Yao Junda: Fighting Against Second-Hand Luxury Goods From Peddling To Billionaires

"Too unexpected!" no matter the first day or the next few days, Hongkong's second-hand brand retailer Milan station is heartbeat.

Milan station listing hurricane a

In May 23rd, the first day of the Milan station listing, the fear of big city falling nearly 500 points bad atmosphere, the adverse market hurricane was reported at HK $2.77 (the same below), compared with the stock price of 1.1 yuan rose nearly 66%, breaking the first day of this year's motherboard stock increase and earn two records.

In the market downturn, other shares appear flat, Milan station market response is more than expected. According to the results of the prospectus announced by the company in May 20th, Milan station Hongkong IPO received 35 billion 421 million valid applications, equivalent to over 2100 subscriptions and 59 billion 153 million yuan of frozen capital, exceeding the Tianjin port with the most oversubscriptions, becoming a new "super buying king" in the history of Hongkong's IPO. At the same time, the first hand (2000 shares) winning rate is only 1%, which has become the most difficult new stock market in Hongkong in recent years.

Share prices rose and shareholders laughed.

But the biggest winner is Mr. Yao Junda, who is not the founder of Milan station. On the first day of listing, he held a value of up to 1 billion 348 million yuan, equivalent to nearly 75% of the market value on the first day of Milan station.

But in the next 4 days, the Milan station had a thrilling roller coaster ride.

On the first day of listing, the Milan station, which had fully exercised the excess allotment rights, saw the stock price turn around for 3 days after the first hang day. After 24 days, it dropped 1%. On the 25 day, it fell nearly 8%. On the 26 day, the selling pressure increased, and the turnover was 9.56%. The turnover increased to 42 million 500 thousand shares, which was more about 7000000 than that on the 2.96 day. By the end of the 27 day of the last trading day on the weekend, it opened at a low price of 2.25 yuan, with a minimum of 2.21 yuan. After that, it went up and went up to 2.44 yuan, and finally closed at 2.39 yuan, up 5.29% from the previous trading day, and the volume contracted to 24 million 510 thousand shares.

For the company's share price performance is brilliant, Yao Junda bluntly, because of the market identification with company's business model.

Well, familiar customers deliver their own products.

Milan station, in fact, is buying and selling second-hand brand bags, and then re sell them through various channels to earn the difference. Walking into Milan station, you see absolutely international brand names, such as LV, Hermes, Gucci, Chanel, Chloe, Birkin, Fendi and so on.

22 years ago, Yao Junda, the founder of the company, was only a peddler selling "paper skin" in Granville street, Tsim Sha Tsui, Hongkong. When things went by, reporters went to the old Granville Road again today to inquire about some old neighborhoods. They said that more than 20 years ago, there were peddlers stall, everything sold, but they did not know Yao Junda at that time.

No one had thought that Yao Junda, who started the stall, later opened the Milan station, and set up a cash in hand "second-hand brand name bag" to become the leading brand of local second-hand brand handbags. A successful example of such a successful example is Hongkong, which has been developed and sold as a billionaire by buying and selling secondhand goods. {page_break}

Hongkong second-hand brand name retailer Milan station

Why did the Milan station succeed? Yao Junda once said that the experience of putting up a stall was very important then, and the skill of doing business was tempered at that time. Later, he met a partner who worked as a salesperson in a famous shop. He worked with Teresa Cheung and Candice Yu to sell the second hand shirts.

In 2001, Yao Junda founded the first Milan store in Tsim Sha Tsui, Hongkong. In the days to come, Yao Junda became acquainted with more and more Hongkong entertainers, wealthy businessmen and thousands of gold. Later, these celebrities provided a continuous source of supply for Milan station.

The most common thing is that the familiar customers deliver their own products. These guests are looking for freshness. They often change their brand bags every month.

Reporters at the Milan square near Times Square in Tongluowan saw that many second-hand bags in the shop were not new or old if they were not marked with new ones.

For these second-hand bags, Milan station will repack the bags once weekly according to the weekly inventory and customers' pre purchase volume, and the source will be increased at a timely price. If a brand store is being promoted, the product of Milan brand will also be cut down in time.

Yao Junda said frankly that it is the psychology of women who like to change their handbags. The success of creating a second-hand brand name tide is a great help for ladies to master the vanity of a famous brand bag under the premise of reducing the cost of women's "entering the goods".

70% fundraising for the mainland

10 years later, in 2011, the Milan station has expanded to a total of 14 branches. The outlets are distributed in Hongkong, the mainland and Macao gold shopping lots. These small shops with an average of less than 15 square meters occupy nearly 85% of the market share of the second hand bag Market in Hongkong. The Milan station has become a new "Pu point" for many Hong Kong women. It has also become a must go shop for many fashionable female tourists to Hong Kong.

Although the mainland market accounts for a small proportion of luxury consumption, it is growing at an alarming rate. The Milan station began to expand the mainland market in 2008. The income in the mainland was only 2 million 500 thousand yuan in that year. By 2010, it had reached 46 million yuan, and it had risen 17 times. Last year, the group's turnover and net profit were about 730 million yuan and 54 million 310 thousand yuan respectively, and the turnover from the mainland was more than doubled.

It is understood that nearly 200 million yuan of funds raised by Milan station will nearly 70% be used to develop the mainland market. Milan station said it will open 6 new retail stores in Beijing, Shanghai and Hangzhou, and will open 5 stores next year in Guangzhou and Chengdu and other major cities. It will open 24 new stores in the mainland in the next 3 years.

In fact, Milan station is basically based on women's "greedy vanity" and the mentality of changing their handbags. In recent years, international brands have introduced limited edition handbags to stir up the wind, attracting a large number of Hong Kong people to take part in the ranks of parallel goods, and then seeing the trend of mainland luxury buyers visiting Milan to create famous brands. Last year, Milan station made 730 million yuan business, of which more than 80% of the goods were provided by the public.

Yao Junda said: "Milan station is actually a trading platform that is in line with Hongkong's culture, and it also provides confidence in the integrity of the goods."

It is understood that each station in Milan has an average stock of about 6 million yuan, and most of the company's operating capital is used for inventory. Because the value of the limited edition handbag almost rises or falls, the company basically does not have too much operational risk.