Original link: https://www.latepost.com/news/dj_detail?id=1341
LVMH vs recession, 3:0
Last year, the proportion of the world’s richest people was only 0.1 percentage points higher than the previous year, which is enough for luxury goods companies to achieve new highs. This week, LVMH, the parent company of Louis Vuitton, showed no signs of abating the spending appetite of the wealthy.
In the first nine months of this year, LVMH’s total revenue exceeded 56.485 billion euros, a year-on-year increase of 28%. Among them, the revenue in the third quarter was about 19.8 billion euros, a year-on-year increase of 27.35%, the growth rate was slightly higher than that in the first and second quarters, and also higher than the consensus of analysts.
The strong dollar makes Americans who spend their summer vacations in Europe more daring to buy things. Sales in Europe have increased by 43% year-on-year, and the US market has also increased by 19%. The Asia-Pacific region (excluding Japan), which accounts for one-third of LVMH’s revenue, turned positive.
The Chinese market is still to be repaired. LVMH management said that it is definitely better than the second quarter, but it will continue to observe, and can not give any conclusive conclusions now. When asked by CICC analysts if the company was considering opening a store in Hainan, LVMH made it clear that it was “impossible” and would not consider tax-free channels now.
LVMH CFO Jean Jacques Guany said demand for the company remained strong even as the global economy weakened. Wall Street analysts say that this is because of the consumption orientation of the rich to have fun. “Alive is the best news, and no one wants to take money to the grave.”
In February of this year, Louis Vuitton increased prices across the board, with an average increase of 20%. Chanel continued to increase prices in March this year on the basis of three price increases last year. At the end of September, a Hermès crocodile skin Kelly bag was auctioned for a high price of 352,800 euros. No one knows how long this conspicuous consumption will last.
The revenue growth rate of Gucci parent company Kering Group has slowed down in the first half of this year. From the fourth quarter of last year to the second quarter of this year, the revenue growth rate of the United States, Japan and the Asian market excluding Japan has dropped for three consecutive times. The financial report of Richemont Group, the parent company of Cartier, also saw a similar trend.
With the IMF and other market bodies downgrading their global growth forecasts, HSBC analysts have warned that luxury goods, also affected by the recession, will be the real test this winter. (Gong Fangyi)
NIO to enter the United States in 2025? Li Bin said to look again
Li Bin, founder and CEO of Weilai Automobile, recently accepted an exclusive interview with German media, and talked about his expectations for Weilai, his views on competitors, and further internationalization plans. Here are some of Li Bin’s thoughts:
“Tesla focuses on technology and efficiency. For Weilai, the user is the center”
- Tesla is a respected automaker, and NIO can learn from them, such as direct sales or how to improve production efficiency.
- Tesla plays an important role in the electrification transformation of the automotive industry. But if their products or services are not good enough, they will soon be eliminated from the market.
- NIO and Tesla are two different companies. Tesla focuses on technology and efficiency. For Weilai, technology is important, but users are the center of the company.
- It was originally planned to enter the U.S. market by the end of 2025, but the recently announced inflation reduction bill in the United States is not good for overseas car companies, and Weilai has to carefully observe the development of the situation.
Weilai has just started, whether it is successful or not will really see the difference in ten years
- Like a marathon, people don’t look at who wins the first mile, they look at the last mile. NIO is just getting started, and it will be ten years before we know if we are really successful.
- Now entering the German market because of the technical and strategic reserves, we hope that the company will become a global brand and provide products that customers really want.
- Don’t want to just play the role of an automaker, have a community in China and want to have one in Europe.
- Compared with the old German car companies, Weilai is still a young and small company, and there are many places to learn from German companies.
The sub-brand went public two years later. For the global mass market, the price is cheaper
- SUVs are very popular, but also seeing the market demand for small cars, the NIO sub-brand will make these products, targeting the global market, with cheaper pricing. It is expected to go public in two years, so the company’s sales will grow rapidly.
- It hopes to become one of the top five automakers in the world by 2030.
- There is an exact profit plan, step by step. It took Tesla 16 years to make a profit. Weilai will achieve faster. (Gong Fangyi)
Byte increases option buyback price, $155 for incumbents, $116.25 for departures
“Waidian Finance” learned from people familiar with the matter that ByteDance has launched the second round of employee option buybacks this year, at $155 per share, which is $13 higher than the buyback price in April this year.
Now that the repurchase price continues to rise in this big environment, some ByteDance employees said they were very happy after receiving the notice. As far as we know, the repurchase price of departing employees has also increased, from $106.50 in the previous round to $116.25 per share this time. The increase is the same as for current employees.
Previously, media reported that ByteDance’s revenue increased by 80% last year, and its operating loss was US$7.15 billion. Revenue growth slowed to 54% ($18.3 billion) in the first quarter of this year, but it posted an operating profit. (Shi Xian)
Jiaoxia 10% single product contributes 70% of income
Recently, Jiaoxia, which started by selling sunscreen umbrellas, updated its prospectus and achieved revenue of 2.21 billion yuan in the first half of this year, a year-on-year increase of 81.3%. Net profit reached 490 million yuan. The average selling price disclosed in the prospectus shows that an umbrella is 102.5 yuan and a hat is 98.1 yuan.
Jiaoxia was founded by Ma Long in 2013. Umbrellas used to be its main source of income. The popular models were double-layer small black umbrellas, pocket umbrellas and capsule umbrellas. In 2018, Jiaoxia surpassed Paradise Umbrella during the 618 promotion to become the day’s umbrella sales champion. Since 2020, the proportion of umbrellas in overall revenue has gradually declined, falling to 11.8% in the first half of this year. Instead, clothing has become the main source of income, and the proportion of income has risen to 35.8%.
Like most new consumer brands, Jiaoxia has created explosive models through heavy investment in marketing and seized more market share. From 2019 to 2021, advertising and marketing expenses accounted for 9.6%, 15.0% and 24.4% of the total revenue for the same period, respectively. In 2021 alone, more than 600 KOLs will cooperate with Jiaoxia, including some top anchors. In the first half of this year, the number of cooperative KOLs increased to 1,577.
Jiaoxia will develop a total of 223 single products in 2021, of which the top 30 popular single products will account for 74.1% of the revenue. At present, Jiaoxia’s categories have expanded to 421 items such as clothing, hats, accessories, and shoes, of which 24 items have annual sales of more than 30 million yuan. Although the proportion of marketing expenses in the first half of this year fell to 11.9%, it only decreased by 16.5 million yuan compared with the same period last year.
In order to ensure that there is money to be made, Jiaoxia launches a new product. It will first determine the retail price, and then determine the profit multiple, so as to calculate the cost of each link, and then match suppliers upstream. Among them, the multiples set by strong categories such as umbrellas, masks, and hats are higher than the industry average. By the end of 2021, Jiaoxia has cooperated with 166 factories.
According to the prospectus, founder and CEO Ma Long holds 29.07% of the shares, and co-founder Lin Ze holds 27.91% of the shares. The founders of Jiaoxia and their spouses together hold a 64.94% stake in the company. In addition, Sequoia Capital and Fengqiao Capital respectively hold 19.37% and 6.96% of the equity. (Intern Zeng Xing)
CHART OF THE DAY丨Chinese companies added nearly 6 trillion yuan in deposits in the first 9 months
OTHER NEWS
A total of 542 positive cases were reported in Yuncheng, Shanxi.
- On October 11, there were 374 new local confirmed cases and 1,386 asymptomatic infections.
- Beijing added 10 local confirmed cases and 1 asymptomatic infection.
- As of 15:00 on the 12th, there were 5 new cases of local infection in Beijing, 1 of which was found by social screening.
- In Shanghai, 4 new local confirmed cases and 34 asymptomatic infections were added.
- On the 12th, 1 new confirmed case and 1 asymptomatic infection were added to the Shanghai community.
- Guangdong added local “43+11”, of which Shenzhen added local “23+6”.
- In Chongqing, there were 17 new local confirmed cases and 27 asymptomatic infections.
- Shanxi added 78 new local confirmed cases and 57 asymptomatic infections.
- A total of 542 positive cases were reported in Yuncheng, Shanxi.
- Xinjiang added local “62+379”, of which Urumqi added local “40+225”.
The office building where Pinduoduo’s headquarters office is located is temporarily closed to cooperate with epidemic prevention and control.
According to the closure notice published by Weibo users, the two office buildings of the Jinhongqiao International Center at No. 533 Loushanguan Road, Shanghai, where Pinduoduo is headquartered, will be closed and controlled from October 9 to October 16. Among them, the owners of the 31st, 30th and 30th floors of the North Building and the 31st, 30th and 25th floors of the South Building were judged to be in close contact.
Institutions are worried that the European energy crisis will lead to a reduction of 1 million vehicles in the region.
S&P Global Mobility warned in a new report that energy shortages and soaring prices could hit the European auto industry chain this winter. From the third quarter to the end of next year, Europe may reduce production by 1 million new cars, equivalent to 40% of production capacity. They speculate that the cost of manufacturing each car in Europe has risen from 50 euros per vehicle before the energy crisis to at least 687 euros.
Intel plans to cut thousands of jobs.
According to media reports, affected by the decline in demand for PC processors in its main business, Intel plans to announce its third-quarter earnings report on October 27 and announce layoff plans. Thousands of layoffs are planned, including about 20% in sales and marketing. As of July, Intel had 113,700 employees.
Breeding enterprises stocked up for the winter, and soybean meal prices rose again.
Recently, Haid Bio, Dianda Feed, Longkou Xinlong and other feed manufacturers announced to raise the price of soybean meal from the factory, ranging from 50-130 yuan / ton. 5100 yuan per ton. A number of brokerages analyzed that the current rise in soybean meal is mainly due to the fact that breeding companies foresee an early cold winter this year, and prepare for the winter such as raw pork and chicken in advance.
SK Hynix and Samsung were temporarily exempted from restrictions on US technology exports to China.
On October 12, South Korean memory chip maker SK Hynix said in a statement that it has negotiated with the U.S. Department of Commerce and can supply Chinese factories with the required semiconductor production equipment without additional licenses within the next year. According to media reports, Samsung Electronics also received a one-year exemption.
Tianjin Pharmaceutical acquired Yumeijing, a children’s skin care brand, for 1.391 billion yuan.
Recently, the prospectus disclosed by Tianjin Pharmaceutical showed that it paid a total of 1.391 billion yuan through self-raised funds to acquire a 93.8691% stake in Yumeijing. Tianjin Pharmaceutical said that Yumeijing currently has no interest-bearing liabilities and has ample cash flow. In the first half of this year, its revenue was 151 million yuan and its net profit was 13 million yuan. Founded in 1979, Yu Meijing launched China’s first children’s cream the following year.
A-shares opened lower on October 12 and moved higher, and the Shanghai Composite Index returned to 3,000 points.
On the same day, the A-share Shanghai Composite Index fell by 1.53% (13:10), then bottomed out and rebounded. At the close, the Shanghai Composite Index rose 1.53%, the Shenzhen Component Index rose 2.46%, and the ChiNext Index rose 3.6%.
PepsiCo’s third-quarter revenue rose 9%, and the average product price rose 17%.
Luxury group CEOs say they have the ability to pass on costs to consumers. Fast-selling companies can too. PepsiCo’s third-quarter revenue rose 9 percent to $21.97 billion. The agency estimates that the average price of their goods has risen by 17%, and the management has therefore raised its full-year performance expectations.
Singapore apartment rents have risen for 21 consecutive months.
Singapore apartment rents rose 31% year-on-year in September, the 21st straight month of increases, according to property website 99.co. Among them, rents in the central core area increased by 29%. Nearly all places where prices can rise in Singapore have risen recently, which has raised concerns about a local economic bubble.
Demand for PCs drops, and Intel plans to cut thousands of jobs.
Intel plans to announce layoffs in the thousands when it reports its third-quarter earnings this month in response to a shrinking PC market, people familiar with the matter said. As of July, Intel had 113,700 employees.
This article is reprinted from: https://www.latepost.com/news/dj_detail?id=1341
This site is for inclusion only, and the copyright belongs to the original author.