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The acquisition of bathroom products is surging, and resource integration still needs to be cautious

In recent years, there have been frequent acquisitions in the bathroom industry. In 2013, Lizhu acquired Gaoyi and Liansu acquired Yigao, becoming industry hotspots. On the one hand, enterprise acquisition is for resource integration, and on the other hand, it can also improve production technology through joint efforts, thereby enhancing the competitiveness of the enterprise. However, in fact, whether it is a strong alliance or a strong acquisition of the weak, the hidden dangers of enterprises cannot be underestimated, after all, the integration of business models after the alliance is also a major challenge.
Frequent Industry Acquisitions
In 2009, Zhuhai Platinum Europe Sanitary Ware, a subsidiary of Seagull Sanitary Ware, officially took over Sanying Sanitary Ware on November 1, and Foshan Sanying Sanitary Ware will operate as an independent business unit of Seagull Sanitary Ware;
In September 2013, Japan's Lizhou acquired 87.5% equity of German bathroom product manufacturer Gaoyi for 400 billion yen. Li Zhu's move is seen as an important symbol of opening up the European bathroom market and expanding global market share;
In November 2013, Liansu Group announced its wholly-owned acquisition of Yigao Sanitary Ware, and both parties will share resources and information in internal management, external markets, and other aspects.
What is a risky acquisition like?
In fact, every company knows the risks involved in acquisitions, but why are there still companies willing to take risks? In fact, corporate acquisitions, on the one hand, are the integration and utilization of bathroom resources in the severe situation of the bathroom market; On the other hand, it is also taking advantage of the continuous downturn in the bathroom market to seize the lead and store favorable resources.
It is reported that after the acquisition of Meibiao and Gaoyi by Liju, the original team has been retained, and Meibiao's production in the Americas still follows the product name and trademark of Meibiao. The same applies to Gaoyi. At the same time as Gaoyi was acquired, Lishui signed a new five-year contract with Gaoyi's CEO David J. Haines, and Gaoyi's partner in China, Zhongyu Bathroom, was not affected by this acquisition. Enterprises have undoubtedly won more favorable conditions for competition by integrating resources, leveraging strengths and avoiding weaknesses.
The fate of the acquired enterprises varies
After a company is acquired, it may initially become more powerful, but in the process of mutual integration, there is also a high possibility of conflicts between the two companies in terms of business models, management systems, and other aspects. These uncoordinated factors will play an undeniable role in hindering the development of the company in a short period of time. Therefore, in many acquisition cases, the fate of the acquired enterprise is also different.
It is reported that after being acquired by Seagull, the acquiring party did not invest too much capital in Sanying, which made Sanying's brand promotion and marketing weak. With the relocation of the marketing headquarters, Sanying's brand promotion and product marketing were greatly hindered, and brand investment fell into a quagmire.
In contrast, American Standard was much luckier after its acquisition. After the acquisition of American Standard, Liju carried out large-scale rectification in the US market. After the acquisition of Gaoyi, while retaining the original mechanism and development foundation, it strengthened cooperation with the Asia Pacific region, leading to a virtuous cycle of Gaoyi's development.
Summary: The fate of Sanying has exposed some of the drawbacks of the acquisition, while Lizhu's acquisition of American Standard has given the industry hope. Overall, 'acquisitions' mostly involve the strong acquiring the weak, but there are also phenomena of strong power alliances. Whether it is an industry acquisition or a cross bank acquisition, the goal of integrating resources
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