance and a shrinking profitability of physical stores in a large number of retail enterprises.Retail enterprises generally face value enhancement,market competitiveness needs to be strengthened,transformation and upgrading,and performance from negative to positive.National Prime Minister Li Keqiang added the concept of “Internet +” in the government report in March2015.A large number of traditional retail enterprises have switched from a physical store model to a merger and acquisition of e-commerce companies to seek to upgrade and improve their performance.Development strategy to create a higher level of corporate value.This paper takes the merger between ELLASSY and Buy Quickly as a case,focusing on whether traditional clothing enterprises can achieve the purpose of enterprise transformation and performance improvement after mergers and acquisitions of e-commerce enterprises,focusing on the theoretical knowledge of mergers and acquisitions,and traditional retail Enterprises expand the theoretical content and practical content of the new Internet companies in the process of mergers and acquisitions,provide experience and guidance for the development of related enterprises,and have rich reference and practical value.This paper first introduces the background of the current apparel industry and the national policy on “Internet +”.It classifies and summarizes the literature related to M&A motivation and M&A performance.It is found that scholars mainly generate synergies and increase market share in terms of M&A motivation.The rate and the comprehensive strength of the three aspects of analysis.In terms of M&A performance,it is mainly analyzed from the ability to improve performance.Then,it further studies the synergy theory and market power theory of mergers and acquisitions,and lays a theoretical foundation for the analysis of the case of ELLASSY mergers and acquisitions.Secondly,after the above research,there are two main reasons for the merger and acquisition of Internet enterprises in the traditional clothing industry: policy support and the transformation of the traditional clothing industry.The specific research on the acquisition of Buy Quickly by ELLASSY will include the M&A timeprocess and the specific plans for M&A.It is found that the motivations of the songs and acquisitions are analyzed from two angles.The main aspects of the songs are: getting involved in new retail,perfecting the B2 C channel layout,getting rid of the development bottleneck and enhancing the brand synergy.Buy Quickly performance aspects: Buy Quickly performance is good,Buy Quickly urgently need funds and luxury goods sales experience.Then we will discuss the impact of the completion of the merger.The main indicators include financial related and non-financial related.With the large-scale data and charts,the songs are directly displayed in the merger.Changes in financial indicators and EVA before and after.Before the merger,most of the financial indicators of the company were in a downward trend and increased significantly after the merger.Non-financial indicators are mainly analyzed in terms of operational,management and financial synergies.Finally,it is concluded that if the traditional clothing industry wants to develop in the context of "Internet +",it should conform to the national policy,lay out e-commerce enterprises as soon as possible,and open new retail.