Luxury Kering Perfect Wrist Watch Industry Layout To Deal With Bad Assets

Less than p ago, the world's third largest luxury group PPR (PP.PA) was renamed the Kering (KER.PA) Kai Yun group at its shareholders' meeting, and officially entered the luxury and lifestyle and sports brand group.

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< p > and according to Reuters, the negotiation of Kering group's acquisition of Swiss super luxury watch brand RichardMille is coming to an end.

The paction is expected to estimate the value of RichardMille at 340 million ~4 billion Swiss francs (about 3.7 to 430 million US dollars), equivalent to 2.5 times ~3 times the estimated sales volume of 135 million Swiss francs in 2013.

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< p > in the industry view, the acquisition of the most high-end positioning RichardMille can make the Kering group's watch industry layout more complete.

Zhou Ting, the president of luxury goods and Quality Research Institute, said that the current strategy of Kering group is to deal with non-performing assets, and to raise the profitability and investment value of the whole group through acquisitions so as to attract more capital injection.

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< p > < strong > Perfect wrist watch industry layout < /strong > < /p >

The luxury goods department of the P Kering group was dominated by fashion leather products. In the field of hard and luxury goods, there was little layout except a small number of jewelry brands such as Boucheron.

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In the period of < p > 2011, the Kering group achieved the holding of the Swiss watch group Sowind through the capital increase and share expansion, and obtained the two middle and low end brands of PERREGAUX watch and Shang Wei Sha.

If Kering group successfully acquire the most high-end positioning RichardMille majority stake, the group's watch industry layout will be more complete.

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< p > data show that the Swiss independent watchmaker RichardMille was founded in 2001. It is famous for its super luxury watches made by high-tech titanium carbon alloy materials. The symbol bucket table starts at 60 thousand euros, the most expensive as high as 1 million 600 thousand euros, and is at the top end of Swiss table Pyramid.

In 2012, the sales volume was 112 million Swiss francs, the profit margin before interest tax depreciation was over 40%, the average annual growth rate was 10% in recent years, and sales were not affected by the cold wave of the global luxury industry.

Switzerland's old independent watchmaker AudemarsPiguet (Audemars Pigeut) supplied the RichardMille with a 10% stake.

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< p > according to industry sources, Kering group will reach an exclusive agreement with RichardMille in the next few weeks. It is expected to buy 51% of its controlling shares and raise its shareholding ratio in the future.

The Audemars Pigeut table is expected to retain its existing shares.

RichardMille, the founder of the brand, will continue to be a CEO and shareholder for several years in the company.

The whole paction is expected to be completed in early 2014, only because RichardMille needs to deal with some internal affairs first.

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< p > Xiong Xiaokun, a light industry researcher at CIC, told the daily economic news reporter that for the Kering group, the acquisition of Swiss RichardMille is an important measure for its multi business and multi brand operation, and is also an important performance of its new growth point in search of company performance.

At present, the fast developing high-end watch market will play a supporting role in the long-term development of Kering group.

Of course, the acquisition of high-end watch business is also beneficial to the valuation of the company and the attraction of the market.

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Jean-FrancoisPalus, director of operations of P Kering group, said that at present, the group was interested only in non European small brands.

He said that the group focused on the organic growth of the existing brands, but would still consider trading when appropriate opportunities appeared. However, due to the scale of existing brands such as Gucci, Gucci, YvesSaintLaurent and BottegaVeneta, the group only focused on small brands. "This brand is of course a non European brand, and it is possible to come from Japan, China, Brazil, the United States and Africa."

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< p > it is reported that Kering group has acquired Italy menswear brand Bourriau Ni (Brioni), China jewelry brand Qilin jewelry (Qeelin), British "a target=" _blank "href=" http://www.91se91.com/ "designer" /a "brand" ChristopherKane "and" Italy jewelry brand brandlando "in recent two years.

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< p > < strong > group wants to deal with bad assets < /strong > /p >

< p > in Zhou Ting's view, the Kering group is different from the French luxury group LVMH (Lu Wei Ming Xuan). The group came from the retail channel and the mass consumer goods field. After accumulating certain wealth power in the previous field, the Group invested and acquired some luxury brands, and the proportion of luxuries was less in its original business volume.

Since 2011, the proportion of luxury goods has been increasing, which has exceeded 40%.

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< p > "the group has realized that its original FMCG and some fashion brands have declined very seriously and their financial contribution to the whole group is very low.

Therefore, the group must deal with some bad assets, and step up the pace of acquiring top brands, concentrating on high-end luxury goods.

Zhou Ting said.

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< p > in the bad assets, Puma (PumaSE)'s performance has been worst in the past year, which caused Kering group to suffer the shareholder's torture.

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In the first quarter of March 31st, Puma's net profit fell sharply by 32% to 50 million euros compared with the same period last year, much lower than the 67 million euros expected by the market, and sales fell 2.3% to 782 million euros compared with the same period last year, slightly lower than the 787 million euros expected by the market.

In the first quarter, because of the exchange rate effect and the "a target=" _blank "href=" http://www.91se91.com/ "shoes" /a class inventory at the discount price, gross margin fell to 49.1%, compared with 51.2% in the same period last year.

Affected by this, operating profit (EBIT) decreased by 22.6% to 79 million euros compared with the same period last year.

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< p > in view of the disappointing performance of Puma in the first quarter and the challenging economic environment, Puma lowered its annual forecast.

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< p > to this, Xiong Xiaokun said that the decline of market prosperity is an important reason for Puma's poor performance.

From the current operation of the a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > the overall operation of the industry, the supply is still surplus, the market demand is still insufficient, and the probability of Puma's performance rising sharply is low.

But following the market situation, formulating corresponding strategies and plans to increase revenue and profits is something Puma must do at present.

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