Buying Luxury Goods Can Highlight Identities, Buy Luxury Goods, But Not Make Money.

Compared with the weak domestic stock market and frequent domestic market.

On the same day, in fashion

Such a large fund-raising has made more luxury brands eager. The British jewelry brand Graff plans to raise $1 billion through IPO, the first place to be listed is also expected to be Hongkong.

In addition, Tumi and Italy clothing brand Brunello Cucinelli are also planning to go public this year.

Luxury brand IPO puzzled

Buying luxury goods can highlight identity, but buying luxury stocks may not make money, at least from the luxury items listed last year.

Prada was listed in Hongkong in June 24th last year. Its opening price was HK $39.5, raising nearly HK $20 billion, and its market value was close to HK $one hundred billion.

However, the closing price of Prada fell to HK $33.6 in December 23rd. In the half year trading period, it rose to HK $50.9, the lowest of which was only HK $27.

Judging from the current situation, it is obviously unrealistic to buy Prada bags by buying Prada stocks.

However, from a fundamental point of view, Prada's performance is beautiful.

According to the first half of last year, Prada sales increased by 1 billion 143 million euros, an increase of 21.1%, net profit of 179 million euros, an increase of 74.2%.

Even if the European debt crisis is serious and the global economic outlook is uncertain, it should not affect the rise of Prada stock.

This point also appeared on the Samsonite listed in Hongkong in the same period. The opening price of Samsonite was HK $14.5, the highest rise to HK $17.14, and the lowest price fell to HK $9.15. Last December 23rd, the closing price was HK $11.9, or more than Prada.

However, the listing of Ferragam in Milan is different. In June 29th last year, the listing price was 9.95 euros, and the total fund raised was 340 million euros, and the market value of the company was 1 billion 500 million euros.

At the highest level, it rose to 13.7 euros, with a minimum of 8.7 euros. The closing price in December 23rd was 10.21 euros, up 0.26 euros from the listing price.

According to the first half of Ferragamo, sales rose 460 million euros, up 29.8%, net profit 45 million 700 thousand euros, up 32.4%.

In terms of data, it is inferior to Prada, but stocks perform better than Prada.

The reason for this performance is due to the overvaluation of Prada when it comes to the market. Although 20 times the P / E ratio is not much in the Chinese stock market, it is relatively high in Hongkong or the international stock market.

Moreover, although the gross profit of luxury goods is very high, the brand intangible assets are also very large, but after all, it is retail business. Shops need one family to go away, and it is impossible for the high growth industries such as high technology to give investors unlimited imagination.

However, due to the rapid growth of luxury goods sales in China, the Hongkong stock market has become the best channel for luxury brands to list and raise funds.

Although the Hongkong stock market is an international market, only the French skincare brand L'OCCITANE has been listed by the real overseas companies in Hongkong.

However, at present, there are not many large brands that have not been listed or not listed by luxury group. Armani, Chanel, Dolce & Gabbana are few and far between, and Armani has been on the market for a long time, and Chanel has never had a listing plan. Therefore, there are not many big luxury brands in the future expected to be IPO.

As a result, those listed luxury brands began to consider listing more. For example, the US brand Coach listed in New York chose to go public in Hongkong, and the listing did not raise funds. CEO said that the purpose of listing was mainly image display and publicity.

Many people have different opinions on this consideration, because listed companies need to disclose relevant information of the company. When they are listed in Hongkong, they need to provide Chinese version of the information. This will make many domestic consumers understand the depth of the brand, and whether the luxury brand that has lost its veil can tell more stories to attract consumers is a problem to be explored.

In fact, it is best to say that Coach chose to be listed in Hongkong last December 1st, becoming the first US registered company to list in Hongkong.

Coach Hongkong opened at 47.65 Hong Kong dollars, and the turnover was 3 million 430 thousand Hong Kong dollars on that day. After that, there were even several trading days with a turnover of only tens of thousands of yuan, and there was even a trading day turnover of zero.

After the listing of Coach, the stock market has been in a downward trend. As of December 23rd, the closing price was HK $46.05, and there was no deal on that day.

What are the promotional purposes of Coach listing if investors are so lacking in interest?

Close cooperation between capital and brand

Although there are fewer and fewer luxury brands that can be listed, the combination of capital and brand is becoming more and more close.

LVMH, the world's largest luxury group, has set up a L Capital fund, investing in Antichi Pellettieri, Gant, Pepe Jeans and other brands. Its L Capital Asia has invested in Shi Shi Hang, Ying jewellery and so on, and is currently looking for suitable brands in Asia to invest.

In addition, Chanel creative director Karl Lagerfeld's personal name brand KARL LAGERFELD has recently reached an agreement with the private equity fund Apax Partners, relaunched under its investment, and plans to expand into a global brand.

Here we have to mention the KARL LAGERFELD brand behind the promoter of Silas Chou Cao Qifeng, he is the head of Hongkong Yongxin group "Hongkong wool spinning king" Cao Guangbiao's son.

Tommy Hilfiger and the newly launched Michael Kors are jointly supported by him and his business partner, Lawrence Stroll. The Sportswear Holdings they created also has Michael Kors Far Far (not listed in the listed company), and the company is also in charge of the company.

Jeans and Hackett shares.

In addition, he co founded the Iconix China with the US Brand Company Iconix, and introduced the brand owned by Iconix through the brand authorization and the cooperation with domestic clothing companies, and planned each brand to be listed separately.

Recently, Iconix China's brand London Fog has been listed in Hongkong.

At the same time, domestic capital is also actively expanding overseas. In May last year, Fosun Group purchased 6 million 360 thousand ordinary shares of Folli Follie private placement at a price of 13.30 euros per share. The total purchase price was about 84 million 588 thousand euros (about 783 million yuan at that time), accounting for about 9.5% of the total share capital of Folli Follie group after its capital raising and expansion.

After the acquisition, the Greek crisis has not yet been resolved, and the lowest share of Folli Follie has fallen to 6.48 euros. According to the closing price of 7.55 euros in December 23rd, Fuxing Group's investment deficit reached 43%.

The stock market is risky and the investment should be prudent, which is also applicable to the stock of luxury brands.

Luxury brands have higher price earnings ratio, predictable business development and less investment targets.

If we buy luxury goods or buy luxury stocks, if we are not afraid to hang up in the short term, the long-term purchase of luxury goods stocks will definitely be profitable, because the luxury industry will still be on the rise in the next ten years, but it will take a short time to buy luxury goods and buy luxury goods in the short term.