Prada's Secret Of "Going Against The Market"

This is a pleasant surprise.

Prada opened 26 new businesses in the first half of this year.

The United States has not yet.

Although Prada was in the US in the first half of the year

From a more general point of view, perhaps a better statement is that the rich can buy anything but the poor can't afford anything.

Christian bass, a Credit Suisse analyst specializing in clothing and footwear companies, attributed the contrast to the widening gap between the rich and the poor among the two different types of consumers in the United States.

These two categories of consumers can be classified as "revenue reporting" consumers and "asset liability phenotypes" consumers.

In short: 54.5% of American consumers earn less than $100 thousand a year. These people are so-called "revenue reporting" consumers who decide whether to buy a product based on their income this week.

Further, we can see that in the group earning less than $50 thousand a year, the unemployment rate is maintained at around 17%.

To sum up, over the past ten years, the proportion of consumers who earn less than 100 thousand dollars a year has dropped by 6% in the total consumption expenditure of the United States.

In the same period, the proportion of the income of the group in the national income also dropped from 58% to 54.5%.

According to bath, a concise conclusion can be drawn: do not buy shares of companies selling simple non essential items unless their share price is very low, far below fair value.

This means that companies such as Quiksilver and Columbia Sportswear may be at risk.

Speaking of speed boarding, the company is a mature brand and is currently undergoing pformation.

In addition, companies that are too focused on the US domestic market should not be optimistic, because Prada's performance shows that the current growth potential of apparel companies is mainly from China.

Such companies include the Limited Brands and Under Armour, which are the core of the US market.

Next is good news: Buzz then described the "asset liability phenotype" consumer, that is, the 45.5% people who earn more than 100 thousand dollars a year.

These people usually do not adjust their spending habits according to weekly salary changes.

Their unemployment rate is maintained at around 3.6%, which, in the words of economists, can be regarded as "full employment".

(don't ask me why, obviously they think that 4% unemployment rate is no better.

The "asset liability phenotype" consumers are enjoying a boom: their average income has increased by 10% over the past ten years, and their share of national income has increased from 42% to 45.5%.

Bass described the change in a very cautious way. He said: "I think people should realize that structural changes in the economy are very important, and that the balance sheet consumers are getting bigger and larger from the total income pie."

In other words, the rich are getting richer.

Bath's conclusion is not a joke.

What companies are making money in the business of the rich? Prada is of course the same. Coach is also a typical example. The latter quarter's performance has been very eye-catching, and sales in the Chinese market have soared by 71%.

Hermes? This company is famous for its horsemen style scarves and ties. Its revenue increased by 22% in the first half of this year.

Finally, I recommend another company: Sportswear manufacturer Lululemon.

Although I personally prefer Nike (Nike) sportswear, I have no opinion on the Lululemon company or the yoga exercise itself.

But who will buy $100 yoga pants? The rich, yes, the rich.

Howard, a RBC analyst at the Royal Bank of Canada, recently said that the number of Lululemon reported in his earnings this quarter was the strongest.

In the last quarter, the company's revenue, profit margins and earnings per share have all increased, which is somewhat like Prada.

Nevertheless, the performance of this stock shows that people are generally optimistic about the company, so it is not a good opportunity to start.

With the popularity of yoga, Lulu may even steal Prada's limelight.

Lo Rhine Hacci Sin, analyst at Bank of America, believes that the company will open 35 new stores in 2012.

In the latest quarter, the company's revenue grew by 40%.

Perhaps everyone has a yoga master in his heart, or a craving for leather handbags, or both.