LYCRA® sold to Chinese Investor Shandong Ruyi including Coolmax® fiber and Thermolite® Insulation
The Shandong Ruyi Holding acquired INVISTA's apparel and advanced textile business for more than 2 BN US-$. The purchase from Koch Industries Inc. is part of the Chinese apparel producer’s goal to acquire leading global textile brands. So with the LYCRA® brand, one of the most known Ingredient Brands in the world, we see for the first time brand ownership of a significant ingredient/material/component brand going from a "Western" owner to a Chinese company.
This is a tectonic shift towards Chinese companies demonstrating their appetite for a bigger share of the total value in the textile chain. With their enormous production capacities and capabilities and the growing importance of the Chinese consumer market, China has already become indispensable for the textile industry.
With the acquisition of the consumer franchise of brands such as LYCRA®. Coolmax® and Thermolite®, Shandong Ruyi gets access to the concept of achieving price premiums through attractive and meaningful brands.
It will not only be interesting to see, how the exsiting brand equity will be leveraged in the future, but even more how future brand value and equity will be created in order to maintain strong and meaningful brands for consumers in Europe, the Americas and Asia.Back to blog list