Italian men's DELLMA debuts Nanshan's extended ambition

In recent years, textile companies have increasingly moved downstream into apparel operations, aiming to strengthen their industry presence and extend their value chains. Nanshan Textile Apparel's latest move reflects this trend, as it continues to expand its footprint in the global fashion market. The company’s strategy involves acquiring established brands to leverage their reputation and customer base, allowing it to grow more efficiently.

“This is an era where fast fish eat slow fish,” said Song Riyou, General Manager of Nanshan Textile Apparel. “China’s textile and apparel sector needs to integrate global resources and combine strengths to build a better future.”

M&A: A Fast Track to Brand Building

What makes this cross-border acquisition unique is that it took over three years from initial negotiations to full operation. The process began in 2007, just as the financial crisis was starting to take shape. At that time, many European businesses were struggling, and some were looking to sell. Nanshan saw an opportunity to acquire a strong brand at a favorable price.

“The timing was right,” Song explained. “Many European SMEs were facing financial difficulties, and family-owned businesses were eager to sell. We felt we had a chance to buy at the bottom.”

After evaluating several options, Nanshan chose DELLMA. “Its brand positioning and design style perfectly matched our vision,” said Song. Founded in 1960 by the renowned Italian designer DELLMA, the brand gained fame for creating official uniforms for the Olympic Committee and the Italian delegation. It became a symbol of elegance and sophistication in Italian high society.

In 2007, Nanshan also made headlines by listing on the London Stock Exchange, becoming the first large Chinese textile and apparel company to do so. This milestone not only boosted its credibility but also gave it the financial strength to pursue international acquisitions.

“Some people say we have too much money, but we don’t,” Song joked. “We’ve already completed our scale expansion. Now, we need to focus on branding. Time is critical, and using capital to quickly gain technology, talent, and market access is essential.”

According to Wang Xiangsheng, a fashion industry expert, M&A is indeed a smart move for Chinese textile firms. “They lack strong brands and marketing strategies. By acquiring established brands, they can leapfrog and grow faster.”

However, despite DELLMA’s solid reputation in Italy, its presence in China is still limited. Nanshan must invest heavily in marketing and distribution to build awareness. “We’re working hard behind the scenes to ensure everything is perfect for our debut,” said Song.

Nanshan plans to position DELLMA as a premium brand for professional white-collar workers, especially those in finance and other high-end industries. “We want to offer them a personal fashion upgrade,” he added.

Extending the Industrial Chain for Greater Profit

For years, Nanshan has focused on the upstream segment of the textile industry, supplying fabrics to top international brands like HUGOBOSS and domestic leaders such as Zhuang Ji. “We have extensive experience in manufacturing and quality control,” said Song. “But we realized that the profit potential in branding is far greater than in production.”

The textile industry has faced declining profits due to rising raw material costs, post-crisis adjustments, and increased competition. As a result, many companies are seeking new growth areas by extending their industrial chains into apparel and brand management.

Experts believe that moving up the value chain is crucial for long-term success. “Textiles are at the low end of the value chain,” said Ni Zhongsen, a listed company analyst. “To reshape the value chain, companies must move toward the end consumer, where they can exert more control and pricing power.”

Song emphasized that Nanshan’s advantage lies in its R&D capabilities and quality standards. “Even Zegna, a famous Italian brand, owes much of its success to fabric suppliers. Today, 50% of its business still revolves around textiles.”

Wang Xiangsheng added that successful integration requires not only capital but also strategic thinking and the right talent. “Before entering a new market, companies must do thorough research and find the right brand model, especially when expanding through M&A.”