KAPPA behind the back of success

KAPPA is an innumerable sportswear brand appearing on the Italian football guy. Its semi-high collar and mid-sleeved sportswear launched at the 2000 European Championships is even considered a classic that can not be surpassed. However, at that time, These letters are not familiar, or even used to call it according to their logo "back to back." Today, KAPPA has become a brand that Chinese people can pronounce accurately. More importantly, its sales in China have ranked third in the international sports brands, second only to Nike and Adidas. To achieve this, is a Chinese company named China Trends, its founder Chen Yi-hong, initially well-known for his leadership of the local sports company Li Ning battlefield. China Mobile paid $ 35 million in May 2006 to buy out the brand ownership of the KAPPA brand in mainland China and Macau, after it had exclusive distribution rights. It is said that Morgan Stanley paid to contribute to this matter - March 2006, Morgan Stanley China to inject 38 million U.S. dollars, and owns 20% of its shares. On October 10, 2007, with the help of Morgan Stanley, China's move was listed in Hong Kong and sought after with a market capitalization of nearly HK $ 30 billion. By May this year, Morgan Stanley sold part of the shares, cash of about 1.1 billion Hong Kong dollars, the sale price is about 10 times the 2006 purchase price. Morgan Stanley did not quit this feast. At present, Morgan Stanley is making every effort to find more babies like China Mobile. By investing in companies like China Mobile, Morgan Stanley is pursuing a strategy of high-yielding and high-risk in the Chinese market. "In the past, I mainly relied on IPO projects and now prefer some value-added services," said the company's top public. Investing in companies such as China Mobile is part of the Morgan Stanley direct investment business, which is the most important part of value-added services. Analysts believe Morgan Stanley's eyes are on the excess returns that Chinese private-owned companies listed overseas have brought to initial investors in recent years. However, Morgan Stanley has its own killer, which is more focused on the consumer goods and retail markets than the rest of the industry shows its strong interest in infrastructure and heavy industry in the Chinese market. "China sends an important message to the world that a key adjustment to its economic development model is going to emerge - from export-led and investment-led to private consumption," said Stephen Roach, chief economist at Morgan Stanley. Morgan Stanley's global investment strategy report also made it clear that optimistic about the Chinese consumer market. A further explanation is that companies that Morgan Stanley fancy have the following characteristics: leading position, well-known brands and sustainable profitability. Facts have proved that Morgan Stanley's focus on the consumer and retail markets has brought huge returns. Official data from the Morgan Stanley direct investment department show that so far have invested Ping An Insurance, Nanfu Battery, Mengniu Dairy, Heng International, Paradise International, Belle International and many other leading enterprises. Data show that in the Ping An Insurance project, Morgan Stanley shares to 35 million US dollars, the cumulative return is 1.1 billion US dollars; in Mengniu Dairy, Morgan Stanley placing shares in two times, total cash more than 2.6 billion US dollars; in Paradise In the case of electrical appliances, Morgan Stanley, in addition to its initial cash of HK $ 1.2 billion, held a total of 10% of the shares of the new company after the merger of Gome Yongle. No one is not optimistic about the future of China's consumption, while Morgan Stanley plans to raise its gold price in China's 800-billion-dollar retail market. Data show that in the past 15 years, Chinese consumer income increased 7.7 times, while McKinsey predicts that by 2010 China will have 40 million family annual income of more than 48,000 yuan, the purchasing power equivalent to 24,000 US dollars, enough to rival the U.S. middle class . Now, Morgan Stanley is hurrying to get more babies in her arms. In January 2007, Morgan Stanley invested $ 18 million in Hunan Prince Milk Group. This is based on an estimate of the rising consumption of lactic acid bacteria in the market, while Prince Milk accounted for more than 70% of the market in China's lactic acid bacteria and milk market. In October 2007, Morgan Stanley invested $ 18 million in Cobram, Involved in the Chinese home overall solution to the market. For the two companies that belong to completely different formats and industries, the biggest feeling of negotiation with Morgan Stanley is: fast. Prince milk in Hunan project, from the negotiations to the funds in place, the time is 3 months. In Beijing, in the same three-month period, Morgan Stanley also lost a pre-Deutsche Bank Corps Boloni intervention. Cai Ming, general manager of Boloni, said in his blog that (Morgan Stanley) hurried to throw money at us ... They said what is going to be done for Tsai to prepare. This is exactly what happened to Morgan Stanley's earlier advertising, and if God wants financing, he also looks for Morgan Stanley. Now, China's consumer goods company may be exactly the "God" of Morgan Stanley.