Behind The Listing Of Luxury Goods

Recently, Prada's 10 year long listing road is finally expected to reach its end. At the same time, the industry is launching a "Hongkong listing boom". What does the listing mean for luxury companies?

Prada will be listed in Hongkong this year. industry Generally optimistic. However, Prada had suffered many setbacks on the way of listing. Every failure is due to the failure to satisfy Prada's valuation of its own business. The first planned listing of Prada was in June 2001, but at that time, the stock market was sluggish and could not meet Prada's valuation of 8 billion euros until October. Who knows that after the "9. 11 incident", the listing plan can only be abandoned.

By June 2002, Prada had restarted the IPO plan, but the United States broke out the WorldCom scandal. At that time, the valuation of Prada was only 3 billion euros. Prada was also planned to go public in 2004 and 2005, but it did not wait for the best time. Later, the luxury market grew rapidly, and Prada plans to go public in June 2008. Who knows the financial crisis at the end of 2007, the listing plan is running aground again.

The success of the Prada listing plan is in sight. Choice Hongkong has a lot to do with it. On the one hand, sales of luxury goods have increased substantially, of which the contribution of Asian and Chinese markets has been great. Besides, the Hongkong stock market may become the world's largest stock market in the future, and the Hong Kong stock market is especially fond of companies with large market capitalization. There are more investors who like luxury goods and rich money here.

So what can the listing bring to Prada?

To be sure, the listing will bring more capital 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 brand shoes Car Shoe and Church&Co in the Prada group are also the problem. Prada bought 9.5% of Gucci in 1998, and in 2000, Prada joined LVMH. Buy Fendi, but these share acquisitions did not make Prada money, and they were sold at the original price in the end.

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.

After announcing the Hongkong listing plan, Prada announced that many fashion brands announced that they intend to list in Hongkong in the second half of this year, including Jimmy Choo, Coach, Samsonite and so on. The fashion industry is about to launch a "Hongkong listing fever".

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.

If this "Hongkong listing fever" can blossom and blossom, will the pattern of international luxury industry be affected?

It's hard to say, because luxury goods are sold to the rich, 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 highest level of women's clothing consumption were Argentina, and now the BRICs are rich enough to sell them to BRICs. As for listing financing, the same reason is where to get the most money. 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.

Three well-known independent luxury goods companies, including Prada, Girogio Armani and Chanel, are still holding hands. Will they change their minds in the future?

Compared with GiorgioArmani 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.

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 may feel more complicated when designing the new series.

The luxury market is greatly influenced by the economic environment. For the big brands that have established their status, the new ones account for only a small part of the sales. As long as a large number of classic ones remain in sales, the stock price of the company will not be too big. 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.

When Prada was still making the final sprint for the listing, Milan station, a second-hand luxury bag store in Hongkong, was listed on the Hong Kong Stock Exchange 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?

As long as the enterprise meets the listing standards of the exchange, it can be listed. Luxury goods The intangible value of a brand is an important part of an asset, 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.