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An unknown company buying an old favorite
Ensuring a smooth announcement
Challenges of the deal
Bridging the gap
A resounding success
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In November 2005, a Japanese fashion house took over a family-owned apparel firm in Germany with a long history including the in-house brands. Until that time, the Japanese purchaser was a complete unknown in Germany and the potential for an adverse reaction, both by media and other stakeholders, was great. CNC was called in to help prepare the launch of the new company and management.
One of the key tasks from the very beginning was developing a strategy to avoid the possible negative reporting that could arise from the deal. The announcement needed to be smoothly executed and the company carefully positioned to offset any backlash. CNC devised a communications platform and prepared communication tools among selected key messges including press release and employee letter to address all stakeholders in a timely manner. The acquiring firm was shown as a global company with a concise global triad strategy – one that held its new acquisition as a key component for further growth while building on the strength of the existing brand. To achieve this, CNC arranged interviews with key media, including German fashion media, to help achieve credibility and trust.
Two key factors were working against CNC in this deal: time and distance. CNC was called in less than one week before the announcement was to be made, requiring an extremely rapid preparation process. Also, introducing the management of the new parent company in Japan with the local media in Germany was a key success factor. The high-degree of coordination between CNC’s Tokyo and Munich offices enabled the company’s announcements in both countries to be perfectly aligned helped by the preparation and execution of a consistent message platform.
CNC’s enhanced local knowledge provided a distinct advantage. With the Tokyo office acting as the first point of contact for the CEO and CFO of the Japanese acquirer, CNC was able to provide constant support and consultation on an on-call basis, a critical advantage for the client. The Munich office handled the direct communication and media planning and implementation on the ground, reinforcing the strategic benefits of CNC’s global network.
The announcement was a success for the Japanese firm on multiple levels. The carefully crafted employee letter resulted in a positive reaction from employees. Positive news coverage in German regional and nation-wide media was also attained due to reporting by the Tokyo office of the leading German newswire. The interview with the Japanese CEO in the leading German fashion weekly established the client’s position in the industry as a leading player and helped a smooth operations start of the new company.
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