Lifan(SH:601777) Sou Hu Cai Jing·2025-06-07 12:51Core Insights - The article discusses a recurring business phenomenon where once-prominent international brands like FILA, Arc'teryx, Volvo, and Wirtgen experience decline in their home markets, leading to low-cost acquisitions by Chinese companies such as Anta, Geely, and China Railway, which then revitalize these brands, resulting in soaring sales and market value [1][2][3] Group 1: Acquisition Stories - Anta acquired FILA's China business for approximately HKD 600 million in 2009, transforming it from a loss-making brand to a profit generator with annual revenue exceeding CNY 20 billion and over 2,000 stores [2] - Geely's acquisition of Volvo for USD 1.8 billion in 2010 led to a tenfold increase in its market value, with sales rising from 450,000 to 700,000 vehicles, significantly driven by the Chinese market [2] - China Railway's low-cost acquisition of Wirtgen's technology allowed it to become a global leader in the shield tunneling machine market, showcasing a shift from a technology follower to a leader [2][3] Group 2: Decline of International Brands - International brands like Volvo, FILA, Arc'teryx, and Wirtgen face structural decline due to reduced demand in the aging and conservative European and American markets, leading to a loss of growth potential [3][5] - The financial crisis of 2008 severely impacted Volvo's sales, while FILA struggled with limited channels and a shrinking consumer base in Europe [3][5] Group 3: Revitalization in China - The Chinese market is characterized as a unique "amplifier" for international brands, with a large and expanding middle class driving demand for quality and brand [5][6] - China's superior channel capabilities and retail networks, along with the rise of e-commerce platforms, enable brands to reach broader consumer bases [5][6] - The complete industrial chain and cost efficiency in China facilitate the rebirth of these brands, allowing for significant reductions in production costs and increased profit margins [5][6] Group 4: Growth Mechanism - The success of these acquisitions is attributed to the ability of Chinese companies to effectively reposition and operate the acquired brands, transforming them to meet new market demands [7][8] - The growth strategy involves redefining brand positioning, expanding product lines, and leveraging China's manufacturing advantages to reduce costs [8][9] - Chinese companies excel in utilizing modern marketing strategies, such as social media and live streaming, to enhance brand visibility and consumer engagement [9] Group 5: Future Trends - The article predicts that the trend of "snake swallowing elephant" acquisitions will continue, driven by the structural shifts in global economic power and the rebalancing of brand value chains [10][11] - The future will see Chinese companies acting as accelerators for global brand growth, moving beyond mere acquisitions to comprehensive brand revitalization [12][13]