The Listing Of International Major Brands To Hong Kong Has Gradually Become &Nbsp, And China'S Market Potential Is Valued.

According to Altagamma, China will be the fastest growing country in the Asia Pacific region in the future. Luxury goods consumption market The sales increase from 2011 to 2014 was about 15%-20%

In June 24th, the international luxury brand Prada (PRADA S.p.A. 1913.hk) was listed on the main board of Hongkong exchange. list 。 As the first international luxury Brand Company to list in Hong Kong, Prada launched a total of about 423 million shares in Hong Kong, raising a total of HK $16 billion 700 million.

Before the listing of Prada, Samsonite, 1910.hk, an international famous brand suitcase company, was also listed on the Hongkong stock exchange in June 16th.

Although the shares broke down on the first day of the listing, Tim Parker, chairman and chief executive officer of Samsonite International Group, insisted that the performance of the stock price only reflected the recent market fluctuations, and he had confidence in the business prospects.

Prada chief executive Partizio Bertelli (Patrizio Bertelli) also said that the reason why the company "spent Hongkong" is mainly because Asia is a strategic area of the company, and China will soon become the world's largest luxury consumer market.

Listing of major international brands to Hong Kong

Listing on the HKEx is an important step in the development strategy of Prada's internationally famous brand.

This is the fifth time that Prada launched its impact on the capital market in 10 years. Its first four listing plans were stranded respectively by the 2001 US "9. 11 incident", the 2002 WorldCom accounting scandal and the 2008 financial crisis.

The 1913 is the stock code of Prada in HKEx. People familiar with the history of the brand know that 1913 is also the founding year of Prada. Prada describes in the prospectus of the company: "we are one of the most famous fashion and luxury groups in the world. We design, manufacture, promote and sell high-grade leather goods, garments and shoes through Prada, Miu Miu, Church s and Car Shoe brand.

Samsonite was founded earlier than Prada. The world's largest travel suitcase company has a long history of 100 years. Samsonite, its core brand, is the world's most famous travel luggage brand. Samsonite currently sells more than 37 thousand outlets in over 100 countries.

And Prada and Samsonite share the same idea of Cox and cypress.

In May, two internationally renowned brands, Coach and Bai Boli, announced their plans to go to Hong Kong respectively, but unlike Prada and Samsonite, Prada and Samsonite were listed on the New York exchange and London Stock Exchange respectively.

The 2010 annual report released by the cypress group in May 26th showed that it benefited from the sales growth of non clothing consumer goods such as leather bags, shoes, jewelry and so on. The group's net profit in the fiscal year totaled 208 million pounds (US $341 million), up 156% from the previous fiscal year.

According to the financial report, in the year ended March 31st, the company's total revenue amounted to 1 billion 500 million pounds (US $2 billion 457 million), an increase of 27%. Bo Li Li currently has 57 branches in China. In the last fiscal year, China's retail sales accounted for 12% of the group's total retail sales. It is reported that the cypress group has not yet decided whether it will be listed in the first round of IPO or the two tier market. The group plans to expand the number of stores in mainland China and Hongkong from the current 57 to more than 100 in the next three to four years. {page_break}

According to reports, Cox Chi has prepared a roadshow timetable, which is expected to be listed in Hong Kong by the end of this year. Victor Luis, President of Hongkong international retail business, said in an interview with the newspaper: "we are committed to dual listing, not IPO, but in the form of" HDR ". And we are very pleased that we will be the first US company to list in Hongkong and New York. This year is our 70th anniversary. We believe that listing in Hongkong will help enhance brand awareness. We also hope to provide a bridge for investors who can not directly invest in the US stock market through two listings.

1/3 sales revenue comes from Asia Pacific Region

The most fundamental reason for many international famous brands has been listed or planned to go to Hong Kong. First of all, we must value the huge potential of luxury consumption in the Asia Pacific market.

The data provided by Prada prospectus show that the company has retail and wholesale channels in over 70 countries worldwide. In the fiscal year ended January 31, 2011, its total sales (excluding royalties) amounted to about 2 billion 17 million euros, 42% from Europe, 32% from the Asia Pacific region, 15% from North America and 11% from Japan.

In fact, since 2007, Prada has begun to formulate strategies to selectively increase the wholesale network to enhance revenue growth through strengthening retail distribution networks. As of January 31, 2011, there were 319 direct outlets in Prada's retail channel, with 1400 wholesale customers and 33 licensed stores in wholesale channels (luxury luxury brand stores, department stores and licensed shops).

In addition to repaying the company's debts, a large part of Prada's financing has been directed to the expansion of the direct store network. It plans to open about 80 Direct stores in 2011, of which 25 will be located in the Asia Pacific region.

Prada said: "our growth in the past five years has been mainly driven by the growth of high growth and fast growing Asian markets, especially China. We believe that the Asia Pacific region still has enormous potential for growth. We plan to set up 70 direct outlets in the Asia Pacific region in the three fiscal year ended January 31, 2014.

Data from Samsonite also showed that 33.3% of its net sales in 2010 came from Asia, 33.5% from Europe, 24.9% from North America and 7.3% from Latin America.

Data from the Altagamma Altagamma World Markets Monitor show that the Asia Pacific region (excluding Japan) is the fastest growing region in the global luxury market by region, with a compound annual growth rate of 13% from 2005 to 2010. In 2010, Asia Pacific accounted for 16% of the global luxury goods market, with sales amounting to 28 billion euros. The main driving force for growth in the Asia Pacific region has been the overall rise in demand for luxury goods in China, an increase of 30% in 2010, and this momentum will continue.

Samsonite cited data from Frost&Sullivan also confirmed the point. In 2010, Asia was the largest luggage market in the world, accounting for 40% of the global market, of which Japan accounted for 18%.

The Asia Pacific market share not only accounts for the 1/3 sales of the two companies, but also places greater emphasis on the future development potential of the region.

According to Altagamma forecasts, the Asia Pacific region will continue to be the fastest growing region in the future, with a compound annual growth rate of 10% to 11% between 2011 and 2014. The important driving force for growth in the Asia Pacific region is the overall growth in the number of consumers, and this momentum will continue. {page_break}

Value China's luxury market potential

In the Asia Pacific market, the Chinese market is undoubtedly the top priority.

Prada said its sales of luxury goods in mainland China were the most significant in the growth of its Asia Pacific market.

In China, the number of direct shops in Prada has increased from 8 in January 31, 2007 to 18 in January 31, 2011. It is expected that by January 31, 2014, it will set up more than 30 outlets in China. "We believe that it is possible for us to achieve further growth, because China's sustained economic growth is conducive to our further entry into more Chinese cities."

Samsonite values the growth of demand for luggage driven by tourism consumption.

In its prospectus, it is estimated that the composite annual growth rate of Asian baggage market (excluding Japan) from 2010 to 2015 will be the highest in the world, mainly due to the rapid growth of the luggage market in China and India. The composite annual growth rate of the luggage market from 2010 to 2015 will reach 19% and 15% respectively. The growth in China, India and the rest of Asia is mainly due to the general growth of per capita disposable income, which has led to increased travel and tourism consumption, leading to the rising demand for luggage.

Samsonite said that China is its largest market in Asia, characterized by a growing population in the middle class, a rising level of disposable income and a preference for high-end or reputable products. Chinese consumers attach great importance to brands, which are very suitable for the development of Samsonite Corp products in the Chinese market.

According to Altagamma data, China is the most important country in the luxury industry in terms of sales figures in the Asia Pacific region. Sales of luxury goods in China have increased by a compound annual growth rate of 27% since 2007, and sales amounted to 9 billion euros in 2010, accounting for 33% of the total in the Asia Pacific region and 5% of the total sales of luxury goods in the world.

Moreover, according to Altagamma, China will be the fastest growing market for luxury goods in the Asia Pacific region. Sales growth between 2011 and 2014 will be about 15% to 20%, and will become the third largest luxury market in the world in the next 5 years.

There is more optimistic judgement.

In May this year, a semi annual luxury market report jointly released by Bain consultants, a leading international consultancy and the Italy luxury goods producers association, showed that the global luxury market is now completely out of the financial crisis. In 2011, the global luxury market is expected to reach 185 billion euros, setting the latest record. The report said that if the purchasing power of Chinese consumers was calculated overseas, China has surpassed Japan as the second largest luxury consumer after the US.

China's luxury consumer market potential is so great that it will undoubtedly become the best reason for luxury.

However, it is worth considering that when Prada and several other companies unanimously optimistic about the development of the Asia Pacific region, especially the Chinese market, the Italy luxury brand Salvatore Ferragamo and the British luxury shoe brand Jimmy Choo, who had planned to go to Hong Kong to raise funds, all acted differently.

According to Reuters, Ferragamo was listed on the Milan stock exchange in June 29th, and its listing traded rose 6.17% to 9.555 euros to resist dull market expectations.

According to the Financial Times website, Jimmy Choo has more opportunities to sell shares directly to interbank or private equity funds than publicly issued shares. Labelux, a brand holder of Bally, intends to spend more than 500 million euros on Jimmy Choo.

This also shows that the current international brand choice in the capital market is relatively prudent.