Luxury Prada, Coach jumped on financing Expresss

Allegedly produced by the plant quality fully comparable to the Italian master craftsman, due to the “bag made of quality inspection by the certification staff, they are very carefully with a magnifying glass to each of view.”

Another Hong Kong newspaper refers to Stella International Holdings listed on the HKEx has been produced for Prada shoes. The report quoted the fund managers had attended Stella listed promotion means, when Stella President has admitted that production for the Prada shoes, but based on trade secrets, do not arrange for investors into the factory to investigate.

Another industry newspaper revealed that Prada ski down jacket, but also by a well-known Down manufacturer OEM. He said that for certain products, Prada, 80-90% of process on the Mainland, and then transported back to Italy to assemble the finished product, labeled “Made in Italy” label.

The media pursued nothing but Prada’s attitude on the issue of origin before the “ambiguous”, the lack of argument. At the same time, its competitors Coach morning generous admit honestly marked “Made in China” label.

Consumers were also Prada, not deny, do not want the attitude of positive talk about, and made “very hurt”. Living in Italy, Wang said, “me or her friends, in fact, do not care about Prada is an Italian made or made in China, as long as quality standards, design excellence and will not affect my decision … I just think their approach is somewhat” not on the road. “

“No, this is not true.” When asked whether China has completed most of the processes, Patrizio Bertelli decisively shook his head, crushing rumors. Prada’s first publicly denied that the printing of rumors. “We only have a number of semi-finished products processed in China, the raw materials are transported from Italy to the past, the final process is done in Italy, according to the percentage calculation, only about 20% completed in China.”

Goldman Sachs also report that this approach helps to ensure quality control on the value chain in the same time, also makes Prada guarantee capacity. But can not be ruled out, there will be quality problems in the third-party production process, which is Prada the future development of a risk factor.

Transparency, integrity, social responsibility, is a luxury brand should have a basic value. “Giuliano, the Noci professor said.

Listing in Hong Kong as the first luxury brand Prada is the first time in the investment promotion arranged a 20-minute fashion show, clothing have been shown to OTC, but still attracted about 300 investors attended. President of Miuccia Prada and Patrizio Bertelli, chief executive officer in person to support field.

“Impossible to find a ticket, local fund managers complain,” There are too many people want to go. “It is understood that the whole ring is difficult to get a vote, even if the fund managers play the human card, said his fund size much arrangements still cold to each other. Had the honor of admission fund managers, syndicate Banker is a rare show had devoted mind, usually dressed conservative Banker to throw the chest barelegged dressed.

“Ultra-expensive products, stock uneven

Prada times to Hong Kong to raise capital, sold a total of more than 400 million shares, funds raised up to more than HK $ 20 billion. Over Bacheng shares for the placing of existing shares, raising net proceeds of only about HK $ 2.44 billion, of which 75% is intended to be used to expand the network of outlets, 15% to repay bank loans and the balance for general operations.

Prada intends to use the fund-raising proceeds to open 80 new outlets during the year, of which 25 will be located in the Asia-Pacific region, 10-12 in China. Overall, Prada and Miu Miu, half and half.

Sub-offer price of between $ 36.5 to $ 48, equivalent to this year’s forecast earnings (P / E) 21 to 28 times the market said with a smile, “ultra-expensive products, stock price level (not cheap) Well”. In contrast, in France listed LVMH corresponding this year’s forecast earnings of only about 19 times listed in the Swiss Richemont only 18 times just Hermes price-earnings ratio, 39 times.

Nevertheless, Prada, to start the International Placing, as of yesterday, four times over-allotment, the situation is gratifying. No wonder the Prada management of the company’s fifth public financing considerable confidence. Start public offering in June 13, many of Hong Kong, surrounded by eager, Prada to listing? More or less going to smoke handedly (new shares) to try. “

Why Hong Kong?

In addition to Prada, early step in to raise funds in Hong Kong Samsonite (Samsonite) is also listed in the 16th; Coach also intends a secondary listing in Hong Kong, but only financial popular financing “.

Nasdaq in the United States is listed on many Chinese brand dream, why these luxury brands are entrusted to the Hong Kong market?

Patrizio Bertelli, Prada chief executive officer, said the June 12 press conference, the Company was “Whispering Hong Kong”, mainly because Asia is a strategic area, at the same time, China will soon become the world’s largest luxury goods consumer market.

Industry analysts pointed out that the luxury brands to come to Hong Kong-listed to seek signs started in China and other key target markets; Second, the Hong Kong stock market has always been sufficient funds, the enterprise is easy to obtain a higher valuation compared to other markets. “Misappropriating ability stronger. According to the Hong Kong Economic Daily News quoted the HKEx Listing Promotion, head of Blue Bowen (Eric Landheer), within the meaning of luxury brands in Hong Kong issuer of the main force to promote one of the categories, the agency has been actively visited Italy, France, Greece, to the local brand to promote Hong Kong’s listing platform.

Prada drama has not yet ended, rumors resurgence of the other side of the planet, said the high valuation of many European brands jealous Prada in Hong Kong, have approached investment banks to the matters listed in Hong Kong, including sports car brand Ferrari.

The foundry debate after the listing

The listing also once reluctant to open OEM factory facts Prada ‘overseas factories had to be open and transparent. Goldman Sachs report points out that Prada, its 11 companies, 10 in Italy, one in the UK. As of January 31, 2011, only about 20 percent of manufactured goods as Prada’s own factory production, the rest of Bacheng have been outsourced. Prada is currently working with 450 suppliers of raw materials and 480 manufacturing enterprises, and employed 170 quality control members. The report described the lift apart from monitoring quality, ensuring capacity adequacy, on the other hand, Goldman Sachs will also be as a massive risk factors, but the report did not mention outsourcing,.

Since last year, after another mainland media exposure Prada factory in China. Prospectus during Hong Kong’s Ming Pao Daily News, “at Prada, quoted industry sources said, Zhongshan City, Guangdong, Hong Kong-owned factories in Maxwell Industries, specializing in OEM production of Prada handbags to help deal with some of the leather process. The end of last year, Prada preparing for listing, has sent to the Maxwell House factory for further review to ensure that the facilities and the environment in line with international standards.

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