Chinese Tycoon Guo Guangchang Made His Debut In An Interview With CCTV, Revealing That He Had Negotiated For Prada

Chinese millionaire Guo Guangchang CCTV In the latest issue of "Dialogue", it was revealed that when the group first entered the fashion industry, it negotiated to buy Prada SpA, an Italian luxury goods group (1913. HK) Prada, but failed.

According to the time, the Fosun system under Guo Guangchang should try to acquire Prada SpA Prada Group before the listing of the group.

In May 2011, Fosun Group invested in Folli Follie SA (HDFr. AT), a Greek jewelry group. Prada SpA on June 24 of that year Prada Group landed on the main board of the Hong Kong Stock Exchange, and then became the most popular luxury group at that time, especially in the Chinese market, with the help of this springboard, the Devil Wearing Prada, and the popular "killer bag".

At that time, China's economy was still growing at a high speed, and the rapidly growing rich and middle class had a strong demand for luxury goods. Therefore, a large number of fashion brands landed in the Hong Kong Stock Exchange to try to attract Chinese consumers. Fosun Group has also invested heavily in market brands since 2011.

In 2014, after accepting Bloomberg In an interview with the October special issue of Markets, the most influential 50 people in the global economy, Guo Guangchang said that the company's goal is to improve the living standard of the middle class in China, "we all want to be better". He said that Fosun Group's acquisition target is mainly to meet the needs of the increasingly wealthy middle class lifestyle. Fosun Group's acquisitions cover insurance, food, retail and many other industries. According to Bloomberg data, Fosun Group's outbound investment accounted for 1% of the total outbound investment of Chinese enterprises in the past five years.

The fashion brands invested and acquired by Fuxing Group in the past five years include American women's wear brand St John Knits Inc. (transaction details unknown); Folli, a Greek jewelry brand 9.5% equity of Follie SA (FFGRP. GA); Italian high-end menswear brand Raffaele Caruso SpA 35% equity (reportedly no more than 5 million euros); Tom Tailor, a German leisure clothing brand, was acquired by the brand management Brand Retailer Tom Tailor Holding AG (TTI.DE) 23.16% equity; Israel's top Dead Sea mineral skin care brand AHAVA Dead Sea Laboratories Ltd. (wholly-owned, NIS 290 million, about 496 million); French fashion brand IRO (60% equity, transaction price estimated at 78 million euros in the market).

In addition to the above transaction brands, Fosun Group also participated in the bidding for Gianni Versace SpA Versace Group. In the "Dialogue" column, Guo Guangchang also revealed that the company also tried to invest in the Italian down brand Moncler SpA (MONC. MI) The latter was listed on the Milan Stock Exchange in Italy at the end of 2013.

Now give Guo Guangchang another chance to invest in Prada SpA Prada? The answer may be no, because Prada SpA Prada is already on the open market, and its current share price is very low.

In fact, Prada SpA had a good time after landing at the Hong Kong Stock Exchange.

Shortly after the listing, the Chinese media Economic Observer exposed Prada's "Made in Italy" lie, and there was a large number of complaints about Prada on social media Prada's reputation does not match its inflated price and China's economic downturn. Prada's group of the same name has become the worst performing group in the past two years luxury goods Group.

According to website data, as of the first half of the fiscal year on July 31, 2016, Prada SpA's revenue fell 14.8%, from 1824.4 million euros in the same period last year to 15542 million euros EUR 100 million; Net profit fell by 24.7% to 1419 from 188.6 million euros in the same period last year Billion euros. The sales of all markets, brands and categories of the Group recorded a sharp drop, while the revenue of Greater China, the most important market of the Group, fell by 24.4% to 278.7 million euros during the period, a 21% drop at the fixed exchange rate.

If Guo Guangchang will not invest in Prada SpA Prada now, then Miuccia Prada and Patrizio Bertelli Will the couple regret not introducing Fosun Group?