[link to classmates’]a little talk on “Jimmy Choo IPO”

u=3686646263,1325479337&fm=21&gp=0In sum, Jimmy choo’s IPO is a mixed blessing, but personally I prefer to say that the advantages outweigh the disadvantages.

Going public may not damage their prestige but make them better off so long as they have a precise orientation on their different kinds of products. Say ,being more proficient in Perfume, bags and clothing,then promoting them in less luxurious prices  by relying on its strong brand name. What’s more? These things, unlike shoes, are not that require a close-to-perfect for customers[1], so a kind of design will fit far more shoppers than shoes do, thus reducing the cost.As for their shoes, just keep targeting at high-level customers. Or even cut down their inventory and make it a hunger-marketing model. As Somebody said: Scarcity does seem to feeding the frenzy.

We know[2],Jimmy choo’s profit margin lags behind other more diversified rivals, but this is acceptable. Compared with other luxury u=3233929390,3048998091&fm=21&gp=0brands, like LV, Gucci ,Jimmy choo has a much shorter history and less products categories and sub-brands. So it might be an urgent task to diverse their products and enhance the brand name apart from their reputation in shoes.

Secondly, IPO will help them gain more capital in expanding retailer stores[3]. According to the Bloomberg Businessweek[4], people in China are familiar with this luxury brand, but there are a few physical stores in Chinese Mainland, which makes the luxury shoes inaccessible thus losing abundant of market shares. So instead of keeping conservative, accelerating its development in Asia as well as maintaining its high-brand image might be a wisdom choice.

 

Classmate’s blog https://blogs.ubc.ca/nodokahashimoto/2014/09/25/21/

 

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