The Report Shows That The Investment Value Of Fashion Industry Is Higher Than That Of Science And Technology Industry.

The fashion and luxury industry has long been considered a cyclical industry and will fluctuate along with changes in consumer confidence, interest rates and trends.

However, after carefully tracing the long-term trend of the industry, McKinsey's team found that the performance of the fashion and luxury industry continued to outperform that of the market, even more than other high growth industries such as high-tech and communications.

From 2000 to 2014, the listed companies in the world's major markets were taken as the research object, and the total shareholder return index (TRS: Total Return to Shareholder), including capital gains and dividends), the fashion and luxury industry not only outperformed the market, but also ranked first in all sectors of the industry; combined with the economic cycle, despite the fall in 2008, the industry rebounded rapidly and increased more rapidly after the economic crisis.

This phenomenon is global.

and

The company, regardless of its headquarters in North America, Europe or Asia, has significantly ahead of the overall market performance, indicating that the fashion and luxury industry is a real value creation industry.

Private Held Company accounts for 83% of global retail sales and Private Held Company.

Very difficult.

McKinsey chose to measure the value creation ability of the industry by taking the total value of the wealth of various industries as an indicator.

They found that in Forbes's list, many of the 200's rich in fashion and retail businesses own 15% of the total fortune of the list, far exceeding the wealth of Technology (11%), Finance (5%) and sports (1%) industry tycoons.

Of course, such research methods are slightly crude.

Obviously, investors have noticed the great value creation ability in the field of fashion and retail. From 2008 to 2013, the acquisition and M & A pactions in the fashion industry grew at an annual rate of 21%, and there were 103 pactions in 2013.

But it should be noted that the investment risk of fashion and luxury enterprises is higher than the market average.

In the fashion and luxury industry, what is the difference between winners and losers? McKinsey summed up an interesting formula: enterprise value creation = business performance + brand perception.

In terms of business performance, the size of a company is not important for value creation; diversification is the key to value creation in fashion enterprises.

Companies with brand portfolios create an average of 14% more than a single brand company.

At the perception level, successful enterprises will make full use of hidden resources such as brand image, intellectual property and design. Good brand story and narration will have huge impact on investors, partners, media, employees and consumers.