These Asian Firms Are on the Prowl

Asian firms are on the move as economic forces push them toward different strategies on building global platforms.

Ajay Khaitan of Emerisque Brands explained that most Asian consumer-focused companies in the past have preferred to acquire licenses of international brands for their own territories instead of buying global intellectual property rights, because the acquisition and management have meant a “reprioritization of capital and management in areas that are generally outside their comfort zones.” He said that now there’s a desire among the more aggressive and larger Asian operators, as well as some Asian private equity firms, to own global brands because they see ownership as the “next logical step in creating a distribution platform for their goods in Western markets.”

The following is a list of some of the major companies and firms on the hunt for new businesses.

• Dickson Concepts (Intl.) Ltd.: Investment holding company whose focus is on luxury goods distribution, with nearly 500 shops primarily throughout China, Hong Kong, Macau, Malaysia, the Philippines, Singapore and Taiwan. It owns as subsidiaries investment holding firm Castlereagh Ltd. and trademarks agency Dickson Licensing Ltd., as well as British retailer Harvey Nichols and Swiss watch manufacturer Bertolucci SA.

• Li & Fung Ltd.: A multinational group of companies founded in 1906 known for its global sourcing network. Its U.S. subsidiary is LF USA. Retailing interests include fashion and branded lifestyle products.

INDIA

• Emerisque Brands: U.K.-based investment firm whose previous deals include Lee Cooper and HMX Group, which houses the brands acquired from the former Hartmarx Corp. when it was in bankruptcy. The firm has regularly tapped into the Indian investment community when it does deals, such as when it brought in SKNL for the Hartmarx transaction.

• Madura Garments: An apparel and retail firm that is a division of Aditya Birla Nuvo, an AV Birla Group company. It is primarily focused on men’s wear, and its distribution is via stores and multibrand outlets both in and outside of the Indian market.

• Reliance Brands Pvt Ltd.: A subsidiary of Reliance Retail Ltd., which is in turn part of Reliance Industries Ltd., it was launched in October 2007 with an eye toward both investing in struggling firms and creating premium brands in the apparel, footwear and lifestyle segments of the marketplace. It also has a joint venture with Italian fashion firm Sixty Group for the Indian market. Other joint ventures include one with Italian luxury sportswear firm Dama SpA and Diesel International.

• S. Kumars Nationwide Ltd.: Global acquisitions bring its portfolio to 37 brands, and its British unit has formed a venture with Donna Karan International for the worldwide licensing of DKNY men’s wear. Core Indian operations for this conglomerate include consumer textiles, ready-to-wear and fine cotton and natural fiber shirtings businesses.

JAPAN

• Onward Kashiyama: A manufacturer of men’s and women’s apparel under its own brands, as well as for such brands as Sonia Rykiel, Calvin Klein, Gianfranco Ferré and Paul Smith. Products are sold at its nameplate Onward Kashiyama stores and through department stores worldwide. In 2009, the U.S. arm, Onward Kashiyama USA, bought a 10 percent stake in Michael Kors, of which it was a licensee for the Kors by Michael Kors line.

SOUTH KOREA

• Cheil Industries: The parent of Samsung Group, it began in 1954 as a textiles firm and expanded that business into fashion through its men’s wear operations. Subsequent expansions include women’s wear and a launch into the chemicals market. Cheil was the first Korean fashion firm to introduce just-in-time manufacturing in its home country. Samsung is among the companies involved in a deal to acquire Gianfranco Ferré, although that transaction has hit a series of snags in the past month and is still pending approval.

• Doosan Group: Founded in 1896, it began as the Park Seung Jik Store in Seoul. It is now a diversified business conglomerate and, until Dec. 31, holds the license for Polo Ralph Lauren in its home market.

SINGAPORE

• Club 21: The fashion arm of Como Group, the firm focuses on wholesale distribution and sourcing for luxury retail for the fashion and accessories categories, and operates in Australia, China, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan, Thailand, the U.K. and the U.S. It manages more than 30 luxury brands, and has interests in vertical retailing, including A|X Armani Exchange.

• FJ Benjamin Holdings Ltd.: The group’s principal activities center on the distribution and retail of fashion and accessories. Founded in 1959 as a textiles firm, it has four distinct businesses: fashion retail, timepiece distribution, retail licensing and investments in lifestyle concepts. In 2006, it entered into an exclusive deal with Gap Inc. for the sole right to set up Gap and Banana Republic retail outlets in the Asia-Pacific region.