Luxury Merchants Milan Station High Price Sales Failed To Profit Model To Be Tested

< p > recently, the second-hand a href= "http://sjfzxm.com/news/index_s.asp" > luxury goods < /a > Milan station announced that the major shareholder of the company was unable to reach an agreement with potential buyers because of its beauty. It has terminated discussions with potential buyers about the sale, and the United States has not bought a deposit of about 2 million yuan in accordance with the memorandum of understanding agreement.

Affected by this news, the company's share price plunged 25.27% in May 12th.

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< p > electric business expert Lu Zhenwang told reporters that Milan station did not sell out, which is reasonable, because now the whole second-hand luxury goods industry is not very prosperous. If the price is still high, it will be normal to conclude the negotiations.

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< p > after the sale is over, it will become a problem that Milan station has to face.

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< p > < strong > > all three families have no fruit. < /strong > < /p >

< p > last November 20th, < a href= "http://sjfzxm.com/news/index_s.asp > > Milan station < /a > issued a notice that the holding shareholder of the 72.29% stake in Milan station was engaged in an initial discussion with an independent third party. The other party may involve share rights and interests in the acquisition of Milan station, and the acquisition may trigger a full takeover.

Affected by this news, Milan station shares soared 81.67%.

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After "P", the second-hand luxury goods store's temple, Yintai and LVCapital are all in the speculation of the acquisition team, among which the temple library has been ranked as the most potential buyer by the media.

At the beginning of December, Li Rixue, President of temple library, told the media that he wanted to buy a listed company in Hongkong when he attended the annual meeting of Chinese entrepreneur leaders. He even mentioned that the final decision on the two sides would be heard in recent days.

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< p > but the two sides did not talk about it.

The Milan station subsequently announced that it had terminated discussions with the "first potential buyer" and began a dialogue with the "second potential buyers" and "third potential buyers". The announcement revealed that third of the potential buyer's acquisition of shares should not be less than 60% of the issued share capital of the company, and the 60% of the issued share capital of the company was estimated to be no more than HK $474 million.

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< p > this means that the acquisition of < a href= "http://sjfzxm.com/news/index_s.asp" > acquisition of < /a > can take up to HK $474 million to complete the purchase.

This reporter has learned that the high purchase price may be the reason for many buyers to shrink back. Because the temple library has told the media that the acquisition price of Milan station is too high, considering that the acquisition of Milan station is not very helpful to the temple library, the temple library will not participate in the acquisition of Milan station.

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< p > Lu Zhenwang believes that in the case of the second hand luxury industry is not very prosperous, it is also expected that Milan station has not been sold.

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< p > annual report shows that from 2012 to 2013, Milan station suffered a loss of HK $13 million 930 thousand and HK $37 million 520 thousand, of which Hongkong sales in 2013 amounted to HK $543 million, a slight decrease of 1% compared with the same period last year, while mainland business fell 18.8% to HK $64 million 500 thousand.

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< p > < strong > grey profit model prospect is worrying, < /strong > /p >

< p > Lu Zhenwang believes that this industry is not as good as everyone imagined, "this industry is just a way to avoid tariffs."

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< p > Lu Zhenwang pointed out that there is now a loophole in the law, that is, second-hand luxury goods do not have to pay customs duties, so long as the upstream seller is a guest, it can be defined as second-hand luxury goods, so second-hand luxury goods dealers only need to find some buyers to buy some "one hand" goods, and then sell them in the name of "second-hand", so they can evade Customs duties.

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< p > Lu Zhenwang said that this way can help second-hand luxury goods companies to save 40%~50% costs.

According to the data, in China, the import tariff of 6.5%~18%, 17% value added tax and 30% consumption tax should be paid when the overseas luxury goods enter customs. The additional three taxes are about 60%.

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Prior to the "P", the relevant person in charge of the Milan station in Hongkong said in a media interview that the sales of new products in the mainland needed 17% VAT, while the value added tax on the sale of second-hand products was only 2%. In view of the problem of inland tax rates, Milan will only sell second-hand goods in the mainland to avoid import taxes related to the import from Hongkong.

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< p > according to the annual report of Milan station, sales of its "unused products" in 2013 amounted to HK $437 million, which accounted for 62.7% of the total revenue, and increased by 13.2% over the same period last year. Sales of "second-hand products" amounted to HK $260 million, representing 37.3% of total revenue, down 10.1% from 2012.

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Zhou Ting, President of the P Institute of wealth and quality research, said that this mode is a short-term hit, but in the long run, it will be subjected to a long-term boycott of the brand, because the "new style" of the second-hand shop will inevitably compete with the new model of a single store because of lower prices, which is not what the first hand brands want to see.

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< p > "domestic luxury electric providers are hard to do if they do not take the gray route to pass the customs tax, but if they go gray line, whether the state will intervene in regulation is also a problem."

Lu Zhenwang believes that in the case of a limited market, there is a grey element in the profit model of Milan station. How to make it pparent will also become a problem.

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