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The global luxury brands eager to flock to the Hong Kong stock market Asian consumers attention

Many of the world high-end luxury brand plans listed in Hong Kong to take advantage of strong capital markets – and to attract more customers – because of growing demand for Asia’s high-end products.

Following the French cosmetics chain L’Occitane successfully funding more than 700 million U.S. dollars last year in an international financial center, Prada in January this year, also listed in Hong Kong, so Hong Kong has become one of the most attractive places of luxury brands.

Italian Prada fashion company listed in Hong Kong later this month is expected to raise up to $ 2,000,000,000.

U.S. brand handbags COACH (Coach) has been listed in New York in May, also said the company plans listed in Hong Kong at the end of the transaction, would like to take to strengthen the visibility of the brand in the Asia-Pacific region.

Senior luggage manufacturer Samsonite (Samsonite) also began this week on sale in Hong Kong stock market was also expected it to raise funds up to $ 1.5 billion.

Market rumors British Burberry brand is also considering listing in Hong Kong, because of the high-end retailers compete for the fastest development speed of China, the world’s luxury goods market.

Under the promotion of strong economic development, the market is expected to become the world’s largest luxury goods market in China in 2015.

With the overwhelming are relevant advertising on the shares listed in Hong Kong boom, the streets and newspapers to attract local retail investors to subscribe for the luxury brands on sale of stock or money to buy their handbags and shoes.

CLSA’s consumer analyst Aaron Fischer told AFP that the listing is a way to increase brand awareness in Asia “.

The global luxury goods turnover of these companies already have a half from Asian consumers.

The strong economic development in China has millions of dollars in the number of households rose sharply to as much as 1.11 million.

Faced with such a large wealthy class, private yacht manufacturers and Sotheby’s and Christie’s have to wait for the auction house is also eyeing the Chinese market. Hong Kong is already in the auction industry in New York and London test the level.

China’s strong capital market so that Hong Kong has become one of the world’s largest IPO market in 2010.

The company of last year, the public offering shares in Hong Kong IPO to raise funds up to $ 50 billion, making it the world’s largest IPO market.

Qiao Liu, Peking University Guanghua School of Management, a finance professor, said, “listed in Hong Kong will contribute to the Prada and Kou Chi profit on strong capital markets in Asia.

“As the market and future growth points in Asia, so for these companies listed in Hong Kong is a natural move.”

He said that the listing of high-profile “the same so that consumers become shareholders of the Company, which will further enhance their brand loyalty.

Make this investment enthusiasm to second-hand designer handbag retailer Milan Station last month listed on the bid as much as 77% above the offer price.

Milan Station 2100 times oversubscribed, the highest ever of the Hong Kong stock market.

U.S. consumer analyst Jonathan Galaviz said, “Asia is the center of the capital market, any business contacts with Asian companies are naturally considered in the local market.”

He said, “Any retailers should pay attention to Asian consumers.


Prada Hand Bag to promote luxury consumption market

Like Prada and other luxury brands competing to consider listing in Hong Kong is not surprising. Second-hand designer handbag retailer Milan Station’s public offering of up to $ 35 million, a record 2,000 times oversubscribed in Hong Kong.

The high-end luxury industry has become a hot investment theme. Hong Kong residents, the average brand spending in the past five years, annual growth of up to 18%. Mainly from the Chinese mainland visitors to Hong Kong in 2009 for $ 35 billion of spending.

Milan Station is only a beginning. Prada, Jimmy Choo and Samsonite companies plan to increase brand awareness in China listed in Hong Kong.

Experts predict that China will become the world’s largest luxury goods market in 2015. But to make a profit still need to face the challenges. Mainland China’s tariffs are still high, so that Hong Kong’s brand-name prices to 20% cheaper than the mainland. The industry is expected to only 40 percent of China’s luxury consumption in mainland China.

The other big risk is that Chinese consumers are more and more money, they will taste more self-confident, the possibility of carried away by the big brands will be greatly reduced.

In addition, today’s winner will not necessarily be tomorrow’s winners. Chinese brands dominate the high-end liquor market, but also most likely to enter the jewelry and other industries. Consumer tastes change, the Western luxury brands dominate the world situation is not necessarily static.