"Going Public In Hongkong" Has Become The Latest Fashion Of Luxury Industry In Europe And America.

The US bag brand Samsonite (Samsonite) IPO application has been approved. Prada is also eagerly looking forward to relieving debt pressure through Hongkong IPO, while the American handbag brand Coach only wants to be listed in Hongkong.

Hongkong's capital market is active and near the future.

The camps of luxury goods are being split up. The most exclusive brands are unwilling to choose Hongkong or even want to break their sense of mystery. But those brands with low price and hard hit by the financial crisis can't wait to rush to Hongkong.

Near the market

The US handbag brand Coach, which never denied "Made in China", initiatively disclosed Hongkong's listing plan in early May.

In the mail addressed to the author, Coach said that Coach had been listed in New York many years ago through its listing of depositary receipts in Hongkong.

If all goes well, Coach is expected to achieve Hongkong's listing in 2011 and become the first US company to list Hongkong and New York.

Coach is not short of money. This is more about advertising.

LewFrankfort, chairman and chief executive of Coach, said that listing in Hongkong would help enhance the visibility of Coach in Chinese and Asian investors and consumers.

Coach predicts that in the next two or three years, its sales in China will increase from the current 3% to 10%.

I understand that in recent years, Coach has not only quickly reclaimed the right of agency in China, but also set up its headquarters in Shanghai, and its president of international retail business will fly to China once a month, each time visiting a different city.

One step ahead of Coach is Samsonite, the US Luggage brand. Its $1 billion Hongkong IPO plan was approved in early May.

The highest concern is Italy fashion giant Prada.

An insider close to Prada told the author that after the twists and turns of Hongkong's listing, Prada is "coming true" this time, and the success is very large.

Unlike Coach, Prada needs to reduce debt pressure through financing.

The author tried to contact Prada Shanghai office but failed to get a reply.

In fact, Bertelli, CEO of Prada, has long said that IPO sites represent the market that Prada will go to.

The movie "the devil wears Prada" came out, and Prada did not know how many fans were captured in Asia.

Hongkong is undoubtedly an ideal place to raise funds while promoting its market in Asia, especially in the mainland of China.

Abacus of listed capital in Hongkong

In fact, the first crab to eat is the French make-up brand L'OCCITANE.

In 2010, L'OCCITANE went public in Hongkong and became the first French company to list in Hongkong.

After the listing, both at the capital level and in product sales, they have achieved admirable results.

Luxury Hongkong IPO curtain opens.

Next, compared with fellow bigwigs, L'OCCITANE's P / E exceeds L'OREAL in 2010 and Estee Lauder in 2011.

Less than a year later, L'OCCITANE shares rose more than 30%, exceeding those listed in other markets.

People from a Hangzhou venture capital company told the author that in general, the valuation of Hongkong is not necessarily high in Europe and the United States. However, due to different industries, some industries will be particularly prominent.

Due to historical reasons, Hongkong's culture is close to Europe and America, and its language is also convenient. Hongkong has many international institutions and investors.

Hongkong is not as strict as Europe and the US in terms of regulation.

If you want to find a listing place in Asia, Hongkong is undoubtedly the first choice.

The common practice of European and American companies in Hongkong IPO is to find a number of international investment banks to act as agents, and use different channels and resources of different investment banks to jointly operate large projects.

Morgan Stanley and Goldman Sachs are among the list of European and American luxury goods agents who have recently disclosed the news of the listing.

Zhu Zhenkai, a partner in management consultancy, thinks that these European and American luxury brands are likely to use their funds in Asia, especially in the mainland market, after raising funds in Hongkong.

Its primary goal is to build a brand sales network, to recover the dealership in the hands of many dealers in the mainland of China, and to build a channel for direct operation by the brand. Secondly, setting up factories in the mainland of China is also a major flow of capital.

Localized production can bypass high tariffs and help open the market; there is another major purpose to enhance the market share of the brand in the mainland of China and to compete with competitors.

Asian markets are "uncertain"

This is the stage of chaos in the Asian market, the concept of consumers has not yet been formed, and the brand image has just started.

In recent years, whoever can seize the opportunity will be hard to shake in the future.

Taking Coach as an example, it is not the top among the luxury goods in Europe and America, but in Asia, from Japan to China, it has adopted an unusual and active market strategy and obtained quite satisfactory returns.

Tiffany, the top jewellery brand in Europe and the US, has not been very popular in China. The recognition of Chinese consumers does not match its international status.

Wu Shenzhi, marketing manager of the French Blue Porcelain Industry Co., Ltd., a luxury industry, believes that Hongkong has always been an outpost for the mainland market. Just like many brands set up a representative office in Hongkong, the mainland market operates remotely, and then rents to offices in Shanghai after maturity.

Now that Hongkong is listed on the stock market, the mainland A shares will also be attractive to luxury goods when the time is ripe and the regulation is free.

Lu Qiang, President of several European luxury brands and President of Shanghai's rich guest Industries Limited, believes that the capacity of Hongkong's capital market is limited, and the luxury brands coming from late will face fierce competition.

In the next few years, the luxury Hongkong listing boom will intensify.

According to Lu Qiang, last year, many luxury brands grew more than 30% in China, some even more than 50%.

However, in the attitude towards Asia, luxury camps are being differentiated.

Taking Hermes and other top brands as an example, although the number of shops in China has surpassed India, its conservative style still has no signs of loosening. Listing in Hongkong is almost impossible.

Although many family businesses in Europe are fully equipped with the conditions for listing, they are not willing to be subject to listing supervision. They worry that the periodic disclosure of financial reports will affect the mystery of survival and insist on not listing.

Only those brands that are slightly more popular and popular in Asia, and those with more urgent financing needs such as Prada, will be listed in Hongkong.