Supreme Has Become The Most Dynamic Street Trend Brand This Year.

According to the world clothing and shoe net, Supreme's financial situation has always been mysterious. However, according to a source familiar with women's wear daily, the The Carlyle Group Carlyle Group, which has nearly $200 billion in assets, bought Supreme 50% stake at a price of 500 million dollars.

This also means that Supreme's valuation is as high as $1 billion.

To the industry's surprise, this figure has exceeded the current market value of 937 million US dollars, has more than 900 stores in the world Abercrombie & Fitch, and Supreme only opened 11 entity stores in the world, is it overestimated?

In fact, Supreme's favor by capital is no longer news.

In February this year, there were rumors that LVMH group bought the tide brand Supreme for $500 million. Although the news was denied by LVMH, the Supreme, which was targeted by LVMH and Carlyle, was the most popular business at present.

It is noteworthy that Supreme has never announced its profit level, but Carlyle's 1 billion valuation means that it has raised its value.

The annual profit is about $100 million before depreciation and amortization.

According to the United States

According to the latest news from the source, the joint sale of luxury brand LV and street wave brand Supreme has reached 100 million euros in February this year, and the profit generated by the brand is larger than that of its 6 entity stores and official website.

For Supreme, the appreciation of the capital market is not surprising, but it confirms the structural changes of the current clothing market structure from side to side.

In contrast to the prosperity of street fashion brands, it is fast.

And the electricity supplier's fierce impact, the American youth clothing market is shrinking, not closing shop is bankrupt.

Since last year, at least eight teenage clothing retailers have filed for bankruptcy under brutal competition and sales stagnation, including American Apparel, Aeropostale Inc, Pacific Sunwear of California Inc, Quiksilver, Sports Authority, and MTV.

American Apparel had a market value of more than 500 million dollars and was only worth 88 million dollars when it was sold.

The volume of these brands far exceeds that of Supreme, which is extremely "tight" in terms of setting up shops.

But the high value of US $1 billion confirms the confidence of the capital market in Supreme and the street apparel market behind it.

As we all know, Supreme has been gaining popularity among young consumers worldwide through limited sales and word of mouth marketing.

In 1994, James Jebbia founded Supreme, when street culture began to rise, and skateboarding began to prevail among young people.

James Jebbia, who grew up in the Sussex District of England, yearned for New York very much. In 1983, he moved to Staten Island and worked for 6 years in a store in the SoHo area of the United States, a shop selling Parachute in 80s.

After saving enough money, James Jebbia opened its own store on Spring street, selling clothes such as Duffer, Fred Perry and St u ssy.

Later, the cooperation between James Jebbia and Shawn Stussy at St u ssy shop can be said to be the beginning of Supreme.

After Shawn Stussy divestment, James Jebbia, who never skateboard, opened her own skateboard store.

James Jebbia's Supreme product is based on the newly launched skateboard movement in New York, attracting many famous skateboarder and street artist in the city.

Gradually, Surpeme became a street trend brand representing New York street culture, especially skateboard culture.

More and more young people love consumption, but also pursue treason. They always love to shop with an anti commercial attitude. Supreme's brand idea just fits this demand.

If Supreme is still a minority fan's belief a few years ago, 2017 should be the cut-off point of the brand.

As the global consumer awareness of Supreme is increasing, the brand spawned a large group of people and practitioners around the world, and attracted the attention of luxury brands, which promoted the brand to expand its brand commercial value as a young cultural leader. This is why the capital has thrown olive branches.

Some analysts point out that Supreme will face difficulties in retaining its brand's uniqueness and scarcity after acquired equity.

Joint cooperation is an important reason for Supreme's continuous attention. This year's cooperation with LV has almost redefined the current high fashion. Some analysts even believe that this has become an important turning point in the history of fashion.

Judging from the overall situation of the industry, the influence of Supreme and other street brands has changed a lot. Fashion and street boundaries are becoming more and more blurred. More and more luxury brands are beginning to understand why a street brand can sell new products every week, and they can only queue up at the time of discount, which is why LV has shown good signs to Supreme.

In the LVMH group's first half year performance conference, the chairman and CEO Bernard Arnault pointed out that the group's core brand LV launched this year's LV x KOONS and LV x Supreme series have received positive market reaction, so that the exposure and impact of the brand in social media have been greatly improved, and have made a great contribution to the growth of brand performance.

Up to now, artists including Damien Hirst, Murakami Takashi, Kaws, Keith Harring, Jason Dill, Mark Gonzales, Malcolm Mclaren, Mclaren, Mark and so on have collaborated with the brand.

After the Supreme's holdings, the cooperative products became even more scarce and almost sold out.

The joint series earned a good reputation for Supreme, while hunger marketing and limited sales directly stimulated consumers' desire to buy.

Supreme products are famous for their "hard to buy" products. The number of products sold is very limited. Fans need to pay attention to brand information in social media so as to ensure that they do not miss the latest products.

Popular products are usually sold out in a short time, and then some people sell them on platforms such as eBay.

The media has recently disclosed a number of foreign Reseller, which is only about 15 years old. They specialize in scalding products, buy and sell them, find out the locations of the brands, sell them in line, and then sell them out.

Joe Migraine, a collector who collects Supreme products, began collecting Supreme related products in 2011, when he bought Supreme x Spalding Spalding basketball for 100 dollars and then went out of control.

He put the window on the UV protection material, to prevent direct sunlight, resulting in product fading, regular cleaning products to maintain product integrity.

The products he collected ranged from skateboards to key rings, stickers, skateboards, pins and buttons.

The most expensive collection is the $1000 Supreme x Simpson helmet.

At present, the total price of all his collections has exceeded $100 thousand, and there is still room for huge appreciation.

Now, street style and hip-hop culture are being resurgence around the world, subverting the fashion industry dominated by high fashion, so Supreme becomes the protagonist of the future clothing business.

Before Supreme, hip-hop singers were more interested in luxury brands such as Louis Vuitton, Gucci, Rolex Rolex, and especially Rolex, because of its value preservation function.

In the slums Gang struggle, African American life is turbulent and precarious, and cash is not easy to carry in times of crisis, but a Rolex watch can help them comeback.

Some analysts believe that the future Supreme will replace Rolex as a new hedge product, which also reveals the great potential of Supreme in terms of business value.

Some analysts say that the valuation of 1 billion is not an accident, but a change based on the trend of the clothing market.

In China, the trend culture movement has been launched vigorously, bringing the two trends of YOHOOD and INNERSECT.

The former attracted at least 50 thousand visitors. Tickets were sold online for thousands of dollars. Please come to Pharrell Williams. The top graffiti artist Futura and others helped.

The latter relies on Edison Chan's intensive farming for many years, making sound volume in eleven.

The popularity of "hip-hop" in China has also become a catalyst for the trend culture. The Supreme products worn by the contestants in the show have brought a lot of exposure to the brand, almost equal to the official sponsorship brands of the program.

In addition to product exposure, Supreme has penetrated into this new rap singer's lifestyle, many times in the lyrics of players.

According to Baidu index, after the launch of hip-hop program in China, the search volume of the word Supreme has increased by 206% over the same period, breaking 13 thousand and 900 times, most of which are from 20 to 35 years old in Guangdong, Beijing, Shanghai and Zhejiang.

Analysts say Carlyle capital is an investment group that is particularly concerned about the growth of the Chinese market. If Supreme was successful in the acquisition of shares by Carlyle capital, the brand may also embark on a global expansion, especially in the Greater China market, which broke out on the eve of the trend market, so it is not ruled out that the possibility of opening a shop in China.

But there are opponents who say that investing in Supreme's niche brands does not seem to fit Carlyle's continuing investment style. The latter is a direct investment behavior, selling arbitrage arbitrage in 3 to 5 years.

However, it is temporarily unknown whether the two sides have signed a gambling agreement.

Judging from the current brand strategy, it is very harsh for Supreme to open a shop. It is considered that a city without shops will not be established. Its shops are distributed only in Losangeles, New York, Tokyo, Paris and London.

Therefore, Supreme may also try to avoid the Chinese market, which is rapidly growing but not mature, and keeps its rarity and particularity.

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