Chanel Profits Remain High Due To Beauty And Perfume Business.

　　 Chanel The spring and summer classic of 2015 has just ended. The old streets of Paris, even the zebra crossing and the pool in the street, have left a classic show for T. As this field Paris Fashion Week The most important thing about Chanel is that the old days of a low profile are like the old parade's general parade. Chanel's financial data are also exposed in a high-profile way. It seems that in the fashion world, the old Buddha who is calling for rain is also spelled out by real gold and silver.

Chanel 2015 spring and summer show

The latest news is that the Chanel International BV registered in Holland recently submitted its first public annual report to the Holland chamber of Commerce (Kamer van Koophandel). The total sales volume of Chanel was 4 billion 990 million euros (US $6 billion 630 million) in 2013, although it increased by 8.5% compared with the same period last year, but it is still not as high as 26% last year. At the same time, its operating profit reached 1 billion 150 million euros (1 billion 530 million US dollars), also increased by 8.5% compared with 2012. However, net profit of 726 million euro (about 960 million U.S. dollars) was significantly lower than that in 2012. The main reason is that Chanel has bought huge amounts of real estate ownership of its stores this year. It is estimated that it has already cost 270 million euros, and 85% spent in Paris. This also highlights Chanel's confidence in Paris and even the French market.

If we compare profitability with competitors in the same industry: the net profit margin of Chanel2012 will reach 24.7% in the fiscal year, more than LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA), MOET & CHANDON Hennessy LV group and Kering SA (LVMH.PA) 13.90% and 13.57% in the 2012 financial year of the group, exceeding the 21.55% of the year of Hermes international.

Despite such impressive achievements, Chanel is still a privately held company until now, and the helm of the company has no kinship with Chanel. Instead, it is a descendant of Alain and Gerard Wertheimer brothers who formed the company's Pierre Wertheimer with Chanel in the last century. In 1923, their grandfather co founded the Chanel perfume company with MS. Coco Chanel and later bought the Chanel brand from her hands. The two were extremely low-key, and the press conference was in the back row, and rarely received media coverage. Even the financial statements of the entire Chanel parent company Chanel International BV were first disclosed last year. According to Bloomberg estimates, the company's total market capitalization is around us $18 billion 500 million.

Alain and Gerard Wertheimer brothers

According to the Chanel valuation given by Bloomberg, plus other assets, the total wealth of Chanel's family owners, Alain and Gerard Wertheimer brothers who own 50% shares will reach US $19 billion 400 million, which is more than two times that of Forbes's list of rich list. It seems that the market value of Chanel has been underestimated. In the latest richest list released by Forbes in March 2013, it is estimated that the total wealth of Chanel two brothers is 8 billion dollars, ranking 145th in the world and fifth in France. ) Nevertheless, the wealth of the two people is still much lower than that of LVMH chairman Bernard Arnault and family (net wealth $29 billion).

Chanel has such outstanding performance, especially its high profit margins, its main contribution comes from its beauty and Perfume Business. According to David Wu, a luxury analyst at Telsey Advisory, New York, the proportion of beauty and perfume business to Chanel business should be around 55%. Therefore, it is estimated that the sales of beauty and perfume contributed by Chanel should be around $3 billion 250 million in 2011, and the sales of advanced customization and clothing accessories department should be around us $2 billion 650 million. In contrast, Chanel's rival Dior's fashion department (excluding perfume and cosmetics) sold 1 billion 60 million euros in 2011, or about 1 billion 500 million dollars. Of course, Chanel's perfume and beauty products become its biggest business department, and No.5 perfume is a must. As the flagship product of the company, No.5 has also been in the leading position in the market share of the overall perfume market.

Chanel No.5 perfume

Compared with listed luxury brands, the top two market capitalization companies are LVHM and Richemont, and Hermes as a single Brand Company followed. This is why LVMH has always wanted to buy Hermes. Then there are Swatch and Kering. Prada listed in Hongkong ranks sixth in the market value of US $25 billion. According to the current estimated sales, Chanel is nearly 40% higher than Prada. Although the net profit margin of Chanel declined sharply in 2013, according to the outstanding performance and potential intangible value of Chanel, if Chanel is listed, its market value will exceed Prada.