Behind The Listing Of Luxury Goods Companies

Recently, Prada's 10 year long listing road is finally expected to reach its end.

Y= "Ye Qizheng

B: it is generally optimistic that Prada will be listed in Hongkong this year.

However, Prada had suffered many setbacks on the way of listing.

Y: every failure is due to failure.

B: the success of this Prada listing plan is in sight. Is this very much related to their choice of Hongkong?

Y: Yes, on the one hand.

B: what can the listing bring to Prada?

Y: it will definitely bring more money to the brand to build brand and shop, but more importantly, it can solve the debt problem of Prada group.

Over the past ten years, the Prada group's high debt has been as impressive as Miuccia Prada's creativity, which has been as high as 1 billion euros.

The huge debt was mainly caused by the acquisition strategy of Prada group at the end of the last century, and the acquisition of minimalist Helmut Lang and Jil Sander encountered fashion trends. The designer Jil Sander and Prada group had huge differences and fled, in the face of huge losses, they could only close Helmut Lang and sell Jil Jil.

As for the Azzedine Alaia, which is too cooperative, it is too small to bring in more revenue. At present, the Car shoes and Prada Car Co and Church Co are also the problem.

Prada bought 9.5% of Gucci in 1998, and in 2000, Prada also bought Fendi with LVMH. However, the acquisition of these shares did not make Prada earn money, and eventually sold at the original price.

After the launch, Prada will develop more product lines and create more creative and shocking super flagship stores. Many years ago, Prada planned to open fourth super flagship stores in the Bund, Shanghai.

B: after the announcement of Hongkong's listing plan by Prada, many fashion brands announced that they would be interested in the second half of this year.

Y:Jimmy Choo has been sold to investment companies, and it should not be listed in the short term.

Samsonite has submitted a listing plan in Hongkong, and it should be listed before Prada.

As for Coach, which has been listed in New York, it will also be listed in Hongkong, but it does not raise funds. The chairman of Coach said that because the Asian market is important, it can make more Asian investors and consumers understand Coach and promote brand business.

Since Coach is not listed for publicity in Hongkong, it will surely become fashionable for more companies to list in Hongkong.

B: if this "Hongkong listing fever" can really blossom and bear fruit, will it have any impact on the international luxury industry? {page_break}

Y: it's hard to say, because luxury goods are sold to rich people, where they sell their goods when they have the money. You know, in 20s and 30s twentieth Century, second of the countries that ranked the top women's clothing consumption were Argentina. Now that the BRICs are rich, they sell them to BRICs.

As for listing financing, the same principle is that where to get the most money, where to go for financing.

As for financing, it is not necessarily possible to rely on large sums of money to grab more market share or merger and acquisition, because the world's luxury group's basic arrangement is not easy to shake.

More importantly, there are fewer and fewer listed luxury goods companies, and Ferragamo, which has been competing with Prada, should be listed this year.

Late listing may get higher valuations, but it will also miss many opportunities. When Burberry and Prada nearly planned to go public, Burberry, which had not been delayed, was developing rapidly after listing. Now Burberry shares have become one of the constituent stocks of the London Stock Exchange.

Another example is Inditex, which was listed at that time, and has developed from a Spanish local clothing retailer to the world's largest apparel retail group.

B: three well-known independent luxury goods companies, Prada, Girogio Armani and Chanel, are still standing still.

Will they change their minds in the future?

Y: compared with Giorgio Armani and Chanel, Prada has lacked achievements in cosmetics. Although skin care products have been launched, they are not successful.

Prada currently only launches perfume, while Giorgio Armani and Chanel earn half of the company's income on make-up, skin care and perfume.

However, in the future, Giorgio Armani should change its mind. Because it is over 70 years old and there is no offspring, the company will benefit the long-term development of the company after being publicized. After that, Armani company had IPO rumors.

The Wertheimer owner of Chanel is mysterious, but I believe that family members should be able to inherit property.

B:Armani once pointed out that "financial markets do not understand fashion, because fashion is too changeable. If a newly listed garment is criticized, the company's share price will fall."

After the successful launch of Prada, Ms. Miuccia will feel more complicated when she designs the new series.

Y: the luxury market is greatly influenced by the economic environment. For these big brands with established status, the new ones account for only a small part of the sales.

There are 700 people in the Prada group's development team and 500 in the light Prada brand. Ms. Miuccia is busy enough to manage so many people.

A few days ago, Prada held a fashion show for investors in Hongkong. The ladies in the front row of Hongkong are the most fashionable investor roadshow in the history of the world. They are very popular with the 300 guests. Ms. Miuccia should be relieved.

B: when Prada was still making the final sprint for the listing, Milan station, a second-hand luxury goods bag store in Hongkong, was listed on the HKEx last month.

In the luxury industry, Milan station can not be compared with Prada in terms of fame or scale, so where is the threshold for luxury companies to go public?

Y: as long as an enterprise meets the listing standards of the exchange, it can be listed. For luxury goods companies, the intangible value of the brand is an important part of the assets, and this needs to be reflected in the valuation of the brand in the stock market.

Prada has been delayed many times because it does not agree with the market's valuation of itself. Therefore, luxury companies consider the value of their brands to be the threshold for listing.

Milan station is indeed a special case, behind which is Hongkong's luxury and highly developed market.

B: what's interesting is that Vancl has recently been actively preparing to list in the US.

I remember you mentioned earlier that the brand was targeted at financing and listing from the beginning, rather than relying on 29 yuan a short sleeved T-shirt to make money.

Y:Vancl is backed by China's rapidly developing huge online shopping market. The growth rate of Vancl is amazing. According to its published data, sales of 2 billion yuan last year, originally planned 6 billion this year, now plans 10 billion, and the company's self valuation is also 5 billion dollars.

By comparison, the Prada group's sales value of 2 billion euros is only 10 billion 700 million euros, and its 27 times price earnings ratio is considered too high by some investors, because it is higher than the Burberry P / E ratio of 20%, which is 18 times the LVMH P / E ratio.

If Vancl is successfully listed, the most important thing is to make its achievements true. After all, China's Listed Companies in the United States have been investigated and lawsuits in recent years, but these two years should be the best time. Who knows when the next financial crisis will arrive unexpectedly? The ten year listing of Prada is testimony.