Fosun finally completes acquiring fashion label Tom Tailor
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Fosun International Limited (Stock Code: 00656.HK) today announces to acquire 100 percent of the shares in Tom Tailor GmbH, together with its subsidiary companies. This enables the fashion brand, with around 3,400 employees, to achieve long-term business development and sustainable growth through Fosun’s strategic empowerment and ecosystem.
Fosun has always believed in the brand value of Tom Tailor since the beginning and has purchased the minority of brand shares of its listing company TOM TAILOR Holding SE as early as 2014. After years of investment and funding, Fosun finally acquired its controlling stake in 2019.
“Since first becoming a shareholder in 2014, Fosun has been deeply committed to Tom Tailor – and has always believed in the brand and continued to invest in it, even in particularly challenging times for the entire Tom Tailor Group,” said Gernot Lenz, CEO of Tom Tailor GmbH. “The knowledge and experience we have gained together over the years make Fosun the ideal partner to take Tom Tailor GmbH to the next level once again, both during and after the coronavirus outbreak.”
From now on, Tom Tailor GmbH is hoping for a stronger come back in the fashion market, being able to stay ahead in the competition with Fosun’s steady empowerment. Fosun Fashion Group (FFG), as an important industry sector within the Fosun ecosystem, is continually providing support through investments and aligning with management to ensure that capital and strategy are in place. Thanks to the continued financial support from Fosun, as well as new strategic measures with a clear focus, Tom Tailor GmbH is confident about its future in the industry, at the same time capable of contributing to the fashion ecosystem of Fosun.
“Tom Tailor GmbH aims to overcome its current and future challenges and will be able to build on the growth recorded in 2019.”
“Fosun is committed to making long-term strategic investments in companies that offer high-quality products and services to families around the world,” explained Xu Xiaoliang, Co-CEO of Fosun International. “As one of the largest fast-fashion brands in Germany, Tom Tailor GmbH has developed a firm market base and an extremely high level of brand recognition among consumers, as well as a fully developed supply chain and logistics system in German-speaking countries. We remain confident about this. We would like Tom Tailor GmbH to become an even more resilient and more fruitful partner for us.”
Tom Tailor GmbH aims to overcome its current and future challenges and will be able to build on the growth recorded in 2019. With financing secured for all areas of the Tom Tailor GmbH business until September 2024, the company can implement the numerous operational and strategic measures as planned. These measures will primarily address the following five aspects:
- Improve products: Tom Tailor GmbH will invest in effectively improving the quality and appeal of its products.
- Increase customer loyalty: Tom Tailor GmbH will introduce a variety of individual initiatives to significantly improve and maintain the loyalty of its customers in the long term.
- Continue with targeted internationalization: Tom Tailor GmbH aims to continue its successful growth trajectory in several countries outside of its existing core markets, particularly in South-Eastern Europe.
- Strengthen online business: Tom Tailor GmbH will selectively expand its digital sales channels and online presence for a significant growth online revenue.
- Improve efficiency: Tom Tailor GmbH will cope with the effects of the COVID-19 pandemic by implementing a bold program to streamline processes along the company’s entire value chain.
Despite all the challenges, Tom Tailor GmbH’s clear ownership structure and financing arrangements make it one of the few players in the fashion industry, resting on a very concrete foundation for further development. This stability does not only ensure a solid ground for upcoming improvements. It is also going to provide all of the company’s stakeholders – particularly its trading partners, suppliers, financing partners and, of course, its employees – with the reliability required to successfully develop the business going forward.
Questions & Answers
Q.What specifically does Fosun's acquisition mean for Tom Tailor GmbH's future operations?
What specifically does Fosun's acquisition mean for Tom Tailor GmbH's future operations?
The acquisition secures financing for Tom Tailor GmbH's business until September 2024. This stability allows the company to implement operational and strategic measures, including product improvement, increased customer loyalty, internationalisation, strengthened online business, and efficiency improvements.
Q.What is Fosun's long-term strategy for Tom Tailor GmbH, according to the article?
What is Fosun's long-term strategy for Tom Tailor GmbH, according to the article?
Fosun aims for Tom Tailor GmbH to achieve long-term business development and sustainable growth through Fosun’s strategic empowerment and ecosystem. They want it to become a more resilient and fruitful partner, contributing to Fosun's fashion ecosystem.
Q.When did Fosun first become involved with Tom Tailor, and how did their investment evolve?
When did Fosun first become involved with Tom Tailor, and how did their investment evolve?
Fosun first purchased a minority of shares in TOM TAILOR Holding SE in 2014. After years of investment and funding, they finally acquired a controlling stake in 2019, culminating in the current 100 percent acquisition.
Q.What key strategic areas will Tom Tailor GmbH focus on with the new financing?
What key strategic areas will Tom Tailor GmbH focus on with the new financing?
Tom Tailor GmbH will focus on improving products, increasing customer loyalty, continuing targeted internationalisation, strengthening its online business, and improving efficiency throughout its value chain. These measures address current challenges and future growth.
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