A Study On The Effects Of Cross-border M&A On Brands And Performance In Jewelry Industry

After China entered the market economy,the jewelry companies created brands lacking historical precipitation,and more relying on the scarcity attributes and design of jewelry itself to create marketing.With the awakening of capital operation in the jewelry industry,brand building can increase the brand value of domestic jewelry companies through cross-border mergers and acquisitions.The world's top jewelry brands such as Cartier's Napoleon,Tiffany's Queen Eugene and Hepburn's brand endorsements have become world-renowned luxury jewelry companies because of their brand culture.Since the biggest barrier to entry for high-end jewelry lies in the historical and cultural heritage of the brand and the brand story,Leysen1855 has created a new idea for domestic high-end jewelry marketing,namely,cross-border M&A foreign famous brands for brand integration,brand bold remodeling,European royal family The concept fully grafts Chinese consumers and is committed to the high value-added brand promotion in the industry chain.This paper combs the current domestic and international well-known brands in the jewelry industry and the M&A overview of domestic jewelry companies,and has compiled the list of enterprises in the jewelry industry through the brand value evaluation data released by the World Brand Lab.In addition,this article focuses on the impact of Leysen1855's cross-border mergers and acquisitions on brand development and M&A performance.After the merger,the company adopts the cobrand development strategy,and the brand positioning shifts from light luxury goods to luxury goods.The brand value evaluation after the merger and acquisition is indirectly analyzed by Tobin Q theory.After the merger,the brand value evaluation adopts the Tobin Q theory for indirect analysis.After two years of merger and acquisition,the Q value is greater than 1 and shows an upward trend,while the industry average Q value shows a downward trend,indicating that the increase of brand value after merger and acquisition is very likely to promote the company's value.M&A performance is analyzed by market performance and financial performance.Market performance use event research method to analyze Leysen1855's stock price response.The financial performance analysis was based on the accounting index method,and combined with the industry and benchmarking companies for comparative analysis.In the end,this cross-border merger and acquisition is conducive to the realization of the company's overall strategy,which shows that the market has given positive feedback;in terms of financial performance,the company's sales gross profit margin has further increased,and the corresponding turnover days have increased.This cross-border merger and acquisition has effectively promoted the company's brand differentiation strategy.