Maje Parent Company Listed On The First Day Below The Issue Price Retail Environment Is Grim

According to the world clothing and shoe net, the global fashion retail industry is still facing challenges. This year, the most fashionable fashion brand Maje, the French fashion group SMCP, hit the issue price on the first day.

The SMCP group was priced at 22 euros per morning at IPO in Paris this morning, but dropped 3% to 21.29 euros per share after opening, and the market value was about 1 billion 600 million euros as of the deadline.

SMCP group, currently holding by Shandong Ruyi group, is the second largest IPO in Paris stock market this year, and is expected to raise 127 million euros.

In addition to Maje, the group also owns three fashion brands, Sandro and Claudie Pierlot.

In October 2016, after 6 months of negotiations, Shandong Ruyi group bought 1 billion 300 million of the SMCP group's 70% stake from the private equity giant Kohlberg Kravis Roberts & Co., which includes some debts of SMCP group.

It is noteworthy that after the completion of IPO financing, the stock of Ruyi group in Shandong will drop to 51%, and Judith Milgrom, founder and artistic director of Sandro Evelyne Ch trite and Maje, has 2.2% and 2% shares respectively.

SMCP group is headquartered in Paris, France. The founder of Evelyne Ch e trite and Judith Milgrom established Sandro and Claudie Pierlot two brands in 1984, and founded the Maje brand in 1998.

Kohlberg Kravis Roberts & Co. acquired SMCP group in 2013.

Since 2010, the size and revenue of the SMCP group have been increasing rapidly.

From 2014 to 2016, the average annual sales growth rate reached 24% and the gross profit margin increased by 32.5% annually.

At present, the group has more than 1200 stores in the world, and France has more than 4450 employees.

SMCP group added 105 new outlets in 2016, opening new brand stores in emerging markets such as Hongkong and Toronto, respectively.

As of last year, the group's three brands have 67 stores in mainland China.

This year, SMCP group plans to expand further in the world, increasing 100 to 125 outlets.

At present, SMCP group begins to pay more attention to the development of digitalization. Its brand has added online business last year. Sandro and Maje are also officially stationed in Tmall mall, and its brand Sandro Homme and Claudie Pierlot will also enter this year.

The group said earlier that it will accelerate the development of online business in China. Sandro and Maje have launched the official website of the Chinese version.

At present, Sandro, Maje and Claudie Pierlot brand clothing has been deeply loved by the middle class in the Chinese market because of its minimalist design style and cost-effective performance.

However, although Sandro and Maje are their core brands, the smaller Claudie Pierlot is the fastest growing brand in the past three years, with a compound annual growth rate of 30%. Last year, sales exceeded 100 million euros, accounting for 16% of the group's total sales.

After being acquired by Ruyi group of Shandong, Claudie Pierlot has accelerated its expansion process in Korea, Hongkong and Mainland China in the past year. Isabelle Allouch, brand manager, emphasizes that China will be one of the areas where the brand will develop in the future.

In order to persuade long-term investors, SMCP group is also becoming faster and faster.

It is reported that SMCP group's brand is supplemented by two series of supplements every year, and the designer's capsule series is constantly increased.

Daniel Lalonde also revealed earlier that SMCP group hopes to learn from Zara's commodity management mode. At present, the company will provide 25 new products for each brand in each store every week.

Some analysts pointed out that the development of China's market will become the focus of SMCP group's future development.

After the acquisition of SMCP group's control by Ruyi group in Shandong last year, sales of Sandro, Maje and Claudie Pierlot three brands in Asia increased by 45%.

According to the fashion headline data, China's sales account for 12% of the group's total sales.

Three of the SMCP group

The sale is about 300 euros in dress dresses and about 200 euros in handbags.

It is in the category of light luxury.

In recent years, light luxury products have become a dark horse in the industry and widely loved by consumers, but this does not mean that brands can be once and for all.

Bernstein analyst Mario Ortelli believes that despite the revival of the luxury sector today, changing consumer preferences are potential long-term challenges to clothing brands.

That is to say, whether we can continue to provide consumers with fresh feeling is the key to truly test the long-term profitability of the brand.

Even the earliest light luxury brands, Michael Kors and Coach, are not easy to operate.

In addition to the problem of excessive discount and excessive expansion, luxury brands often face the impact of fashion business and fast fashion.

According to IPO of SMCP group, analysts said that this shows the optimistic outlook of the capital market on SMCP's performance and the company's right.

However, in today's increasingly fierce market competition, it remains a question whether the brand of SMCP group can maintain the consumer's love for it.

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